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Project Title
A study of critical success factors of apparel industry in Hong Kong – A case study of Zara, the flagship brand of the Spanish retail group.

Rationale (Justification for selection of topic)

Zara is a pioneer among “Fast fashion” companies, which essentially imitate the latest fashions and speed their cheaper versions into stores. Trendy and decently made but inexpensive products sold in beautiful, high-end-looking stores.

Their business model is characterized by a high degree of vertical integration compared to other models by other international competitors. It covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. From design to rack, they can narrow down to 21 days which is much faster than the regular production time of 30 to 60 days.

Their vertical integration ends up with an inability to acquire economies of scale, that’s means they cannot gain the advantages of producing large quantities of goods for a discounted rate. Meanwhile, the centralized distribution system involves delivering products in a centralized warehouse in Europe rather to retail store, this may cause delay in meeting demands in the stores, and it will become their constraint and sustain their growth in a long run.

Project Objectives (What you hope to achieve)

Understand the background of ZARA
Analysis their business model which is different from the conventional practice
Assessment of their vertical supply chain and product development cycle
Analysis their key competitors, positioning, business model and financial figures
Identify the potential risks as a result of their weakness and threats outside
Analysis if they can sustain their success in Hong Kong with their current vertical integration model, that's they manage all design, warehouse,...

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