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Passion For Fashion ZARA Presented By: Eva (Yihui Yan), Sylvia (Fei Gao), Emma(Hanul Yang)

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Presentation on theme: "Passion For Fashion ZARA Presented By: Eva (Yihui Yan), Sylvia (Fei Gao), Emma(Hanul Yang)"— Presentation transcript:

1 Passion For Fashion ZARA Presented By: Eva (Yihui Yan), Sylvia (Fei Gao), 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 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 Cant 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% 29% 23%

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 1,444 stores worldwide in 77 countries.

10 Zara Global Expansion

11 Global Expansion Strategies Standardized Global Marketing Lower the cost Offer standardized apparel Economies of scale Vertical Integration [centralized approach] design produce distribute 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 Look book – Magazine Magazine – Catalogue Catalogue

13 Zara in Emerging Markets BRIC 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 27 37 3 60

14 Beijing, China New York, U.S. Hamburg, Germany Challenges The tightly controlled supply chain wont fit every market, especially the foreign one. Different regions have different understanding of fashion. 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 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 Fashion Capitals Rankings

17 Competitors

18 spend more money on advertising. outsource all of their productions 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. Competitors

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

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

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 logistics and build ECR system to react more quickly to changes in consumption patterns Locate more manufacturers and distribution infrastructures in emerging countries Franchising

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

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