Podcast
Questions and Answers
What is the average number of times shoppers visit Zara's stores in London compared to the average store?
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 (correct)
- 6 times a year vs 15 times a year
- 5 times a year vs 10 times a year
- 3 times a year vs 20 times a year
What percentage of total sales does Zara spend on advertising?
What percentage of total sales does Zara spend on advertising?
- 0.3% (correct)
- 4%
- 2%
- 1%
Where does Zara concentrate more than half of its production?
Where does Zara concentrate more than half of its production?
- China and India
- South America
- Arteixo, Spain, Portugal, and Morocco (correct)
- Eastern Europe
What is the average discount offered by Zara compared to the industry average?
What is the average discount offered by Zara compared to the industry average?
How long does it take for Zara to design, produce, and deliver a new item of clothing to its stores?
How long does it take for Zara to design, produce, and deliver a new item of clothing to its stores?
Flashcards
Zara's London Store Visits
Zara's London Store Visits
Shoppers visit Zara stores in London 4 times a year.
Zara's Advertising Spend
Zara's Advertising Spend
Zara spends 0.3% of total sales on advertising.
Zara's Production Hubs
Zara's Production Hubs
Zara concentrates more than half of its production in Arteixo, Spain, Portugal and Morocco.
Zara's Discount Rate
Zara's Discount Rate
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Zara's Design-to-Store Time
Zara's Design-to-Store Time
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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.
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