ZARA's business model

ZARA's operating mode.


Sales and feedback. .


Organization and through product design, procurement and production, product and distribution links for fast, efficient operation, ZARA is not the first fashion advocate, but it is as fast as the "potential" into the reality of the actors to someone called "ZARA is a monster, is the designer's nightmare" because it will undoubtedly ZARA imitation of their creative significantly devalued. Most clothing retailers have reached this cycle of 6-9 months or even longer, so they had to work hard to predict what will catch on after a few months, sales would have little, but generally on a long lead time forecast error more large, the result is often left a lot of slow moving goods, not on selling it up, only to see good sales slip away. .


ZARA's shop every day sales information back to Headquarters, and in accordance with the current inventory and near 2-week period sales expected weekly home twice replenishment orders. In order to ensure order to concentrate production, thus reducing production time and reduce costs, each store must be in a specified time prior orders, if you missed the latest order time then only wait for the next, ZARA on this point in time management are very strict, because it will affect the supply chain with multiple links in the upper reaches.


Headquarters to get the store's sales, inventory and orders and other news, analysis to judge the product is sold or unmarketable.If you cancel a scheduled unsalable production (because when the quarter sales before production of the next quarter shipments of 15 percent, while most clothing companies had produced next quarter shipments of 45-60%), which can be forecast ZARA risk control at the lowest possible level; if there is a product of more than 2-3 weeks haven't sold out will be sent to the host country to a shop in a centralized processing, after the end of the season, ZARA has a maximum of no more than 18 per cent of clothing does not meet the consumers ' tastes, and the industry average of about 35 per cent.


If the product sells well, and the headquarters of existing material, then the rapid and efficient supply chain system through additional production, rapid replenishment to capture sales opportunities, without the fabric will be discontinued. Also generally the most popular product replenishment twice, on the one hand to reduce the production of homogeneous products, to meet the market fashion, individual needs; on the one hand create a number of man-made "out of stock" because the customer has some style guide clothing is not a second hesitate next time buy. The overall sales and feedback processes shown in Figure 5. .


Sales and feedback process.


In addition, ZARA year only two specific period of time limited price-cutting sales, usually 8. .5 Fold more than the industry commonly used method of continuous price cuts, the last an average of only 6-7 fold. .


ZARA it completely broke the traditional clothing brand practice mode of operation, a completely different path of destruction-innovation, the most fundamental is the efficient operation of the brand as the core of a collaborative supply chain operation system.


ZARA: on what basis to "keep the rapid." .


Renowned economists had pointed out: "lang 2000 years after the success of the enterprise, success depends on innovation, quick response. "It is not difficult to see that on the market of" rapid response "will become a modern enterprise's core competitiveness of the key. As for the "timeliness", famous for its apparel industry "epidemic" and "seasonal" constitutes a significant feature of apparel goods, clothing enterprises to achieve the "feedback efficiently, and market responsive" can in the fierce market competition neutrality foothold. Therefore, how to break through the barriers of traditional business model, the original auxiliary supply, manufacturing, product marketing and other aspects of organic co-ordination, to establish efficient and integrated supply chain system, an effective network to share information resources, to achieve "to market ability to production order "rapid response mechanism will be the clothing companies in the development process to face the grim task. .


Focus on ZARA — the "sunrise in the information age."


From Spain's world-famous fashion brand ZARA "rapid response" known in the fashion industry, its successful operation has not only become the industry benchmark, has become the leading European business school teaching cases. "Business Review" to ZARA referred to as "the fashion industry in the Dell computer"; some evaluation ZARA as "the fashion industry's Swatch watch." .


ZARA, with its another staggering's rapid response capability in the fierce market competition to win success in Europe of 27 countries and worldwide, 55 countries and regions established 2200 family female clothing chain. In the 2004 annual global revenues to reach 46 million euros, profits 4. .4 billion euros, an interest rate of 9% .7. America's first big fashion chain brand GAP of 6. .4%..


"High speed, low-volume, multi-style" production distinct form ZARA, ZARA is the most successful areas: the sales from the design to substantially reduce the lead time required, ZARA's leading for only 12 days. It guarantees the first time brings to customers the most fashionable new clothes. The traditional clothing retailers as long production cycle and not at any time to change according to seasonal changes in design or to add new models, but ZARA production because of its rapid change at any time the number of products, design, fabrics, colors, its speed and 20 multi-year olds change your mind as fast as the speed. .


High speed — immediately following the "fashion" of the pulse.


The greatest feature is the changing fashion, a movie, an album could change people's views on fashion, but fashion is the most touching Department followed fashion. When the film or television media, the emergence of new fashion elements, ZARA just a few days time to complete the top of the pop star costume or creative work clothes master copy. Recognition from the popular trend to cater to popular trends will be placed in the new fashion store, ZARA just two weeks, but the traditional mode of production in this period to 4-12 months longer.ZARA and customer's pursuit of fashion attitude in sync, faster flow of seizing every fashion signals to impress customers.


Small quantities - "Hunger" treatment implementation. .


Compared with other apparel retailers, ZARA each garment production quantity is very small, which artificially creates a short. More is not easy to get, the more excited people's desire to buy. ZARA implementation always "stock" policies, for the same style of clothing, retail store inventories are generally only a few, perhaps because your moment of hesitation, and thus missed the opportunity to finally have it, because you can see perhaps tomorrow is a new shelf. This initial annoyance is decisive when customer visit it again to buy speed.


Multi-style - to the aesthetic is no longer "fatigue." .


ZARA is not striving for each style to produce more, pay attention to the diversity of styles. ZARA annual production over 12,000 fashion, than many of its competitors, ZARA in fashion to provide more choices. ZARA shop supply twice a week, because there is very little on sold out models of purchase, the store every 3-4 days shelf goods will update all, always a feeling of freshness. Keeping up with fashion trends, frequent updates and increased choice, ZARA's unique attraction to customers, thereby greatly increasing customer preference and loyalty of ZARA.


In such a short lead time to complete "low-volume, multi-style" of clothing production, for most enterprises is almost "Nights Lake," but ZARA has done, and formed a unique business model. To information and communication technology as the core IT system is a unique business model ZARA crucial for achieving. .


Information collected by the JIT.


ZARA distribution of information from a large number of bars, fashion shows and other places of fashion market observers, they collect the latest fashion information and timely reporting to headquarters; also ZARA store sales that day will be timely feedback reports and customer demand information. On fashion trends and customer feedback every day all kinds of information pouring from the world headquarters of the database into ZARA. While designers can check the shipping day and the daily sales volume, while the use of new information to generate new ideas and improving existing clothing models.By having access to real-time information in a database, designers and production, operational team decided that a specific style is what fabrics, how to trim and pricing.


Standardization of clothing information. .


On a typical clothing retailer, different or incomplete sizes, different product effective information usually need several weeks to be added to their product design and approval procedures. But in ZARA's warehouse, product information is a common, standardized, which makes the ZARA can quickly and accurately prepare design, crop production gives clear instructions. ZARA's cutting systems is in the digital information system for intervention, accurate and fast.


Inventory management clarity. .


Excellent product information and inventory management data systems, allowing the team to manage ZARA thousands of fabrics, all kinds of decoration and design inventory and inventory of goods. ZARA's team can also be provided through this system to the existing inventory to design clothes, without having to go to ordering raw materials and then wait for it to come.


Integration of the production model. .


ZARA company in Spain with 22 factories, its 50% of all the products through our factory to finish to ensure absolute quickly. The remaining 50% of the products ZARA outsourcing to 400 small factory, which is responsible for a lot of tedious work of sewing. Moreover, a factory produces only one style, this absolute assurance of the production of professional level and a very fast speed. This 400 enterprises of which 70% in Europe, mainly in Spain and Portugal, the geographical position is convenient to let these factories to ZARA order quick response, particularly unusual fashion style. The remaining 30% was mainly produced in Asia, ZARA to these places, "Basic" there are obvious advantages to local products or the products. ZARA is also key to the success of the Department. . .


Logistics and distribution of high-efficiency.


ZARA's logistics and distribution system is well developed, about 20 km underground conveyor belt ZARA products to the Spanish La Coruna cargo distribution center, the center has a very sophisticated automation management software. To ensure that every order to arrive punctually, ZARA reading tool to use optical sorting products, selection and sorting per hour more than 60,000 costumes. Logistics center based on a fixed grid transport truck schedule, keep bound for Europe.ZARA has two air base, usually European chains within 24 hours of receipt of goods, u.s. chain store needs 48 hours, 48 hours – in Japan in 72 hours. In means of intervention, ZARA shipment accuracy as high as 98. .9% error rate of less than 0.5%.


"Speed" Although the market is occupied by ZARA magic, but "speed" is behind the intensive ZARA efficient management and effective IT support. Information technology support means companies break the barriers of traditional business models play a significant role in promoting. In addition to Spain, ZARA, Sweden's H & M is also information management tools to perform the other a legend. ZARA and H & M for in terms of speed, style and more, small quantities, quickly and accurately share information resources, effectively reduce inventory is a common feature of their success. .


The Chinese clothing enterprises from ZARA learn something.


ZARA, H & M of the operating mode should be our business to think, in the "International competition in the domestic market," Today, it has a "fast and accurate," the market remedies, will become a core competence to measure clothing brand benchmark. In the "fast and accurate," is inseparable from the back of timely and effective information management system support. .


At present, most of the clothing industry is still relatively low degree of information, the "rapid reaction capability" is. Due to the lack of timely information management means that enterprises can not be fast, accurate understanding of the branch, store, sell shopping centre sales and inventory status, it is difficult to store, distribute and sell shopping centre, be accurate, it is very difficult to carry out sales forecast and analysis. Traditional distribution system basically manual job, take a few days to make a base table, not to mention the General report, the business leaders get timely and accurate decisions on business management. China Garment Association, Du Chau pointed out: Chinese clothing enterprises to improve product quality, grade, based on business needs and to improve rapid response capabilities for the timely completion of market forecasts, marketing and management revolution. The original thinking behind the management changes and business process models, specifications to real business processes, to achieve profit growth, which would rely on information technology to achieve. .


Garment enterprise information management system for high demand.


Apparel business information management system requirements increase, while reflecting on the information technology business leaders have greatly improved the understanding; the other hand, the intense market competition forced the business applications of information technology to improve enterprise management level. Many enterprises in accordance with the "unified planning, unified standards, unified platform, unified standard" principle, according to their different characteristics and circumstances, application of the resource management system (ERP), supply chain management system (SCM), customer relationship management system ( CRM) and supporting design and manufacturing systems (CAD / CAM) and other information technology systems.That plan in the near future the application of information management system of enterprises can be accounted for 40 per cent. ..


Application of the potential advantages of information management systems. .


First, greatly enhance the ability of the enterprise market.


Product development faster, shorten the development cycle, companies continue to introduce new products to better respond to rapidly changing market demands, to achieve rapid response to market; business in a timely manner to formulate marketing plans and arrangements to guide the production, shorten the delivery time. After the application of information management, in particular ERP system, enterprise management in the production process to improve the standards, such as production scheduling more reasonable and more flexible production scheduling, production progress can be timely tracking and control, also speed up the decision-making. .


Second, reduce capital occupied enterprises.


Inventory of information management applications for enterprises of raw materials to finished products, semi scientific management, etc., so that business inventories maintained at a reasonable level, reduction of capital stock occupied. .


Third, to improve product quality, reduce production costs.


As a result of information management, business process to the production of effective tracking and monitoring to understand the product in the production of timely & quality Zhuangkuang, Xinxixitong to the quality of the production of Chu Xian Wen Ti for alarm, feedback and timely handled management thinking and to be implemented through the system, thus ensuring product quality and reduce costs. .


ZARA founded in 1985, is the world's third largest clothing retailer INDEXT company nine brands in the most famous of its flagship brand, has been called "the fashion industry, Dell PC", it is both a clothing brand that is franchise chain ZARA brand clothing retail brand. The company insisted that he owned and operated in nearly all of the principles of chain stores network, while putting in a lot of funds to construct a factory and the logistics system, in order to "five fingers seize the customer needs, another five finger grip on production," and quickly respond to market demand, to provide customers with "affordable fast fashion." To do so in the production manufacture within two weeks, it quickly produced and sold. This in garment processing, production, sales, service speed of up and become a model, known as the ZARA mode. .


ZARA mode.


"Trinity" design and order management. .


ZARA corporate headquarters has a design expert, market analysts and purchasing personnel "Trinity" business team, the annual design of new products, nearly 40000 company choose the subsection near 20000 put on the market. The team not only design the next quarter's new product styles, but also continuously update the current quarter's products. Ladies ', men's and children's clothing designers are centralized at Headquarters and in a modern building, located in the lobby, designers often sit on the side of the Hall, market experts sitting in the middle of the Hall, on the other side is the procurement and production planners. The design process is informal and open. .


Designers draw sketches and market specialists, production planning and procurement staff exchange. After discussions, make further modifications, styles and materials, colors, and more with better. The company through this process to maintain their usual style "ZARA", to avoid the destruction of the personal characteristics of the designers of the company as a whole. And then estimate the design of the production cost and sales prices in the design phase to avoid potential losses. The next trial small samples in the on-site each Hall. In this process, any person who, if you have suggestions and questions are available on the scene to solve the problem.


ZARA experts in every market should be responsible for managing some of the chain. As experienced employees, who themselves are usually chain managers, market experts and managers of chain stores established a very good personal relationship, often to discuss sales, orders, new styles and so on. Similarly, throughout the chain is based on the exchange of experts and market access information to determine the final order. .


In the new product design process, paying close attention to the trends and consumer purchasing behaviour, collection of information on customer requirements and a summary to Spain Headquarters Library, designers provide the basis for the new style in order to quickly respond to market demand. Production, operations teams work together to determine a specific style is what fabrics, how to trim and pricing, designers must first access the real-time information in the database. ZARA with independent development of information systems for product information and stock information for management, control inventory, raw materials and products designed to provide decision-making information. Excellent product information and inventory management systems, making ZARA team to manage the thousands of fabrics, all kinds of decorations, design inventory and stock merchandise. .


But in ZARA's warehouse, product information is a common, standardized, which makes the ZARA can quickly and accurately prepare design, crop production and unambiguous instruction. ZARA's team can also be provided through this system to the existing inventory to design a garment, without having to go to ordering raw materials and then wait for it to come.


"Vertical integration" type of production management. .


Design, production planning and procurement staff start order fulfillment process management: make raw material procurement plan and production plan, monitoring inventory changes, and the allocation of production and outsourcing production, tracking changes in the supply of goods to prevent the production and overproduction.


ZARA in Spain have their own 22 factories, 50% of the products is accomplished through their own factories, these factories have their own profit center, independent management. Other products by 50% of more than 400 external suppliers to complete 70% of these suppliers in Europe, mainly in Spain and Portugal, ZARA company hopes that this can be effectively managed to ensure that suppliers do change their orders the rapid response required to cooperate with suppliers regarded it as their first choice. .


The product is grown or outsourcing, such a decision is made by the buyer. Selection criteria are: the speed of the product demand and market experts, cost-effective production. The company's own production of ZARA products, raw materials, as far as possible from the Group's factories INDEXT purchase, of which approximately 40 per cent of fabric supply comes from the inside. It also has a 50 per cent of the cloth is not dying, so you can rapidly respond to the trend of summer color transform. In order to prevent dependence on one supplier, but also encouraging suppliers to respond faster, ZARA remaining supply of raw materials from 260 suppliers, each supplier's share of no more than 4%. .


ZARA, through reduction of raw materials CAD sewing work all over to subcontractors. In the vicinity of La Coruna, approximately 500 subcontractors, almost all of them work for ZARA. ZARA companies closely monitor their working processes to ensure product quality.


Subcontractor sewing clothes well, then cut back to the original plant, where ironing subject to inspection. Finally, plastic packaging products, affix the appropriate label, sent to the logistics center. Logistics Center and La Coruna in the factory have specialized transport between the railway. After the outsourcing of product produced, but also directly to the logistics center. .


"Mastering the last mile" delivery management.


ZARA all products are sent through logistics center out of La Coruna. The center is very sophisticated use of automated management software system, the quantity of goods transported according to requirements. Usually in order of receipt, within 8 hours can be shipped away, each chain of orders will be installed independently in their own box. In Europe, the distributor of the goods by truck from La Coruna in the logistics center is directly delivered to the ZARA store in all of Europe. .


Logistics transport trucks based on fixed schedules, and constantly open to all. The company also has two air base, one in La Coruna, one in Santiago, Chile. Typically, you can chain in Europe within 24 hours of receipt of goods, u.s. chain store needs 48 hours, the Japanese to 48 hours to 72 hours.


ZARA special emphasis on the importance of speed, as the company as a senior manager said: "For us, distance is not measured with a 1000 m, but with time to measure." .


It is worth mentioning that ZARA information system on the distribution process for tracking and managing the logistics and distribution. ZARA's distribution facilities very advanced, the number of the runtime needs to be very small. Approximately 20 km of underground conveyor goods from ZARA factory shipped goods distribution centres. In order to ensure that each order arrive at its destination, ZARA has borrowed optical reading tool, this tool can be chosen per hour and sorting more than 60000 clothes. At ZARA home also has a two-lane highway through distribution centres. Because of its fast, efficient operation, this is really just a distribution center of goods turnover in clothing, not the warehouse. .


"One-stop shopping" for sales management.


Chains are usually twice a week to the headquarters of orders, the product is updated twice a week. Orders must be issued within a specified time: Spain and southern Europe chains are usually every Wednesday afternoon until 3:00, every Saturday at 6 pm before the other area is the 15 o'clock every Tuesday and Friday afternoon before 6 before. If you missed the latest chain of time, then only until the next time.All the products in the chain of time does not exceed two weeks, the company each season to start only the minimum number of products produced, so that you can put excessive supply of risk control at the lowest possible level, once the emergence of new needs, ZARA can, through its effective supply chain management, production organization, quickly. ZARA in stock, the company's next quarter shipments Max will not exceed 20% of its supply chain relies on a more precise forecast and more timely market information, reaction speed than the average company much faster. As a result, the chain's product updates very fast, and some styles of clothing is not a second purchase, the customer also would be stimulated to the site to make a purchase decision, knowing that if they miss after could no longer buy the. .


