70%. As a result, it achieves a higher net margin on sales than its competitors; in 2001, for example, when Inditex’s net margin was 10.5%, Benetton’s was only 7%, H&M’s was 9.5%, and Gap’s was near zero. Zara defies most of the current conventional wisdom about how supply chains should be run. In fact, some of Zara’s practices may seem questionable, if not downright crazy, when taken individually. Unlike so many of its peers in retail clothing that rush to outsource, Zara keeps almost half of…
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