How Zara used Big Data Analytics to be ahead of Clothing and Retail industry?

Big Data Analytics & Zara

It is a capital error to theorise before one has data. Sherlock Holmes. Data makes the matter of information lack a thing. The capture of its transformation to business information as a core element of strategy and information has helped the retailer Zara gain competitive benefits, enhance decision making and increase productivity. Zara was a poster child for supply chain excellence because of its capacity own to spot trends as they emerge and own to deliver items that are new to shops to meet the needs of its style conscious clients. In a market where standard time – producing designing and delivering garments – is approximately 9 months, Zara leads this way with as few as two to three weeks. 

Zara Outlet – image for representative purpose only

The driver behind this supply chain is its usage of analytics and information for forecasting and decision making. It is enabled through systems and procedures constructed to bring analytics information tools, and people together to create business value. Zara’s key distinguishing uses of analytics are to: . Institutionalise use and the collection of real time market information that is statistical. The cross design teams of zara pore sales and stock reports over, to see what’s not and what’s selling, and continually upgrade their view of the marketplace. Twice weekly orders from store managers provide additional real time info on what might sell. 

Supplement the statistical market information with fined grained raw market data. Empowered retail managers on a regular basis send word-of mouth feedback on client wants and personal preferences – anything from length of the skirt is long to Our clients don’t like the fabric of the dress. Managers may also suggest adjustments to an existing style or offering completely new articles or designs. The advantage of penetration from shops is epitomised by this example of a line of slim fit garments which wasn’t selling. The feedback from the shops was that women loved how a slim fit garments looked, but couldn’t fit in their usual size when they tried on the garments. 

Zara remembered the items and substituted this labels with this next sizes up and sales exploded. It’s ingrained into the business’s flexible supply chain as it maintains strong ties with its 1, 400 external providers, which work closely with its own designers and marketers. Based on market information, Zara experiments with a broad range of offerings in small batches. Disseminate info widely through the organisation. Designers, design manufacturers, marketing managers and merchandisers, in addition to see how their work fits into the big picture and spot opportunities which may otherwise fall between the cracks of organisational everybody else involved with production, are hosted in a single open plan office floor. This enables frequent discussions, chance meetings and visual inspection. The entire team can diagnose the market general, silos.

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