In General, the success of ZARA mode thanks to the excellent company and the whole supply chain management, supply chain, as well as supporting the rapid reaction of the IT systems and applications. Since the beginning of the ZARA founding more than ten years of implementation of the development process, including the brand and business model, manufacturing and logistics system, the formation of strategic arrangements to quickly supply chain is based on the ability to quickly respond to market demand, to provide customers with "affordable fashion".


ZARA temperature enterprises explore and apply their knowledge. .


ZARA's operation mode is concerned, many clothing sector entrepreneurs in Milan in Wenzhou, Shanghai and other places to discover ZARA boutique and its sales performance, why shocked ZARA shop can make such excellent sales? connect Wenzhou clothing enterprises, such as the American Tess nation prestige, senma, bailide, their sales performance is also a doubling every year, if the two have in common?.


Have claimed that virtual enterprises in Wenzhou casual clothes are quietly played out the same business model with ZARA, they have the structure, including product positioning, design and development, internal order, listing, flat TVC filming, production and procurement, logistics and distribution, inventory management, store management, promotion, evaluation summary and other 11, including the operational processes, there are business people that this is the fashion industry's "bible", who do bit whoever success. .


Industry experts on ZARA "Trinity" business team took another name — the "buyers" team, Chairman of the forest and the forest bird sportswear Mingan has admitted that their company is a "buyers" of the company, in many ways with ZARA mode as the mode of operation, but there is a lot more than ZARA is not mature, can only be said to one of the few.


Casual wear company in Wenzhou, the product planning staff to act as the "buyer" status, they are located in Shanghai, Guangzhou, Hong Kong, Korea and Japan in time for the company's collection of fashion information, itself, has some design capability of the The information gathered with the company's products integrate style design.In this population reached bailide 60 000, they are basically, bailide group co., Ltd. Chairman of HKSAR Tung said that these people often through shops, Sales Department, Ministry, fabrics on display the purchase Department, design department, brand extension system, increase awareness, familiar with the application, as well as training on fabrics and clothing styles, colors, market awareness, we can really become a commodity, but also the shortest course to 4 years.


Been recognized as the professionals have a "buyer" model in the Ann underwear Co., Ltd., is also a mature collection of information, product sales, rapid response mechanisms. Ann in Wenzhou for almost 20 years of lingerie brand Agent, in the province has a comprehensive marketing network.Ann underwear co., Ltd. General Manager Miss XING supersymmetric, Ann has an experienced team of internal buyers, they possess on the market, prices of assessment capacity, there is a wealth of sales experience and insight, through publications, networking, sells the field guide, VIP customer feedback, try to collect such information, and guide specializes in fashion, with a line of underwear brand with each brand best product collection back. Ann is located in Wenzhou, located in busy urban area of 300 square meters, the concept of lingerie specialty stores, it seems that the miniature ZARA store, the store set a Wacoal, Audrey, Shuya, Barbara, according to Sifen , GP, SKANCOOL and other famous brands, and the advantages of each brand portfolio together, Wacoal bra, Shuya's home service, Audrey's lace underwear, pajamas by Sifen, GP's thermal underwear, SKINCOOL functional bra, to multi-brand, multi-species, multi-style differences in operations.Ann mode, and is analogous to a ZARA boutique brand, is the most powerful advantages together.


Wenzhou Clothing Chamber of Commerce Chen Zheng love during a visit to ZARA ZARA store as well as detailed analysis of patterns that, ZARA reason why such a popular commodity, not simply down to good products, good retail outlets or stores, but that each of its full operation of a part of rationality. Not only provide customers a single home sale, including home sales, arranging fashion shows to attract consumers. Second, it is also different tune up mode, even if the products sell no matter how good is this article does not make up make up numbers, so that consumers feel optimistic ZARA has to buy something tomorrow, do not necessarily buy.There are many trademarks, ZARA put sellers bid for first class brand, if sales is not good, as the second category of trade marks, the second class also sell, they are placed in category 3, for promotions, inventory is very effective.


"Buyer" model ZARA only a small part of the model, ZARA's supply chain, logistics, sales management are very advanced, powerful, refers us to in-depth research and analysis, although to varying degrees, our businesses have followed these process is doing, but not enough to put in place, the Wenzhou model enterprise learning ZARA need to go through a long process. .


ZARA------cost control.


Morning News on March 31 at the Beijing Kunlun Hotel two-story multi-purpose hall. Waves of applause, as the "Chinese fashion industry think tanks and the highest level of theoretical discussion platform" China Fashion Forum, Lang who was born in Taiwan, the study in the United States, resident in Hong Kong, Professor, opening on the throw, "the the world's no real sunset industries, only sunset thinking "point of view, into the fashion industry, set off for a while," Lang whirlwind. " Special Beijing Morning Post reporter attended this seminar. .


According to reports, the Forum organizers have invited lang at the end of last year. "Give me a call at the end of last year about me on the clothing industry, I spent three months have done in the last case, the case is not yet out, now is the last version of the previous version, I'm still not satisfied, but time is too late. "Lang said.


Lang, rivers and lakes called these "Lang idle comment", "Lang supervision", also known as China's "iron hammer," the Chinese stock market, "Lang whirlwind." He is the focus of the most controversial figure among the economic circles. .


As far as I know, there are thousands of people at home and abroad are invited to attend this forum, more than in the past. Experts have American professor at the University of Rhode Island, United States of America by winning business historians Morley? Klein, the world's modern cultural strategist Cao, Peking University, Department of philosophy, Professor, Chen Feng, doctor of engineering, University of Tokyo Casper, President of the French Association of high fashion, Goce Barker KENZO CEO fo Francois? Steiner, etc. Our expert consultants, advisers Yu mingyang them.


Relevant information. .


: The largest u.s. manufacturer of young fashion publications and GARP apparel companies, 2005 annual sales reach $ 17 billion. Its co-founder du Li, Derek Fisher to 15 million estate assets on the Forbes list. In 1998, the GAP in the Clinton scandals in rapid warming. Around 2000, GAP development culminating from 2000 is worse performance, lost its former glory, 2006 was H&M and Inditex overtaking. INDITEX: has the Spanish clothing chain retailer ZARA profit Deed companies, mediocre performance, until 2003, was Spain's best brands, sales of the first rank of Spain, ranked third worldwide sales, the market value of more than 8 billion U.S. dollars. .


H&M: Swedish Hennes and Mauritz company, Europe's largest clothing retailer, is currently ranked world leader of Forbes.


□ s clothing features. .


As we understand, 28 per cent is the trend of the clothing, demand is not characteristic of, the more trendy clothes require shorter lead time. This trendy clothes for most major characteristic is easy to change customers ' preferences, including weather, movies are easily changed customer trend taste..


Garment industry is difficult to predict demand, take data, the apparel industry average, the daily depreciation of 0. .7% Sold as long as 10 days in advance, less depreciation of 7%, while gross margin would increase by 13%, who can reduce the lead time will be able to profit. .


Short lead time? first, to reduce the forecast for the fashion industry, very strange, today's trend is to increase the fashion industry forecasts, and is reduced because forecast. Second, to more accurate grasp of customer tastes. According to the article published in 1991, said lead time by 50 percent, predict demand risk will also be reduced by 50%.


If a company with such conditions, it will be more terrible. 200 people in northwest Spain, the design team, sent to Paris, Milan's fashion shows draw inspiration, with a wide range of fabrics, just one day can produce a sample sent to the factory. From design to production of only 10 days to complete. , To study how to reduce lead time in the end, require rapid imitation, grasp the changes in customer tastes, dedicated staff recorded the leader of the young fashion wear, such as Super Girls were. They are not creators, is the rapid responders. .


To GAP, for example, the design of brewing period is 2 to 3 months, they make a suit, ZARA can do six clothes.


In the hearts of many people, Spain has beauty, beaches, there is bullfighting, but also football, fashion, with the Spanish word seems far-fetched, but the fashion industry in Europe in recent years has suddenly swept a "whirlwind of Spain", represented by ZARA a number of alternative fashion brand break through the traditional constraints, openly become a leader in fashion, their secret to success is to shorten lead time, production rate is almost ten times faster than the competition. .


□ H&M interpretation.


H & M a total of more than 260 suppliers of raw materials to ensure a stable, low-cost, relatively large, more than 20 factories located in Spain. Large factories have characteristics, which is absolute, is a capital-intensive factories, which is very interesting match. .


Capital-intensive? only do cutting, dyeing and other are not done. For example, a purple sweater fashion this year, they put the fabric dyed purple, then cuts out, all capitalized tools cropped. 400 small factory is responsible for a large number of cumbersome sewing work, and a factory, the factory produces only one style, ensure the professional level. All of the labor intensive processes all assignments to the machine instead of manpower, and the rest to small factories. Large factories in addition to the intensive work of sewing, 50 per cent of clothing from their own 20 factories production, ensure fast.


How cut clothes like it sent to 400 plants? Underground conveyor belt 20 km underground conveyor belt 400 factories all put together, according to the information displayed is 200 km. .


This is extremely fast, from 20 factory trimmed dress quickly assigned to small factory sewing. In order to speed it can be said that regardless of cost.


The large plant will cut the clothes are read by optical instruments for the classification of categories more than 60,000 per hour clothes. This error chance is 0. .5%. .


This is the speed. Highly efficient logistics system enables to shorten the cycle of fashion.


□ Interpretation of logistics. .


Inditex80 per cent is manufactured in Europe, you can quickly send to the European market, this is the first to consider the issue, other basic styles can be transported from Asia, called homes near distant.


ZARA only 15% of the garments are pre-ordered, 75% of businesses close to the production, with the truck arrived, two days to ensure delivered. .


Japanese and American apparel brand logistics, all without having to ship by air transport, ornate, leaps and bounds, very fast.


Transportation mode in the logistics center, we track a bit. One in Central America, and why? We believe that the difference is in line with the southern hemisphere season, to keep up with perishable, seasonal changed, ZARA first owned stores. Spain also has an investment of 100 million euros, more than 50% capacity utilization and retail points in each place orders twice a week. The manager of the points developed based on actual inventory. Opportunity to stock a small, small chance of a discount. .


To H&M done best in 2000, for example, ZARA discount merchandise is 7 per cent, and the GAP is ZARA H&M twice. ZARA in the most fashionable local branches, he opens second Supercenter in other places, the annual average number of consumers are visiting, and 17 industry average 3 to 4 times. Because they dared to open a shop, because it maintains the principle of the multi volume, increase consumers ' comfort.


Inditex GAP and a small section is adopted to achieve economies of scale and more thinking. Both the sales and marketing costs are not economies of scale in the middle of the gap is not directly change major, but is much less thinking sections ZARA quickly reached. .


This is a very interesting character, in the past of textbooks. Did not think multi, due to sales, can achieve economies of scale.


□ interpret process flow. .


Highly integrated system is the most worrying. Clothing industry, automobile, or the worst of process flow.


Many factories are in process, the problem is not strictly enforced. Each store's PDA, the most important objective is to immediately bring information back to headquarters, the headquarters immediately passed to designers, designers and quickly the information is reflected. The overall purpose is to fast! . .


Product information to the headquarters, the headquarters to designers, clothes production, the entire process of 14 days. On the basis of this information and lead time, ZARA has advantages, only two weeks. According to this data, the first prize in the GAP.


From design to production companies, the central cargo hold, the local distribution center to the local sales are a dragon, their system is called Information and Communication Technology (ICT) advice to contact the system successfully processes the time between each compressed. Terminal stores the daily sales reached ICT platform through the records, because the owner of the store, came after data sent to the procurement department, according to data production for individual style, and then transported to stores for sale. .


Where the communication is very important that departments can share store style application sales records, collecting visitor preferences to make accurate forecasts; Purchasing Department prior to the planned; logistics sector of the goods to the destination in a timely manner.


ICT systems to highly integrated supply chain? Begin with the design, sales data sent to the ICT platform, designers and timely access to information, computer graphics quickly. Production management of manufacturers, but also reduce the time. GAP in 2002, there were 900 manufacturers; 750 manufacturers in 2003; 2004 700 manufacturers, similar to the thinking, if memory is true, Inditex is slowly emulated. Manufacturer's number is reduced, the purpose of increased production department for a better process integration and improve efficiency. .


□ The interpretation cost control.


No light to reduce the time, H & M and ZARA cost of how to solve? Both are very cost conscious. LG and Samsung, Why the high rate of return on capital, the important point is the cost of proper control, to reach economies of scale. The two companies are low production models and more shopping to increase desire, so go fast delivery. .


And understanding the cost of sales, look at Inditex, publicity costs only represent sales of .3% 0., far below the industry average of 3 per cent to 4 per cent, but they do not use the star designers, do not use expensive traditional promotional strategies. This is not to abandon the communication, but rather increase customer feedback channels, including E-mail and customer contact, low-cost publicity and communication strategies.


Why Spain and Portugal signed a small plant? Because small plants benefit cost control. These factories are mostly employed mothers, grandmothers, little girls are farmers, who live in rural areas, according to the price level in Spain, the average industrial worker's salary is 1300 U.S. dollars, Inditex400 wife and children plant is 500 U.S. dollars. .


Cost of compression can achieve operating system of choice. Using the Inditex UNIX system, this is the lowest of the low than windows. Then visit data information system cost, representing the main cost of 0. .5 percent is Inditex, H&M20 per cent. ZARA is not a system, but it is very low.


ZARA's buyers are. .


Designer VS buy hand-made Spanish fashion brand Zara's popular classics like fashion brand at Zara China's first flagship store bought the first pieces of shirts, Zara excitedly put MSN changed its name — "I love Zara". In China, Zara begins with its unique business model attempts to conquer the young consumers.


In Europe, Zara is the only way to popular "first-class design, second-rate material, third-price", aimed at those who can not afford the top brands like fashion designing but consumer demand among young people. .


Learning in France for many years designers by told reporters that in the European top fashion brands do not like Zara, because they always Zara imitation. While small and medium-sized clothing brand Zara is envy, and is imitated and measures.


"Flying" of the designer. .


Zara has nearly 400 designers, they design a year in some fashion, this 12000 two numbers are far more than other well-known fashion brand.


The designer is a typical "night", they often fly the shuttle in a variety of fashion conference, or between the place and out of fashion. Typically, some of the top brand's latest design just came out not long, Zara will be released and these designs are very similar fashion. .


Such a design that Zara follow fashion trends. It is reported that in Europe, every year, Zara has to pay to those top brands of tens of millions of euros in fines. Zara did not give up this design pattern — profit from Zara to much higher than the penalty.


Zara to her design approach called "Trinity" - the "three" are the "designer", "market experts" and "purchase expert." The three together to determine the design style. .


This design pattern is the first step by designers and "fashion observer" collection fashion information, and then by designers according to the collected information is analyzed, collation and collation, and then hand drawn sketches.


The second step is the designer and the "market experts" and "purchase experts" composed of business team to discuss the draft plan so that all products in general, to maintain "Zara style", and modify the design plan, improve and refine . .


The third step is the "business team," according to the information in a database jointly determine when put into production, using what fabrics, the number of color, production, costs and prices and other specific requirements, and apply these requirements to the production sector.


This mode of operation from design to production to ensure a rapid, standardized operation. It is understood, Zara of a product from design to delivery to store shelves, on average only about 10 to 15 days, and fashion from 6 to 9 months, the average standard are a stark contrast. .


Shanghai Co., Ltd. Chairman of the Board of LAN Jie Lu small Hunan told reporters that none of the Chinese apparel companies can go to so many designers, spending money that they ran over the world, to take part in all kinds of fashion, and in a very short period of time to get out of the design, which requires a strong financial power as support.


"Three no's" brand management. .


Zara brand management models also feature.


Although Zara's brand positioning in the end, but it is often to choose the best location to build flagship store. These are often the appearance of luxury flagship store, also a large area, can give consumers a unique shopping experience. .


This was followed by an extremely rapid new product rollouts. Zara each year nearly 12000 design styles, each style in the same number of shops is very limited, and each design in the flagship store of a substantial period of not more than two weeks. This person is "scarce" can give consumers a two impression: is this shop clothing sales quickly, the other is a clothing shop is always new.


Zara brand management strategy, there is a famous "three noes" principle - "no advertising, no outsourcing, no discount." .


Currently, only the amount of advertising Zara sales 0. .3 percent, well below the industry 3% to 4% of the average. Most of the raw materials and clothing consists of own production, but to date, approximately 50% are already outsourcing. Types of Zara discounts are generally accounted for only 10% of the total species, and generally only 8.5%.


Zara insisted that the key manufacturing sector to remain in Europe, rather than production costs in developing countries. GAP as compared with its competitors, it confirmed the speed and flexibility than simply the price more competitive. .


"Speed" of the supply chain system.


"Zara's success depends on through the effective use of information technology, part of the control for each business." From the Italian Bocconi University Business School "Fashion and Design Management" Master Project Director Stefania Saviolo praise on Zara's supply chain sound like. .


At Zara chain stores, IT systems have been deployed to each store, each store has its own manifest themselves, but the manifest of the French restaurant and Italian restaurant. This is a very personalized approach. And store managers are responsible for viewing store goods sales and, depending on the needs of the next week to the headquarters of the order.


Based information via the Internet to aggregate, given Spain's factory, the fastest production and delivery. Store manager to decide what goods should be entered; Zara store managers on the assessment, it is to see the store's sales have increased, if the backlog of goods on the store managers pay the price for these stocks. .


In addition, Zara's business processes and IT is very close together. Harvard Business School Professor MacAfee Zara's comment: "the Zara shop manager feels like IT, but IT was like a salesperson. ”。.


This is precisely the soft underbelly of similar enterprises: information systems and the effective integration of business generally poor results. .


For instance Shanshan brilliant moment, development of Shanshan suit walk is a popular route, and go upscale women's wear. It had to be established for its women's plus a suite of supply chain system, and as a result, instead of sharing resources, but also because it is not in the century of wasted money market operations.


Correspondingly, the, Zara clothing though divided into three series, there is a certain level of positioning differences, supply chain integration has been very successful. .


ZARA's operation mode Supplement [2].


ZARA's strategic positioning. .


Inditex Corporation is ranked first in Spain, ranking third in the apparel retailers, in 52 countries around the world with nearly 2000 multiple branches. Owns ZARA, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho other nine apparel retail brands, including nine brand ZARA is the most famous, is the company's flagship brand of Inditex, is "the fashion industry, Dell Computer "and" fashion industry, Swatch watches, "is considered Europe's most research value of the brand; ZARA's unique supply chain management, making it the global apparel industry, the speed and flexibility in responding to the benchmark enterprise management . .


