Zara Failure

Zara’s history of success and failures

Zara is the clothing company, which differentiates itself many areas. It is part of the Inditex Group, which is the one of the largest fashion company in the world. Zara is the first and largest brand of Inditex, it is the brand that has the highest impact on the Group. The first Zara store opened 1975 in Spain, founded by Amancio Ortega Gaona, who had already been in the clothing manufacturing business since 1963, owning several factories. In 1985, Inditex was formed as a holding company for Zara and the other companies in the group. It is presented in 88 countries, with 6,683 stores and 137,054 employees around the world, including 1923 Zara stores. (www.Inditex.com)

The Zara concept is based on the

Zara tries to get information about customers several times in a day. They use Personal Digital Assistants (PDA), which collects the information about customers feedback and directly send it to the headquarters. For example, if customer has some complain about product or some like that, the directly send the message to the headquarters, this system is very flexible and when customers see that their problem is important for the company and they try to solve the problem instantly, the image of the brand is elevated. ZARA is highly vertical-integrated and also centralized. Vertical integration means that all the stages of the value chain are controlled by the Group, a distinctive feature of ZARA’s business model, has allowed the company to successfully develop a strong merchandising strategy. Zara manufactures 60% of its own products. By owning its in-house production, Zara is able to be flexible in the variety, amount and frequency of the new styles they produce. Also, 85% of this production is done through the season, which allows the chain to constantly provide its costumer with new

People leave their CV on the shop and the manager calls them. Learning process is to be is the shop and look on other employees how they are working. It continuous 1 week and if manager will like your work, the will hire you. Interesting is that they have not training lectures and recruitment happens very easy, important is that the hired had experience and a good communication with customer. If you will not teach them how to serve, how to talk with customers and how deal with problematic customers, how can they work? It is our question with the store. Problem is also in language, we have already a lot of tourists and language request must be