When we talk about specific cases that are very successful
such as the fast fashion retailers you cannot mention a company such as Zara.
Zara is part of the Inditex group a Spanish company.
Actually that brought a great innovation.
That is an innovation 100% in terms of business models.
So you can’t understand, really,
this innovation if you don't take into consideration all the four elements.
First of all, at the center of the Zara model you have the customer.
You don't have the product,
you don't have the designer, you don't have the store, but you have the customer.
And the other element that you have to take into consideration is that
the product might be brought into the store every, up to two weeks.
So, the product’s life cycle lasts two weeks.
The three key elements of the success behind
the Zara business model are customer centricity first, as I already said,
the efficient logistics and the flexibility of this model.
The customer centricity means that actually, the design starts as for
any other company with the interpretation into the product of the seasonal trends.
The product arrives in store, but thanks to the fact that the stores are owned
by the company, they can have a daily feedback about what is sold,
in which styles, in which colors, in which sizes.
And therefore, the company is able to update the collection,
being very much related to what the customer wants.
Because the capability to interpret this feedback give
Zara the possibility to work on the product and
send back products that are more aligned with the needs of the market.
The manufacturing, of course, works on short runs.
So small productions, more orders with a fast, and frequent delivery.
And so the system is able to be really very responsive not only to
market trends, but what is more important now to customer needs and preferences.
talking about Zara's capability to manage
the logistics and the flexibility of its logistics system, and we can say that.
And the fact of being close to the market in terms of manufacturing. Zara’s
