What is the secret of Spanish Zara's success?

Source: poslovni.hr Monday, 28.03.2016. 10:50
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Most popular fashion retailers in fashion garments find it difficult to keep pace with Spanish Zara. The company has already developed a legendary efficient supply chain and it has been known as the company with the best business model in the fashion retail sector.

- We are convinced that Inditex, owner of Zara, has the best business model when it comes to selling clothes and we expect a two-digit annual profit growth of Inditex in the next five years – it was published in the analysis of "Wall Street Journal".

This, seemingly flawless, success is not a coincidence. Zara has a secret weapon that enables it avoiding failures which are very common in fashion industry.

One of the leading people at Inditex, Jesus Echevarria, has recently explained for "Refinery 29" portal that the company has "data center" that operates 24 hours a day. The center collects sales data from each individual store and a special team deals with customers’ reactions.

Many Zara’s competitors have recently had problems because they did not hit their target audience desires, but the company seems to solve this problem before it even pops up.

The fact they do not display too many items of similar fashion style is another advantage of Zare over the competition because this way they solve supplies issues.

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