amideislas

I can afford them. However it would be at the expense of something practical, and frankly, that's the very benefit of competition. It makes collusion and price fixing a lot less attractive, since some other unknown entity can easily bust your little cartel wide open (unless of course, price fixing is mandated by law).

Rambling Rose

I've only ever been in one Zara store in my life. (these days I hardly ever buy clothes anyway). So I know nothing about the product but I do remember reading about their business model which is the key their success.
The main thing seems to be their control over the supply chain which means it only takes them 2 weeks to get new products to store. The industry average is about 6 months. Obviously that gives them a huge advantage as they can change with fashion and don't get stuck with lots of product thats not selling.
This article was over 5 years ago but british business have struggled to copy the model. Look at M&S's latest figures. They have no idea who their customers are - still trying to be all things for all people.

Dick Dasterdly

Same reason thats behind this UK success I presume.

http://www.telegraph.co.uk/finance/n...hops-open.html

Now expanding into Spain.

steviedeluxe

An interesting article here, which mentions some of the things that have made Armancio Ortega one of the world's richest men.
http://www.bloomberg.com/news/2012-1...6-billion.html
But surely the bubble will burst at some point, and Zara will go the way of M&S, C&A or Burtons? Other companies will use their methods....

amideislas

So, is it a good thing that there are Spanish companies that are successful?

...or a bad thing, since opinions reflected here seem to suggest that everything they do is crap?

Pocaloca

Dick Dasterdly

I don't think anyone suggested that everything they do is crap.

Much of the fashion clothing they produce may be crap, quality wise, but isn't that the case everywhere in todays throwaway world.

amideislas

Rambling Rose

I think it is very difficult for companies such as M&S and Burtons to copy the methods of a company like Zara. They have been trying for years but when you have an existing company structure and methods its difficult to make such radical changes. There are plenty of examples of companies who try this and fail - British Airways could'nt run their low cost copy airline GO, for example.

Rambling Rose

I think its great they are successful. The fact they are spanish is irrelevant (as in that doesn't influence me one way or the other). It's always good to see a new business model working.

If the product is high fashion but low quality, surely that doesn't matter too much. If it falls to bits in the wash as its going out of fashion so what? I buy T shirts in Tescos. They cost £3 each and by the end of a season in my garden they're usual stained or torn anyway. Not quite the same as high fashion though

Domino

Zara, like Santander, is effectively run by the founding family and/or its decendants. They have a personal interest in the success and prosperity of the company brand, and keep a personal watch on what is happening in all parts of the company.
Companies like M&S and Burtons ( owned by Arcadia Group Ltd. is the largest business interest of retailing magnate Sir Philip Green, and is owned by his Monaco tax-resident wife Tina, via a holding company, for tax reasons) generally owe first allegience to those funds that have enabled the management to buy them out. They are generally mired in debt and senior management management are too far from the coal face to know what is going on. In effect they are too far out of the cycle to see the problems or respond to changes - this is usually seen when they havent seen a long range weather report saying rain and snow at the time they are rolling out the summer clothing range.


I have to agree, it is great that there are Spanish companies out there fighting on the international front. Most people couldn't give a damn that H&M are Swedish (ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), C&A is Dutch, GAP is US.
All they are interested in is clothing that grabs the brain, at the right time, right place, right price.
And as to Tesco's T shirts, they are the bulk of my clothing stock, after more formal shirts, and at that price who is going to cry if you have worn them out and use them as dusters.

Rambling Rose

One of the greatest UK success stories is the John Lewis Partnership, mainly because its owned by its workforce who therefore have a vested interest in its performance. Its one shop I always head for when I'm back in the UK.

Pocaloca

There's something similar in Spain, called Mondragon. Its companies include Eroski and Fagor.

Domino

but aren't they one of those being hit by the NMW/Living Wage thingy ? ?

steviedeluxe

A longer article on how Zara became so successful

http://www.nytimes.com/2012/11/11/ma...ewanted=1&_r=2