One of the major strategies that helped Zara become the leader in the fashion industry is the utilization of mass customization, which basically allows small amounts of newly designed clothes to be put on the shelf in less than two weeks. This, of course, comes with a significantly higher cost compared to its competitors, as Zara does not take advantage of economies of scale and designs, produces, distributes all by itself. The fast production process allows Zara to quickly respond to customer interests and new fashion trends and avoid stocking large amount of perishable products. The company was described by Louis Vuitton fashion director Daniel Piette as “possibly the most innovative and devastating retailer in the world”, because of Zara’s largely successful while highly dangerous strategy.
I think that there are specific reasons why Zara is able to mass customize its products while numerous other companies fail at doing so. Clearly the fashion industry highly rewards sellers that can identify and follow new fashion trends, while outdated products are often sold at significantly lower prices. As well, the clothing production process mostly requires the same raw material that can be quickly turned into finished goods.
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