Zara and globalisation

Extract

[...] Corogne is a zone where unemployment is still very important and Zara is regarded as a considerable source of employment. Zara zones of sales are centered in Europe. The centralization of the direction and the production around Corogne prevents Zara from massively extending on the other side of the Atlantic. Zara continues its growth in Europe and creates other stores in the countries where the company is already present. To answer its growth in Europe, Zara had to open in 2003 a second logistic center. [...]

[...] In the whole of Europe, the increasing proportion of clothing sales is carried out by large chains of multinational corporations. Flexibility is the key of the fast expansion of the retailers, flexible chains of provisioning, and the flexible range of products. Winners take the share of market thanks to a combination of innovating offers, with fast changes of products and lower costs, in other words, models of more effective businesses. Spain still remains the fifth larger textile market of Europe (Adrada, 2003). Zara and Globalization Zara is a Spanish brand of clothes aiming in great majority a female public. [...]

[...] Zara stores are present in 55 countries, with a network counting 752 shops located in strategic places in the majority of the cities and employing more than employees; international presence is a testament to the idea that national borders are no impediment to sharing a single fashion culture.”(www.inditex.com). The companies in this industry continue to be globalized. Companies such as Zara market their own brand and are often more talented as manufacturers than distributors. Zara stores are supplied with 60% of articles coming from other manufacturing firms owned by the company which are established in Spain, the remainder coming from Asian workshops. [...]

[...] Zara is confronted with double competition; the one of the basic products coming from the countries with low costs production, and the one of the world companies producing clothing of higher ranges such as GAP . The only solution to this problem is to offer products of higher ranges while being different as much as possible, it is through this that Zara sought to become the fastest merchant of Europe, which the brand has achieved successfully (www.univ- pau.fr). Zara does not have any intermediary, while treating directly with its network of regular suppliers, the company saves time. [...]