Zara International-Fast Fashion\'s Style Maker In this world of \"hot today, gau
ID: 385798 • Letter: Z
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Zara International-Fast Fashion's Style Maker In this world of "hot today, gauche tomorrow," no company does fast fashion better than Zara International. Shoppers in a growing number of countries are fans of Zara's knack for bringing the latest styles from sketchbook to clothing rack at lightning speed and for reasonable prices In Fast Fashion, Moments Matter Zara's parent company Inditex is known for year-on-year strong sales gains. Low prices and a rapid response to fashion trends have pushed it into the top ranks of global clothing vendors. The chain specializes in lightning-quick turnarounds of the latest designer trends at prices tailored to the young. Louis Vuitton fashion director Daniel Piette has described Zara as "possibly the most innovative and devastating retailer in the world. Inditex shortens the time from order to arrival using a complex system of just-in-time production and inventory management that keeps Zara ahead of the competition Their distribution centers can have items in European stores within 24 hours of order receipt, and in American nd Asian stores in under 48 hours. "They're a fantastic case study in terms of how they manage to get product to their stores so quick, said Stacey Cartwright, executive ice president and CFO of Burberry Group PLC. "We mindful of their techniques The firm carefully controls design, production, distribution, nd retail sales to optimize the flow of goods, without having to share profits with wholesalers or intermediary partners. Customers win with access to new fashions while they're still fresh off the runway. Twice a week, Zara's finished garments are shipped to physical distribution centers that simultaneously send products to stores worldwide. These small production batches help the company avoid the risk of oversupply. Because batches always contain new products, Zara's stores perpetually energize their inventories. Most clothing lines are not replenished. Instead, they are replaced with new designs to create scarcity value-shoppers cannot be sure that designs in stores one day will be available the next day Store managers track sales data with handheld devices. They can reorder hot items in less than an hour. Zara always knows what's selling and what's not. When a look doesn't pan out, designers promptly put together new products. New arrivals are rushed to store sales floors still on the black plastic hangers used in shipping. Shoppers who are in the know recognize these designs as the newest of the new; soon after, any items left over are rotated to Zara's standard wood hangers.Explanation / Answer
1. Elements of Classical approach are evident in the way things are done at Zara international as there is a planning process followed. The planning and systematic activity of production, distribution and logistics makes it an efficient retail organization with a quick turnaround time. The behavioral approach is evident in the flexibility shown in design development and adaptation to fashion trends. There is more human approach as customer behavior and demands are understood before launching or expansion of business in any market.
Systems concept can explain the success of some practices at Zara as there is a proper mechanism followed for sourcing and production with all elements well integrated and connected from production to distribution to stores. Contingency thinking is behind Zara's sucess as they qucikly spot trends and fashions, produce them and supply to their stores at prices which offer value for money to the customers. Their just in time concept is an example of contingency approach along with fast fashion.
2. Quantitative management and data analytics will help Zara executives plan for its next generation of logistics and management approaches by using demand forecasting techniques. It can plan its production facilities, manage its supply chain, design development and strategy based on the data analytics and quantitative management approach. These techniques provide the performance of a particular product, pricing as per the sales figures, factors behind a stores success, planning procurement and resources.
3. As a consultant to assist expansion in US, the areas which needs to be looked for evidence based decision making are analytical evidence giving details of population, market size, customer opinions and attitude through polls and surveys, dynamics of market problems, cost benefit effectiveness.
4. Yes, the firm is continuing to do well. Other retailers are also gradually adapting to fast fashion strategy by reducing turn around time. Yes, Zara is adapting and innovating by focussing more on supply chain, use of technology and digital means of improving business through social media platforms and online channels. Yes, the firm is still providing worthy managment benchmarks for other firms being cost efficient and affordable with assuring availability of latest fashion products.
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