Zara, a fast-fashion clothing retailer, owned by the Spanish company Inditex, can be considered a highly successful brand. In regard to corporate social responsibility (CSR), Zara puts a significant effort into developing as a responsible company. In particular, Zara strives to provide customers with environmentally-friendly products and improve the quality and diversity of supply chains (Jiang, 2022). However, certain improvements can still be made at all value chain stages.
Step 1: Design
Since Zara belongs to the fast fashion industry, it requires the designers to analyze current trends and constantly adapt to customers’ preferences. According to Yide (2021), Zara employs over 800 designers who are involved in monitoring the situation in the fashion industry. In regard to responsibility in the value chain, the designer’s contribution may be increased if Zara provides additional incentives for choosing sustainable raw materials in the clothing. Furthermore, designers can be trained in using recycled goods as raw materials.
Step 2: Manufacturing and Supply
Zara already enjoys significant flexibility in the manufacturing and supply stage of the value chain. Most goods are produced near Zara’s design facilities in Spain (Yide, 2021). Consequently, Zara can relatively quickly implement the measures to increase sustainability in the manufacturing process. In particular, manufacturing facilities can be subjected to zero-waste and renewable energy initiatives. Additionally, supply chains can be adjusted to collect and utilize recycled materials, such as linen and polyester.
Step 3: Logistics and Distribution
The logistics and distribution stage includes shipping, receiving, and storing goods. These tasks can be physically and mentally exhausting to the workers. In this regard, Zara’s value chain can benefit from the wider implementation of digital warehouse management systems. Automating the physically straining picking and packing process is currently used mainly in Zara-owned distribution centers (Lopez et al., 2021). Using such systems in the outsourced facilities would lower workers’ labor intensity and stress levels.
Step 4: Stores
Finally, the last stage of the value chain is offline and online stores, where the consumers purchase products. Zara emphasizes the quality of both offline and online stores in order to enhance consumers’ shopping experience (Yide, 2021). However, extra steps towards the further improvement of Zara stores in terms of responsibility can still be made. In particular, Zara could install used garments collection containers and increase the usage of renewable energy in all offline stores.
References
Jiang, B. (2022). How consumers’ response on CSR affects brand competitiveness in the fast fashion industry — Case study of Zara (Inditex) and H&M. Academic Journal of Business & Management, 4(1).
López, T., Riedler, T., Köhnen, H., & Fütterer, M. (2021). Digital value chain restructuring and labour process transformations in the fast‐fashion sector: Evidence from the value chains of Zara & H&M. Global Networks.
Yide, S. (2021) Value Creation Strategy Analysis of ZARA since Internationalization. Academic Journal of Business & Management, 3(11), 13-19.