What is Zara?

What is Zara?

Zara is the most successful brand of Spanish company Grupo Inditex. Its owner, Amancio Ortega, opened first retail store in 1975 in La Coruna, a small port in Spain. Zara became the world’s largest fashion retailer by 2008 end. By this time it had stores in over 70 countries, out performing its rivals like Gap of USA and Sweden based H&M. Zara follows the concept of a vertically integrated supply chain, in which the company has a tight control over most of the design phase, production phase and distribution system to its chain of retail outlets. The rest of these processes is handled by its sister concerns with nearby locations. Unlike its competitors Zara does not outsource its production to Asian developing countries; the proximity of production units helps Zara by giving flexibility in production so that the company can meet the ever-changing demands of the consumers more efficiently than its competitors.

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