To ensure its success.


As Inditex's flagship brand, ZARA founding in 1985, it is an apparel brand, is also a franchise retail chain ZARA brand apparel brand. ZARA is owned and operated company stick to almost all the principles of chain networks, while investing heavily in building their own factories (currently 22 owned factories) and the logistics system in order to "seize the customer needs five fingers, five other finger control of production ", quick response to market demand, to provide customers with" affordable fast fashion "(Figure 1). .


ZARA's strategies require the company to continuously throughout the year to launch a large number of variety of new products. ZARA's Senior Manager of the company management of Diaz is "fashion" is not a traditional clothes. Customers to buy because they like the "fashion", instead of like ZARA company. ZARA for the customer, the company's chain means that they can find the latest, rationed "fashion." In a way, because company is "fashion" (but the price is not high) the image of the chain's inventory level is very low, usually only a few pieces of each style, in other words that are usually put a few pieces of stock In the exhibition in the window. Due to low inventory policy, one day after the sale can often see empty shelves, chain is dependent on an orderly and rapid supply of new products to complement (Figure 2). .


ZARA's unique global supply chain management model.


ZARA company by operation of studies have found, ZARA to provide customers with "affordable fast fashion" strategy benefited from the company's outstanding success of the entire apparel industry supply chain management, and support rapid response supply chain IT systems.ZARA "fast company, a small, several types of" brand management mode, ensure to maintain synchronization with fashion, through a combination of the development of new models, rapid introduction of new products, and every style in every store launched in only a few, man-made cause "out of stock" for fast design, quick production, quick sale, fast update, pro shop merchandise twice weekly. (Fig. 3).


"Trinity" design and order management. .


ZARA's own design all the products in their corporate headquarters has a 300 commercial team, from design experts, market analysts and purchasing personnel "Trinity" of the commercial team. They work together, the annual design of new products, nearly 40000 companies choose 10000 variety on the market. Unlike our competitors, the team not only design the next quarter's new product styles, but also continuously update the current quarter's products. The company respected the democratic atmosphere and innovative design (company no chief designer, the average age of all the designers 26 years), also encouraged designers to get inspiration from anywhere in the world (inspired by the designer of trade information, discos, bridge the pedestrian path, fashion magazines, etc.). And chain stores around the world in the design process can be put forward their own views. Women, men and children's clothing designers are concentrated in the headquarters of a modern building, located in each hall.Each Hall is very spacious, designers can easily communicate with colleagues, adjacent to the designers usually sits on the side of the Hall, market experts sitting in the middle of the Hall, on the other side is the procurement and production planners. Each Hall is a large round table, designers there meeting or get together for mutual exchange. Hall also placed a number of comfortable chairs and filled with various fashion magazines on the shelf, and designers ready to sit down and read. The whole design process is informal and open.


Designers first design sketches drawn by hand, then with other colleagues - market experts, production planning and procurement personnel to carry out the full exchange. .


The company through this process to maintain their usual style "ZARA" avoid designer's personal characteristics destroyed the company's overall style. After discussions, the designers put the modified design sketches drawn by CAD, for further modifications, styles and materials, colors, and more with better. Then take the next step, you must estimate the design of the production cost and sales prices in the design phase is to avoid potential losses. Next, the company will send a skilled worker manual trial out a small sample, and placed in each corner of the Hall site display. In this process, any person who has some suggestions and queries, can be directly in front of the designers come to discuss, at the scene to solve the problem. .


ZARA in every market experts are responsible for managing some of the chains, and experienced staff, they themselves are usually some chain manager, practice of the stay and a cable chain managers contact is very important, market experts and chain store manager has established a very good personal relationships. By telephone, they maintain close to each other, often come together to discuss sales, orders, new style, and so on. Similarly, the parts of the chain is the basis and market experts to obtain information to determine the final orders. In order to better promote such exchanges and communication, the company also specifically for each store manager with a special Sheji portable digital devices, to ensure they can be quickly Chuandi market Zuixindongtai of Shu Ju. Design of a final decision, including the production design of choice, when production and output, are by the relevant design team to determine, not only for designers to take part, market experts, production planning and procurement staff should participate in them to.After you finalize the design end, production planning and procurement staff (they are both very experienced employees) order fulfillment process management: make raw material procurement plan and production plan, monitoring inventory changes, and the allocation of production and outsourcing production, tracking changes in the sources, to prevent the production and overproduction.


"Vertical integration" type of production management. .


ZARA company in Spain with 22 factory (of which 18 are located in La Coruna, Spain or the surrounding area), its 50% of all products is through its own factory to finish, but all sewing work are subcontractors. The factory has its own independent profit center management. The other 50% of the products is made up of more than 400 external suppliers, these suppliers have 70% are located in Europe, others are mainly distributed in Asia. European suppliers mainly in Spain and Portugal, ZARA company hopes that this can be managed effectively to ensure their suppliers to make changes in order to respond quickly to fashion is also a key to the success of the Department. In Asia, the company produces some of the side products, are sold on price and quality sensitive areas. ZARA company as large and the number of orders not only large and very stable, and therefore cooperate with suppliers regarded it as their first choice, ZARA's voice also goes without saying that the. .


The product is in its own production or outsource this decision by the production planning and procurement officers. Selection criteria are: the speed of the product demand and market experts, cost-effective production. If the buyer is not available from the company's factory to obtain a satisfactory price, efficient transport and quality assurance, he can freely select outsourcers. ZARA company manufactured products, raw materials and from the Inditex Group's purchase of manufacturers, approximately 40% of the cotton material supply comes from the inside. 50% of them having the fabric is not dyed, so you can respond quickly to change the tide of summer colors. In order to faster printing and dyeing, ZARA same and other related companies within the Group in close cooperation. In order to prevent dependence on one supplier, but also encouraging suppliers to respond faster, ZARA remaining supply of raw materials from 260 suppliers, each supplier's share of no more than 4%. .


ZARA's own raw material through CAD cutting, sewing work all over to subcontractors. Subcontractors with Inditex Group companies, to collect, transport after cropping. In the vicinity of La Coruna, approximately 500 such subcontractors, almost all of them work for ZARA. ZARA companies closely monitor their working processes to ensure product quality, adherence to labour as well as other associated with the production schedule. Subcontractor sewing clothes, then after sent back to the original cutting factory, where iron and accept checks. Finally, plastic packaging products, paste the appropriate tab, and then sent to the logistics center. Logistics Center and La Coruna in the factory have specialized transport between the railway. After the outsourcing of product produced, but also directly to the logistics center. To further ensure quality, ZARA has also adopted the method of sampling inspection. .


"Mastering the last mile" delivery management.


All products are sent through La Coruna out the logistics center, the center has five storeys, floor area of more than 50,000 square meters, the use of highly sophisticated automation management software system: the majority or by ZARA Inditex developed by the staff. The center has 1,200 employees, operating four days a week usually, the number of delivery of goods according to demand. Typically, orders received after 8 hours or less can be shipped away, each chain of orders will be installed independently in their own box.Interestingly, although in June 2001, the logistics centre of only about 50%, but when the month of October, the Group announced that it will spend $ 1 billion euros in a new Logistics Center, and ZARA company CFO also refused to evaluate from a financial point of view. In addition to the headquarters of the Logistics Center in Spain, ZARA company also in Brazil, Argentina and Mexico, three small storage Center to respond to the southern hemisphere demand in different seasons.


In 2001, when the logistics center are sent 1.3 billion product, a daily average of 400,000, of which 75% were sent to Europe. Each year, about 300,000 kinds of new products to market (about 10,000 kinds of colors with 5 ~ 6 5 ~ 7 sizes of different styles). ZARA fashion products sales accounted for 80% of the total, the remaining general clothing. In Europe, the distributor of the goods by truck from La Coruna in the logistics center is directly delivered to the ZARA store in all of Europe. .


Logistics transport trucks based on fixed schedules, and constantly open to all (like a bus). For example, in the Netherlands chain can know the shipping of the truck is in Thursday's morning 6: 00 PM departure of the logistics centre of La Coruna, the same headquarters is also very easy to calculate the carrier from China back to a specific time at which the port of Rotterdam. The company also has two air base, one in La Coruna, another bigger in Santiago, Chile. Typically, you can chain in Europe within 24 hours of receipt of goods, u.s. chain store needs 48 hours, the Japanese in the 48-72 hours. ZARA special emphasis on the importance of speed, as the company as a senior manager said: "For us, distance is not measured with a 1000 m, but with time to measure." Relative to the industry's small businesses, ZARA is incredible: the correct shipping rate of 98. .9%, While the error rate of less than 0. .5%. .


"One-stop shopping" for sales management.


Chains are usually twice a week to the headquarters of orders, products are updated twice a week. Orders must be issued before the stipulated time: Spain and southern Europe chains are usually every Wednesday until 3:00 pm, every Saturday until 6:00 pm, other areas are every Tuesday and Friday 3:00 pm until 6: 00 before. If you missed the latest chain of time, then only until the next time, the company's management of this very strict time limits, orders must be on time.All products in the chain of time does not exceed 2 weeks, the company each season to start only the minimum number of products produced, so that you can put excessive supply of risk control at the lowest level, once the emergence of new needs, ZARA can, through its effective supply chain management, production organization, quickly. In the inventory, the industry's usual practice is that when the end of the quarter are usually stored in the next quarter, shipments of 45% to 60%, while the indicators of ZARA's largest no more than 20% of its supply chain, with more more accurate forecasts and better real-time market information, the reaction rate much faster than the average company. .


At ZARA chain stores, if you have a product for more than 2 to 3 weeks haven't sold out, you will be sent to the host of other retail chains, or sent back to Spain. Typically, the number of products that are less than 10 per cent of the total. In practice, usually only in proportion to the number of irregularities will be sent the product back to Spain. As a result, the chain of product updates, speed, and some style of clothes is never get a second purchase, customers will be stimulated to make a purchase on the site, just because they know that once after it is possible to Miss anymore. From the above we can see, ZARA company's inventory levels for each style lower than competitors, and the late season when the need to discount the sale of products is relatively small. Moreover, even if the discount sales, the industry average of 6 to 7 fold, while the company was able to control ZARA 8. .5 Fold over. .


IT and communication technologies enable supply chain ZARA is faster.


ZARA in information sharing and use of performance excellence, making the supply chain ZARA has an alarming rate, rapid collection of market information, rapid decision-making, control of inventory and fast production, fast delivery, mode of operation can be achieved in ZARA. .


IT and communications technology is the core business model and ZARA.


On ZARA, clothing styles directly from the distribution of brand stores all over the world a steady stream of e-mail and telephone. From the beginning, ZARA to really start from the needs of customers, timely response to customer demand, rather than a distant possible to predict the future. According to customer demand, ZARA production, operations managers and designers together to discuss the future look like the popular clothing style, what kind of fabrics, Da Zhi Yi Ji cost price and so on, and formed as soon as possible consensus.Then, the designers to quickly sketch out the clothing style, gives detailed dimensions and prepared technical requirements. Because the fabric and clothes trinket in ZARA's warehouse is out-of-the-box, the sample need only be made in a fraction of the time. At the same time as the whole team are on the same local office to discuss, review, approval is equally fast. Once the design has been approved by, the manufacturing instructions immediately, as soon as the required cut of cloth. The crop is at ZARA's own highly automated cutting equipment. Cutting a good material to be transported to a small factory producing network consisting of suturing. Almost all of these small factories in the north of Galicia or Portugal, about 400. ZARA for these small plants provide a range of easy to implement the directive, which allows them to sew clothes quickly and continuously to sew the clothes are sent to the ZARA clothing and packaging sectors. .


Therefore, other companies take several months to work in ZARA within a few days to complete. Finally, ZARA's high technology content distribution system to ensure that the various styles of clothing will not be stayed too long at Headquarters, the clothing in the distribution centre was quickly sorting, loading and sent to stores in 24-48 hours to arrive at the store. Each store receives twice a week, so production supply is completed, the clothing in the longest transit will not exceed a week.


IT systems, making ZARA unique supply chain management and better implementation. .


Information and communication technologies (ICT) supply chain ZARA is the core application, IT will be the ZARA product design, production, distribution and sales quickly, so that supply chain ZARA "go faster". It is precisely because the application in information today, ZARA has such an alarming rate. Its excellence in four areas:.


In the new product design process, pay close attention to trends and consumer behavior, customer needs to collect information and aggregate information to the Spanish headquarters of the library, new models for the designer to provide the basis to quickly respond to market demand. A variety of fashion trends on a daily stream of information from various ZARA store into the head office database.Designers check side on the same day delivery quantity and the number of sales for each day, while the use of new information to generate new ideas and improving existing fashion, then with the production, operation team decided that a specific style is what fabrics, how to trim and pricing, designers must first access the real-time information in the database.


In the information gathering process, ZARA information systems more emphasis on the standardization of clothing information for new product design and manufacturing to provide decision support. For a typical clothing retailer in terms of vastly different or incomplete in sizes, different products of effective information usually takes several weeks, in order to be added to their product design and approval process. But in ZARA's warehouse, the product information is generic, standardized, which makes ZARA quickly and accurately prepare the design of cutting production are given clear instructions. .


In the supply chain ZARA, ZARA with independent development of information systems for product information and stock information for management, control inventory, raw materials and products designed to provide decision-making information. Excellent product information and stock management system, allowing the team to manage ZARA thousands of fabric, all kinds of decoration, design, inventory and inventory of goods. ZARA's team can also be provided through this system to the existing inventory to design a garment, without having to go to ordering raw materials and then wait for it to come.


It is worth mentioning that, ZARA information system on the distribution process to track logistics and distribution management. ZARA's distribution facilities are very advanced run-time needs to be very small. About 20 km underground conveyor belt to transport goods from the factory ZARA ZARA located at the headquarters of the Spanish cargo distribution center. To ensure that every order to reach its destination on time, ZARA has not taken a waste of time but the manual sorting method to use the optical pickup tool that can be selected every hour and sorting more than 60,000 of the clothes.At ZARA home also has a two-lane highway through distribution centres. Due to its high speed and efficient functioning of the goods distribution center is really just a costume of turnover, rather than a warehouse.


Effective integration of IT and business IT applications the company is excellent ZARA key. .


Why ZARA information technology application can successfully? study indicated that the application of IT, ZARA excellent performance is effective IT and business. ZARA's IT infrastructure is not a year for two years, building, and we are seeing the results of the application IT ZARA is ZARA investment for many years in the construction of the combined result is a functional areas of a functional areas gradually perfect results, is IT systems and business processes effective combination of successful performance. In other words, these remarkable achievements is the business needs and IT is valid in combination with the accumulation of products. As we have seen, ZARA's profitability, with the information systems supporting organizational structure, business processes and business models change dramatically different (Figure 4). .


To store, for example, ZARA will IT system deployed to each store, each store has its own manifest themselves, but the manifest of the French restaurant and Italian restaurant. This is a very personalized approach. And store managers are responsible for viewing store goods sales and, depending on the needs of the next week to the headquarters of the order. Headquarters via the Internet, the information sent to the Spanish factories, the fastest production and shipping. Store manager to decide what goods should be entered; ZARA store manager of the assessment, it is to see the store's sales have increased, if the backlog of goods, then the store manager, pay for these stocks. ZARA use IT to its organizational form, business process design, and the remarkable effect: all the technical staff is entirely the tone of business, all business people as technology sector as discourse. .


In General, ZARA company application IT to support the whole supply chain management model of success can be grouped into five areas:.


(1) IT can help people make judgments, can not replace people. Not the computer make a decision, the store manager by ZARA in deciding what goods set. Computer help them process information, but can not provide any suggestions, or even make any decisions. .


(2) information to standardization and stage, and has focus. The company's IT principles should be: "you have to do, do it up; you can do little. "For example, the store must be able to store performance data, and back to Headquarters. Therefore, a set of POS system and be able to return home, it is a very important function. In addition, it is necessary to resist to the temptation of the expansion of other functions.


(3) technical program from within. The decision should be the goal of enterprise IT application, rather than by IT companies with a away. Not by the information department, to suggest what the company should buy, what things would be any good company, but the information officers and line managers to discuss, to understand what the company needs, then look in the market at which solutions can help solve this problem. This looks like a very simple and obvious truth, but many of the company's approach, by contrast, the so-called IT experts from the outside to tell what the company must have. .


(4) process optimization is key. Although ZARA sells the ever-changing product, but the business operation is very simple: every transfer of sales data, ordering, shipping twice a week. Some places are very flexible, but some cannot be changed, for example, the store manager can decide what you want to provide, but cannot change the price.


(5) business processes must be effective integration of IT. ZARA store manager of the speech felt like the IT staff, and IT staff are like general business personnel. We all agree that IT is important, but also that the process must be focused, and should adopt the perspective from the inside out. .


ZARA offers supply chain of the "place order".


Dr. Deng: ZARA pursuit of quick response supply chain, orders 2 times a week, received orders to be completed within 10-14 days cycle. China currently has 60% of a company (estimated value) make up a single volume, they have not completed a single cycle, agent branch orders at any time. This fixed ratio in accordance with the rhythms of single time is not better? ZARA this pursuit of supply chain for the speed of business, why not immediately orders, wait until Monday until Friday orders. For example, there is a demand Tuesday, timely orders, it can save 3 days, why not do orders in time? . .


GE Star: there are several factors to consider, is the key to the rhythm of the business operation and cost factors.


1. . ZARA the speed of the supply chain, this is a relative concept. Therefore, each year sales of 200 million garments, each of the 25 products quarter of ZARA, the common rhythm is particularly important. If it is set with up with the words, business management will be more complex management requirements of enterprises operating on the higher, then the corresponding cost would be higher and thus a higher probability of errors; I think, ZARA sought With the goal should be to set up with, then, ZARA may have 365 products quarter / year, or 182 products quarter / years. .


2. ZARA is a very low-key business, this seems to be able to infer the enterprise operation style, and image stabilization. This stability is rhythm. To the rhythm, ZARA is stealing.


3. . Another reason is: ZARA's global deployment of the system will be fixed replenishment time is beneficial to shop around between the product deployment, reduce inventory;. .


4. ZARA although in fixed asset investment and generous, but for operational cost of control is very strict, fixed ordering, in favor of merging orders, batch crop, bulk assigned to subcontract factories. 200 km of underground carousel cost is very high. Of course, the cost of finished goods pays the bulk of optimal.


