If a particular design sells well, the company manufactures more garments in similar styles, but never exactly the same as the one that originally flew off the shelves. This system allows the company to change its collections quickly. Zara produces its clothing in limited runs-no more than 8,000 pieces for any particular design. The same strategy is applied for all locations across the globe, from Argentina to Australia. Although most fashion experts consider Zara’s model to be unsustainable-due to its supposed high cost-the company has managed to grow steadily year after year, leaving its competitors in the dust.Īnother key element of Zara’s business model is how it manages its stores and manufactures its garments. To put this strategy into perspective, look no further than Mango or Gap: these competitors renew their collections about six times a year. Zara therefore changes its collections every two weeks. The aim of Ortega’s company is to give society what it wants as quickly as possible. The firm has doubled in size in just ten years, shattering the forecasts of analysts who thought the firm could never achieve such a feat without overhauling its business plan to centralize its processes.Īs the flagship brand of the Inditex group, Zara is synonymous with clothing and fashion. The clothing retailer’s business model leans heavily on technological innovation and user experience. Zara’s success is based on a rather unusual premise: its founder, Amancio Ortega, has managed to become one of the world’s richest people without monopolizing a sector.
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