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Introduction
Zara is a Spanish clothing retailer 1700 stores , 78 countries worldwide Zara practices fast fashion trends moves from the runway to stores within weeks, as opposed to months. Zaras supply chain has undergone tremendous changes in order to sustain its competitive advantage in todays market Zara has continually maintained its mission to provide fast, affordable, and fashionable items
Effect on offline sales Not all online visits may end up with purchase, but some of those visitors could be gathering additional information before visiting the store to make a purchase. Returned items rate the percentage of returned items purchased online. It is critical to receive and analyze customers feedback on the reasons of the return. For example this metric indicates deficiencies in product presentation online, whether it is the picture of the item or its verbal description. Could be helpful in improving the copy quality and clarity
Marketing
The information gathered from online and in-store sales can be used for designing and executing Zaras own marketing initiatives
Response rate by segment after the customers segmentation is done, Zara measures which segment responses better to particular marketing campaign. Response rate by the marketing media measures if customers respond better to regular mail, email, website promotion or instore promotional offers. Response rate by marketing message After the message is tested online, its transferred to other marketing channels with greater level of assurance about its effectiveness. Revenue per marketing campaign/revenue per sale measures the overall revenue generated by a particular campaign or by an average sale in the campaign.
Strategic
Operation
Distribution System
Their system links demand to manufacturing and manufacturing to distribution
Determines each inventory shipment it sends from its two central warehouses to its 1,500 stores worldwide Retail size-assortment view of a store's inventory, the model incorporates the link between stock levels and demand to select store replenishment quantities