5. . There is with the marketing strategy: an artificial shortage. Periodic replenishment, allowing the consumer firmly in mind that the week which can store two days to buy new ZARA. .


Dr. TANG: my analysis and guess what is this: discount on enterprise ready, on the surface faster than ZARA, actually not. The business of the day, does not mean that the quick responses. Their contents are under sin;.


Today set A: 1000 Shuang; tomorrow set B: 200 Shuang; acquired set C: 300 Shuang;. .


Each of A, may not be a "beat cycle sales, it is possible that the sales of the next 20 days; this time, this was A season may no longer be A. This is the risk.


ZARA's orders in accordance with the beat: a certain amount of not more than one beat, such as orders for weeks about a beat is certainly expected sales. .


Monday, may be dual-B20-A50, A60 Dual Friday, set on double-B0, C30, next set double; B20-A50, C20-;.


This order means the risk is small. .


Rapid response is reflected in the high-frequency small orders, and orders; and not just the time count. Of course, GE star beats to mix mentioned, such as conducive to the allocation, it is also very important reasons.


The company orders such a There is another way of more serious problems: for example: Today, orders A1000 double production line A, the A majority of future sales, only 50 pairs of the short term, but to use production line to produce 1,000 pairs, taking up the production line resources; made the market much-needed production of B have the resources to production, to end the impression that the supply, capacity constraints, may lead to end the first order, in advance bulk orders (supply chain demand variability, and it risk).ZARA according to beat many small-batch production, only production of current needed (3 days), will not give Terminal productivity caused by tension. High frequency, means that the production volume to segmentation, logistics course is definitely not cut, merge, merge, transport orders. You are here understand backwards, the pursuit of economic bulk will only bring the supply chain, rather than economic.


This enterprise approach this next one, "human" cause shortages of other people feel is not enough capacity, so either in advance of production, or expand capacity. Decline in demand when the inventory backlog may occur, or a lot of idle capacity, a huge corporate losses, serious only to die. This is a vivid portrayal of many Chinese enterprises. .


GE Star: Dr. Tang, several information you confirm: the enterprise is now drawn with the fill with, their Manager seems to have been a document is called branch, under the Office twice a week, it seems to be the order on Monday and Thursday, the specific time you can ask the Manager;.


Dr. Deng: and planning in the Department of exchange, saw their orders and to send a single data, a certain style, and ordering all office orders an average of four goods, make up a single average for each office is 2. .5 Pieces of cargo. Of course, there is a lot, or half-piece of the replenishment. This enterprise is now able to achieve daily orders. Next week, they mentioned one problem: This requires all aspects of the operation of the terminal as well as changes in thinking, but not operational. .


GE Star: the same order, the purpose behind it and why is different:.


1. . For this enterprise, the more orders means selling goods replenishment orders, called up one of its objectives are: shops, offices, branch offices, marketing companies to deploy out of the department do to prevent predictable order.This is a very dangerous, very easily lead to the formation of inventory forecasting zoom: store managers in the light of experience and practical needs of forecasts, the number of your order to the Office, the Office in accordance with individual stores statistical data, plus some forecasts, escalation to branch, the branch also do you want to do the statistics, forecasting, marketing headquarters of provisioning, do it again in statistics, projections. After a series of statistics, forecasts, statistics, forecasting, formed after the deployment of subordinate to the production company and purchase the company's replenishment orders. Attention, these are projections of the replenishment orders is to prevent shortages caused by the various interests of the body under examination orders, inventory is the root cause of evil. Because, according to statistics, 50% of predicted time, the forecast accuracy will increase by 50%. This is why the reasons for the forecast period should be shortened. .


2. For ZARA, the order is a new order, not sellers of replenishment orders. Its purpose is to satisfy customer demand, consumer-oriented, rather than a store. Its information system to support the issuance of the order of the star and Summary mode, instead of a spectrum of summarize mode, plus a short time, accuracy, and the inventory and the pressure is small.


Dr Tang: You mentioned that the problem is fundamental, the Office is aggregated, not distributors or directly under a single terminal. The reality of an enterprise from the operation of the domestic point of view, the merger is necessary. .


Zara study 1: the supply chain of value in IT.


How many years of regular was broken in one fell swoop ZARA? ZARA stores each detection is a popular member of intelligence. Each sale of a commodity, they will be the consumer identity, product features into the online computer. In Spain, ZARA headquarters received information, through analysis, determine how to design the next batch of models, which fabric material procurement, the number of production quantities, and delivery for each store a different species.In other words, ZARA, all the links in the supply chain and IT is closely related to the application, between them through information sharing, have complementary advantages, the design of the ZARA clothing, production, processing, distribution and retailing four steps into one, common to better support the brand "affordable fast fashion". As shown in Figure 1.


Collection of information. .


. To facilitate each store manager to report to headquarters in real time sales information and the latest fashion information, ZARA specially customized for each manager with a mobile data transmission equipment. .


In addition, the design group also live and around the world to conduct conference calls ZARA store managers, by the local sales and customer response, flexible adjustment of the design direction of goods to meet the guest's changeable taste, but also in the customer purchases, the characteristics of the goods shop, as well as customer data entered into the computer through the Internet to transmit the data to be sent back to the design group at Headquarters, ZARA may acquire accurate sales analysis and customer preferences, coupled with its own professional fashion acuity, to determine the next batch of goods, design trends and the quantity of the commodity to maximize sales rate, meaning that it can effectively lowering the incidence of inventory . .


Design links.


If the fashion aspect of intelligence and information gathering, process more dominated IT, then the subsequent part of fashion design, IT technology is relatively occupy a more important position than the process. .


ZARA, established in the company's new regulation Center, a large office space with nearly 20 people sitting on the phone side. The use of different languages of the main responsibilities of the employees is continuously collected from all over the world for customer needs and requirements.


Change information. Through their fashion intelligence information will be continuously every day from all corners of the world into the head office database. .


After the fashion of the information collection and use of information integration and product development process, ZARA is a great way to solve the problem of "standardization", this is ZARA's IT system. Due to the use of a standardized information system, therefore, all fashion information are defined clearly categorized, stored in a database of individual modules at Headquarters. While these fashion information database and its associated warehouse database.


Therefore, while its design team can fashion information database archiving standardization in the various fashion information, fast and accurate products of the modification, combination, and thus brewing a new design, and set clear cutting production orders; other On the one hand, they can refer to the product information and inventory information management database system, the design of existing materials as much as possible to complete the clothing style, for the companies to reduce costs. .


Through data standardization, ZARA's designers can be relatively easily, and thousands of fabric, all kinds of decoration and design inventory and inventory information, complete one costume design. Visible, the standardized information system is to ensure that ZARA design team work quickly, effectively, each year a large number of different fashion designs of strong support.


Meanwhile, ZARA applied with international advanced level of CAD / CAM system, configure the remote network tailored CAD systems, the establishment of a global fashion color, paragraph, fabric information collection team statistics system, established designers and marketing experts in the integration team to complete customer satisfaction, personalized products. .


Production and distribution sectors.


ZARA all marketing funds almost all bets on the expansion of factory equipment improvements. Spain's Galicia province coluna in warehouse, is a four-storey five million feet of large buildings, an area equivalent to 90 football pitches, and this is connected to 14 warehouses factories, warehouses have robot on call 24 hours a molding system, dye cloth, completely wasted no time and manpower. Because ZARA know only their own production, can quite true grasping the production process, and to keep pace with the speed of customer preferences. .


Once you select a design team to design into production, designers can use a computer design system for color and material optimization. If you are in ZARA's own factory in production, they will be directly transmitted to factory specifications for a variety of cutting equipment and other systems. Here are cropped after the cloth has standardized the barcode barcode, which will be accompanied by its production, distribution, transport and store. In this way, the entire production process until the sale is made.


Bar code with a unified identification system, it ensures ZARA clothing in the whole process can be smoothly and quickly to flows. In addition, while in the costume design, procurement specialists in the design and marketing experts have jointly completed the work garment pricing, the price of course, refer to the database similar products in the market price information to determine the. Be a good price was converted into the amount of money many countries, together with the clothing of bar code printed on the price board, and the beginning of production has been attached to the garment on the.Therefore, new clothing produced after no longer pricing and labels, through the transport arrived after the world shops can be placed directly in the price on the market.


Segments in the distribution, ZARA first established a very advanced distribution facilities, huge cargo distribution center the following, about 20 km underground conveyor belt factory goods from ZARA sent to this. To ensure that every order to reach its destination on time, ZARA has not taken a waste of time but the manual sorting method to use the optical reading tool. For example, the clothes are already in place standardized bar code, so you can read most of this tool is effective and sustainable work, an hour to choose and sorting more than 60,000 of the clothes.Secondly, transport, store and use the ZARA home-delivery Center of information on the Internet, the path to the distribution of optimization, adopted a "bus" delivery mode, shorten the path and the transport of empty status of the duration of the transport costs to a minimum.


ZARA companies have an enterprise decision management system ERP, enterprise supply, production, and marketing all aspects of the implementation of effective management and control. Also has a complete e-commerce systems, more efficient logistics and distribution system. ZARA subordinates, especially the various garment factories, available through their respective channels to a large group Zhidi products distribution center, and then twice a week from the distribution center to more than 1,000 branches worldwide delivery, to complete the garment products terminal sales. .


The sales process.


Stores in the sales, ZARA of IT applications is not particularly significant, but simple, practical, closely integrated with the process, play a huge effect. .


First of all, information collected through POS sales system, the customer purchased at the same time, the shop has the characteristics of goods and the customer data into the computer. Design group to acquire accurate sales analysis and customer preferences, coupled with its own professional fashion acuity, to estimate the next batch of goods, design trends and numbers.


Second, as we previously mentioned, all over the world ZARA store manager and design team also maintained close contact, and the timely conduct a conference call through the understanding of the sales throughout the state and Customer Response, to flexibility and adjusting commodity The design direction. At ZARA, a new clothing shelves, not the end of the design, but a beginning. Design team will continue to adjust the color according to customer response, tailoring, etc., and this customer response information will be shown from the POS system, store manager of sales and feedback. .


In order to grant, ZARA has not dealt with consistent standardization, but boldly incorporates personalization. It will IT systems are deployed to each store, each store has its own manifest themselves, the manifest of the French restaurant and Italian restaurant. And store managers are responsible for viewing store goods sales and, depending on the needs of the next week to the headquarters of the order. Headquarters via the Internet, the information sent to the Spanish factories, the fastest production and shipping.


Zara study 2: IT applications and business process closely. .


The majority of managers that you always want your business to more use of IT, what new technology came to swarm. In fact, a wise manager who know when to stop (When to Stop), it is particularly important.


Professor Andrew renowned IT? McAfee has pointed out, IT technology has two beauty: first, that IT increases productivity, it picked up speed, improved quality, increased work intensity; the other hand, IT is the core meaning is that IT managers can make their own ideas to design. .


An organization that wants to centralization or decentralization? want to make the individual more or less free to let each employee conduct, or harmonization allows different people in different departments can have its own style? whatever you for the answers to these questions, you can use IT to build your ideal company. Alternatively, IT can be passed to companies on an entirely different direction. The power can be more focused, more dispersed; can promote standardization can also implement diversity; you can give employees more initiative, you can also have them away from decision-making. Therefore, when making organization design, has no right or wrong. The question becomes, whether such a design for your company, your industry and your competitive environment. .


But there is no doubt that ZARA is a good example. Through the application of IT technology, combining the characteristics of its own brand ZARA for the apparel industry's traditional processes. His large collection of fashion information, combination instead of design; he adopts personalized individual store orders did not adopt its own supply chain standardization of the front; a large number of applications through the store managers.


Store sales for the control of goods (store manager directly responsible for store inventory and sales), flexibility in order to Headquarters, Headquarters summary of the information through the Internet, and the fastest way to speed the production and delivery; he vertically integrated production rather than the widely used choice of outsourcing; ZARA use IT to its organizational form, business process design, and remarkable results. .


Of course, this kind of integration IT for process design in the process of implementation also have considerable difficulties. A key point is that how you can organize and develop a widely accepted IT closely with the process, with the passage of the consciousness of a culture. At ZARA, you will not see too much of IT, but when you talk with them, you will find they are very familiar with the business processes, and when you communicate with business people, will find that they knew about IT technology. No wonder Harvard Business School Professor ZARA evaluation of McAfee, said: "ZARA store manager of the speech felt like the IT staff, and IT staff is just like a normal operating officer." This is an ideal state - Technology and strategy must be close connection with the broad consensus, it is also ZARA is today the key to success. .


At the same time, ZARA's IT infrastructure is not a year two years building, now we can see the results of IT is ZARA for investment and construction, is a combination of functional areas of a functional areas gradually perfect results, these remarkable achievements is the business needs and IT is valid in combination with the accumulation of products. Many clothing enterprise, in the relatively small size, are still able to try a flexible and rapid response mechanisms, and when the scale of development to a certain extent, internal growth of various short-Board began. ZARA, a clothing brand in an elephant, how can the IT platform so chic dance, we need to learn more companies now need to further explore a practical issue! . .


Zara on 3: Mark ZARA care should be taken to avoid Handan toddlers.


As a well-known case of the apparel industry, ZARA is undoubtedly a legend, a myth.ZARA for 10-14 days of delivery of reactive, domestic production of most enterprises from orders to product launch is 90 days; ZARA for 10-15 per cent of the pre-season production ratio, and the majority of domestic fashion enterprise is almost 100 percent of the quarter before production ratio; ZARA annual 12000 new domestic clothing enterprises up to around 4000 sections, each quarter, approximately 1000; ZARA's inventory turnover is approximately 11 times per year, while domestic turnover of garment enterprises about 3 times; and, of course, ZARA's financial performance is also very good, in the GAP and other us clothing Giants almost zero growth in profits, sales almost maintain ZARA annual growth rate of 20 per cent . There is no doubt, ZARA is all Chinese garment enterprises to learn from. .


ZARA such speed is already quite large in size of turnover, ZARA has reached 46 million euros, the remains of this kind of speed. Most of the shoes and clothing enterprises in several billion scale, is able to react rapidly; and when the sizes of more than 10 billion, up to 20 million, the speed to slow down, is inversely proportional to the size and speed, the larger the scale. From this perspective, there is still a difficult learning ZARA's way to go.


However, ZARA is a heterogeneous fashion industry, he traditional supply chain optimization strategy disapproval, most of his supply chain strategy and contrary to traditional thinking, it seems almost frantic. For example: retail clothing are scrambling to adopt outsourcing strategies, ZARA confused almost half of the production of their firm grip; ZARA maintained about 30% of the redundant capacity rather than to maximize capacity utilization; ZARA give up the pursuit of economies of scale take the form of small-volume production and distribution of clothing; ZARA design without the aid of external partners, warehousing distribution logistics, but its all-inclusive.ZARA is like a good use soft.


Cream treatment of the old Chinese medicine, superb way to use fire with fire can get good results. But learn he can not 依葫芦画瓢 of arsenic is also used to treat diseases mess out of life on. .


So how do you learn ZARA? Zhuangzi? "in saying: Autumn" and a child being deaf husband shouling tubers of row in Handan and can not be country?, lost its so line, straight crawls into ear. "Similarly, in order not to repeat the mistakes of the ancients, during this process, we should focus on learning is ZARA, ZARA, rather than the specific actions. Just like learning to heal old traditional Chinese medicine, not learning how to use arsenic, rather than learning his body Meridian pathology of theory, principles, even if no arsenic, also you can reach the curative effect.


["Zhuangzi? Autumn Floods" in the expression: "the husband and the son of deaf life alone than children of learning to tomb in Handan and? Without the country can also carry on Analogical lines, crawl and go straight ears."]. .


Small.


ZARA should first study the small. ZARA's speed comes from a small operation of: receiving orders for high-frequency low-volume, small batch production process, low-volume transport, small-volume multi-batch distribution. ZARA's operating strategy in its strategy of lean production is the same (ZARA information system is developed by Toyota, reference HBR-"Harvard Business Review" ZARA case description).But the most basic of lean manufacturing is characterized by small-batch, in particular, Toyota's leveling production ideas, in order to pursue greater flexibility to take one piece flow to each car as a production batch, the batch whose split into many batches.


Small can bring fast:. .


If the order volume is large, can lead to excess inventory and demand meet reduction: for example, a single next month quantity, when changes in market demand, the product is very difficult to adapt to customer needs, reflected in the demand for adaptation that is fast, it also reduces the risk of poor sales.


? If the production volume large: When the production capacity for the production of A paragraph products (not only meet current needs, but also stocked to meet future needs), it means that B can not meet the current requirements of paragraph, in order to Kuaisu meet market demand, production is always in production market is the most urgent need of a variety of styles, and not much production. .


Delivery volume of small buildings: clothing operations have more than one link, fabric, sewing, dyeing, as well as the intermediate links between transport and sent to the Terminal, the overall response time is the time to each link. If you want to take economic bulk delivery, each link can wait time, total time was extended, it loses speed advantage.


ZARA's strategy: Make your own most of the production, production in Europe, their building large distribution centers, construction workers. .


Plant way between underground, bus and distribution methods, in order to achieve the operational procedures in small quantities. Because of the small batch operation for ZARA's fast.


For the domestic garment enterprises: can not set up their own production base, do not have to establish their own logistics facilities, but can invest in the operation of the "small", as long as the strategy adopted will help small, to help to improve the supply chain reaction speed. .


What policies can bring small? and vendors flexible price system, and logistics supplier partnerships, establish stable logistics support capabilities, robust information systems support high-volume order processing capabilities. Directly by the stores or dealers to place orders (the order quantity can result in large number of small, reduced order processing cycles, improve the reaction speed).


Most enterprises to adopt its own domestic production and coexistence of OEM procurement methods, as well as some pure OEM business procurement to operate. How to OEM suppliers to achieve more variety and small batch production, to enhance rapid response capabilities brands? This will require OEM brands on the many varieties of small batch production a reasonable assessment of the costs, smaller batch production change more frequently, the cost of higher learning, the higher production costs. But many companies are unwilling to make concessions on the purchase price of OEM,. .


Result in lower levels of OEM support, will not be able to help brands achieve rapid response, even productivity security problems may arise. Because of the price increase led to visible benefits reduce the speed value, without examination.


ZARA for rapid response the value and cost quite clear, though most of their production and operating costs, but his products are still higher than the competitors about 15%. Our apparel companies to speed up response time requirements OEM the same time, how to formulate a reasonable price mechanism is a priority, the need for rapid response to the value of the enterprise have the right assessment, after all, the cooperation of the supply chain is driven by interests. .


