Quick Response and ZARA Business Model
Quick Response…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 Accuracy of information, efficent distribution
Element of Quick Response The element required for effective QR can be summarized by 3 Cs Control Communication Collaboration
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
Winning Formula Short Lead Time Lower Quantities More Styles
Shorter Lead Time
Normal Lead Time
Zara Lead Time
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
Lower Quantity
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
More Styles
Leadership in numbers.. More styles Instead of more quantities per style, Zara produce more styles roughly in a year There are always new styles available to take up the space Stock look fresh in every 3-4 days
Mechanism of success Ownership and control of production Active product development React rather then predict Suitable supply chain Better use of IT
ZARA Customer offer
Acknowledgement Mr. Vasant Kothari NIFT, Bangalore