Mex355 : a Case Study

Executive Summary

The fashion industry is a big business. Unfortunately for retailers, it is also a very competitive industry with companies such as H & M, the Gap, Uniqlo, and Inditex dominating the market. Mex355 has excelled as a textile producer, and has the potential to break into the retail clothing market -- but it will need a game plan. Our goal is to provide a thorough outline of the competitive landscape, as well as identify best practices in store operations and supply chain management. Two retailers, The Gap, Inc. and Zara, have demonstrated exemplary performance in these areas.

Zara has their own unique business model where they pride themselves on “fast fashion.” The company maintains a strict policy with their suppliers, who are located in several different regions around the world: Africa, the Americas, Asia, and Europe. The company strives to provide the latest in fashion by designing all of their products in-house and then manufacturing the most complex and limited lines at the headquarters and outsourcing the everyday basics of manufacturers all over the world. By using this type of supply chain method, Zara is able to closely manage their relationships from the design to in-store delivery stage. From the design to in-store delivery, it can take only three weeks. This competitive advantage has earned Zara its unique distinction in the fashion industry.

We believe that Inditex’s hands-on approach, can serve as a model for Mex355 because of its unique segmentation in the fashion apparel market. Inditex thrives on their ability to provide products that are not only high quality, but can be produced quickly and cheaply. By manufacturing at the headquarters in A Coruña, Spain, Zara is able to keep a close eye on their supply chain. Mex355 can use this strategy when developing their own fashion products, and ultimately, this will help their bottom line in the process. With global suppliers under the close reign of Zara’s corporate...