Part Two: Zara's History

Manufacturing and Distribution

                                               
   Zara had its own factory set up in La Coruña in the 1980's,and upgraded its production and distribution facilities in 1990, controlling most of the steps on the supply-chain, designing, manufacturing and distributing its products. The design of the upgraded factory was done by Toyota Motor Corp and was referred to as the "just in time" system because it allowed a self containment model throughout the stages of materials, manufacture, product completion and distribution to stores worldwide in just a few days.
  By focusing the attention on the fashion items their customers needed and delivering them,Zara saw great success, rather than predicting a season;s trend and promoting it through fashion shows or similar routes which is traditionally used by the fashion industry.
  Zara offers more products than similar companies. It produces 10, 000 distinct products with 2,000 to 4,000 items for its key competitors. If a design doesn't sell well for a week once it hits the store it is taken back to the factory and a new design is pursed, cancelling all the orders for the previous one.
Store managers are given sophisticated technology gadgets which allows them to monitor their customers  preferences or fashion changes, technology such as PDA's with wireless transmission capabilities are generally used.
   Some of the items designs are usually carried over from year to year, while some only stay on the shelf for four weeks, which causes customers to make a return visit as they anticipate the new designs. An average store in Spain expects a customer to visit their store 3 times a years, Zara customers make return visits up to 17 times a year.
   50% of Zara products are manufactured in Spain, 26% in the rest of Europe and the remaining 24% in Asian and African countries and the rest of the world.Zara makes its most fashionable items- which is equivalent to half of all its merchandise- at a dozen company owned factories located in Spain and Portugal, particularly in Galicia and northern Portugal where labor cost is much cheaper. Some of the competitors usually outsource all their production to Asia.
  It was reported that Inditex launched its first online boutique for its best selling brand Zara on September 06, 2010.The website started in Spain, UK, Portugal,France, Germany and Italy, six of the most important countries among the company's 76 markets.Customers online were given the same privileges as the in stores customers in regards to the exchange and return policy. They were also given wide payment option and could have either made a store pick up or paid-for postal delivery.
   Cheif Executive, Pablo Isla said that the company was waiting for the for the online demand to increase before they had ventured out into cyberspace. In November 2010, another five countries were added to the online boutique.
  In 2011, Zara entered the Australian market with a three story, 1400 sqm store in the Westfield Sydney complex opened on April 21, 2011 and a second three story 1800 sqm store a Bourke Street Mall Melbourne  which opened on 15 June 2011.Zara will open its third Australian store in November 2011 at Burnside Village Shopping Centre in Adelaide, South Australia. It will be Australia's largest at 2,300 sqm, and modeled on the design of their Fifth Avenue, New York store.

In November 2011, Zara entered the South African market with a flagship store in the upmarket suburb of Sandton, in Sandton City Shopping Complex, Johannesburg. In March 2012, Zara opened their second store in South Africa, at Gateway Theatre Of Shopping in Durban. Later in 2012, a third store was opened in CapeTown at the Victoria & Alfred Waterfront mall.

Part One: Zara's History

                                             

   The world's largest apparel retailer Zara (which is a Spanish clothing and accessories retailer) is based in Arteixo, Galacia and was founded by Amancio Ortega and Rosalia Mera in 1975.It is the leading chain store of the Inditex Group and  features brands such as Pull and Bear, Massimo Dutti, Uterque, Stradivarius and Bershka.
   Compared to the fashion industry six months average, it is said that Zara takes only two weeks to develop a new product and have it distributed store wide, with an annual record  of 10, 000 new designs being launched. Zara has evolved into the gigantic power fashion house it is today by simply transferring fast fashion production to low-cost countries. With perhaps the most unusual strategy of no advertising; the company invested in opening new stores instead, Which has lead to an increase of their products on the markets.
  The first store opened stocked low priced lookalike products of higher-end popular designs, and wasa major success.Which led to Ortega opening more stores through of Spain. It was in the 1980's that Ortega began to change the designs ,manufacturing and distribution process to reduce the time and react faster to new trends to what he would called "instant fashion".The company began to see greater improvements with information technology and groups of designers instead of individuals.
   International expansion of Zara stores came during in 1980's and 1900's in Porto Portugal, Untied States and France,later expanding in Mexico (1992), Belgium (1994), Greece (1994) etc making its current presence in over 73 countries.
  Zara carries clothing for men and women (current sizing of women US 12 and UK 14) which is subdivided into Upper Garments and Lower Garments,they also feature a line for chidren (Zara Kids), Shoes, Accessories and Cosmetics.

Amancio Ortega: Man Behind "Zara"

                                  
                                        "A truly inspiring story of rags to riches"

Born on March 03rd, 1936 to a railroad worker and housemaid, Ortega left school at a tender age of fourteen to work as a delivery boy for local shirt maker called GALA. Over a period of time working he learn't the ends an outs of business and later found success with his wife in 1972 when he founded ‘Confecciones Goa' which sold mostly quilted bathrobes sewn by local women organised in sewing cooperatives. It was then after Zara, pronounced "Tha-ra" launched. Amancio Ortega had one idea and that was to make clothes in large series inspired by the best designers. He revolutionizes the world of prêt à porter and Zara stores began to open globally and quickly spread which much success.
Ortega being a man shy to the spotlight manged to keep a life away from the media, despite being sent numerous mails from the most prestige publications permission was never granted. The same level of secrecy was maintained by all of his family members.Up until 1999 Ortega was never photographed even though he would eat at the company's cafeteria everyday with his employees. It was in 2000 he made appearance in front of cameras before his company when public in 2001which made headlines in Spanish financial press and he only gave three interviews which shows how much he guards his private life.
In 2011, Ortega announced his imminent retirement from Inditex, parent company of the Zara chain, stating that he would ask Inditex vice-president and CEO Pablo Isla to take his place at the helm of the textile empire.
Ortega managed to rank fourth on the Forbes list.

 With so many words to  describe this brand of clothing chic, classy, well-tailored, cheap and ethical would just be a few. Launched in A Coruna, Galicia in Spain in 1975, Zara is a retailer with clothing for men, women, and kids with over 1,400 stores in more than 70 countries. A company founded on just €30 euros is now worth an estimated  €32 billion. Zara's success can is due to it's broad appeal of style, systems in place for staff to transmit customers preferences to design team, tailoring is of higher quality than other competing prices, expansion of stores globally, the amazing untold story of 75 year old founder Amancio Ortega who Forbes ranks as the fourth richest man in the world, a short yet powerful brand name pronounced "Tha-ra" and not "Zah-rah",spacious store design which makes shopping in a Zara store more delightful and a company who supports the Green and economic appeals.