Zara is known for its flexibility, speed, and fair value.

Zara is the biggest brand from the mother company

Inditex, a company pioneering in fast fashion situated in Spain. Zara’s success can be attributed to its
implementation of its Business Model that uses the Five Performance Objectives very well and which
has improved their business and made them more efficient, productive and more profitable.

Quality

Zara incorporates a distinctive philosophy in retailing. Though their garments carry an affordable price,
their stores are as grandeur as any other brand. They have stores in the most premium places in the
world which are very well maintained and controlled. Zara even has a prototype store at their
headquarters wherein they test the placement of the garments and then replicate the same all around
the globe. They place complimentary goods together to help customers decide on a combination. This
high level of standardization and unique philosophy allows them to service customers well.

Speed

Zara has thousands of stores globally and their stores are situated in major trade zones where human
traffic is high. With hundreds of designs a month, Zara frequently updates its collections according to
sales reported to Spain. This fast turnover aids to continuously deliver new quality designs by making
them available in stores through shipments every two weeks, attracting customers to often visit their
shop. Through integration, Zara can operate a quick distribution of merchandise, due to its own efficient
supply chain. Zara is faster than its competitors in terms of interpreting trends that are on the runway
from higher end designers, thanks to the right teams of professional designers. Zara’s designers don’t
work in silence; they are in constant touch with the customers. This is the key to fast fashion.

Dependability

Most of the production takes place in Europe out of which around half of those are produced in their
headquarters. The fabrics are principally sourced from Italy, France, and Spain. Designing and cutting are
done in-house, whereas a major part of stitching is done by sub-contractors in their workshops. Then
they are received back at the headquarters where a final quality check will be undertaken. After the
quality check, the garments are sent for packaging. The entire packaging process is performed with the
help of state-of-the-art machinery with borderline human intervention. The garments received at the
warehouse are matched with the requirements placed by the stores.

Flexibility

Their strategy is to take their products and adopt them to various markets. Zara adapts its items in each
country in line with clients’ desires, fashion trends, and store sales. This flexibility is Zara’s secret to
success and lies within the widespread network of customers with feedback given from a wide range of
individuals from different cultures and generations. Therefore, Zara’s very reactive, withdrawing designs
if they are largely unpopular. Zara copies new designs that are stylish and trendy. Inspired by luxury
brands but however stay at a reasonable value.
Cost

Zara has very little inventory because of its demand-based production, pushing customers to hurry to
their shops before they ran out of stock. This also permits Zara to have a cost-effective production by
dropping its storage cost.

All this is as a result of their Business Model which includes an everlasting circle of design, sourcing and
manufacturing, distribution, and retailing.