Production
Zara manufacture approximately 50% of its products in its own network of 22 Spanish factories (18 of which are located in and around the La Coruña complex) but use subcontractors for all sewing operations. These factories generally work a single shift and are managed as independent profit centers. The other half of its products are procured from 400 outside suppliers, 70% of which are in Europe, and most of the rest in Asia. Many of the European suppliers are based in Spain and Portugal, and Zara exploit this geographical proximity in order to ensure quick response to Zara orders - critical for fashion products. From Asia, Zara procure “basic” products and those for which the region has a clear cost or quality advantage. With its relatively large and stable base of orders, Zara is a preferred customer for almost all its suppliers.