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Zara Benetton
Zara Benetton
The average age of the designers in Zara is 26, which means that they
are aware of the latest fashion and the management gets firsthand
information regarding customer demands from these designers.
Zara has an open and an informal culture where the designers after
drawing the design sketches with hand discuss them with not only the
other designers but also the market specialist and planning and
procurement team. This gives them a broad variety of inputs.
Zara produces about 50% of its products and the rest from 400 outside
suppliers. This is a clever way of working as it is based on speed and
expertise, cost effectiveness, delivery terms, etc.
The speed of delivery is one of the most important criteria for the Zara.
The management measures distance in time and not in kilometers.
Retailers do not keep items in the store for more than two weeks. This
means that the inventory carrying cost is reduced. Additionally, this
creates floor space for new items as well.
For in-house production, the suppliers are located in Portugal and Spain
and their close proximity ensure quick response to Zaras orders.
Items on stores kept for more than 2 or weeks are kept out of stores or
sent back to Spain.