Short.


ZARA short is another basis for rapid response. If the supply chain a lot, then inevitably lead to long reaction time. ZARA's demand is issued directly from the store, the manager responsible for ordering, delivery is direct delivery from the distribution center to store. For the supply chain upstream, although the production steps can not be reduced, but ZARA by upstream (fabric production and dyeing) of the control makes the whole supply control. ZARA by shortening the supply chain, strengthen the control of the upstream supply chain to quickly make up. .


But domestic clothing enterprises seldom order directly from the Terminal, the agent level may have 2-3 layers, even not only orders need to go through multiple levels, cargo distribution also need to go through multiple levels, and prolonging the process time significantly. In the process become longer, also means that demand variability. In a footwear supply chain analysis found that more than one business levels resulted in 20% of demand mutate, 20 per cent of requirements is not true.


For the supply chain upstream, only concerned about domestic enterprises direct OEM supply business, not on the upstream supply of raw materials control, and some of the recent exchange of garment enterprises have been paying attention for the control of upstream raw material suppliers, and to take measures. .


ZARA's short lies in process execution process: ZARA10-14 days for a response that contains the Terminal product design time. If you follow the specification process priorities, ZARA in any case cannot be completed within 14 days. ZARA in organization structure design and layout of the Office space are fully concern the parallel process, emphasizing different aspects of full communication to solve problems. For example: ZARA by designers, production planning, procurement staff team to work together to strengthen the team face to face communication, rapid decision-making, making for a review of a product, technology, and material supply issues to ensure a solution. While in the country's shoes Qi Ye, the With the growing size of Kuo Tai, Ye Wu's breakdown, the functions of the Pi distribution in the different departments, Bingjuanzhao Guding the beat Yunzuo, Biru order will be concentrated four times a year, Yao's work to solve the same it takes time measured in months, has greatly increased the flow of time.Do not change the business content, change communication, collaboration, as well as the processing rules in this respect, the domestic enterprises but also great potential to tap into.


Ming. .


Ming is transparent. Speed is based on information that is provided, the information specified in the key is to understand more fully the information in the future: in a rapidly changing fashion industry, for a statistical analysis of past data only has limited the reference value for the future of information and analysis delivered a success. It's like driving a car, not far from the front looks definitely can't open-too fast.


ZARA fast depends on the downstream supply chain information in a timely manner for future delivery. All of the organizational design, operational processes, performance measurement, and even the layout of the office are to facilitate communication in principle. ZARA's design center is divided into three parts, namely, Men Women and Children, were taken to three operating modes, an increase in procurement and production planning, design and sales personnel, increased operating costs, but because of this organization and workplace design conducive to information transmission, can improve the entire supply chain responsiveness. .


ZARA to take advantage of the latest information technology to enhance information delivery. The handheld Terminal is used to transfer customer information to deliver information to not only include the orders and sales trends of hard information, including customer feedback and response information for the product. Fast delivery of real-time data, coupled with ZARA reduces supply chain processes, greatly reducing the bullwhip effect on supply chain requirements, reducing the impact of poor sales, end-of-stock significantly lower than the peer level at a discount.


Domestic enterprises is worth drawing: ZARA, delivering customer preference trends and other soft information, and information to those who need the information: the fabric is passed to the trend of changes in demand for fabric procurement and supply sector, the popular element information to the designers, the trends in customer preference for product information to the production planning departments, although this information can not directly determine the number of orders, but the design for the back-end supply sector to grasp the trend of great help to the terminal. .


POS terminal is a lot of enterprise data collection tool, most enterprises use this tool to collect order information, in fact, in the enter a sales business, to the purchaser to make a simple record on the background of the design and development of great help: purchaser of sex, age, feature type, which don't even have to ask consumers, according to the salesman can be observed. For the domestic enterprises, you can start to purchase information, such as a hard and fast delivery of information. For the sales cycle is one quarter of the product, timely statistics, purchase information, is critical for the rapid repair single.


Perseverance, seek truth from facts. .


ZARA is firmly convinced that speed is the key to the success of the clothing industry and, to this end, Maverick, a new road. ZARA's strategy there was no precedent, ZARA can go today, it can be said is on speed, and explore. The key to success lies in the fact that the targeted to adopt to achieve the objective of all policies, from large capital investment strategy to the little office layout, building underground rail to hanger on transport policy, and so on. ZARA certainly also gone through a lot of detours, but not known to outsiders, we see today, just under the aura of success ZARA, those bends, it is likely to be newcomers in the pitfalls. .


Our clothing enterprises compared with ZARA: size, position, is not the same as the basis for the development of corporate culture, the staff's knowledge is not the same; therefore, the majority of ZARA rapid response strategy for many domestic enterprises has only a reference to the significance of the ZARA is the key to learning. In addition to learning beyond the core ideas of ZARA, ZARA is worth learning for the domestic enterprises have two points, namely: the speed and persistent pursuit, practical strategies using all benefit rate; even if the younger generation so that together they may feeling very rustic, but really is the best expression of the essence of the word myth ZARA is the most worthy enterprise learning. .


ZARA Zara research 4: how to use IT copy the business model?.


Cashier morning to 10 o'clock to open the door before you start, lose imprest. Imprest regardless of 100, 20 yuan or the like, is the reserve fund to be divided in some places, such as a few one dollar, a few 5 cents. Perhaps this is what he bother it. Check the machine is not used, play a list. And then started selling, and the day is basically the same, shifts to play out a list of shifts. Checkout the evening when there is a list of settlement and do a variety of business statistics, the point of money, including credit cards, coupons or something.It management reports, as do constant, do discounts, or to cancel the report signed by the head, and then to the background to do total reconciliation, and finally the data passed to Spain. This is ZARA Nanjing West Road shop everyday workflow. Of course, maybe we are not concerned in these looks identical processes above, we also want to know is, far from the land of the ZARA brand, is also able to copy its successful business model, and still maintain its rapid response of supply chain?.


IT applications & business models. .


? When ZARA the strategy of the remains of China, from design to sales in just 15 days, the speed myth of the supply chain continues to magically, it can be overlooked. Domestic clothing in ZARA's business model and the application is very concerned about IT, and how we can perceive?.


To understand a company's IT applications, we must first understand its business model. ZARA's business model features: shorter product life cycle; design and work closely with the store manager; from the main store manager to pricing; do not advertise; retail, not wholesale sales are not on the network. .


In other words ZARA from one's own design team launches new fashion, and the introduction of new SKU (stock). Shop by store manager of observation and communication with customers face to face to get a new SKU; ZARA know what fashion is difficult to predict, so there is no prediction. But the most prosperous ZARA will select the geographic location of the shop. This feature enables rapid response to ZARA must change the target customer.


For example, "if you want to operate this business model, What message?", "First of all sold. Every day, right?. That the original system has not?", "Followed by the fashion trend. Almost updated every three days. that the original system can be done? "and so on, order and store stock in a store, the original system have done so enough. Some argue that the small investment, but the system still has growth and expansion needs; understanding between the store inventory really necessary; the original system also has costs, data loss is also possible. .


? IT applies well to promote the business models of ZARA, ZARA is not in IT invests a lot of resources, in this case, ZARA is how to circumvent IT investment's "black hole"?.


ZARA is a typical "from the inside out" (Inside-out) selected examples of IT. Shows excellent performance of information technology does not mean a lot of use of information technology. Most of our managers always want more use in business IT, what new technology comes out on the rush to use both. In fact, a wise manager, the clear when to stop (When to Stop) is very important. .


ZARA did not hinder IT, while financial performance is very good, visible technologies did not hinder its development. Once you have used the system, the system that significantly hindered. From income and cost perspective, the cost of hardware and software, which includes training, maintenance, repair, experts, etc., and may also result in employee will only be staring at the computer. Therefore, too much of IT is a trap.


? ZARA company based IT investment "from the inside out" principle, ZARA's IT system is how to plan it? . .


In order to build an information system for ZARA, ZARA took note of its overseas retail system modes. In Spain's ZARA stores, some of the system architecture is based on a single POS as a host of other POS machine as an auxiliary engine, all data gathered on the host, which omits the server and back-office support, but the amount of storage system is relatively small, and the printer is connected to the type of report will not only affect the results, it is difficult to develop more of the system, so this old model is not suitable for ZARA store in China.


Meanwhile, ZARA Spain headquarters to grasp the dynamic Chinese market, and quickly respond to the information system of China ZARA will be used in the design of the beginning of "H" type structure, that each store's information system is relatively parallel and independent, direct and Spanish connections at the same time, ZARA headquarters in Shanghai will get through the system information for each store. .


China informatization of ZARA design schema is used in each store server build a background, according to different customer needs, developing a variety of reports and query functions, while the front-end can be linked to the many POS system. Most importantly, ZARA store in China in the evenings that sales data and reports directly to the headquarters in Spain, broadband has become every store the most basic configuration.


? IT closely with business processes, is often stressed that the views of AMT Consulting. ZARA's IT systems is how cooperative corporate global supply chain from product design, production to distribution and sales of each session? . .


Design when ZARA in company highly automated trim finish trim on the device, and then the material was sent to Spain or Portugal for some small factory for sewing, ZARA is the factory provides a range of easy to implement the directive, which makes them good clothes quickly and seamlessly.


ZARA distribution from foundries in various countries, out of the clothes will be transported to the headquarters in Spain, ZARA modern logistics center for automated sorting and loading, the final by truck, ship or aircraft delivered to the various stores. .


ZARA's international supplier management system is a vendor-provided an online platform, they provide all the basic information, through this platform, ZARA Spain headquarters can be monitored including shipping, customs, customs clearance to the headquarters of the whole process, and even tracking logistics company. In the past, these processes are manual, is not only inefficient, but also very prone to error. The most important thing is that in some countries the Spanish time supplier engagement, due to the existence of the network platform, the more time the slit, again for ZARA for the precious time.


How to copy the Chinese ZARA IT business model? . .


ZARA boutique in Shanghai "software investment? information system architecture design?.


ZARA in China on the current information systems, software and hardware stores Nanjing West Road, Shanghai invested more than 100 million, which the retail chain industry inputs single store of information is very expensive. Framework in the design of information, currently there is no ZARA erected a national data exchange and processing platform.In the current h-structure, a single store system and Spain headquarters for data exchange is possible, but as ZARA in China's development, once more and more distributed locations, for reasons of cost and efficiency considerations, whether to build a Chinese District of data exchange platform, every day will bring together around the data, and then passed to Spanish unity.


? In Spanish Headquarters, ZARA, in order to make better use of Shanghai store operational information, and what kind of information system? . .


Every day, when located in northwestern Spain's ZARA home la Rooney received data from China, departments will need to go to the decomposition of this information to make decisions on the Chinese market.


These data are a lot of raw information, carefully to each product sold a few single, size, color, quantity, selling time, payment, discount information, price adjustments, almost every country of the stores every day to Spain headquarters send sales data, ZARA headquarters exception powerful information platform, which not only can handle data from various countries and make analysis of ZARA and also supports high-speed operation in the global business. .


The remoteness of China, from the information system of China sales and inventory information, it can be vital for the headquarters of selling or selling products in the style, color, size, etc., at the same time as the design of new products. It is worth mentioning that, in order to be closer to the market, ZARA by buyers, design, marketing officer constituted commercial team design pattern. ZARA's designers often flew to China, and buyers together to participate in the negotiations.


? ZARA power of each store's manager, great, then how in the IT area is to support managers the power to implement it? Shanghai ZARA store managers how to work? . .


In Nanjing West Road of ZARA shop, store manager de malvina (Devina) always with a customized handheld PDA in the shop visit. Although this looks like a compact PDA, built-in ZARA home standard ordering system and product systems, modules, and it also helps di slavina and Spain headquarters. At ZARA, each store manager has the power to the headquarters to order, so that when Di Weina systems in their own stores found a product inventory is low, with broadband connections PDA, she can see the headquarters of Spain The proposed set amount, then the local market, according to their own judgments, to issue orders to the headquarters. Every half hour, ZARA Women, Men and Children will be under the POS machine in charge of sales system, and store real-time control and replenishment. .


It is worth mentioning that the headquarters of the ZARA Spain proposes, is delivered every day various stores sales data, as well as product manager on the local market prediction on historical sales data analysis. Due to the Chinese market this year before the opening of new stores, there is no historical sales data can be queried, and therefore have slavina di an important work is through PDAs and Spain's product manager for frequent communication.


ZARA's special order service is equivalent to the international transfer function, when the customer fancy dress shop out of a paragraph, you can apply to ZARA the store manager's special order service for free. Di Weina handheld PDA through an order, not out in the case of the headquarters, starting from the order until the goods are delivered online travel store, the fastest time of three days only, they can let customers be satisfied with the clothing. .


· Shanghai ZARA shop, why not consider the issue of the Spanish system? report and Spain report, what special place?.


They thought about it. The first one is finished and the second one is that the system may not be suitable for the Spanish situation in China right. Report format, even if the Chinese localization may be difficult to understand. ZARA store in the system is actually no background, no server is actually a POS machine as the host, the other as an auxiliary engine, the data have come together to host a model. PV machine more expensive because the previous development difficulties, the relatively cheaper and there is a long time, has been that this kind of usage, the deputy reached the host machine's data up. .


They do is the historical reasons that they have done so, now you want to change it is very difficult. Shanghai store do is planning a good structure, there is a server, do a lot of POS system, followed by a server to host a database according to different customer needs, developing a variety of reports and queries. They make it very complicated and POS store relatively small, and the printer out of the report the effect is not very good. This mode is also there earlier. That do relatively well, if using a new method, not suitable for domestic situations, very difficult to get a number of statements. Nor is there in Southeast Asia POS machine is local, and you get sales, stock kind of situation, grasp on it, as to what the system actually not a big problem. .


Therefore, reports, and Spain's ZARA store system compared to the existence of some special format, the other nothing special special place, may be more flexible. For example, depending on the size, colors, enter into it, he want to. For this report, the Shanghai side approach is required. In other words, according to the store management needs, you can do all kinds of reports, later only provides an interface that can be exported into text processing.


All the success factors of IT applications. .


· For the garment industry, the difficulty IT apply and focus on how to solve the problem of effective standardization, ZARA is what to do?.


ZARA entire IT technology, the best to play fast, and most people fascinated must be that it has a high degree of standardization of the data. First is the standardization of fashion information. In the fashion to collect and aggregate information is complete, ZARA control center of the office staff have the information on these fashion extraction, classification, archiving them in a standardized format for entry into the headquarters of the database.This is the kind of data stored in the database of standardization, ZARA's designers were able to efficiently acquire and understand from the worldwide fashion information, thereby combining them as a new and fashionable design.


Second, the standardization of the production process. ZARA clothing production in the process, each piece of clothing after conducting cutting will have its corresponding bar code matched, and along with these supporting fabric, stitching has gone through, packing, sorting, distribution and sales the entire process. This shows that these segments in ZARA, the identification of the clothing use a uniform standard. Therefore, the operation of the entire supply chain process, information on the same styles of clothes will not exist between any mismatch, thereby ensuring the smooth transmission of information, thus ensuring the appropriate supply chain quickly. .


For data normalization thus dredges processes in today's size is not uncommon in the enterprise. The importance of standardization of data has been reached. However, if the said ZARA in the production process of data standardization through certain efforts can mimic, ZARA on apparel aesthetic information, fashion information, style information is standardized and thus promote the design, the industry is still a mystery.


· ZARA's most successful IT applications, several factors what is it? . .


If the summary of the most successful application of ZARA, we can choose from the following aspects more exactly:.


* Strong control of the stores: each store has its headquarters in Spain, directly connected with the information system, a large number of sales through the exchange of information every day, the headquarters could be quickly and accurately control the circumstances of each store. .


Simplified mode copies: ZARA in each regional market will keep the rhythm of a single supply chain, the most important thing is that, for each country and each store, whether it be direct or affiliate, ZARA is a strong call for the use of a standardized information system.


High-tech logistics center: the headquarters of the logistics center in Spain have a very sophisticated automation management software system that can quickly to the speed of 2.5 million per week to send goods around the world. .


· Advanced production mode: uses and Toyota (TOYOTA) joint development of JIT (Just In Time), you can customize the production processes to meet market demand.


* Strong management platform supplier: suppliers located around the world in this platform can fill in the customs clearance, the relevant data, ZARA can see above the flow of goods. Meanwhile, the network's operation to eliminate the delay of work caused by jet lag. .


· Powerful system development ability: most of the information system of ZARA is a homegrown, headquarters of the Spanish team is familiar with the IT business process and technical proficiency in IT, the only hand-side to allow them to clearly know what system you want ZARA, while reducing the cost of IT procurement company.


Of course, the principle of centralization, division of information technology in other countries can structure the characteristics of the local micro adjust. For example, in the Chinese market, ZARA will retail systems development outsourcing, but the store manager to use the ordering and inquiry system is developed by the Spanish headquarters in uniform. "Whether it is direct and partner stores or shop, outsourced or self-development, information systems must be in accordance with the standards of ZARA, transmit data to headquarters.". .


Throughout the whole supply chain ZARA in IT application, you will find that IT is the implementation of ZARA has the focus. In the design phase, ZARA investment on a large scale, or even the entire database system designed to ensure that each year a large number of designs; in the smooth launch of production and distribution chain, in order to ensure that the design of the garment to be able to quickly launch, ZARA has also carried out a large amount of investment. But here's investment for the IT technology, the ratio does not account for much, but a lot of investment for the production, sorting and distribution of machinery and equipment; the stores for sale, ZARA's IT investment has become more stingy, he just use the POS system is widespread, but underlying database is connected with the headquarters, the stores also have store manager of IT investment in mobile communication equipment with. .


It is not difficult to see that the major IT investment ZARA in front of the supply chain, including large amounts of information, and to collect and consolidate the supply chain, you reduce the amount of investment, just make sure that the process of fast running and effective feedback of information. In fact, if a careful analysis, you'll find that the latter is the result of the former. ZARA investment strategy of the beauty of IT is that, in the supply chain consolidation at the beginning of a lot of information, thus combining brand features, at the design stage to ensure product characteristics of fashion, there is no need in the supply chain to the end of an excessive adjustment do, naturally, can reduce the sales cycle of IT investment.


