
Enabling ZARA’s Operational Innovation and Value Creation with Artificial Intelligence
- 1 Liaoning Normal University
* Author to whom correspondence should be addressed.
Abstract
As a globally recognized fashion label, ZARA is famous for its quick fashion designs and efficient supply chain management. However, to stay competitive in an age of rapid technological advancement, ZARA must continuously innovate and leverage technology to enhance its operations. This paper primarily explores the following aspects: Firstly, how artificial intelligence is utilized by ZARA to achieve swift responses and adaptable methods in the design and production processes; Secondly, how artificial intelligence is employed by ZARA to optimize supply chain management, enhance production efficiency, and mitigate inventory risks; Lastly, it will analyze the operational model of ZARA as a source of inspiration for fast fashion enterprises and its relevance to other industries. After conducting thorough analysis and research on the integration of science and technology in ZARA's operations, this study has arrived at the following conclusions: ZARA effectively utilizes artificial intelligence to swiftly respond to market demands and make flexible adjustments, thereby enhancing its ability to meet customer needs. AI also enhances the efficiency and reliability of ZARA's supply chain management, leading to improved production efficiency and reduced inventory risk. By leveraging AI, ZARA can offer personalized shopping experiences to customers, ultimately boosting satisfaction levels and fostering loyalty. This paper delves into how technology drives operational innovation and value creation at ZARA, offering valuable insights for other fashion brands while serving as an empirical case for research in the realm of science, technology, and operations management.
Keywords
Technology empowerment, operation creation, fast fashion, ZARA, value creation
[1]. Marzieh Mehrjoo, Zbigniew J. Pasek. (2014) Impact of Product Variety on Supply Chain in Fast Fashion Apparel Industry [C]. //47th CIRP Conference on Manufacturing Systems (CMS 2014): Managing Variety in Manufacturing : Windsor, Canada, 28-30 April 2014, Elsevier B.V., 296-301.
[2]. N. Berbiche, M. Hlyal, J. El Alarm. (2021) Exponential success through integrated supply chain optimization, ecomotional intelligence and reputation-based leadership:Zara model [C]. //7th International Conference on Intelligent Textiles & Mass Customisation: ITMC 2019 : Marrakech, Morocco, 13-15 November 2019, Institute of Physics, pp.319-324.
[3]. Kim Anderson. (2008) Alternative Strategies to the ZARA Fast Fashion Model [J]. AATCC review: International magazine for textile professionals, 8(4):33.
[4]. Roederer C., Mayrhofer U. (2021) Zara: Managing the global supply chain successfully [Internet]. France, Europe: HAL CCSD; [cited 2024 Mar 19]. Available from: https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=edsbas&AN=edsbas.F557BC7B&site=eds-live&scope=site
[5]. Dos Santos, Carlos Henrique, Gabriel, Gustavo Teodoro, Do Amaral, Joao Victor Soares, et al. (2021) Decision-making in a fast fashion company in the Industry 4.0 era: a Digital Twin proposal to support operational planning [J]. The International Journal of Advanced Manufacturing Technology, 116(5/6):1653-1666. DOI:10.1007/s00170-021-07543-z.
[6]. Mengxia Zhong. (2021) Keeping e-commerce, Zara physical store closure plan fully opened .[J] China Textile (English), (1):44. DOI:10.3969/j.issn.1673-1468.2021.01.017.
[7]. Tőkés GE. (2022) The Digital Brand Identity of Fast-Fashion Brand Zara. A Case Study. Acta Universitatis Sapientiae - Social Analysis [Internet]. [cited 2024 Mar 19];12(1):131–54. Available from: https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=sih&AN=160276887&site=eds-live&scope=site
[8]. Phadnis SS. (2024) Creating Value Through Supply Chain Orchestration as a Business Model. Academy of Management Perspectives [Internet]. Feb [cited 2024 Mar 19];38(1):1–22. Available from: https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=bth&AN=175673729&site=eds-live&scope=site
[9]. Shasha Lu, Li Xiao, Min Ding. (2015) A Vicleo-Based Garment Recommendation Model[C]. //AMA Winter Marketing Educators Conference 2015: marketing in a global, digital and connected world : San Antonio, Texas, USA, 13-15 February, American Marketing Association, 2015.
[10]. Qinghua Zhang. (2008) Analysis on the Successful Case of Efficient Supply Chain in ZARA [C]. //The 4th International Conference on Wireless Communications, Networking and Mobile Computing, Memoir, pp.1-4.
Cite this article
Cao,J. (2024). Enabling ZARA’s Operational Innovation and Value Creation with Artificial Intelligence . Advances in Economics, Management and Political Sciences,86,81-87.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2nd International Conference on Management Research and Economic Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).