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FASHION
PRESENTED BY
LUQMAN AHMAD
– Zara sells both Men's and women's clothes. They also sell shoes,
cosmetics and accessories. Recently they started with children's
clothes as well.
– Zara is a Spanish clothes and accessories brand, it is the flagship
brand of the Inditex group. Few clothing brands keep up with the
latest fashion, are of high quality and yet, affordable. It is probably
the amalgamation of all these qualities that made Zara, the Spanish
clothing brand become the go-to fashion brand for all.
History and Founders
Inditex
Chair man: Amancio Ortega
Gaona
Location of Headquarter: Coruña
in Spain
Annual profit: €94billion
Locations of Stores
– Zara possesses 90% of its stores in 88 countries including United States, Europe,
Asia, Middle East and many, and the rest is the joint ventures or franchises.
– It boasts in-house production factories within proximity of the headquarters.
– Zara itself control raw material selection, production, distribution etc
– Zara is called “fashion imitator” because instead of predicting trends, it imitates
the trends of the season and provides such fashion trend to its customer at the
minimum amount of time possible.
STRENGTHS cont….
Scope for Global Expansion: The company has market presence in all the four
major continents. However, it still needs more expansion in Africa and Asia.
Another area is online marketing where the company needs to concentrate. The
reason is most of the other companies like Benetton and GAP do not have good
online marketing channels.
It needs to invest more revenue in e-commerce sector in giving their products more
exposure in front of their customers.
THREATS
Pricing strategy
– Low price strategy
Product offering
footwear , accessories for women , men and children from new born to adults
45.(approximately 22% of sale) women’s clothing (about 25%)
Import policy
Prohibitions and restrictions:
– 2: Restrictions.
– National quality standards
– List of such standards and regulations notified by the PSQCA.
Market entry strategy
– Franchising
– Indirect entry
PESTLE ANALYSIS
– POLITICAL
– Pakistan’s regulatory environment is among the most investor-friendly in the
world. There are no restrictions on foreign ownership.
– Pakistan offers low corporate tax rates and tax incentives for strategic
investments.
– Historically, foreign investment returns in Pakistan have been high.
– large infrastructure-related investment projects (especially under the China-
Pakistan Economic Corridor), and a largely export potential.
SOCIAL CULTURAL
– culture is diversified.
– Social change involves changing attitudes and lifestyles.
Cultural Change (clothing and their lifestyle). Different consumer taste and
lifestyle.
Zara has to develop effective strategies to match with pakistni life style.
Product or services can’t be successful until company has enough knowledge .
Zara take consider social and cultural factors in order to achieve their strategic
objectives.
ECONOMICAL
– GDP………………………………………………………………………………………………$270.96 B
– GDP (purchasing power parity)…………………………………………………….$928.43 B
– GDP (per capita income) …………………………………………………............$1560.7
– Revenue Collection …………………………………………………………………….$2.65 Trillion
– Export (2013-2014)……………………………………………………….………………$30.414 B
– Foreign reserves ………………………………….……………………………………….$20 B
– Foreign Direct Investment ………………………………….……………………….$ 0.709 B
– Development Program………………………………………………………………… RS : 758 B
TECNOLOGICAL
– Technological change.
– New plants
– Smart technology, material innovation,
connective fabrics,
– Internet , Facebook, instagram, twitter, etc
– Effective supply chain
LEGAL
– Duty rates 20 %
– Import regulatory duty (10% CIF)
– Fulfill the standards of the pakistan.
– Proper tagging.
– Raw material information.
– Usage patterns.
– Copy rights.