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Passion For Fashion Z ARA

Passion For Fashion Z ARA. Presented By: Eva ( Yihui Yan) , Sylvia ( Fei Gao ) , Emma ( Hanul Yang). Z ARA. History and SWOT Analysis Global Expansion and associated challenges Industry Analysis and Competitors Short –term and long-term Recommendations Conclusion. ZARA .

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Passion For Fashion Z ARA

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  1. Passion For FashionZARA Presented By: Eva (Yihui Yan), Sylvia (FeiGao), Emma(Hanul Yang)

  2. ZARA • History and SWOT Analysis • Global Expansion and associated challenges • Industry Analysis and Competitors • Short –term and long-term Recommendations • Conclusion

  3. ZARA • Parent company : Inditex by Amancio Ortega • In 1975, first ZARA store in A Coruna, Spain • SPA brand, fast fashion, instant fashion • Line up – women, men, kids • In 1980, Zara started to expand globally • Unique supply chain • Zero advertising policy • 1,444 stores in 77 countries

  4. SWOT Analysis Strengths • Point-Of-Sales System • send information • products reflect • quick feedback • Unique Supply Chain • 3 lines work separately • designers + market experts • send designs • Zara factories produce • Accurate delivery • use planes and trucks

  5. New products every two week • Make customers visit store more frequently • Prevent overused discount and sale • Get good reputation from viral marketing Weaknesses • Can’t meet customers’ re-buying needs • Intense concentration on European markets • Low brand recognitions in certain markets

  6. Opportunities • Potential markets • More online shops • Fast fashion market ; PRAV Threats • What if some thing happens in Spain? • The continued rise of Fuel price • Newcomers with similar style

  7. The Largest Clothing Retailer In the World

  8. Zara Global Expansion 14% 34% 23% 29%

  9. Zara Global Expansion • Global Expansion • International presences all over the world • Europe - First : Porto, Portugal in 1980 - Second: France 1990 - Third: Belgium & Sweden 1994 • North America - U.S 1989 • South America - Mexico 1992 • Asia - Tokyo, Japan 2004 • Now- Zara owns 1,444stores worldwide in 77countries.

  10. Zara Global Expansion

  11. Global Expansion Strategies • Standardized Global MarketingLower the cost Offer standardized apparel Economies of scale • Vertical Integration [centralized approach] design produce distribute large R&D group: > 200 people (designers + marketing experts + production managers)

  12. Global Expansion Strategies • Zero Advertising Policy 0% - 0.3% of its revenue in commercials Use fashion shows & posters instead • Internet Retailing Strategy Divisions: (official web) Woman/Man/TRF/Kids • Look book • Magazine • Catalogue

  13. Zara in Emerging Markets 27 37 3 60 BRIC • Brazil – 27 stores Second largest market in South America • Russia – 37 stores, stores in Moscow, Saint Petersburg • India– 3 stores (Delhi, Mumbai, Bengaluru) Joint-venture with Tata • China – 60 stores Shanghai, 2006 Beijing, 2007 HK, 2004 Macau, 2007 Chengdu, 2010

  14. Challenges • The tightly controlled supply • chain won’t fit every • market, especially the foreign one. Hamburg, Germany New York, U.S. • Different regions • have different • understanding of • fashion. Beijing, China • Hard to implement • the whole business • model due to joint • venture ex: India

  15. Chanllenges • Fierce competition - local: MNG (MANGO) - global: Gap, H&M, Gucci • Glommy Economy (Financial Crisis, 2007-2010) Shrinkage of the fashionable clothing sales

  16. Industry Analysis Fashion Capitals Rankings • Product of the modern age • Developed first in Europe and America • Consists of four levels 1. the production of raw materials 2. the production of fashion goods 3. retail sales 4. advertising and promotion

  17. Competitors

  18. Competitors VS • 0% - 0.3% of its revenues in advertising • In Spain, Zara owns 22 factories, and 50% of its products are made by their own manufacturers. • spend more money on advertising. • outsource all of their productions

  19. Competitors VS Fair price, fast fashion, low-cost Target market： Age: 18-35 mainly women and men, kids clothing • Luxury good: High-grade, luxurious, classic style • Target market： Age: 25-40 • leather goods, shoes, watches, perfume, household goods and pet supplies

  20. Competitors VS The largest clothing retailer in the world, No.1 in Spanish Clothing Market Sweaters, T-shirt Relatively mature a subsidiary of Inditex • The largest clothing company in USA • Focus on the Jeans and hoodies • Casual, sport style • Multi-Brands: GAP, Banana Republic, Old Navy

  21. Short-term recommendations • Promotion activities DIY – Design It Yourself! • More Online stores • Internet advertising

  22. Long-term Recommendations • Advertising - TV commercials - Advertisements on magazines - Activities ( involve customers) • Differentiation • Offer sepcialized products uniquely designed for a certian culture/region

  23. Long-term Recommendations • Improve its logisticsand buildECR system to react more quickly to changes in consumption patterns • Locate more manufacturers and distribution infrastructures in emerging countries • Franchising

  24. conclusion • ▷ Recommendations • Advertising • Online shops • Various promotions • Improve logistics • ECR system • Building infrastructures • in emerging markets • Franchising ▷ Challenges • Tightly controlled supply chain • Different fashion concepts • Competitors • Gloomy economy ▷ Global Locations: 1,444 stores in 77 countries

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