Dissertation: Proposal Assignment

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Table of Contents

INTRODUCTION:........................................................................................................................3

RESEARCH QUESTION:............................................................................................................3

METHODOLOGY:.......................................................................................................................3

LITERATURE REVIEW:............................................................................................................4

LIMITATIONS:............................................................................................................................5

ETHICAL CONSIDERATIONS:................................................................................................6

TIMEFRAME:...............................................................................................................................6

CONCLUSION:.............................................................................................................................6

REFERENCES:.............................................................................................................................7

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INTRODUCTION:

Zara’s success has been largely fueled by the company's ability to quickly adapt to and
incorporate emerging fashion trends into its collections. Early on, Zara identified a major need in
the garment industry that had previously been underserved by other companies. This was done so
that collections of clothes could be offered that followed the newest fashions but were also of
great quality and reasonable cost.

Main Focus in brand reputation management:

Zara’s super-efficient supply chain: The extremely responsive, vertically connected supply chain
at Zara allows for the export of clothing 24 hours a day, 365 days a year, culminating in the
shipment of new goods to shops twice weekly. It usually takes between 10 and 15 days for a
product to make it to retailers from the time it is created.

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RESEARCH QUESTION:

What is Zara’s Frequency of customer insights collection in relation to the Product information
and inventory management? How the Procurement strategy and Distribution management
support this particular situation?

METHODOLOGY:

In this research paper, we will mainly focus on Zara’s super-efficient supply chain. The
extremely responsive, vertically connected supply chain at Zara allows for the export of clothing
24 hours a day, 365 days a year, culminating in the shipment of new goods to shops twice
weekly. It usually takes between 10 and 15 days for a product to make it to retailers from the
time it is created (Duoyan, 2021).

Clothing is often supplied to retailers about 48 hours after being ordered. By maintaining in-
house dyeing and computational capability and flexible fabric-processing infrastructure, Zara is
capable of accommodating fluctuating demand for new trends while always meeting the tastes of
its customers. It also mitigates the effects of demand variations and does away with the need for
storage facilities. With an annual production capacity of over 450 million products and a rollout
of about 12,000 original innovations, Zara relies heavily on an effective supply chain to enable
the flawless rollout of its constantly refreshed store-level assortment.
AIMS AND OBJECTIVES:

 In this research paper we will mainly be focusing on Zara’s super-efficient supply chain
and its features related to it.
 We will be discussing Zara’s Frequency of customer insights collection about Product
information and inventory management.
 We will find out relatable and apply for Procurement strategy and Distribution
management support this particular situation in Zara.

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LITERATURE REVIEW:

Frequency of customer insights collection: Consumer feedback is collected daily and fed into
the database at headquarters, where it is utilized by architects to guide the development of new
products and the evolution of current ones (Gamboa & Gonçalves, 2014).

Standardization of product information: Because all Zara facilities utilize the same
standardized product data with the same criteria, designs can be quickly and accurately prepared
with clear production directions.

Product information and inventory management: Zara can develop clothing with stock
availability of essential raw materials because of their efficient handling of hundreds of textiles,
trim, design criteria, and stock control.

Procurement strategy: The majority of textiles are acquired in their undyed state before any
patterns are decided to save money by pooling together the demand for those materials.

Manufacturing approach: Zara's production planning is a "create and purchase" model,

whereby the company manufactures the trendier, riskier goods (those that need trial and pilots) in
Spain and sends the assembly of the more conventional designs (with more systems that ensures)
to Morocco, Turkey, and Asia. About half of the company's inventory consists of trendy, higher-
risk goods, all of which are produced at one of the company's dozen facilities in Spain (Galicia),
northeastern Portugal, or Turkey. Basic T-shirts and other items of clothing that have a longer
shelf life (and hence more regular changes in consumers) are sent to low-cost manufacturers in
Asia. Zara can maintain its prices low even while producing in Europe because it contracts out
the labor of the assembling factories to foreigners and takes advantage of the unofficial labor
market dominated by moms and grandparents (Jiang, 2022).

