After my Europe trip last March, I was fascinated to see that the clothing company, Zara was similarly sought after in London and France, just like how it is in Vancouver. With its latest trends and exclusivity aura, Zara is a popular fashion chain to most young female adults and has set itself apart from competitors, such as H&M and Topshop. Why is that?
It’s evidently known in the business industry that the Spanish retailer hit a jackpot with its supply chain model! Zara is known to design and distribute to the market in just fifteen days, a clear sign of advantage among competitors (Harvard Business Review, 2004). The company has developed a fashion business model around the concept of “mass customization”. Even though it adds an extra cost to pursue this specific strategy, Zara manages to keep variety high, have inventory low, and maintain customer satisfaction, which is key to keeping a strong position in the fashion industry. It can be seen how the marketing and operations need to work closely together to deliver such complicated model. The integrated operations team working behind the scenes for this fashion chain can truly be the reason for its undeniable high reputation!
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