This focus on centralized headquarters building of the advantages of IT is also due to the hidden headquarters, makes it difficult to study and imitation by other companies, to ensure the operation of the company's core strengths in IT level. .


Nanjing West Road of ZARA.


Zara the popular brand in Europe, following in the Hong Kong IFC Ⅱ opened flagship store, in February Nanjing West Road Shanghai store has opened, a lot of 21-35 year-old office worker like me very like Zara's style, all styles, casual get touches of elegance, tailoring dynamic harmony, 300 yuan a shirt, a pair of leather shoes should be more than 800 department stores in more markets fake imported goods, but after a few days ago it door to see the banner "SALE 50%".6-July is not a seasonal uniform discount ideal time (original summer clothes for profit is very thin) and away from the Grand Opening, however, three months, why Zara will first launch is to increase the visibility of??.


Hang Lung Plaza across the market rent of this shop more than 6 dollars / square meter / day, estimated to store about 1300 square meters usable floor area of about one month's rent will be nearly 1 million yuan, if not advertising, staff, management, selling 80 thousand yuan should be a day tie (assuming rent is the largest variable cost), I believe that 80 thousand yuan may not be easy as originally imagined. .The day before yesterday wrote a T-shirt (asking price 20 Yuan/piece) of small booth at Xiangyang Road market in the last two days of selling 15 million Yuan, the profit and loss balance but Zara! it's no wonder that many foreigners companies complained that the Chinese people "false", "" lack of respect for intellectual property, and then they are $ 10 or $ 80 DVD9 Hermes bags, strange to say, Zara is not a fake, you can imagine it in how domestic brand popularity.


A friend told me to do fashion in China, you can only do the most high-end or the bottom, take the middle route will fail, he cites the most popular brand in recent years, UNIQLO UNIQLO, for example, their stores are a lot and rents, but sell dozens of blocks to the one two hundred things, in addition to small profits, relying on a sophisticated OM (operations management) and cost control. Zara seems to take root in China need to adapt to conditions here. .


Guidance for brand ZARA speed supply chain.


Speed supply chain with the brand guide. .


From design concept to the shelves — average ZARA 10-14 days and most of the clothing enterprises need 6-9 months or even longer;.


Stock turnover - ZARA inventory turnover to 12 times a year or so, other operating first-class clothing enterprises can only reach 3-4 times, but most domestic garment enterprises is 0. .8-1. .2 Times;. .


Product variety – ZARA yearly 12000 a variety of products to customers, the operation of State-of-the-art clothing enterprises an average of 3000 to 4000 can be launched, but the majority of enterprises in China to introduce thousands of very few;.


Sales - 2004 sales of clothing ZARA 2. .36 100 million, this amount even if the pursuit of the many garment enterprises in China, is also elusive astronomical;. .


Sales — ZARA2005 annual sales of over 44. .41 billion euros, in profits before interest and taxes, 7. .12 euros (approximately 72. .89 billion RMB), Chinese clothing enterprises of the former 10 on sales, profits are still far behind it;.


ZARA from several groups of the basic data, we can glimpsed. So it is not hard to understand why the "Business Review" to ZARA as "the garment industry, DELL"? Why is Harvard Business School will consider ZARA is the value of Europe's most brand? Why Wharton and other business schools to world-renowned research ZARA as a model for the future of manufacturing? Why do some people think that ZARA is the "fashion industry, Swatch watches?" . .


In this article, ZARA and build collaborative supply chain speed, always around the core of its operations — brand!.


ZARA, in light of numerous honors and shadow, as the media and the public with praise and attention the industry's favorite, the Legend of ZARA's speed constantly seen in the supply chain coverage. In these "myths" behind the numbers of ZARA, in the end with what success the key? I believe, full of doubt these figures the following to in-depth research, analysis and summary of the ZARA ZARA sentiment will study some of the enthusiasm of those who bring fresh thinking and aftertaste. .


ZARA is the Spanish Inditex Group, a subsidiary company, a clothing brand that is franchise chain ZARA brand apparel retail brand. Inditex is ranked first in Spain, ranking third in the apparel retailers (the first two u.s. H&M GAP and Sweden, 2005 its global sales by 67. .41 million euros, sales numbers for up to 4.8 million, net profit of ? 8. .03. As of June 2006 it has 64 countries and regions in the world opened 2,899 stores, its a total of eight fashion retail brands, including ZARA, Pull and Bear, Kiddy's Class, Massimo Dutti, Bershka, Stradivarius, Oysho, ZARA Home, ZARA is one of the most famous brand. ZARA founded in 1975, currently 62 countries in the world has 917 stores (90% self-store the rest for the joint venture and franchise stores)。 Although the ZARA brand Inditex stores account for only a few companies of all branches, but one-third of its total sales but 70 percent of sales.


Various aspects of the supply chain "squeeze." .


ZARA's entire supply chain can be divided into four phases, namely product Organization and design, procurement and production, product distribution, marketing and feedback, all links are running around the target customers, the entire process cycle of continuous scrolling and optimization. We can review and analyze individually.


Product organization and design. .


We do not say that the product design or product development but that the organizational structure and design of the product is due to the development of the basic model of ZARA is based on the imitation rather than General clothing Enterprise stressed by the originality of the design or development. Therefore, the main task of the designer ZARA is not a creation of the product but in art direction and policy guidance, regroup the ready-made products instead of the original interpretation. ZARA mainly use the following ways: consolidated fashion information.


? According to the tradition of the apparel industry, premium brand fashion company in the sales season every year about 6 months ahead of release fashion information, usually in March released in autumn and winter fashion, fashion in spring and summer release in September. The fashion company in Paris, Milan, Florence, New York, London, Tokyo and other world fashion center to release their new clothes, and ZARA designers to mix in the T station next to the audience, who from the top designers and top brands Design for inspiration;. .


? ZARA around the world is full of buyers of the fashion sense of smell, they purchase when the upscale brand or primary competition season fashion products and samples quickly set to return to the headquarters of "reverse engineering".


? ZARA have special staff to collect fashion shows, trade fairs, cafes, restaurants, bars, discos, street performers, Avenue pedestrian, fashion magazines, movie stars, college campuses and other places and places of display of fashion elements and clothing details, such as the 2001 June to Madonna concert held in Barcelona, Spain, the three-day show is still underway, the audience has been discovered at a concert audience Madonna wearing clothes, even after the streets of Spain quickly set off a wave Madonna fashion fever, and clothing are all from the local ZARA store;. .


ZARA global specialty buildings through the information system returns the sales and inventory information for the headquarters of best-selling/unsalable products, style, color, size and other characteristics for perfection or design new clothing. In addition, stores the sales process, customer feedback, or their own styles and fabrics or color suggestions, even from ZARA shop customers patronize wearing imitable elements such as feedback to a ZARA home.


More information is quickly return to headquarters, immediately have a professional team of sub-categories of fashion designer, style, and style of the design revision and re-assembled into new product subject line. ZARA has a 260 person corporate headquarters by design experts, market analysts and buyers (for purchasing samples, fabric, outside Concord production planning, etc.), an expert team to discuss possible future with the popular clothing styles, colors, fabrics, etc. and to discuss broad issues such as cost and retail prices, and quickly reach a consensus. And then quickly hand-drawn by the designer style clothing, and then further discussions and revisions.Next Architects CAD on refinement and improvement to ensure styles, fabrics and colours, matching patterns, and to give detailed dimensions and the corresponding technical requirements. Then the team further discussion, identify costs and retail prices, and so on, to decide whether to put style design, the decision to put out about 1/4 to 1/3. Products organization and design of the overall process is shown in Figure 1.


Figure 1 Organizations and product design process. .


The analysis found that, in the Organization and design phase of products, ZARA and most of the clothing enterprises:.


(1) It is the demand from customers starting place recently and quickly respond to customer needs, and always quick to keep pace with fashion, not to predict 6-9 months or even longer needs. .


(2) the team not just designers by designers, marketing personnel, procurement and personnel planning and scheduling on cross-sectoral membership, this composition model guaranteed fast delivery, the planning information to implement and easy to implement, and your team are not only responsible for the design of the following quarter's new product styles, as well as the continuous improvement of the season.


(3) and ZARA not set the post of chief designer, the whole design process is open, informal and formal communication, but very frequently. .


(4) through a direct integration market has many resources, more accurate collection fashion information, faster to develop the corresponding product, product introduction, forming more portfolio, dramatically reduce product development risk.


Procurement and production. .


Design solutions to identify and determine production to begin the production of clothing, fabrics and accessories such as small decorations in the warehouse at ZARA has, therefore, produce samples only need a very short period of time.


At the same time the beginning of production planning and procurement staff to develop raw material procurement plans and production plans. The first is based on product features, product delivery duration, number and speed of product requirements, technical requirements, plant capacity, integrated cost-effective, market experts and other various products to determine their own or outsourced manufacturing. .


If you decide to home-grown, and have a ready-made cloth inventory directly receiving material began to produce; if you do not have ready-made fabric, you can choose to purchase has been dyed fabric production or purchasing/receiving raw yarn (generally 6 months in advance to Spain, India, the far East and Morocco, and use the original shipping buy fabric — not dyed woven fabrics, placed in the warehouse there) then dyeing finishing reproduction. General internal factory only schedule production next quarter expected sales of 15 per cent, which is the best-selling product replenishment period set aside a large production capacity. ZARA's own factory product, its fabrics and accessories as far as possible from the relevant manufacturers buy Inditex Group, of which 50% of the fabric is not dyed, so you can quickly respond to market trends on the color transformation. In order to prevent dependence on a vendor, but also encouraging suppliers to respond faster, ZARA remaining supply of raw materials from around 260 suppliers, each supplier's share of no more than 4%. After the fabric is ready, will be issued a production order, the required high-speed rapid cutting cutting fabric.Garment fabrics and matching of zippers, buttons, etc. to be joined by underground conveyor (its accumulated up to 200 km) to the local outsourcing sewing factory so that all sewing work full outsourcing. These subcontracted sewing factory hired the vast majority of employees are informal workers, ZARA is the factory provides a range of easy to execute instructions, generally for a period of time, a factory-set a garment in order to reduce errors. Its mode of operation to achieve the effect of the group unit, so other companies take several months to work in ZARA in a few days to complete. Foreign co-sewing factory sewing clothes well after, and then returned to ZARA to do ironing, labeling and packaging process and final inspection, and then sent to the distribution center. .


If you are installing from a company's internal factory cannot be satisfactory prices, efficient transport and quality assurance or production capacity is limited, and procurement staff can select outsourcing; ZARA company in Spain with 22 factories, approximately 50 per cent of the product through its own factory, and the other 50 per cent of its products by more than 400 companies outsourcing vendors, these suppliers have 70 per cent in Europe (the headquarters of the province of Galicia Spain ZARA and Northern Portugal), and the remaining are mainly distributed in Europe.


The overall procurement and production processes shown in Figure 2. .


Figure 2 the procurement and production processes.


Analysis showed that stage of the procurement and production of ZARA and most of the garment is different:. .


(1) the majority of ZARA production is carried out in Europe, and many of them are in Spain headquarters around a small range of radiation, and other high-end clothing companies such as Benetton, Gap, Nike, etc. H&M, essentially adopts the world of fashion in the third world production of the factory production "mode, which is the biggest advantage is the low cost, but the disadvantages are also obvious — slow.


(2) ZARA Spain, where Inditex has a capital-intensive companies in the manufacturing plant, and it is a vertically integrated team, with dyeing, designing, tailoring and garment processing of the stop of the latest equipment and delay manufacturing strategy, in advance bought white cloth, a standardized semi-finished products significantly shorten the production cycle, but by maintaining control of the field of dyeing and processing, makes the demand Inditex has the ability to produce new models for providing the necessary cloth; while China must Most apparel companies do not have the habit of the backlog of material, resulting in a large number of finished apparel inventory backlog, the end product no longer is subject to change。.


(3) ZARA clothing does not have labor-intensive sewing process, but with Spain and Portugal to sign the contract a number of small processing plants to reduce costs, it is this pattern of vertical integration, allows ZARA will be better than competitors much faster, much smaller volume of production (10-15 days to); while China's large enterprises to use more hanging clothes line, batch quantities are very large, such products also relatively long period out of , from purchasing material to store shelves for at least 3 months, Figure 3, and production capacity, able to run out of material circumstances ruined adjusted according to changes in market demand elasticity, but the clothing fabric is often the response time constraint bottleneck。.


Figure 3, the majority of garment supply chain response time. .


Product distribution.


Packaging inspection is finished, the order will be independent of each store on their boxes, about 20 km underground by conveyor belt transported to distribution centers. To ensure that every order to reach their destination on time and accurately, ZARA has not taken more time-consuming and error-prone manual sorting method but to use laser bar code reading tool (error rate of less than 0. .5%), Which each hours to select and sorting more than 80,000 clothing. .


In order to speed up logistics week, ZARA home is not equipped with a two-lane highway through distribution centres. Usually orders received after 8 hours of cargo can be transported per week, to store delivery 2 times. Logistics Center truck is a fixed constant to schedules. From the Logistics Center by lorry directly transported to various stores in Europe, the use of the nearby two air base was transported to the United States and Asia, and then use a third-party logistics trucks sent to the shop. In this way, the European store can receive the goods within 24 hours, the United States within 48 hours stores can receive, store in Japan received in 48-72 hours. Product distribution of the overall process shown in Figure 4. .


Figure 4 product delivery process.


Analysis showed that stage in the product distribution ZARA and most of the clothing business is different:. .


ZARA (1) an speed, or even at any cost, time, as loss of time concept there is no concept of a fashion, while other garment enterprises pay more attention to the cost.


(2) its distribution center in the fast, efficient operation, in fact, working just a clothing center, its main function is working and not stored; while many domestic garment enterprises in the distribution center is larger and more built inside the mountain of storage product . .


(3) the shop basically ZARA from distribution center direct distribution model, and most of the clothing enterprises are set up branch build warehouse, so also at all levels of intermediate links a large number of finished goods inventory backlog; ZARA HF, fast, small, several types of replenishment strategy ensured boutique like rich but seldom stocks.


ZARA assessment focuses on the manager forecast accuracy, inventory turns, sales per capita, Ping efficiency (average sales per square meter or profits) and the rate of growth, while many domestic garment enterprises, sales of basic evaluation only. .


The 26-year-old girl, Isabella recognizes that Bell's once again time to heavyweight attack.


Isabel is the Spanish fashion brand ZARA Women's Wear well-known market experts, the morning she received La Coru? A (corporate headquarters), Miss Olga, a store manager called the hotline, said today, just the yellow shelves khaki shirts all sold out within a few hours, but also a lot of people want to buy Quemei of stock. This is Isabel waiting for results. The night before, she decided to group a total of 2800 yellow khaki shirts distributed to selected 507 ZARA stores at home and abroad, make the "market test the water."She telephoned company in southern Spain Seville several branches of the phone is the same: that shirt was sold out. Isaac Bell down, looked up and saw a colleague who was wearing today just into the market of khaki cloth shirt. "This is a very good signal, because the staff requirements are unusual fashion. "Isaac Bell said. Controversies around boutique Tel report showed a positive reaction to the market. Isabel immediately start procedures to start mass production shop, a few days ZARA in Europe, Asia, and America's chain will appear in this yellow khaki shirt. Consumer demand fast and accurate response capability allows ZARA to New York, Paris, London and Tokyo, the most prosperous international metropolis, the most exclusive business district in a relatively low price to sell the latest trends in the clothing world. .


The headquarters is located in the North-West of Spain, a small city La Coru? a, very little advertising company, has created a splendid garment industry. Its founder Ortega in the 1960s to 5000 pesetas (Spain currency, equivalent to 30 Euro) opened a fashion store, which is the parent company of today ZARA Inditex Group's prototype, the market value of the group in 2001 to reach 120 million euros, exceeding the Benetton, The Limited and Next. 2003 sales of 45 . .99 Billion euros, net profit was 4. .46 Billion euros, profit margins of 9. .7%. The end of 2003, in 48 countries and regions have 1,922 stores, with 39,760 employees. The owner of Ortega also jumped into Spain's richest man.This has very small companies in this fiercely competitive industry so dazzling results? it found its competitors, such as Gap, Benetton, H&M, overlooked, have a special magic management? ZARA is the Group's largest single brand, its sales accounted for 76% of the total Group, its operating characteristics that best define the characteristics of the group. The Trinity of space almost all ZARA's products are designed by the company itself.


In 2001, ZARA has 260 people in the "business team", which includes three types of staff: designers, marketing experts and "purchase Commissioner", of which about 100 are designers, average age 26 years. "Business Team" Every year a total of 40 000 to design clothes, the final 25% will be put into production. The team sought to create a college-like atmosphere: There is no chief designer, where inspiration can come from anywhere in the world for any occasion, such as fairs, parties, street pedestrian or magazines, but also for each retail feedback messages.At ZARA home building a modern building, women 's, men's and children's clothing Department respectively have an own spacious and translucent and open space.


Space in each department, generally divided into three regions: the left is the designers of the world, there is a "market expert" on the right is the "purchase experts" (purchase and production planners) in the office. The middle of a few large hall for a round-table meeting with the interim. An entire wall is a large bright windows, windows overlooking the pleasant from here the scenery. First of all, a designer hand-painted design sketches, and then, and other designers, "market expert" and "purchase experts" together to discuss a draft plan, this step is to enable all products in general, to maintain "ZARA style."Consensus, the designer will use computer software to draw an accurate figure, the modification, improvement and refinement, especially to determine the species, woven fabrics and colors, etc..


The key point is "business team" to decide whether this new design into production. If confirmed to be put into operation, it will be the first to produce a sample. In every corner of the hall are equipped with a sample studio, the production of any problems or questions can be asked directly to find a designer, get the spot. "Market experts" of experienced staff members, and often they themselves had been a store manager. They are generally the same country or region is responsible for several chain, marketing and sales.Experience tells them to and individual store manager to maintain good personal relationship, so they will have frequent contact between, in particular through telephone sales chat, chat, chat clients chat orders, and other things. In order to facilitate contact, company to all branch manager is equipped with a special digital-dedicated phone device, so that at any time and at Headquarters to Exchange accurate market information. The "experts" are also stocked with experienced staff who are responsible for planning the order of the entire process is completed. First consideration is the outsourcing of raw materials or their production, followed by the inventory to monitor the amount of production tasks should be assigned to each plant or outsourced to a third party, but also to monitor product oversupply in the market is still in short supply. Of course, the specific production of what, when, how much production and production, these will be "business team" joint decision. And their competitors, designers will design the next season ahead of the fashion styles. But not the same as that in the current season, ZARA designers will continue to launch fashion people are in need.A typical example is that in June 2001, Madonna concert in Barcelona, Spain, the three-day show is still in progress, people in the local ZARA shop to see Madonna in concert, then Spain Street launched Madonna fashion hot.


