1. ZARA:
fast fashion 1

2. Contents Creation of ZARA Environment Analysis ZARA’s Strateies
Strategic Proposals 2

3. Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex
1975 The first zara store was opened in Spain
Spreading of zara store in Spain
1985 Zara started to enter the overseas market (in Portugal)
1989 Entering New York City, in USA
1990 Entering Paris, in France
Spreading to the whole world including Japan(1998)
2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza  3

4. Creation of ZARA Inditex Chair man: Amancio Ortega Gaona
Location of Headquarter: Coruña in Spain
Annual profit: €94billion 4

5. Creation of ZARA Zara One brand of the Inditex group
Zara's profit makes up 75% of the Inditex.
Representative success case of Time to Market
Date of Establishment
The first retail shop was opened in 1975
Domestic Expansion(Korea)
3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17)
_One brand of the Inditex group
Zara's profit makes up 75% of the Inditex.
Representative success case of Time to Market
(언니! 근데 여기에서 Time to market이 어떤건지 아시나요?ㅠㅠㅠ)
Date of establishment: The first retail shop was opened in 1975
Number of stores: 1440 stores in 77 countries.(이게 인디텍스 홈페이지에 나와 있는 수치라서 이거로 바꾸는 게 좋을 것 같아요!)
Domestic(Korea) expansion: 30, April, stores were opened at coex, lotte ect. (Now, we have 17)
Number of employees: 32,000 people 5

6. Creation of ZARA 6

7. ZARA’s Value Chain Fast fashion
A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market
Material Team
Design
Team
Testing
Stores
Productio n Facility
Sales
Network
An end
-customer
A term used by fashion retailers product driven 7

8. ZARA’s Environment Analysis
External Environment
Based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year, these are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price
Competitor Analysis 8

9. Zara’s internal analysis
ZARA’s Internal Environment Analysis
Zara’s SWOT Analysis
Zara’s internal analysis
'Proud Realisers of Added Value'의 약어로, 말 그대로 보자면 ‘부가 가치를 새롭게 깨달은 사람들’이라는 뜻이다. 프라브족은 명품이나 브랜드가 무조건 좋은 것은 아님을 자각하여, 브랜드보다는 최신 유행과 싼 가격에 자신의 개성을 추구하는 사람들이다. 9

10. 1.ZARA’s Core Competence [Core Competency-Tree]
Shirts, Jeans, Jacket
One-piece, Skirts, Jacket
Bags, Belts, Perfumes
Stores
Products meeting the demand for fast-changing and short life-cycled fasion trends
Increasing Property Values & Increase asset, management
Vertical Systematization of Design and Production Process
Recreational ablility of Fashion
IT System for collecting Customer Information
Real estate 10

11. 2.Assessment for ZARA’s Core Competencies11

12. Valuable ? 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework]
Yes
Despite variety of racial, cultural and generational differences, share senses toward fashion
This makes ZARA have competitive advantage against external threats and new opportunities 12

13. Valuable ? 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework]
Yes
Yes
Hired more than 200 designers
Based on IT System, prompt responses to customer needs and trends are applied to PRODUCTION LINE
Core competence which other companies cannot follow 13

14. Valuable ? Costly to Imitable?
3.ZARA’s Core Competence Analysis[VRIO]
Valuable ?
[VRIO Framework]
Yes
Yes
Costly to
Imitable?
Yes 14

15. Valuable ? Costly to Exploited by Imitable? organization ?
3.ZARA’s Core Competence Analysis[VRIO]
Valuable ?
[VRIO Framework]
Yes
Yes
Exploited by
organization ?
Costly to
Imitable?
Yes
Yes 15

16. High possibility for maintaining Competitive advantage continuously
3.ZARA’s Core Competence Analysis[VRIO]
Competitive
implications
High possibility for maintaining Competitive advantage continuously
Economic
Performance
Above Average
High possibility for maintaining Competitive advantage continuously 2 16

17. Utilizing Stores Recreation of Fashion Vertical Systematization
ZARA’s Success Factors[4 Core Competencies]
Utilizing
Stores
Recreation
of Fashion
Vertical
Systematization
Of Production Process IT
System
현 전략 17

18. ZARA’s Success Factors
5 Keys to Success
1. Utilizing shops actively
2. Short period of Collection preparation
3. The principal of small quantity production
각 항목에 대한 간단한 사례를 구두로 전하는걸로 하자…피티가 너무 길어진다..
4. Creating the value from product differentiation
5. Utilizing the advantage of geographical condition 18

19. ZARA’s Success Factors
Active Use of Stores
Changing the store layout in every 2weeks
Located in the very center of the city
Using the store to advertising
Collecting the data of customers 19

20. ZARA’s Success Factors
Short period of
Collection preparation
Spending only 2 weeks from
The market research to the sales
(Normally it takes 6 months)
Market
Research
Within
1 day
Design
Needs
Production
Closely located with HQ
Transport- ation
Small mass of product
Display
Tight control of stores
Customers 20

21. ZARA’s Success Factors
Small Quantity Production
Continuous Production of New Product,
Without relying on HIT Product
Small Quantity Batch Production
Maximizing
Product
Scarcity
Push customers to buy their product immediately
Increasing the frequency of visiting the store of customers
Let customers open their wallet 21

22. ZARA’s Success Factors
Creating the value
from product differentiation
Because of the fast turnover ratio, customers are hard to find the same cloth in the street
Customers enjoy the scarcity like high price product with relatively economical price
New arrivals by regional groups 22

23. ZARA’s Success Factors
Utilizing the advantage of
geographical condition
Hiring the spanish and the portuguese
instead of people in the third world
countries to utilize the advantage of
geographical condition
By positioning the design and
production facility closely,
make the fast action to the market
situation possible
Most of suppliers are located closely 23

24. ZARA’s Success Factors
5 Keys to Success
1. Utilizing shops actively
2. Short period of Collection preparation
Zara hits the global market
3. The principal of small quantity production
다음 슬라이드가 Zara Brand Loyalty 설명하는건데 그건 그냥
말로 설명할께 추가로 불라불라 이렇게 ㅋㅋㅋㅋ
여기까지 5개 Key factor 설명했는데 뒤에 또 나오니까ㅋㅋㅋㅋㅋ
p25 삭제한다???
4. Creating the value from product differentiation
5. Utilizing the advantage of geographical condition 24

25. Weakness of Current Strategies25

26. Strategic Suggestions26

27. 27