Distribution management: Every distribution center that Zara uses is cutting-edge, so it

requires little in the way of human oversight. Over sixty thousand articles of clothes each hour
are sorted and distributed using optical reading systems.

Zara can make changes to current products in as few as 2 weeks because of its streamlined
distribution chain. If indeed the product lifespan can be shortened, businesses will have a better

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chance of satisfying customers. When a product does not sell successfully within the first week,
it is taken off the shelves, any pending orders are canceled, and a fresh approach is sought. To
stay ahead of the curve, Zara keeps a careful eye on how customers' tastes in clothing evolve.
Many staples remain in the store from season to season, but the high fashion pieces that are
influenced by the season's hottest trends often sell out in under 4 weeks, prompting customers to
make many trips to Zara. Consumers are expected to visit Zara approximately 17 times per year,
which is much more than the norm for Spanish high-street stores (three times per year).

Zara is confident enough in its ability to anticipate and meet the demands of its customers and
influence their ideas, views, and sense of style in the fashion industry to project an expectation
for such frequent return visits. In actuality, by providing accessible lines, Zara is also assisting in
the development of new trends via its shops and even in the extension of the life of certain
seasonal designs (Majumder & Prakash, 2018).

LIMITATIONS:

Despite not being the most profitable, Zara is certainly one of the world's most popular retail
fashion companies in the world. Ever since its inception in 1975 in Spain, Zara has dramatically
introduced the notion of "quick fashion" shopping, to inspire the goal of inspiring a healthy
enthusiasm for fashion among a wide range of customers throughout cultures and generations.

ETHICAL CONSIDERATIONS:

Although the company's Animal Protection Code does not allow the use of fur, angora, or the
results of any kind of animal research, Zara does utilize woolen, leatherette, silk, and exotic
animal hairs in its goods. However, Zara does not show that it tracks its animal products back to
the beginning of the manufacturing process. Zara's Animal Protection Document offers further
details regarding the company's stance on animal protection (Wang, 2018).

TIMEFRAME:

TASK TIME PERIOD

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 METHODOLOGY 2ND
OCTOBER

AIMS AND OBJECTIVES 5TH OCTOBER

LITERATURE REVIEW 7TH OCTOBER

LIMITATIONS 8TH OCTOBER

ETHICAL CONSIDERATIONS 8TH OCTOBER

CONCLUSION 9TH OCTOBER

CONCLUSION:

Zara's ability to prioritize its clients is one of the company's greatest assets and a major reason
for its meteoric rise to the forefront of the fashion industry worldwide. Since its inception, Zara's
consumers have been at the center of the industry's and the product's identity. Zara is a clothes
and products company that caters to both sexes. Younger ladies and teens may find more on-
trend and occasionally edgy options at the Zara TRF sub-brand.

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REFERENCES:

Duoyan, H., 2021, April. Research on ZARA Strategy from the Perspective of SWOT Analysis
Method. In 2021 6th International Conference on Social Sciences and Economic Development
(ICSSED 2021) (pp. 201-205). Atlantis Press.

Gamboa, A.M. and Gonçalves, H.M., 2014. Customer loyalty through social networks: Lessons
from Zara on Facebook. Business horizons, 57(6), pp.709-717.

Jiang, B., 2022. How Consumers’ Response on CSR Affects Brand Competitiveness in the Fast
Fashion Industry——Case Study of Zara (Inditex) and H&M. Academic Journal of Business &
Management, 4(1).

Majumder, M. and Prakash, D., 2018. Zara Brand Affect-The Trans-Border Reputation of
Trademarks. Indian JL & Just., 9, p.181.

Wang, Y., 2018, July. An Exploratory Study of Brand Strategy in Fast Fashion Brand--Using
Zara as an Example. In 3rd International Conference on Contemporary Education, Social
Sciences and Humanities (ICCESSH 2018) (pp. 648-651). Atlantis Press.