Large supplier base ZARA50% of the products are self-produced, this ratio was higher than many of its competitors. ZARA has 22 factories in Spain, including 18 in La Coru? A region and its vicinity. The other 50% of the products from 400 suppliers, 70% in Europe, but mainly in Spain and Portugal, the convenience of location for these plants can quickly respond to the orders ZARA, especially unusual fashion style .While the remaining 30 per cent of the production, mainly in Asia, ZARA to places "Foundation" or the local has a clear advantage product. Due to the high volume of orders in ZARA and stability, so all the vendor's favorite customer. Is your production or purchase from the supplier, the purchase by "experts". But his judgment was based on the time-put products, professionalism and technical requirements, and the "price". Often such a decision is to be careful, because in the face of changing market, it may be a policy mistake will miss the best time, risks are considerable. ZARA own products 40% of the raw fabric from the group have Comditel plant (plant 90% of sales from ZARA). .


These raw materials, half are not infected, this is to be a season which respond to market changes in demand for color. It is for gain in the printing and dyeing time active, ZARA and stocks dye companies Fibracolor maintained good cooperative relationship (the yield of 20 per cent for ZARA). While the remaining 60 per cent of raw fabrics from 260 vendors, no more than the required amount of ZARA 4%, this is to avoid a vendor, but also to those plants can more quickly respond to ZARA's orders. Buy fabric from the machine to automatically cut. A typical plant with 3-4 automatic cutting machine, a long table, neatly stacked fabric layers 30-50, the top is a piece of white paper. To cut the pattern from the CAD software design with a good technician, the system automatically to minimize wasted fabric, technicians check everything is correct, the machine goes on the drawing painted on white paper. Once again, manual inspection, the machine will cut into hundreds of pieces cloth fabric samples. The workers were put into a different kind of clean cloth bags, and the corresponding drawings on top to distinguish.This is a time-consuming job, because it is prone to error. ZARA will all sewing work outsourcing. These contractors from ZARA factory to crop the good cloth and matching buttons, zippers, etc to your own factory. ZARA and 500 is located in La Coru? a region the contractor, in close cooperation with them only to ZARA home work.


ZARA close attention to the operation of these contractors to ensure product quality. ZARA that the sewing and other labor-intensive production process outsourcing, you can make your plant more flexibility to adjust the scale of production. Contractor to a good product shipped back to ZARA sewing factory, the workers here will be when ironing clothes carefully for each test. Upon completion of the clothing was put into plastic bags, labeled, and labels have been branded under different currencies in different parts of the price.The product will be shipped directly to the Logistics Centre in other vendor purchased clothing will also be sent to the Logistics Centre, ZARA, through random checks to control the quality of these products. Fashion brand ZARA is almost completely grasp and control it in the global retail network. At the end of 2003 a total of 626 worldwide, including 100% of 567 home is owned by the group, only 59 home is through joint ventures or special forms of distribution. After two forms mainly in high-risk areas, or local laws prohibit wholly foreign-owned enterprise. The specific design of each store location are determined through repeated demonstrations, the general ZARA store opening will be busy in the high-end commercial and transportation hub. Although the shop in these places the cost high, but always in the store ZARA leaving ample space for customers to create a relaxed, enjoyable environment for ZARA store in 2000, the average area of 910 square meters, to 2003 end of the year, ZARA store in the world's total area of 68. .6 Million square meters, the average area of 1096 square meters store.Each retail furnishings, furniture, window is located in La Coru? a unified design of headquarters to ensure a unified brand image. The Group employs a "flying squad", dedicated to new shop local help to store layout, both inside and outside. While opening, retailers also long-term dependence on headquarters departments carry out renovations to the shop, and so on. ZARA's financial supervisor Silva explained: "we want to concentrate on sales store managers and customers for such things as air conditioning and distraction. "Location, transport and store layout is very important for ZARA, because it is the sales, 0. .3% For advertising (and its competitors are using 3-4%)..


ZARA believes that its products are able to receive the consumers, not because that name is ZARA, but because they can always get the most timely and accurately provide the customers are now the most wanted. ZARA's products are generally not appear in the clothing and art together in the T-stage, will not please the famous movie stars, models displayed at the International Fashion Festival, the world-famous artists and no signature, but you will see your Many people around ZARA wearing clothes, but we all know that the Spanish royal princess who frequented several ZARA store in Madrid. People of all ages, not so famous people, all kinds of professional people can find themselves in ZARA clothes.ZARA's market professionals Díaz said: "our retail store image and customer word of mouth is our best advertising".


ZARA attaches great importance to retail stores in the status of the marketing process. .


Diaz in 2001 suggested that online transactions should not become the company's main sales channel. He said: "our customers need to shop to try on clothes, look at yourself and wear the dress of purchasing, which is why we have not too many online released ahead of the causes of our products. "A typical ZARA shop owner of ladies ', men's and children's clothing Department, ministries one Manager is responsible for, and the Ministry of women's wear sales generally accounts for 60 per cent of the shop, the Ministry of department managers or women are often the store manager. ZARA emphasis on the training of sales staff and employees to enhance job. Staff salary and bonus income is divided into two parts, while the amount of prize money depends on the store's sales performance, which encourages staff to strengthen internal cooperation. .


ZARA in a season to provide customers with rich varieties, the most frequent replacement of the most popular new products. Dias said: "we are doing fashion rather than in the clothing. Customers buy our products because they like these things, but not because this is the ZARA brand. "Shop of clothes of unusual, not the coat and coat, pants and trousers pendulum a piece, but the shirt, trousers, leather bags, accessories and match together, so that customers can easily buy a complete set of kindness. ZARA implementation always "stock" policies. For the same style of clothing, retail stores generally stock only a few pieces of customer if a little hesitant, you might never buy this style of clothing, which people like to quickly develop to see the money or habits. Day of business down the prices of goods can often see the scene is already empty. This will be placed on the shelf the next day the latest shipped out the new design out of style. .


Stay on top of the "last mile" by 2003, all the products via ZARA is located in La Coru? a logistics centre. In this 5-storey, a total area of over 50 million square meters of the Center, equipped with the most advanced system that allows any shipment in 8 hours must be transported by road. There are 1200 workers, work 4 days a week, the number of flights every day work is based on the quantity of the goods. In 2003, in Madrid city northeast ZARA Zaragoza Logistics Center and finished second, the cost of 100 million euros in the central area 12. .3 Million square meters per hour of delivery capacity of 8 million garments. This is the rail and road hub, also from the international airport, close, convenient transportation is the main reason for ZARA location. In addition to these two logistics centers, ZARA is also Brazil, Argentina and Mexico, with three relatively small distribution center to deal with the southern hemisphere the opposite season in Europe and far away.It is interesting to note that, at the beginning, ZARA, southern hemisphere season later than European, so you can put the European market directly to South America to sell, but I didn't expect to Brazilians, Argentina as wearing the latest fashions, instead of "summer" of popular styles. Therefore, the expansion of the southern hemisphere to force each year to ZARA design fashion types are further increased. Retail store twice a week, twice in order to receive the new articles. Orders must be issued before the predetermined time: branches in Spain and southern Europe to be Wednesday and Saturday until 2 pm until 6 pm, orders, and other places to be Tuesday at 3 pm and 6 pm Friday issued orders . If you missed the time, we can only wait for the next orders of the time. "We are very strict time limits, orders must be on time." Diaz said. .


Product 3/4 by freight operator from the distribution center directly with the body is written "ZARA" truck to the various chains in Europe. These trucks are strictly in accordance with a fixed timetable, so you can save on shipping charges. For example, a truck Tuesday morning 6: 00 from La Coru? a distribution center, one to the Netherlands, a ZARA chain destination unloaded after can directly to Rotterdam port to receive a grant from the Asian shipment on outsourcing the production of the product. Distance from Spain a chain of goods by air. ZARA first distribution center for La Coru? A, near the two airports: La Coru? A Airport (10 km) and another larger San Diego Airport (70 kilometers). For the second distribution center in Zaragoza, near Zaragoza airport and Madrid airport. In general, the goods from the distribution center within 24 hours, shipped to European stores within 48 hours to the United States, in 48-72 hours to Japan.Speed is paramount, as a Senior Manager ZARA said: "for us, distance outlawed mileage calculation, rather it is time to calculate. "For example, a quantity of goods to be shipped to Japan's morning La Coru? a distribution center, a few hours by truck to the San Diego Airport, and from the San Diego via Madrid, on the second day arrives Osaka, on the third day by third-party freight operator from the airport to the Hotel ZARA. After the removal of goods from a truck can be directly on the shelves, because prices are already stuck. Because transportation costs are different, there will be differences over the price of chain stores. .


Generally speaking, in the Scandinavian prices higher than 40% in Spain and in other parts of Europe more than 10% of the country in the Americas, price 70%, in Japan the prices to be higher than 100%. In foreign higher prices also resulted in a change of location of ZARA. As ZARA, a senior staff pointed out that in Spain, 80% of people can afford ZARA merchandise. But in Mexico customers will narrow the cause, information and culture, more economic reasons: Mexico's average annual income is $ 3000 and $ 14000 in Spain. ZARA positioning so the customer base in Mexico is the upper middle class, this class of people often in Europe, New York or Miami shopping, they know how to fashion, the target population in Mexico about 1400 million people, compared with 10,000 in Spain, 3500-3600 people, although less, there should be enough to set up a network of chain stores. Mexico's total population of 100 million people, while Spain's total population of 4,000 people. As the positioning of the different, have a direct impact ZARA store in the image of these places in different designs.For example, in South America, the ZARA shop is arranged luxury shops, the display will show its high quality, and stressed that "Europe production", so there is a sample survey showing that those claiming to be a ZARA is their favourite brand of young people in general are of the view that it is a French brand. Most of the items in the shop display time will not exceed two weeks. ZARA in order to avoid the risk of an over-supply, always at the beginning of the season into very small output, and then in the middle of the season in order to respond quickly and emerging trends. Apparel industry in general practice before the start of the season, would be expected to sales 45% to 60% of the input supply chain, as a "pre-reserve", and ZARA this data is 15% to 20%. Wait until the season began in earnest, ZARA before the latest changes in the market an additional output, this part of the total production to 40% to 50%, while plenty of other clothing companies such data to zero, while more than a 20%. .


This is to facilitate supply chain ZARA has the ability to respond faster and more accurate market foresight and more reliable market information. Those in the store-and-drop a couple of weeks has not sold the goods to be cleared out in General, to the same country of the other branch or be returned to Spain. "We try to keep this ratio control in 10 per cent. "Silva said. In fact, only a small part of the goods will be sent back to Spain, because the original purchase amount of each style on the small, and once again sold out you can not enter the same goods, all of which encourage consumers to do so decisively the purchase decision, because the slightest hesitation, might admire the clothes sold out, and may not to be. ZARA purchase the same style to be less than competitors, when the seasonal nature of goods to sell at a discount should be smaller. Apparel industry generally only 60% of products sold to 70%, while ZARA has succeeded in getting the percentage increased to 85%.ZARA ZARA tomorrow is up to the world for the growth and expansion.


In 2001, the company almost a week on average to open a chain of rapid expansion, in 2003 a year around the world to open 95 new stores, bringing the total to 626, of which 65% of the sale of stores abroad in Spain. The end of 2003, sales of the total area of 68 stores. .6 Million square meters, the average sales per square meter is ? 5,192.In May 2004, ZARA store in Hong Kong, this is the Inditex Group's 18th in the Asia-Pacific region, also marks the group in Europe, the Americas, Asia, Africa, four continents in 50 countries have 2000 retail stores. 12 July 2004, in Madrid's "famous trademark in Spain," Forum Inditex's founder and President Ortega was appointed "honorary Spain brand ambassadors." The honor again shows the ZARA and its parent company's success and strength, ZARA tomorrow brighter than today. "ZARA phenomenon" to provide people with a lot of good experience and inspiration, but there are places worth considering. ZARA stores all over the world in, only a small part of the joint venture and the special distribution by the method of operation. Both methods can be used more and more apparel industry business model, because they allow stores to better adapt to local conditions, to ensure financial safety, reduce risk, and can save a lot of energy head.In the chain of business ideas on innovative Benetton company has successful attempts: the company in 2001 in 120 countries established nearly 6500 unmatchable dealership, the Corporation does not directly own these stores.


那么，随着ZARA进一步扩大规模，是否也要更多地采取像它的竞争对手Benetton那样的模式呢？可是这种特约经销店的增多，以及其它的变化是否会影响到ZARA总公司一直以来都牢牢控制在自己手中的供应链呢？而这个供应链一直都是ZARA制胜于对手的杀手锏，一旦发生变化是否会直接削弱公司的实力？但是如果不做任何改变，仍然由总公司控制几乎所有的连锁店、所有的供应链，那么当ZARA在全球发展到有1000家、2000家连锁店的时候，现在非常成功的模式还会同样地奏效吗？所有这些繁多的分店还能从容地和着当地市场的节拍，优雅地展现曼妙舞姿吗？。.


Sales of several major competitors: (million euros). .


2002-2003.


GAP 134. .75 136. .


H&M　　　　　　 61。.95　　　　 58　　　　　　 。.


INDITEX 45. .99 39. .75. .


Net profit (million euros).


2003 2002. .


GAP　　　　　　 8。.73　　　　　　 4。.47 。.


H & M 6. .99 6. .18. .


INDITEX　　 4。.47　　　　　　 4。.38 。.


The number of chain stores. .


2002-2003.


GAP 3022 3117. .


H&M　　　　　　 945　　　　　　 844。.


INDITEX 1922 1558. .


Distribution of the number of countries.


2003 2002. .


GAP　　　　　　 6　　　　　　　　 6。.


H & M 18 14. .


INDITEX　　　　48　　　　　　　　44 。.


Profit percentage of sales. .


2003 2002 2001 2000 1999.


GAP 6,48% 3,51%. .


H&M　　　　　 11，28%　　　　 10，66% 。.


INDITEX 9,72% 11,02% 10,46% 9,90% 10,07%. .


Memorandum ZARA philosophy: to provide affordable fashion Ortega began at the age of 13 for a shirt manufacturer when the courier, and later he had a shop, a tailor made pajamas. In 1963, he was only 20 years old, La Coru? a city had a clothing manufacturer, specializing in women's Pajamas, the products sell apparel wholesalers directly. In 1975, a German customer to postpone a big order to be able to have a single produced according to dispose of pajamas, in the small town Ortega opened the first ZARA store, the experience is the chance , Ortega aware of the production and marketing "marriage" importance. The development process in the future, this "marriage" has always been the company's golden rule to follow.As Inditex marketing executives Diaz in 2001 emphasized: "for us, often with five fingers touch factory production, and at the same time, the other five fingers in the perception of the consumers ' needs".


From 1979 to six to 80 stores starting late, Inditex in Spain has opened branches in major cities. The first overseas branch in 1988 ZARA store in Portugal, followed by New York branch opened in Paris. Real large-scale overseas expansion in the 90's, the group reached the Europe, Asia, the Americas, 29 countries. At the same time to expand abroad, Inditex brands dedicated to the development of more series in order to meet the needs of different target customers.The company introduced in 1991, provides men's casual wear-Pull&Bear, Massimo Dutti, launched in the same year, the group is the high-end price top men, with equal competitors, the price is still has advantages. In 1995, the two brands in the ladies '; Bershka, launched in 1998 to 14-24-year-old young woman with very cheap but also absolute fashion clothing; in 1999, the company's acquisition of Stradivarius, further strengthening the young lady needs met. In 2001, the group added Oysho brands, mainly engaged in underwear, cosmetics, accessories and sporting goods. The six brands are independent operators, have their own independent retailers, procurement channels, storage and distribution systems, sub-and organizational structure. Although these brands Zhi legal, financial and other aspects of sharing some common things, but they are pursuing, "to offer fashion at affordable prices," the purpose, all stressed the excellent quality, and in the procurement, production and distribution, are adopted similar management model, all attach importance to retail stores throughout the important role of the marketing process for the fastest response to market demand. .


Zara: you'll never talk to someone else wearing the same.


"Out of stock, following the trend, not advertising," the fashion chain Zara abandoned retail giant General, to resolve the risks of globalization, rapid, and fashion, from a remote corner of northwestern Spain turned out to dominate the world after the inexpensive --- fashion chain Zara's parent company Inditex, in the past five years has evolved into Europe's leading fashion retailer, is now working in Asia and the United States accelerated.However, when the company's Chief Executive Officer of Pablo Isla, developed global expansion plans, some doubts as to whether the promotion process Inditex because out of its own interest too quickly.


Isla's plans for global expansion. .


Today, the 42-year-old Isla, hope in the next few years, every day that one or more branches so to 2009, the number of its stores from 2800 years family $ 4000. From Bangkok to Tokyo, Zara has up about 40 stores in Shanghai's first shop is opened at the beginning of this year.


In the United States, Zara plans to 2009, double its store count so far, more than 50, and concentrated in the coastal areas. "Too fast?" Isla think that is nonsense. "We think we can guarantee profit, maintain this pace of expansion.". .


One thing is certain: the company's performance was quite impressive. From 2000 onwards, Inditex's sales and profits tripled, eight brand chain has doubled. Zara (one of the largest two-thirds of the total profit. ）。.


With the expansion of its extremely dangerous activities, Zara has been growing threat to its competitors such as Gap (NYSE symbol: GPS) and the Swedish H & M Hennes & Mauritz. . Gap Inc. has more stores and higher sales of 16 billion U.S. dollars --- but Zara16. .2% Of the profit margin is far higher than the Gap's 10. .9%. .


But despite the company's sales and H&M income slightly win, profitability is higher (21.5%), but it only covers 22 countries, in the latest fashion trend of response or Zara rivals. "No one can match the speed of Zara. "London brand consultancy President Kerry Fenton said.


Zara must keep up with the ever-changing throughout the supply rate of new fashion, which means the right balance between mobility and the cost impact. So, when opponents when procurement in Asia, Zara in Spain, they have 12 factories it is the most fashionable products, accounting for half of the number of all commodities. Such as T shirt and a longer shelf life of clothing, then export to the low-end manufacturers, mainly in Asia and Turkey. .


