<Zara: Fast Fashion Case>
1. With which oftheinternational competitors listed inthe case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
the most recent fashion trends presented at Fashion Week in both the spring andthe fall of every year. These trends are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. This philosophy of quick manufacturing at an affordable price is used in large retailers such as H&M, Forever 21, Zara, and GAP. The pri
and busy terminating their businesses in Korea. Fashionindustry expects the next year’s sales will decrease 4.5%.
② Flood of SPA brandThe current fashion market is experiencing a lot of difficulties infashion forecasting due to consumers′ fast-changing lifestyle on fashion, changes in consumer behavior, andthe segmentation ofthefashion market. To cope with this harsh reality, man
in media advertising, it shows its products first inits stores than ready-to-wear fashion shows, because concerns about overexposure
The Result : Faster response in procurement because theinvolvement ofthe product Development Area and image creation of scarcity that makes easier the product to differentiate.
3. SCM, Responsivenss, Flexibility
SCM
ZARA have a short SCM.
So they have a a
its stores outside Seoul to Il-san and Pusan. Intotal, SPAO has seven stores throughout Korea. And on April 2010, the company has entered and positioned itself also in Lotte.com online shopping mall.
c. SWOT AnalysisThe strengths of SPAO include quick response (QR) system and collaboration with Korea’s top designers. Different from other fast fashion brands such as Mango andZara which int