Why is Zara winning fast fashion?
Zara is winning fast fashion in large part because founder Amancio Ortega invested in infrastructure, not in heavy advertising: an insane Industry 4.0 supply chain, with automated warehousing, robots, and superb delivery skills. Often called supply chain 4.0. It is vertically integrated, from design to distribution, so Zara moves a new product from design to store in 2 weeks while the rest of the industry takes 6 months. Ortega said goodbye to the 4 traditional seasons. Zara brings new arrivals every week, and loyal clients visit 15 to 25 times a year. An RFID chip tracks every single garment, and any store worldwide gets it in under 48 hours. The Amazon way: all-in. Competitors copy features. Nobody copies supply chain 4.0. Advertising may win quarters, innovation wins decades. Read more: my blog Amancio Ortega: Zara Founder, Fashion Titan & Self-Made Billionaire.
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