Zara Fast Fashion
Intro
- Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains
* Global Apparel Chain
- Characterized as a prototypical example of a buyer-driven global chain, in which profits derived from "unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories" with markets.
Buyer-Driven
Global Chains
(e.g., Apparel)| Producer-Driven
Global Chains
(e.g., Automobiles)|
Upstream Structure| Fragmented, locally owned, dispersed and often tiered production| Global oligopolies| Downstream Structure| Relatively concentrated intermediaries| Relatively fragmented intermediaries| Key Cross-Border Links| Retailers, branded marketers and branded manufacturers| Producers| Rent Concentration| Downstream| Upstream|
Types of Rents| Relational| Technology|
| Trade policy| Organizational|
| Brand name| |
Typical Industries| Labor-intensive consumer products| Capital- and technology-intensive products|
* Production
- These large cross-border flows of apparel reflected cheaper labor and inputs—partly because of cascading labor efficiencies-in developing countries - Despite extensive investments in substituting capital for labor, apparel production remained highly labor-intensive so that even relatively large "manufacturers" in developed countries outsourced labor-intensive production steps (e.g., sewing) to lower-cost labor sources nearby.
* Cross Border Intermediation
- Trading companies had...
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