text: Vertical Retailers as a Business model – Revealing your deep fashion thoughts
  Vertical Retailers as a Business model
  This business model has grown a lot in the last decade all over Europe and globally. A vertical retailer is a retail business that designs, produces, and sells its own products, without using middlemen or wholesalers, so that it can satisfy customer demands very efficiently. Examples are:
  Not limited to retail and distribution activities, but integrate also design process, brand image and communication.
  The value chain can be more or less responsive to the market trends, that means incorporate different levels of fashionability:
  Mass basic retailers
  Mass basic retailers offer a wide products range with many iconic styles and carry overs in large and welcoming stores at convenient price (The Gap, Uniqlo).
  Fast fashion retailers offer a flow delivery of new fashionable merchandise in large and welcoming stores at convenient price, new fashion products appear every 2 weeks (Zara).
  Vertical Retailers have different percentage of vertical integration.
  Vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products/services combine to satisfy a common need.
  High degree of vertical integration (manufacturing, design, distribution and retailing) are provided by fast fashion retailers such as Zara. Others control only some activities, they do not own factories, but have production offices next to the main suppliers in local countries (mass basic retailers such as H&M).
  Luxottica owns 80% of the market share of companies that produce corrective and protective eyewear as well as owning many retailers, optical departments at Target and Sears, and key eye insurance groups, such as EyeMed.
  Internal advantages of vertical integration are:
  Synchronization of supply snd demand along the chain of products
  Internal disadvantages are:
  Benefits to society are:
  Losses to society are:
  Fast Fashion Retailer: Zara
  is part of Inditex Group. A designer boutique alternative for the price-conscious but trendy customer. Consumers are men and women aged from 18-40, which have from low to middle class income and mainly are fashion followers. Full research on Zara
  The company brings a great innovation:
  Products lifecycle of two weeks, small production, small orders and frequent deliveries
  Efficient logistics, strong investments in 4/5 logistic platforms in Spain
  Flexibility, close to the market in terms of manufacturing, in Spain and Europe
  Lifecycle production in Zara:
  Design based on trends⇒ Stores with daily analysis of sales⇓
  ⇑Manufacturing (short production run) ⇐Design (collections update to reflect demand)
  There are such brands of Inditex:
  Zara (1975)
  Zara Home (2003)
  Pull and Bear (1991)
  Massimo Dutti (1991)
  Bershka (1998)
  Stradivarius (1999)
  Oysho 2001)
  Uterqüe (2008)
  Manufacturing in close contact with market⇒rapid response to demand
  Highly effective logistics⇒products get updated constantly
  Stores managed in-house⇒strong customer focus
  Fashion, fast, fastfashion, h&m, integration, MANGO, Promod, retailers, study, style, TheGap, Uniqlo, vertical retailers business model, zara