We all know that in the world of fast fashion, Zara rules the industry. Practically the reason why this term was coined, fast fashion derives its meaning from being able to wear inexpensive clothing which is snatched off the ramp and hits the stores within 24 hours. Zara is particularly known for releasing designs which have just taken off in the industry and with the lean inventory management model that it follows, this fashion giant has managed to emerge as one of the most profitable clothing brands in the world.
A Spanish apparel brand, Zara has been disrupting the industry with its evolving technological development and inventory management systems which has every other clothing brand make a run for their money. Let’s learn more about how Zara manages to maintain it’s share in the market!
Lean Inventory Management
The Just-In-Time model works brilliant for this clothing chain which has it’s presence in all the major cities of the world. The brand holds a low stock and continuously updates itself when it comes to supplying it’s clothes to all it’s retail outlets across the globe. This inventory model allows store managers to place orders twice a week and the clothes are also delivered to them twice a week. The company opted for a vertical integration which gave them much more freedom in devising the best possible route in having it’s clothes reach it’s retail outlets.
Customer Value & Satisfaction
Zara does not sell it’s clothes but sells a consumer experience. The brand has all consumers rushing to it’s stores as soon as the new stock comes out and makes it a point to not dole out any sales that would reduce the brand value and image. Moreover, owing to it’s supply chain management system, the brand allows customers to exchange or return any clothes from and at any store in the world. The store also offers cashbacks which are a huge hit amongst the consumer base.
Neuro Marketing
Product placement is extremely crucial when it comes to attracting your consumers and Zara makes a really good case in doing so. Moreover, the stores are always located in uber and posh areas, nestled amongst other brands and the lighting is set in a way that entices consumers and gives them a royal feel.
Agility and Resource Optimization
Since Zara makes use of the one-piece model which essentially lets the fashion giant only produce it’s apparel in smaller quantities, Zara is able to curtail on it’s spend on raw materials quite as much. While brands tend to burn their products than let them go on sale, Zara takes efforts into ensuring that it does not let any wasteful resources come into picture.
The brand has definitely revolutionized the fashion industry with its supply chain management and fast fashion model. It’s a brand which has established it’s presence in the market and is here to stay for aeons to come.
