Essay Database

Apparel Industry Outlook The global apparel chain was a typical buyer-driven chain in which upstream structure was fragmented, locally owned, dispersed, and often tiered production whereas downstream structure was relatively concentrated intermediaries. The industry was coordinated and dominated by downstream intermediaries like retailers and branded marketers. A short summary of the apparel industry characteristics was as follows: Production: Very fragmented apparel production. Developing countries had an unusually large share, about one half in total exports …

…and internationally. Zara is still the growing stage and needs effort to stay as successful as it is now. Diversifying the managerial capabilities in too many new chains can destroy both Inditex's and Zara's success. Inditex should assess well whether these chain networks can really become profitable and eliminate some of them if needed. While leveraging Zara's experience is crucial, Inditex should be careful not to steal too much effort from Zara for new chains.