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Passion For Fashion ZARA

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Presentation on theme: "Passion For Fashion ZARA"— 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 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 Weaknesses 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 Threats 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 1,444 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 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
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, Beijing, 2007 HK, Macau, Chengdu, 2010

14 Challenges New York, U.S. Beijing, China Hamburg, Germany
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, ) Shrinkage of the fashionable clothing sales

16 Industry Analysis Product of the modern age Developed first
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 VS Competitors • 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.

19 VS Competitors 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

20 VS Competitors 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

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 Tightly controlled supply chain Advertising
▷ 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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