ZARA

Zara is the largest brand in the company and accounted for 64.6% of Inditex‘s total net sales in 2010

Geographic

Demographic

Functional

Behavior

Socio-cultural

THANK YOU

INTERNATIONAL BUSINESS

MELISSA SIERRA

ANDREA GOMEZ

ALEJANDRA FLECHAS

Market Observatory

Benchmarking

Strategy

Decision Making

Adaptability

Just in Time

Lower Quantities

Marketing Diversity

Sources

Outsourcing

RIVALRY

BUYERS

Porter's Five Forces for ZARA

SUPPLIERS

SUBSTITUTES

Potential Entrants

• http://www.zara.com/
• http://thirdeyesight.in/articles/ImagesFashion_Zara_Part_I.pdf
• http://www.icmrindia.org/casestudies/catalogue/Operations/OPER055.htm
• http://hbr.org/product/zara-fast-fashion-multimedia-case/an/703416-MMC-ENG
• http://hbswk.hbs.edu/archive/4652.html

Zara's Concept

Zara offers as a company: fleeting fashion and comfort, meaning affordable and easy to sell.. The firm has understood the concept of fresh fashion which can also be adapted to different personalities.

Amancio Ortega

Harvard has considered the company as a "Fast Fashion"

Is a Spanish fashion executive and founding chairman of the Spanish clothing merchandiser Inditex (1985).s Consider by the media a leyend, he doesn't give interviews and doen't appear in public. Is consider to be one of the richest man in spain. His first Zara shop was opened in 1975 on the Juan Flores street. Having the idea to customized clothes for customers was apparently the key of his succes.

NUMBERS

It's International expansion started on the 80's

• It's share value is €102.45
• Has 120.000 employees
• In 2011 had incomes for €120.000 millions

Its organizational structure has been keeping secret

Human Resources

• Organizational Culture
• Horizontal communication
• Training Invest
• 92.000 employees around the world from Inditex Group
• International Basement

Corporate Social Responsibility and Laws Regulations....

Consumption

History

Research

Design

Sales

• The average Zara customer visits -> 17 times/year
• International Teamwork

Europe : Popular Fashion

Abroad: Exclusive Fashion

According to social class

• In Europe: Average population
• Abroad: Upper class

According to social Class:

• Europe: Average population
• Abroad: Upper Class

• Little interest in the mature population
• Elite customers are not the target

Economics

Gender: F o M

Women: 58%

Public interested in fashion at accesible prices with limited edition

According to social Class:

• Europe: Average population
• Abroad: Upper Class

Age

From children to adults

According to social Class:

• Europe: Average population
• Abroad: Upper Class

Place: Shopping Centers

Loyalty: Repeated purchase is favored

SWOT

• Instant purchase Culture
• Refund politics and flexibility to change a product
• Customers always have the reason
• Changing and evolving across cultures
• No advertisements
• Strategic location

Resources

Channels and Organization

Sellers

Zara's Presence

Delivery Times

• Distribution channels projected to 5 years
• Standard stores organization
• All stores should be assorted of different garments and sizes

• Coordination department
• Sellers should sell the company's image
• Customers are pure gold

• 625 Millions of garments/year
• Agreements with local distributors/Country
• 12.000 Trucks/Year
• 25.000 Ton/Year

Source: http://www.inditex.com/es/quienes_somos/tiendas?zone=ES

Updated on: 31/07/2012

The Product

Manufacturing Plant

• Short production times
• Massive production authorize low prices
• Fast and flexible capacity of manufacturing
• Two fashion design seasons (spring-summer, fall winter)

• The garment is organized systematically in two hours
• Short production times
• Massive production authorize low prices
• Fast and flexible capacity of manufacturing

• The main factory is located in Artexio
• Peru, Morocco and Thailand produce all garments particularly elaborated

• It produces more than 40.000 garments daily with 95% of efficiency.

Meeting with Suppliers

Fashion business process (1 - 2 weeks)

Scan fashion shows

Simplify and produce

Final design

Raw materials

Manufacturing

They consider necessary to meet with their providers in order to maintain quality and moderate prices

Shops

Redesign

Distribution

Experience in shops

• 350 Main Designers
• 2.000 Suppliers
• 49% Spain, Portugal and Morocco
• 35% Asia
• 14% European Countries
• 2% Rest of the world

Distribution

Production