1. Quick Response and ZARA Business Model

2. Quick Response…Introduction

3. Introduction

5. 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

6. Element of Quick Response The element required for effective QR can be summarized by 3 Cs Control Communication Collaboration

7. 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

8. Winning Formula Short Lead Time Lower Quantities More Styles

9. Shorter Lead Time

10. Normal Lead Time

11. Zara Lead Time

12. 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

13. Lower Quantity

14. 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

15. More Styles

16. 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

18. Mechanism of success Ownership and control of production Active product development React rather then predict Suitable supply chain Better use of IT

20. ZARA Customer offer

21. Acknowledgement Mr. Vasant Kothari NIFT, Bangalore