Zara's Rapid performance
Zara keeps almost half ofits productionin-house.
Manufactures and distributes products in small batches.
They can design, produce, and deliver a new garment and put it on display more 15 days.
Instead of relying on outside partners, the company manages all design,
warehousing, distribution, and logistics functions itself.
It holds its retail stores to a rigid
in Numbers
Instead of more quantities per style, Zara produces more styles, roughly 12,000 a year. Thus, even if a style sells out very quickly, there are new styles already waiting to take up the space. To produce many styles according to customers’ demand, it keeps its lead time short. Thus, it means information technology, communications infrastructure, distribution management, and design a
onthe 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
its stores outside Seoul to Il-san and Pusan. Intotal, SPAO has seven stores throughout Korea. Andon April 2010, the company has entered and positioned itself also in Lotte.com online shopping mall.
c. SWOT Analysis
The 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
on businesses and households. Many say a relatively small foreign exchange market here and mostly dollar-based transactions are the main culprits behind the volatile exchange rate. Recently, the won regained a little strength, but instantly calming fears of a currency exchange crisis.
③ Shrinking consumption
Consumer spending will likely further shrink inthe coming months due to weakening