With huge production costs and higher logistics costs than its peers, how can Zara, a fast fashion brand, still lead the industry in profitability? As CEIBS JD.COM Chair in Operations and Supply Chain Management and Director of CEIBS-GLP Center of Innovations in Supply Chain and Services Zhao Xiande points out, Zara’s supply chain system can quickly and accurately respond to varying customer needs across global markets, its stores around the world are well placed to sell off new products at their original price and they seldom hold clearance sales.