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* * * Small Quantity Batch Process ◆ Principle of small quantity batch process ◆ Produce 100,000~ 350,000 clothes for a product ◆ Increase the number of times being released ◆ To make customers experience the new products Vertical Integration ◆ 49% of products of Inditex are produced in Europe. ◆ 35% and 16% of products are produced in Asia and the other European Country ◆ Inditex had a relationship with more than 1200 outsourcing company in 2008 ◆ Inditex keep 50% of supply and demand of the fabric by using in-house way and 50% of supply demand is balanced by outsourcing. Supply Chain Management Sales Analysis Designs Revision of the pattern (Utilization of previous pattern) Purchase of the Fabrics (Owned Factory) Manufacturing Cutting (Owned Facotry) Sewing (Outsourcing) Finishing (Owend Facotry) Releasing Distribution Store 3 days 1 week 1 week JIT System ◆ ZARA adopt JIT ( Just In Time) to minimize Inventory cost ◆ Very small amount of production to minimize Inventory ◆ Keep producing characterful clothes Super Reaction Production System Before Season (9 months) Season (6 months) Traditional Textile Brand Zara Visiting Fashion Show Design Release Collection Prodcution Distribution and Sales Purchasing Discount Design Purchasing Textile Outsourcing Production in owned plant 65% 35% 55% 40~50% 15% 85% The Challenges from Competitor 5 Competition analysis Competitor-Product ZARA : Quite fashion Update in time Enough pattern Poor quality Uniqlo: Good condition products Strong stability HM : Designer and celebrities cooperate to develop brand image. High level fashionable clothes MANGO: High quality women clothes Celebrity effect Other continental brands Acceptable quality The lack of fashion VS VS VS VS Fundamental function of clothes do much threat to brand ZARA Competitor-Price Based on the survey from websites : Percentage of affordable people
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