The Zara Way: How Inditex beats the competition (business model analysis)

Fashion forecasting is time consuming and expensive. And there are chances that you get it wrong.

Designers often think many seasons ahead but Spanish retailer Zara has a different idea.

They listen to what consumers want right now and deliver it quickly, instead of gambling on what the next big trend might be.

It’s the Zara way!

This model relies on quality sales data and observational research.

Zara’s store managers are pivotal in this process. Store managers interact with clients every day and know what the consumer wants, and products are created with maximum speed.

Step 1: The commercial team works with designers to develop products.

Step 2: New styles are prototyped in just 5 days.

Step 3: 60% of the manufacturing happens locally to speed up the process.

Once shipped to the logistics center in Zaragoza (Spain), the products are trucked to a nearby airport and flown all over the world in less than 24h.

And off they go! The whole cycle, from concept to store, takes only a month.

Fashion is trend-based and brands that are able to respond quickly can achieve competitive advantage.

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Credit: Fastcodesign. Click here to read the full article.

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