What challenges did Zara’s focus on supply chain efficiency create? Are all such systems destined to suffer similar growing pains? Zara Delivers Fast Fashion26 In the fast fashion retail business strategy, supply chain management processes serve to introduce fashionable merchandise rapidly so that stores can respond immediately to customer demand for merchandise. This was pioneered by Zara, a global specialty apparel chain located in La Coruña, Spain, but it also has been adopted by other retailers, including H&M (headquartered in Sweden), TopShop (UK), and Forever 21 (United States).

The approach is particularly effective for specialty apparel retailers that target fashion-conscious consumers who simply must have the latest looks—but they want to do so on a very limited budget. These shoppers load up on new fast fashions every few weeks instead of purchasing a few higher-priced basics every few months.

To fit with such short cycles and meet customers’ demands, the fast fashion process starts with the receipt of timely information from store managers. At Zara, store managers always have their reporting devices literally in hand. These handheld devices, which are linked directly to the company’s corporate office in Spain, enable daily reports on what customers are buying (or not) and what they are asking for but not finding.