Founded in 1975 by Amancio Ortega and Rosalía Mera, the Spanish clothing manufacturer Zara is considered the flagship chain store of the Inditex group, the world's largest apparel retailer. Ortega, Spain's richest man and the world's third richest man, is the founder of Inditex and currently its largest shareholder. Zara’s revenue in 2009 was approximately 7 billion Euros. It goes without saying that a company this large and successful is run by people who understand the marketplace. In practical terms, this means that the decision to launch a new product is weighed carefully to mitigate risks. Even so, some products sell and make money while others are less successful or flop altogether. Zara reportedly launches around 10,000 new designs each year. The batting average must be good enough to keep the company thriving. What typically goes on before a new product is approved? I admit I’m not an expert but I imagine it goes approximately like this. A...(Read Full Post)