Zara remains the leader in the global fast-fashion industry because they are not afraid to build new distribution capacity well in advance of demand. An excellent article in the Wall Street Journal (subscription possibly needed) details their latest expansions plans to build their tenth logistics center in Spain near Madrid.
Zara reminds me of Amazon, who continues to spend serious money building out logistics capacity globally, including adding thousands of Kiva robots to automate these facilities. Who says one cannot or should not compete based on supply chain? In the case of both Zara and Amazon, supply chain innovation is a key business driver, and both are focused on getting the right product faster to consumers at a competitive price.
Isn't that what business should be all about?
A VC in Vacationland 
Leave a comment