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RetailingZara aimed to offer fresh assortments of designer-style garments and accessories—shoes, bags, scarves, jewelry and, more recently, toiletries and cosmetics—for relatively low prices in sophisticated stores in prime locations in order to draw masses of fashion conscious repeat customers. Despite its tapered integration into manufacturing, Zara placed more emphasis on using backward vertical integration to be a very quick fashion follower than to achieve manufacturing efficiencies by building up significant forward order books for the upstream operations. Production runs were limited and inventories strictly controlled even if that meant leaving demand unsatisfied. Both Zara’s merchandising and store operations helped to reinforce these upstream policies.
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