The secret of Zara, according to the authors Luis Lara and Jorge Mas, is based on the creation of added value for their products, which are divided into three types: raging fashion, basic fashion and basic. To manage quick responses and be able to anticipate the customer’s wishes, Character Reference Letter Template has generated an integrated chain that covers everything from the purchase of fabrics, manufacturing, logistics and operations in stores. The concept of flexible fashion is based on a commitment to omnichannel and sale on different platforms, both physical and online. In this line, Zara inaugurated last November its global internet store in 106 new markets.
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The trend is consolidated, and according to the study reveals, taking into account inflation, between 2007 and 2018 managers and middle managers have managed to maintain their purchasing power, registering a positive differential of 1.18% and 2.46% respectively, with an accumulated price growth of 16.8%. In this same period, employees have lost 0.3% of purchasing power.
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Ernesto Poveda, president of ICSA Grupo, has acknowledged that “the increases in 2018 have been less significant than expected”. In fact, he said, “the increase of 22% of the interprofessional minimum wage recently approved by the Government will only affect 4% of the population, so it will have a minimal impact.”
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Regarding the wage policy in companies, Poveda added that “it would be more reasonable and sustainable to index the retributive updates to the results of the companies, changing the traditional calculation models for another more focused, for example, productivity or achievement of objectives ».
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For his part, Jordi Costa, author of the EADA professor study, has denounced that “companies have not redistributed their benefits among their employees nor have they explored new models of retributive flexibility related to conciliation, flexible hours, training or restaurant tickets or kindergarten”.
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For both, the arguments of “austerity” and “containment” that companies continue to make made sense a few years after the 2007 crisis but not in recent years in which “a clear economic recovery is evident”. The situation of imbalance between managers and employees is more pronounced in large corporations than in SMEs.
All these steps are endowed with great flexibility to increase or reduce production based on consumer preferences. In this way, Zara has completed different periods of transition and “went from being a concept of cheap clothes in the 1970s, to being a company of ‘early fashion’ in the 1980’s, to being ‘fast fashion’ in those of 1990 and 2000, to represent a model of ‘flexible fashion’, integrated, Character Reference Letter Template and sustainable in the decades of 2010 and 2020, in a world with more vertiginous changes “, summarizes Lara and Mas.