Zara (clothing)
Overview
 
Zara (ˈθaɾa) is a Spanish
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

 clothing and accessories retailer based in Arteixo
Arteixo
Arteixo is a municipality of Spain in the Province of A Coruña, in the autonomous community of Galicia. Its area is 93.76 km² and its population is 29,762...

, Galicia, and founded in 1975 by Amancio Ortega and Rosalía Mera
Rosalia Mera
Rosalía Mera Goyenechea is one of the richest people in the world. She began designing gowns and lingerie in her home with her then-husband, Amancio Ortega Gaona. The couple parlayed their work into a multi-billion-dollar corporation, Inditex, and the Zara line of clothing stores...

. It is the flagship
Flagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...

 chain store
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

 of the Inditex
Inditex
Industria de Diseño Textil, S.A. , more commonly known as Inditex, is a large Spanish corporation and the world's largest fashion group. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution...

 group; the fashion group also owns brands such as Massimo Dutti
Massimo Dutti
Massimo Dutti is a company belonging to the Spanish Inditex group dedicated to the manufacturing of clothing. It was created in 1985 and its product range was limited to men's clothing....

, Pull and Bear
Pull and Bear
Pull and Bear is a Spanish clothing and accessories retailer based in Narón, Galicia and founded in 1991. In September 2011, the company will sell through an online store. -Concept & Style:...

, Oysho, Uterqüe
Uterqüe
Uterqüe is a company belonging to the Spanish Inditex group , that was created in September 2007 as a new store and fashion concept. The name is Latin and can be translated as "one of each" or "both this and that"...

, Stradivarius
Stradivarius (INDITEX)
Stradivarius is an international women clothing fashion brand from Spain, the Inditex group.-History:Stradivarius was developed in 1994 as a family owned business with an innovative concept in fashion in Barcelona, Spain...

 and Bershka
Bershka
Bershka is a company belonging to the Spanish Inditex group , that was created in April 1998 as a new store and fashion concept, aimed at a young target market. It now has 734 stores in 49 countries....

.

It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year.
Unanswered Questions
Encyclopedia
Zara (ˈθaɾa) is a Spanish
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

 clothing and accessories retailer based in Arteixo
Arteixo
Arteixo is a municipality of Spain in the Province of A Coruña, in the autonomous community of Galicia. Its area is 93.76 km² and its population is 29,762...

, Galicia, and founded in 1975 by Amancio Ortega and Rosalía Mera
Rosalia Mera
Rosalía Mera Goyenechea is one of the richest people in the world. She began designing gowns and lingerie in her home with her then-husband, Amancio Ortega Gaona. The couple parlayed their work into a multi-billion-dollar corporation, Inditex, and the Zara line of clothing stores...

. It is the flagship
Flagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...

 chain store
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

 of the Inditex
Inditex
Industria de Diseño Textil, S.A. , more commonly known as Inditex, is a large Spanish corporation and the world's largest fashion group. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution...

 group; the fashion group also owns brands such as Massimo Dutti
Massimo Dutti
Massimo Dutti is a company belonging to the Spanish Inditex group dedicated to the manufacturing of clothing. It was created in 1985 and its product range was limited to men's clothing....

, Pull and Bear
Pull and Bear
Pull and Bear is a Spanish clothing and accessories retailer based in Narón, Galicia and founded in 1991. In September 2011, the company will sell through an online store. -Concept & Style:...

, Oysho, Uterqüe
Uterqüe
Uterqüe is a company belonging to the Spanish Inditex group , that was created in September 2007 as a new store and fashion concept. The name is Latin and can be translated as "one of each" or "both this and that"...

, Stradivarius
Stradivarius (INDITEX)
Stradivarius is an international women clothing fashion brand from Spain, the Inditex group.-History:Stradivarius was developed in 1994 as a family owned business with an innovative concept in fashion in Barcelona, Spain...

 and Bershka
Bershka
Bershka is a company belonging to the Spanish Inditex group , that was created in April 1998 as a new store and fashion concept, aimed at a young target market. It now has 734 stores in 49 countries....

.

It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion
Fast fashion
Fast fashion is a contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time to capture current trends in the market. This has developed from a product-driven concept based on a manufacturing model referred to as "quick response" developed...

 production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. This has increased the idea of Zara as a "fashion imitator" company and low cost products. Lack of advertisement is in also contrast to direct competitors such as United Colors of Benetton

Zara was described by Louis Vuitton
Louis Vuitton
Louis Vuitton Malletier – commonly referred to as Louis Vuitton , or shortened to LV – is a French fashion house founded in 1854 by Louis Vuitton. The label is well known for its LV monogram, which is featured on most products, ranging from luxury trunks and leather goods to ready-to-wear, shoes,...

 Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world." Zara has also been described as a "Spanish success story" by CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...

.

Origins and history

The founder of Zara, Amancio Ortega, opened the first Zara store in 1975 in a central street in downtown A Coruña, Galicia, Spain. Its first store featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega began opening more Zara stores throughout Spain. During the 1980s, Ortega started changing the design, manufacturing, and distribution process to reduce lead times and react to new trends in a quicker way, in what he called "instant fashions". The company based its improvements in the use of information technologies and using groups of designers instead of individuals.

In 1980, the company started its international expansion through Porto
Porto
Porto , also known as Oporto in English, is the second largest city in Portugal and one of the major urban areas in the Iberian Peninsula. Its administrative limits include a population of 237,559 inhabitants distributed within 15 civil parishes...

, Portugal. In 1989 it entered the United States and in 1990 France.

This international expansion was increased in the 1990s, with Mexico (1992), Greece (1994), Belgium and Sweden (1994), etc. until reaching its current presence in over 73 countries.

Zara stores are company-owned, except where local legislation forbids foreigner-owned businesses; In those cases, Zara franchises
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 the stores.

Products

As of 2007 Zara stores have men's clothing and women's clothing, each of these subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and Complements, as well as children's clothing (Zara Kids). Currently their sizing on women's clothing goes to a US size 12 or a UK size 14 or extra large.

Manufacturing and distribution

Zara is a vertically integrated retailer. Unlike similar apparel retailers, Zara controls most of the steps on the supply-chain, designing, manufacturing, and distributing its products.
Zara set up its own factory in La Coruña (a city known for its textile industry) in 1980, and upgraded to reverse milk-run-type production and distribution facilities in 1990. This approach, designed by Toyota Motor Corp., was called the just-in-time (JIT) system. It enabled the company to establish a business model that allows self-containment throughout the stages of materials, manufacture, product completion and distribution to stores worldwide within just a few days.

Regarding the design strategy, an article in Businessworld
Businessworld
Businessworld is the largest selling Indian business magazine, and the only business weekly in the country. Published by Ananda Publishers, whose most prominent publication is The Telegraph, Businessworld offices are located in New Delhi....

magazine describes it as follows: "Zara was a fashion imitator. It focused its attention on understanding the fashion items that its customers wanted and then delivering them, rather than on promoting predicted season's trends via fashion shows and similar channels of influence, which the fashion industry traditionally used.
50% of the products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and African countries and the rest of the world. So while some competitors outsource all production to Asia, Zara makes its most fashionable items—half of all its merchandise—at a dozen company-owned factories in Spain and Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

, particularly in Galicia and northern Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

 where labour is somewhat cheaper than in most of Western Europe. Clothes with a longer shelf life, such as basic T-shirts, are outsourced to low-cost suppliers, mainly in Asia and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

.

Zara can offer considerably more products than similar companies. It produces about 11,000 distinct items annually compared with 2,000 to 4,000 items for its key competitors. The company can design a new product and have finished goods in its stores in four to five weeks; it can modify existing items in as little as two weeks. Shortening the product life cycle means greater success in meeting consumer preferences. If a design doesn't sell well within a week, it is withdrawn from shops, further orders are canceled and a new design is pursued. Zara has a range of basic designs that are carried over from year to year, but some fashion forward designs can stay on the shelves less than four weeks, which encourages Zara fans to make repeat visits. An average high-street store in Spain expects customers to visit three times a year. That goes up to 17 times for Zara.

On September 6, 2010, Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....

reported that Inditex
Inditex
Industria de Diseño Textil, S.A. , more commonly known as Inditex, is a large Spanish corporation and the world's largest fashion group. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution...

 has launched the first online boutique for its best-selling brand Zara. The long-awaited website will begin in Spain, the UK, Portugal, Italy, Germany and France – six countries that are among the most important of the company's 76 markets. When asked about the company's late arrival to internet retailing, Pablo Isla
Pablo Isla
Pablo Isla Álvarez de Tejera is a Spanish businessman who is the current Chairman and CEO of Inditex which is a large Spanish corporation and one of the world largest fashion groups....

