quick response and zara business model
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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Quick Response and ZARA Business Model
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Quick Response…Introduction
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Introduction
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Introduction
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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
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Element of Quick Response
The element required for effective QR can be summarized by 3 Cs
• Control• Communication• Collaboration
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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
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Winning Formula
• Short Lead Time
• Lower Quantities
• More Styles
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Shorter Lead Time
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Normal Lead Time
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Zara Lead Time
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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
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Lower Quantity
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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
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More Styles
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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
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Mechanism of success• Ownership and control of production
• Active product development
• React rather then predict
• Suitable supply chain
• Better use of IT
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ZARA Customer offer
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Acknowledgement
• Mr. Vasant Kothari NIFT, Bangalore