Zara, a clothing company that prides in providing new, high quality clothing, has recorded an addition of 166 new stores in the first half of this year, which brings the company’s store count to 5,693 stores across 85 countries. This organization is owned by Inditex, and the financial statements record a substantial 32% increase in profits since the beginning of this year. A big reason for Zara’s growth and development is mainly due to how the company operates and minimizes inventory turnover. Operations of the company is a significant point of difference compared to other corporations like GAP, Nike, and rival H&M because Zara provides a unparalleled approach to bringing their designs/prototypes onto shelves across the world in as short as two weeks. This approach comes with strengths and weaknesses. With a short supply, Zara is able to stay on consumer trends and keep the buyer connected with Zara stores, but this fast fashion comes with high expenses and pricey transportation costs. Overcoming this problem, Zara is able to set higher prices for clothing products and has recorded an overwhelming growth since last year of over three billion dollars for their owner, Amancio Ortega, the richest man in Spain.
Sources: http://gbr.pepperdine.edu/blog/2011/12/15/4396/
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