ZARA:

fast fashion

Contents

Creation of ZARA

Environment Analysis

ZARAs Strateies

Strategic Proposals

Creation of ZARA
1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 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 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza

Creation of ZARA
Inditex
Chair man: Amancio Ortega Gaona Location of Headquarter: Corua in Spain Annual profit: 94billion

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 3 Stores were opened at Coex,Lotte Department Store etc. in Expansion(Kor April30,2007(now 17) ea)

Creation of ZARA

ZARAs 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

Design Material Team Team

Testing Stores

Productio n Facility

Sales
Network

An end -customer

ZARAs 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

ZARAs Internal Environment Analysis

Zaras SWOT Analysis

Zaras internal analysis

1.ZARAs Core Competence [Core Competency-Tree]

Shirts, Jeans, Jacket One-piece, Skirts, Jacket Bags, Belts, Perfumes Stores

Products meeting the demand for fastchanging and short lifecycled 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

2.Assessment for ZARAs Core Competencies

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]
Yes

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]
Yes

Yes

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]
Yes

Yes

Yes

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]
Yes

Yes

Yes

Yes

3.ZARAs Core Competence Analysis[VRIO]

Competitive implications Economic Performance

High possibility for maintaining Competitive advantage continuously

Above Average

ZARAs Success Factors[4 Core Competencies]

ZARAs Success Factors

5 Keys to Success

1. Utilizing shops actively

2. Short period of Collection preparation

3. The principal of small quantity production

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

ZARAs Success Factors

Active Use of Stores
1) Changing the store layout in every 2weeks 2) Located in the very center of the city 3) Using the store to advertising 4) Collecting the data of customers

ZARAs 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

Design

Production

Transportation Small mass of product

Display

Customers

Within 1 day

Needs

Closely located with HQ

Tight control of stores

ZARAs 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

ZARAs 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

ZARAs 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

ZARAs Success Factors

5 Keys to Success

1. Utilizing shops actively

2. Short period of Collection preparation

3. hits the global small Zara The principal ofmarketquantity production

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

Weakness of Current Strategies

Strategic Suggestions