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