World’s largest apparel retailer Inditex (Zara) has decreased its active vendor base in India in 2018!
As per the annual report of the company, in 2017, if it sourced from 131 vendors in India, in 2018, the number of active vendors came down to 121.
Not only that, even the number of sewing factories associated with these vendors, which have worked for Zara, came down by almost 12 per cent (from 231 to 203), in the said period.
However, on the other hand, the number of factories/entities that offered allied services (including raw materials, cutting, dying and washing, printing and finishing) to these 203 vendors, increased from 151 to 164.
Similarly, workforce involved to produce for Inditex in India has grown 26 per cent to touch 275337(in 2018) from 217608 (in 2017). The report shows that as far as apparel sourcing from India is concerned, Inditex is majorly working with the factories that have worker strength of over 1,000.
Globally, the company (in 2018) has not used 321 vendors from its existing vendors, while on the other hand it has added 363 new suppliers.
As far as countries like Bangladesh, China, Turkey and Pakistan are concerned (which are considered India’s main competitors in apparel exports), the number of vendors as well as sewing factories, number of factories/entities involved in allied services, has increased in 2018.
Only Bangladesh has witnessed minor decrease in the number of workers, working for Inditex.
In country-wise vendor list, China dominated with 449 vendors, followed by Turkey with 189 vendors.
Overall, Inditex’s supply chain in 2018 spanned 1,866 suppliers and 7,235 factories, grouped into 12 clusters. Fifty-seven per cent of these factories are located in countries that are close to its head offices in Spain, Portugal, Morocco and Turkey, respectively.
It is pertinent to mention here that Inditex’s stores receive new merchandise, including new designs, twice a week.
The Inditex supply chain in 2018
|Region||Suppliers with purchase in 2017||Suppliers not used in 2018||New suppliers in 2018||Suppliers with purchase in 2018|
|Europe (Non EU)||182||35||53||200|