Create uniqueness.


Zara by breaking every rule in retailing success. For most clothing stores, the best-selling items out of stock means a disaster, but Zara encourages occasional shortages to give its products an air of exclusivity. .


"We don't want everyone to wear the same clothes. "Isla said. With twice a week for a new goods, the company allows customers to exercise regularly and to shopping habits. "If you see a dress but didn't buy it to forget you, do not expect later, because later on. "Barcelona a 23-year-old student Cueto..


In addition, abandoned the idea of leading the trend, Zara prefers to follow. Its goal is to allow customers to buy affordable price point of variety. Zara introduced last year, 20,000 different items, is about three times the Gap. 25-year-old administrative assistant Dana Catok Fifth Avenue in New York in the Zara store shelves when choosing between the shuttle, said: "In the Gap's store, things are stereotyped.". .


"In the end, you'll never wear the same with others. "This is the world's respected people of Zara. 34-year-old Architect Ma rilla, Zara, Madrid is also a frequent visitor.


Zara does not need big-name designers from the collaboration does not need to spend millions of dollars in advertising campaigns. Instead, it uses its huge branches meet the minimum requirements and from the catwalk-inspired clothing to build your own brand. Isla that, "Our store is the best advertising. Our savings can be spent on top locations.". .


Zara shop opened at the world's most expensive Street: Fifth Avenue, Tokyo Ginza, Rome Condotti Street, Cornwall and Paris Champs.


In Galicia a population of only 25,000 of the town of Arteixo, lies the headquarters of Zara, and Zara is located in the center of one of the lobby area of 11,000 square feet. There, hundreds of designers, purchasing and product planning in the work of a team in unison to complete all the company's design, sales and half of the production. Focus on behavior to Zara in just two weeks time to make a dress, shirt or jacket from the drawing board onto the shelf, one-fourth of the time than the industry average is shorter. .


Dissolve the expansion of risk.


However, its expansion to bring the price is obvious, Zara VaR deep into the broader market, is the risk of risk of losing the speed advantage. .


Because Zara will globalization blame themselves, irrespective of the origin of the goods from place to place the Spanish distribution. Global store twice weekly supplementary goods will become more complex and takes a huge.


Tensions already present: the rising costs, while same store sales growth has to slow down. Compared to 9% in 2004, opened two stores last year's profit of more than 5% growth rate. . "Farther away from Spain, they more competitive," a professor at Harvard Business School, says, "As long as Zara has one production and sales base, the model would be a degree of restriction.". .


To date, the company has to rely on the elevation pricing to offset as far away from the headquarters of the problem. For example, according to the securities brokerage companies "Lehman Brothers" (NYSE: LEH) estimate, Zara in the US price is higher than in Spain by 65%.


But for Zara, the tight control that it always one step ahead than the competition. "We have strong adaptability," Isla said, "In the beginning of each quarter, we guarantee purchases at a lower level, to ensure that when new trends highlight, the rapid response.". .


And this reaction is evident trend index of Zara to grasp.


This summer, Zara in just four weeks to master the season's hottest trends. In this process, the first of its trend spotters spread the word back to headquarters: white cotton clothing with a small hole will become a hot spot. Zara's store managers quickly through the telephone survey confirmed that the fabric will become a mainstream in-house designers got down to work. They will pass through electronic means style across the street Zara factory, the fabric was cut. .


Local subcontractors in less than a week out of the white mesh sewing V-collar band dress — recall 1960 JackieKennedy. the value of $ 129 dress tested, labels, and then transferred via an underground passage to the distribution center.


There, they were quickly dispatched to New York to Tokyo from various Zara stores. But only two days later, they disappeared from the shelves. .


Link.


Zara. .


Spanish Inditex Corporation was ranked first, ranking third in the apparel retailers, in 52 countries around the world with nearly 2000 multiple branches, including ZARA is Inditex company nine brands in the most famous of its flagship brand, has been called "the fashion industry in DELL PCs." ZARA is a rapid response in the fashion industry, its success and innovation of the industry's benchmark mode. ZARA annual 12000 different products for customers to select the project, from design concept to finished product on the shelves in just 10 days.


Zara's success is more surprising is that its labor costs are even greater than some of the top OEM brands even higher - at least half of its factories in Europe, it is clear salary workers than higher plants in Asia and Africa. .


As an example of fashion chain industry, ZARA's entire global supply chain management, supply chain because it relies on precise management and almost completely strictly controlled grip.


What is the long tail model with ZARA? . .


Several previous pass defended vigorously expanding sales of unmatchable product, you can ensure that the interests of producers. However, in the long-tail markets, cling to these products, is likely to cause the fall of the "middle". Internet razed world, reduced storage and circulation costs which cannot be a market for products and services to actually be able to set into a huge niche market, so that a wide range of long-tail collector, becomes an important means of business competition.


Favorite behind the Long Tail Chris Anderson without borders, the United States, "Connection" magazine editor in chief, like the trend found from the figure. CEO Fanedibu a meeting with eCast, which proposed to allow Anderson refreshing "98 rule" changed the direction of his research. Fanedibu singing from the point of digital music statistics on the discovery of a secret: the audience of the 98 non-popular music with unlimited demand, non-collection of popular music market was enormous, immense. Almost all of the things the audience watching! He calls this "98 rule."Anderson was aware that contradicts Adib sense "rules", 98 implies a powerful truths. Thus, he studied the system, Amazon, Rhapsody, the company Blog, Google, eBay, Netflix, Internet retailers, sales data, and Wal-Mart and other traditional retailers sales data were compared, observed a statistical law (the law of large numbers). This phenomenon as to quantity and variety of two-dimensional coordinates of a demand curve, with a long tail, to represent the "variety" of the extension at the end of the horizontal axis, the long tail. "Long tail" (long tail) in the October 2004 number "connection" was published and quickly became the history of this most cited journal article. In particular, no border after absorbing the wisdom of the blog platform to enrich with new materials and cases. Anderson immersion which can not themselves, and finally create an impact on business in the world's best-selling book "The Long Tail theory." .


The long tail theory "to describe the world outside the big top. In the traditional industrial economy has a classic "on principle" that is, the product can bring 20 80 in sales, while the other 80 's products have sales of 20, and this part of the product could hardly bring profit. However, in the Internet's "long tail" of the market, accounting for total 2 products, bring 50 revenue and profits; 33 8 of the top 25 product, will bring the revenue and profit of 33; the rest of the 90 's the long tail products are brought 25 33 revenues and profits. Favorite products, gross profit, even with the less popular product that is equal to the profits of long tail products! Infinite sum of the value of niche markets, will compare favorably with those heyday of big hot commodity. In a limited shelf space and other bottlenecks in the supply of the era, namely, storage and distribution cost trends in the infinitely small of a state, small groups for specific products and services and the main hot spots can have the same economic attractiveness. .


Anderson's own theory of optimism. In his view, the long tail can be summarized in a Word, i.e. commercial cultural and economic center of gravity is speeding up the transfer from the demand curve over the head with a small number of large top (mainstream products and markets) steering demand curve at the end of a large number of niche products and markets. Anderson to the producers of the most important advice is to provide all of the products, and help customers find it. According to the roadmap, producers will invariably built up a huge collection of long tail. Customer choice is endless, inexhaustible demand for goods is not exhaustive types of long tail, long tail aggregators a company is not exhaustive. Several previous passage is neither hot stick or slow-moving in the middle of varieties, strong expansion of sales, will ensure that the interests of producers. But in Long Tail markets, as consumers become increasingly personalized, product categories increasingly rich and stick to these products may lead to "the middle of the fall." Once the super-hot, hot in the major categories of goods as well as many varieties of goods together, you can create a significant large market niche products.If you do not have a super hot commodity, it is difficult to establish a strong brand and market position; if you do not have a lot of varieties, the hits of input will not be freed by pulling effect greater gains. Obviously, the long tail theory "as a company without borders offers new theoretical overview and guidelines. However, it should be clear, the long tail, while endless, but develop technical, cost, and channel remains the most basic constraints cannot idealism. Discovery and construction meet each person's unique channel, do up to much more complex than you think. However, the significance of long tail beyond the Internet, in every industry can find proof. Spanish clothing company ZARA, is a model. ZARA long tail model of small bowel all sections established in 1974, ZARA, in recent years, a meteoric rise, breaking the monopoly of the fashion giant, has become a fashion leader. In 2005 the world's 100 most valuable brands in the ZARA ranked 77. .


The business review to ZARA is called "the fashion industry in a Dell PC." Why let the ZARA have grown into a competitive world-class brands? general analysis of the reasons for the success of ZARA is customer orientation; vertical integration; efficient management of the Organization; stresses that the speed and flexibility in production; do not advertise non-discounted price and unique marketing strategies, etc. In fact vital link is a sensitive supply chain ZARA, ZARA has greatly increased lead time. Lead time is from design to put the counter on the garment at the time of sale. China's garment industry is generally 6 to 9 months, the international brand name to the 120 days normally, while the most powerful shortest ZARA only 7 days, usually 12 days. This is a decisive 12 days. ZARA the sensitive supply chain exhibited by rhythm, making a "world factory," said the Chinese dwarfs. Some international clothing brands giant ZARA powerful knowledge that can not learn, can not imitate. Why? ZARA year and about 12,000 kinds of fashion, the amount of each general a little fashion.Even the best-selling models, ZARA has only a limited number of suppliers, often in a store in a style of only two pieces that are sold out or replenishment. As stamps of limited edition enhances the value of the philatelic products, ZARA through this kind of "shortage" of a large number of faithful followers. "Many styles and small batch", ZARA has realized the economic scale breakthrough. ZARA has nearly 400 Designer, the designer is typical of acrobats, they often fly shuttle to all kinds of fashion or access a variety of fashion. Typically, some of the top brand's latest design just Baishangguitai, ZARA, and these designs will be quickly released very similar fashion. This design approach can be followed to ensure ZARA fashion. .


It is reported that in Europe, every year, ZARA has to pay to those top brands of tens of millions of euros in fines for infringement. ZARA did not give up this design pattern, it is clear from the profit than the amount of the penalty. ZARA spent integration design their own agile supply chain. Production base located in Spain, only the most basic styles of clothing in Asia 20 low-cost production. ZARA own set of 20 highly automated dyeing, tailoring center, and the outsourcing of labor-intensive work of 500 wife and children to neighboring plants or even the family workshops, and these 20 coloring, cutting and around the small factory logistics system linking to none. Radius of 200 miles in Spain, the production base, focus on the 20 cut and fabric dyeing centers, 500 terminals OEM factory. ZARA this 200 miles of underground are hollowed out, the construction of underground network of conveyor belts. Under the new orders every day, the most fashionable fabrics factory on time delivery end, ensuring the overall lead time requirements.Construction of a production base, the need to invest billions Euros. Many want to mimic the ZARA brand clothing, but it does not have such a huge investment in production base. The finished garment in the European truck can guarantee within two days to arrive, but for the American and Japanese markets, even at the cost of adopting ZARA air to increase speed. This kind of thinking that allows the production of ZARA brand extraordinary. ZARA's only store retail, ZARA's window with the eyes, do not engage in franchising. Store sales orders per week, according to two, which reduces the need to discount the probability of dealing with inventory, but also reduce inventory costs. Faster increase in fresh models updated to attract repeat customers to patronize. Quick update store where the goods, but also to ensure they can meet the customer's taste, which can be sold. .


Now China is the only Hong Kong and Shanghai, store, and many Chinese women are longing-opening for early enjoyment of fashion and ZARA. "Varieties of small quantities of large" is the traditional manufacture of days, and during the "long-tail markets", a small amount of "multi" has become a popular business model. ZARA to its agile supply chain, creating a long tail market, the new model. China is a big and powerful clothing, however it is not the brand reputation in the world, but only placed a large number of manufacturing base, becoming the "world factory" of the microcosm. Contrast sensitivity ZARA construction supply chain, our "world factory" hardly. The wealth of a country mode, determines a country's future competitiveness. When Europe and the United States have chosen to invest in education focus on capital, industrial capital and financial capital to control the global distribution of resources, trends, and the poor Chinese people have rushed to choose real wealth model, the results increasingly reduced to a multinational carrier profit machine! . .


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ZARA: fast fashion attacks and garment industry.


ZARA fully cater to the public enthusiasm for the chase mentality trends: dress decent, and will not go bankrupt. .


The famous American Publishers the WGSN "in the fashion industry and consumption trends in the Top10" refers to a very interesting concept: fast fashion, and predict this will become the new decade of consumer trends.


Now, this concept of consumption by young people to admire. People's tastes will follow the latest weekend, large, or the singer's new album and change, speed is everything. The high-speed race on with fashion, no one has done more good than ZARA. .


Founded in 1975 by the Spanish brand ZARA, quickly launch fashion and price affinity clothes, now has become a global ranking third, Spain ranked first in the apparel retailers, in 56 countries, the establishment of more than two thousand companies of clothing chain store.


In 2006, ZARA to enter the Chinese mainland market, although its price for our consumption, still can not do, "dressed only in season, do not throw a pity that" the rapid consumption of the state, but it favorable for urban youth, has given way to ZARA model who saw great potential in this market. .


Parity "fashion killers".


"The trend is to imitate the example of existing and meet the changing needs of society as a commodity ... ... more to follow the trend of rapid change, low price of such goods in the demand for more robust products.". .


The price for the fashion, domestic enterprises in addition to focusing on the design of the product itself high development costs, you also need to attach greater brand value, brand fashion often reluctant to put down a high shelf, sell in the shop. However, ZARA has very different marketing idea. They think it is a good product, if not sold only lag in occupies the Treasury, a heap of waste of funds, and quickly generate, rather than waiting for the cash to promote secondary production.


ZARA priced slightly lower than the mall's brand women's, and its exceptionally rich color style. Here, not only can find the latest trendy single product, you can find any necessary basic models and accessories, combined with the rich men's and children's clothing designs, costumes and even a family can be one-stop-shop. .


In simple terms, the customer can cost less than one-tenth of the price of top brands, to enjoy the top-brand design, because it can in a very short period of time copying the most popular design and rapid expansion to the shop around the world. For example, today you can see in Milan 2007 latest skirt, 10 days, Beijing's WTO tianjie ZARA shop to buy into the likeness of clothes. Many people feel enthusiastic about ZARA, it improves the quality of life of its own, very beautiful clothes, and very real price, but does not wait for the arrival of the season at a discount, you can always put on new products.


"Class design, second-rate quality, and third the price" is the core of ZARA years of adhering to the business, but also the charm to attract consumers. ZARA chief executive 卡斯德加诺 once said: "A popular dress sense, live among their enthusiasm and understanding of women on the beautiful vision, creating ZARA product features and price with the plain, so that most of women can afford, this is our root cause of the rapid rise in recent years. ". .


Well, much faster.


Each year so many high-quality design, but also to keep the price low, so the brand will not lose money right? . .


The secret lies in ZARA: owns more than 200 professional designers, the average age of only 25 years old, they keep the shuttle to Paris, Milan, New York, Tokyo and other fashion shows on the big and fast to launch simulations of fashion items.


ZARA headquarters on the second floor at the design center, has 700 square meters of open-type space, from 20 Guo Jia Butongzhongzu of the young designers in the decision-making level responsible for artistic leadership 指导 下 incorporating the latest Liuxingxinxi, right style style and design revision, and combined into a new clothing line. They are by design experts, market analysts and buyers, an expert team together on the possible popular styles, colors, and fabrics is discussed, and the retail price and the cost to reach agreement quickly, and then decide whether to put into production. .


ZARA products from design, test, production to storefront-average in only three weeks, the fastest in just one week. But internally, the famous American Tess nation prestige with speed, the process also 80 days.


ZARA designed the new year almost 50 thousand kinds of really selling into the market about more than 12,000 kinds, is 5 times the average of its competitors. .


"Speed" is a magic weapon to ZARA dominate the market, but behind the "speed" is ZARA intensive and efficient management.


In the apparel industry, a market need for production and procurement of fabrics and accessories, garment manufacturing enterprise product, goods transport and logistics, brand sales terminal four links. Most of garment enterprises in China, also in these areas are fragmented, disconnected their relationship, even if the enterprise in their respective segments, to improve operational efficiency and cooperation of upstream and downstream units if they can not match, after all, step by step organization of production . .


ZARA in order to ensure the efficient operation of the system as a whole, the investment has been invested in the creation of its own textile and garment factories, in the main sales regions established logistics transport enterprises, and not with any department store or join, only through the exclusive retail stores for sale.


ZARA little advertising, marketing, almost all funds invested in the expansion transformation of plant equipment. Spain's Galicia province coluna in warehouse, is a four-storey five million feet of large buildings, an area equivalent to 90 football pitches, which connects the 14 factories, warehouses have robots 24-hour on call system of fabric dyes die, quite true to seize the production process, with the rate on the customer's preferences. .


When ZARA Boutique to the Americas and Asia, they had taken, and some production capacity, and in the management and product quality guaranteed business partnerships, and logistics system by sales region professional transport companies to solve.


ZARA logistics management requirements to the supermarket fresh food standards, the products all over the world, we must arrive at the store within three days, both in New York, Paris or Tokyo, Shanghai, every three weeks, store all goods must be completely new ones In other words, the same goods could not be placed in the shop more than three weeks. .


Efficient management needs IT technical support. At ZARA, IT systems have been deployed to each store each store has its own order, store manager is responsible for product sales in stores, according to the needs of the next week to Headquarters. Headquarters via the Internet, the information sent to the Spanish factories, the fastest production and shipping. Store managers to decide what should be in stock, on the shop-long assessment is to look at the shop's sales have increased, if there is a backlog of goods, from store managers to pay for these stocks.


ZARA use their speed, in rapid detection of different patterns among the most hot varieties. Companies according to sales data from each store, and immediately the difficulty in marketing the fashion style production line stopped, comes in the sales season, effectively prevent competitors by a large number of purchase, and then dumping means to draw profits. .


At the same time, the design team also live with the globe store for Conference calls, and learn about sales and customers, to design a flexible product direction, and in the customer purchases, the characteristics of the goods shop and the customer information entered into the computer by network data to be sent back to Headquarters. In this way, ZARA as far as possible, ensuring maximum sales rate, effectively lowering the inventory, the cost savings...


Through the introduction of fast fashion and price-friendly clothes, ZARA rapidly popular in the world. .