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Quick Response and ZARA Business Model

Quick Response and ZARA Business Model. Quick Response…Introduction. Introduction. Introduction. Benefits. A QR system can trigger a series of benefits First and foremost Increased sales due to an increased retail in stock position Lower inventory label and reduce carrying cost

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Quick Response and ZARA Business Model

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  1. Quick Response and ZARA Business Model

  2. Quick Response…Introduction

  3. Introduction

  4. Introduction

  5. Benefits A QR system can trigger a series of benefits • First and foremost Increased sales due to an increased retail in stock position • Lower inventory label and reduce carrying cost • Accuracy of information, efficent distribution

  6. Element of Quick Response The element required for effective QR can be summarized by 3 Cs • Control • Communication • Collaboration

  7. ZARA Business Model • Zara is a flagship brand of the Spanish Retail Group Inditex SA. • Contributes around 80% of group sales • Riding two of the winning retail trends being in fashion and low price

  8. Winning Formula • Short Lead Time • Lower Quantities • More Styles

  9. Shorter Lead Time

  10. Normal Lead Time

  11. Zara Lead Time

  12. Shorter Lead Time • By focusing on shorter response time the company ensures that its stores are able to carry clothes that the consumer want at that time • Zara can move from identifying a trend to having clothes in its stores within 30 days

  13. Lower Quantity

  14. Reducing Risk..lesser quantity • It Reduces the quantity manufactured in each style. • Reduce exposure to any single product • Create an artificial scarcity • Lesser to be disposed when a season ends

  15. More Styles

  16. Leadership in numbers.. More styles • Instead of more quantities per style, Zara produce more styles roughly 12000 in a year • There are always new styles available to take up the space • Stock look fresh in every 3-4 days

  17. Mechanism of success • Ownership and control of production • Active product development • React rather then predict • Suitable supply chain • Better use of IT

  18. ZARA Customer offer

  19. Acknowledgement • Mr. Vasant Kothari NIFT, Bangalore

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