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Zara - a Leader in Fast Fashion Retailing - Case Study Example

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This paper 'Zara - a Leader in Fast Fashion Retailing" focuses on the fact that the clothing company, Zara, operates in a very competitive business environment, facing the likes of such competitors as Marks & Spencer, Burberry, Ralph Lauren, and many other mid-priced retailers in the United Kingdom…
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Zara - a Leader in Fast Fashion Retailing
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Download file to see previous pages While some retailers in the competitive environment have lead times in the weeks or even months, Zara has managed to be able to procure their products and have them manufactured and delivered within 15 days when demand requires it. This is unprecedented on this competitive environment, giving Zara much competitive advantage in areas of the supply chain, manufacturing, and stock replenishment. In terms of the supply chain, Zara is consistently benchmarked for their efficient supply chain process as no other retailer across the globe has been able to achieve a more workable supply chain which can promise merchandise to be delivered twice daily with new fashions and new stock.
The macro environment, in relation to the supply chain, supports the ability for Zara to produce fast fashion merchandise and still maintain control over how the business is able to develop new merchandise fashions. There is a well-developed business infrastructure in terms of distribution and the availability of manufacturers of various textiles and fabrics to give Zara a considerable amount of diversity in the product line and fashion variety. Zara also maintains ownership of many of these elements of the supply chain, giving them the ability to coordinate activities related to replenishment and distribution at the internal level. While other competitors have to rely on the expertise and timely delivery of supplier services, Zara can ensure these activities are efficient and is not affected as much by breakdowns within the supply chain caused by external inefficiencies.
The macro environment is also putting pressure on retailers to adopt new payment systems, since many clothing retailers, including Zara, offer their products online. More convenient and efficient online payment systems are required in order to get consumers interested in making purchases. Therefore, Zara has developed a partnership with PayPal, the international company which provides a multitude of payment and credit services, to assist in checkout when buying Zara products online. ...Download file to see next pagesRead More
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