To sum up with the article, Zara’s success depends on the focused teams of designers and production manager, producing where it sells and accurately forecast demand of the market.

In my point of view, Zara using focused teams of designers and production manager is a good way to make specialized employees concentrate on their specific category of product. Furthermore, produceing where it sells is such the smartest idea. Zara distinguishes with other fashion brand such as H&M, which establishes their production factories in China or countries with lower labor rate. However, on behalf of quick response to the market change, Zara is ready to provide their new goods to customers but goods for H&M are on their way of delivering. In addition, Zara accurately forecast demand of the market can help them in reducing inventory carrying cost. However, sometimes it is hard for business to forecast because there are many uncertainties in the market.

In contrast,  Zara has no advertising cost and they use all savings to support higher production cost in some developing countries. I think we cannot ignore marketing when the business operates in accounting. Appropriate marketing activities can help the business in their accounting, since some marketing activities can enable sales increases and then it creates profit for business.

Sources: http://www.forbes.com/sites/walterloeb/2013/10/14/zaras-secret-to-success-the-new-science-of-retailing-a-must-read/

Image:http://en.wikipedia.org/wiki/Zara_(retailer)#mediaviewer/File:Zara_Dundee.jpg