5 Questions
What is the average number of times shoppers visit Zara's stores in London compared to the average store?
4 times a year vs 17 times a year
What percentage of total sales does Zara spend on advertising?
0.3%
Where does Zara concentrate more than half of its production?
Arteixo, Spain, Portugal, and Morocco
What is the average discount offered by Zara compared to the industry average?
15%
How long does it take for Zara to design, produce, and deliver a new item of clothing to its stores?
15 days
Study Notes
Zara's Success
- Founded in 1975, Zara's parent company Inditex has become a leading global apparel retailer.
Inditex's Growth
- Inditex owns eight fashion brands, and since its initial public offering (IPO) in 2001, it has:
- Doubled the number of US stores
- Quadrupled sales to US$25.7 billion
- Increased profits to over US$3 billion
- Zara contributes two-thirds of Inditex's total sales.
Zara's Competitive Edge
- Zara excels in supply chain management, breaking and rewriting industry rules.
Unique Origin
- Zara is from Spain, not Italy or France.
- Headquarters are in Arteixo, a small town in northwestern Spain.
Global Presence
- Zara has over 5,000 stores in 88 countries.
- Stores are located in premium locations, such as:
- Champs-Elysees in Paris
- Fifth Avenue in New York
- Galleria in Dallas
- Ginza in Tokyo
- Queen's Road Central in Hong Kong
- Huaihai Road in Shanghai
Inventory Strategy
- Rule number two: Avoid stock-outs to create a sense of urgency and encourage "buy now" behavior.
Test your knowledge of Zara and its parent company Inditex in this quiz. From its founding to its impressive growth, this quiz covers key milestones and facts about the global apparel retailer.
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