, chief executive, said they have been waiting for online demand to build before launching into cyberspace. All items on sale at its Zara outlets would be available online and at the same prices. Customers can choose from the usual range of paying methods and opt either for a free store pick-up or paid-for postal delivery. The online return and exchange policy is identical to the store system, with shoppers given 30 days to change their minds. Queries will be handled by customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...

 operators or via e-mail or chat messaging. Inditex said that iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...

 and iPad
IPad
The iPad is a line of tablet computers designed, developed and marketed by Apple Inc., primarily as a platform for audio-visual media including books, periodicals, movies, music, games, and web content. The iPad was introduced on January 27, 2010 by Apple's then-CEO Steve Jobs. Its size and...

 applications that allowed purchasing would soon be available.

On November 4, 2010, Zara Online extended the service to five more countries: Austria, Ireland, the Netherlands, Belgium and Luxembourg. Online stores will begin operating in the US, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

, and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 in 2011. The simple website allows shoppers to filter a search for garments by; type of garment, colours, sizes, prices, reference number, etc. Customers can view products in precise detail from different angles and use a SuperZoom feature to get an exceptional close-up look at the details of each item.

In 2011, Zara entered the Australian market with a three story, 1400sqm store in the Westfield Sydney complex opened on April 21, 2011 and a second three story 1800sqm store at Bourke Street Mall Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...

 which opened on 15 June 2011 . Zara will open its third Australian store in November 2011 at Burnside Village
Burnside Village
Burnside Village is a popular fashion mall and shopping centre located in Adelaide, South Australia. It is situated in the City of Burnside suburb of Glenside, in the eastern suburbs....

 Shopping Centre in Adelaide, South Australia. It will be Australia's largest at 2,300sqm, and modelled on the design of their Fifth Avenue, New York store.

Sweatshops

On August 16, 2011, a Brazil television show called A Liga (of the Bandeirantes
Rede Bandeirantes
Rede Bandeirantes , officially nicknamed Band or Band Network, is a television network from Brazil, based in São Paulo. Part of the Grupo Bandeirantes de Comunicação , it aired for the first time in 1967...

 TV network) accused the company of using suppliers who were running sweatshops for their outsourced production. On August 17, 2011, the Regional Superintendency of Labor and Employment of São Paulo, Brazil, closed a factory that produced Zara's clothing for its poor labor conditions. Bolivians were brought illegally to Brazil, locked in small apartments and sewed clothes for 12–14 hours a day. They could not leave the apartment without the consent of the supervisor and didn't have hot water for taking showers or food for lunch. The Bolivians earned about 1 USD for each dress they sewed, although the retail price in Brazilian stores was about 70 USD for the same dress. Many of the workers were forced into paying their wages to human traffickers who had smuggled them into the country.

In a statement, Zara’s representatives said that the accusations of slave-labor made against the retailer represent a “serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex.” They also countered that all factories responsible for unauthorized outsourcing have been asked to regularize immediately the situation of the workers involved. “The Inditex group, along with Brazil’s Ministry of Work, will strengthen the supervision of the production system of all its suppliers in the country to ensure that such cases do not occur again.”

Stores

The number of Zara stores in each country:

Africa: 4 stores 4 stores 1 store 2 stores 1 store

Asia: 77 stores 68 stores 30 stores 24 stores 19 stores 10 stores 9 stores 8 stores 7 stores 6 stores 6 stores 5 stores 5 stores 5 stores 5 stores 2 stores 2 stores 2 stores 2 stores 2 stores 1 store 1 store 2 stores

Europe: 335 stores 115 stores 87 stores 66 stores 64 stores 61 stores 51 stores 48 stores 33 stores 29 stores 27 stores 18 stores 13 stores 12 stores 10 stores 9 stores 8 stores 8 stores 7 stores 6 stores 6 stores 5 stores 5 stores 5 stores 4 stores 4 stores 4 stores 4 stores 3 stores 2 stores 2 stores 2 stores 2 stores 2 stores 1 store 1 store 1 store 1 store

North America: 51 stores 48 stores 19 stores 2 stores 2 stores 2 stores stores 2 stores 2 stores 1 store

Oceania: 3 stores

South America: 31 stores 10 stores 9 stores 9 stores 7 stores 2 stores

External links

  • Zara factsheet — Hoover's
    Hoover's
    Hoover's, Inc., a subsidiary of Dun & Bradstreet, is a business research company that has provided information on U.S. and foreign companies and industries since 1990. Since 1993, the company has made its information available on its website.-Operations:...

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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