Zara's Supply Chain Management Practices

The key to Zara's success was its vertically integrated structure where design, production, distribution, and retailing were integrated. Maria J. Garcia, spokeswoman for Zara, said, "The vertical integration of our production system allows us to place a garment in any store around the world in a period between two to three weeks."⁶ (Refer to Table I for the time taken for Zara to make garments) Zara's vertically integrated supply chain received the attention of industry players and analysts. According to Richard Hyman of Verdict⁷, a retail consultancy in London, "Vertical integration has gone out of fashion in the consumer economy, Zara is a spectacular exception to the rule."⁸

Zara went on to become the flagship brand of the holding company, Industria de Diseño Textil, SA, popularly called Inditex, which was founded in 1979.

Ortega was credited with democratizing fashion in Spain; he was responsible for making designer clothing accessible to the masses. Between 1976 and 1984, Zara's presence was extended to major Spanish cities. The first store outside Spain was opened in 1988 in Portugal. The next international ventures were New York in 1989 and Paris in 1990. By the end of 1990, Zara had operations in 82 cities across Spain and three cities internationally.