Luxury Strategy Case Studies Zara Supply Chain Management Emily Yt Chen 2009 2 Dec

1. ZARA CHEN MeiFang CHEN Nanhua CHEN YuTing Prof. Andreas ROBOTIS

2. Agenda Introduction ZARA, Inditex Group Industry Review : 5-Force-Analysis SCM Practices Just-in-time: Processing & Inventory Centralized Distribution & MIS SWOT Analysis Suggestions: Regional Centralized Distribution

3. Introduction First Zara store is opened 1975 1985 Inditex as the head of the Group 1991 2003 Birth of different chains: Pull and Bear, Massimo Dutti Bershka, Stradivarius Oysho, Zara Home Launch of Uterqüe specialized in fashion accessories 2008

4. Inditex Global Presence 2008

5. Inditex’s commercial presence at year end 2008

6. Inditex’s sales

9. 5 forces analysis

10. PositioningMap + PRICE + FASHION - FASHION - PRICE

11. Agenda Introduction ZARA, Inditex Group Industry Review : 5-Force-Analysis SCM Practices Just-in-time: Processing & Inventory Centralized Distribution & MIS SWOT Analysis Suggestions: Regional Centralized Distribution

12. JIT: Push to Pull, Zero the Waste Processing: Customer Demand Pulls & Triggers the execution. Inventory: Demand-ResponsiveProduct Development Process

13. Product Development Process

14. Product Development Process DecisiononFabric Response toDemand Plan Forecast Sales Trends Dying Finishing Style Fashion Stock Fabric Buy Produce

15. Related Class Slides (additional?)

16. Agenda Introduction ZARA, Inditex Group Industry Review : 5-Force-Analysis SCM Practices Just-in-time: Processing & Inventory Centralized Distribution & MIS SWOT Analysis Suggestions: Regional Centralized Distribution

17. Traditional SCM store Garment Manufacture Fabric mill warehouse Material flow Information flow

18. SCM: Centralized Distribution Zara’s SCM Headquater Material flow Information flow

19. SCM: Management of Information System

20. SCM: Management of Information System Inventory, Information & Speed

21. Agenda Introduction ZARA, Inditex Group Industry Review : 5-Force-Analysis SCM Practices Just-in-time: Processing & Inventory Centralized Distribution Information System SWOT Analysis Suggestions: Regional Centralized Distribution

22. Fashion? Available ? Price? H&M? Bershka? GAP? Uniqlo? Quality? z Special?

23. SWOT Analysis

24. Agenda Introduction ZARA, Inditex Group Industry Review : 5-Force-Analysis SCM Practices Just-in-time: Processing & Inventory Centralized Distribution Information System SWOT Analysis Suggestions: Regional Centralized Distribution

25. Suggestion : Regional Centralized Distribution, R&D, Marketing Strategy (4Ps) Regional Headquater in USA, Asia CentralizedDecentralized Regional Centralized

26. References Websites [1] Website of Wikipedia - http://en.wikipedia.org/wiki/Zara_(clothing) [2] Website of Zara - www.zara.com/ [3] Tushar Mital. “ZARA”, 2009. http://knowtheco.com/index.php?news=20 [4] Adhirock . “Zara Case Study”, 2006. http://www.slideshare.net/adhirock/zara-case-study [5] Website of Marketing strategy. http://www.slideshare.net/adhirock/zara-case-study Journals, Reviews, Articles [1] Ghemawat, Pankaj and Nueno, Jose Luis. “Zara: Fast fashion”, HBS: 9-703-497, 1st Apr 2003. [2] Mcafee Andrew, Dessain Vincent and Sjoman, Anders. “Zara: IT for fast fashion”, HBS: 9-604-081, 17th Dec 2004. [3] Dutta, Devangshu. “Retail @ the speed of fashion”, 2002,<www.3isite.com/articles/ImagesFashion_Zara_Part_I.pdf> [4] Gallaugher. “Zara Case: Fast Fashion from Savvy Systems”, 2008. [5] Dutta, Devangshu. “Brand Watch: ZARA”, 2004 [6] Strategic Direction Vol 21, P.28-31. “How Zara fashions its supply chain”, 2005. [7] Inditex Annual Report 2008 [8] DevangshuDutta 2004. “Brand Watch Zara, Images Fashion Forum (12 February 2004)” [9]P.Ghemawat, J.L.Nueno. “ZARA: Fast Fashion” Harvard Business School, 2003 [10]L.P. Ricardo. Dirección Estratégica II “Análisis estratégico: Inditex ” Universidad Autónoma de Madrid [11]S.R. Mar et la. Marketing Estratégico. ”Caso Inditex”. ESADE