Centives is proud to present its 1000th post: The Economics of Zara. Highlights from an article by Vivienne Walt include:
- On average a new Zara store opens everyday.
- Zara’s founder built the chain upon two rules: give customers what they want, and give it to them quickly.
- To this end Zara stores refresh their stock twice a week. The logistics building that delivers customized orders to stores around the world has a 24 hour turnaround deadline for Europe and the US.
- Each designer creates three items a day. The designers don’t go to fashion shows which happen too infrequently. Rather they track bloggers and important fashion districts to see what’s popular.
- The success of Zara has made the founder – who was born into poverty – the third richest man in the world.
- He has never had an office. Instead he sits on the open floor with everybody else where he can be engaged in the production process.
- He is also incredibly private. Until 1999 no photograph of him had been published.
Read more about the turning point that led to the creation of Zara, why it’s called Zara, and more over here.
Source: CNN Money
Via: Marginal Revolution
Thanks everybody for sticking with us through the past 1,000. We hope we keep you engaged through the next 1,000!