In: Operations Management
Plant locations of Inditex (show, explain and comment)
Inditex is one of the most popular names in the fashion industry, prominently known because of the Brand ``Zara" which is owned by Inditex. Starting from Spain in the early 1960's the company now has over 7000 stores spread across more than 90 countries across the Globe.
The company tries to cater to needs of all sets of people in the fashion industry, whether its a female clothing line or a shoe line for men, and even apparels for children, spreading its roots deep into the fashion industry.
The Business Model of the company allows the company to operate in the local style and as per needs and taste of the local people in each territory. Thus adapting to each culture has made them trustworthy among its customers across the Globe.
For all the stores and online sales for a particular location or territory Inditex has a Plant location or a manufacturing setup locally handled to cut down on the expenses, so that they can keep the high End fashion available at low costs for their customers.
Inditex follows a methodology wherein they introduce a very small set of new designs in the market, then takes the feedback from its customers, and based on those feedbacks launches a new set of designs in next 15 to 30 days, so that the expectations of loyal customers is always met. To make sure this process is kept between 15 to 30 days, Inditex has plant locations locally for each territory, so that speed is always at par.
I see this Strategy to be working amazingly for Inditex, and in future I believe a lot of fashion industry based companies would follow the same methodology.