Zara: Fast Fasion

50 %
50 %
Information about Zara: Fast Fasion
Education

Published on September 19, 2009

Author: redwan999

Source: slideshare.net

 

 

 

The largest and most internationalized chain of Inditex . Founder Amancio Ortega Gaona

La Coruna, in 1975 “ Medium quality fashion clothing at affordable prices” 1980 adjoining markets 2001 became international

Presenting By: Name: ID: Sadia Tasnim 072 626 030 Jaker Jahan Shuvra 081 179 030 Ahsan Al Bari 061 325 030 Rabita Binte Shams 072 588 030 Al Amin Redwanur Rahman 081 162 030 Rishad Ishtiaq Habib 053 043 530 Iftehajul Islam 081 359 030

Legal system act on business Political Environment

Legal system act on business

Cross Border Marketing In our early discussion we notice that ZARA Fashion international clothing store in more than 32 countries. Each country has uniqe legal policy those affect to ZARA Fashion’s business strategy. In large number of 32 countries store ZARA fashin always pick the much flexible option and it can vary country to country.

In our early discussion we notice that ZARA Fashion international clothing store in more than 32 countries. Each country has uniqe legal policy those affect to ZARA Fashion’s business strategy.

In large number of 32 countries store ZARA fashin always pick the much flexible option and it can vary country to country.

Retailing Retailing activity is quit local and there is no bullet system single retailing strategy whole over the world. World wide retailing has relatively globalize particularly the fashion segment. Retailing chain had been most successful in UK where US market remained major challenge . Retailing activity is quit local and there is no bullet system single retailing strategy whole over the world. World wide retailing has relatively globalize particularly the fashion segment. Retailing chain had been most successful in UK where US market remained major challenge .

Retailing activity is quit local and there is no bullet system single retailing strategy whole over the world.

World wide retailing has relatively globalize particularly the fashion segment.

Retailing chain had been most successful in UK where US market remained major challenge .

Retailing activity is quit local and there is no bullet system single retailing strategy whole over the world.

World wide retailing has relatively globalize particularly the fashion segment.

Retailing chain had been most successful in UK where US market remained major challenge .

Market Entry Enter country where relatively easy to enter. No legal boundaries or taxes.

Enter country where relatively easy to enter.

No legal boundaries or taxes.

International Partnership In some country it’s a major barrier in foreign direct investment. In that case ZARA Fashion follow some affective policy to over come those legal policy. Franchises Joint Venture 50:50 Partnership

In some country it’s a major barrier in foreign direct investment. In that case ZARA Fashion follow some affective policy to over come those legal policy.

Franchises

Joint Venture

50:50 Partnership

The social element those affect to ZARA Fashion’s business Social Environment

The social element those affect to ZARA Fashion’s business

Global Chain Shop ZARA Fashion is cross border chain shop. So its social culture vary country to country. 507 stores around the word where is no similarity. Local employment Labor cost is based on local payment rate

ZARA Fashion is cross border chain shop. So its social culture vary country to country.

507 stores around the word where is no similarity.

Local employment

Labor cost is based on local payment rate

Social Culture ZARA Fashion enter always Hi-profiled country where low bisiness risk. So easily can say cuylture around business is so modern and consumer are also updated. Though it’s a competion market but very easy to lunch new product.

Technological Environment

Technology >>> Use of technology from 1970’s >>> Coping with the change >>> Just in time manufacturing system. >>> High-tech distribution system.

Economical Environment

Economical 507 stores around the world . 488400 square meters of selling area. $1050 million Company’s capital.

Economical Cont……… During fiscal year 2001, 441 million on sales of 2477 million Invested in manufacturing Logistic IT just-in-time manufacturing system

Economical Cont……… World Co’s net margins 2% of sales but Zara’s net margins 10% of sales ( fiscal year 2001 ) largely because of selling, general, and administrative expenses that swallowed up about 40% of World Co’s revenues VS about 20% for Zara.

Company Background Zaras’ first store……… Expanded Zara store……… By the early 1980s,Ortega formulated a new type of design and distribution model. Zaras’ first store……… Expanded Zara store……… By the early 1980s,Ortega formulated a new type of design and distribution model.

Zaras’ first store………

Expanded Zara store………

By the early 1980s,Ortega formulated a new type of design and distribution model.

Zaras’ first store………

Expanded Zara store………

By the early 1980s,Ortega formulated a new type of design and distribution model.

Company Background Cont. Castellano, A computer expert joined Ortega in 1984. In 1985, Castellano joined Inditex as the deputy Chairman of its board of directors. At the end of 2001, Zara became the most internationalized as well as the largest of Inditex’s chains

Castellano, A computer expert joined Ortega in 1984.

In 1985, Castellano joined Inditex as the deputy

Chairman of its board of directors.

At the end of 2001, Zara became the most internationalized as well as the largest of Inditex’s chains

Key competitors The Gap Hennes and Mauritz Benetton Founded in 1969 in San Francisco. International expansion in 1987. US centric operation.

The Gap

Hennes and Mauritz

Benetton

Founded in 1969 in San Francisco.

International expansion in 1987.

US centric operation.

Key competitors The Gap Hennes and Mauritz Benetton Founded in 1947 in Italy. Outsources all its products. More than 50% revenue is earned from outside of home country.

The Gap

Hennes and Mauritz

Benetton

Founded in 1947 in Italy.

Outsources all its products.

More than 50% revenue is earned from outside of home country.

Key competitors The Gap Hennes and Mauritz Benetton Incorporated in 1965 in Italy . heavy investment and control over production activities . products mostly sold by licensing .

The Gap

Hennes and Mauritz

Benetton

Incorporated in 1965 in Italy .

heavy investment and control over production activities .

products mostly sold by licensing .

Business Structure….. Raw materials Logistic Finance Manufacturing plant Expansion Real estate International

Foreign market selection criteria New country markets that resemble Spanish market Possess a minimum level of economic development Relatively easy to enter

New country markets that resemble Spanish market

Possess a minimum level of economic development

Relatively easy to enter

Market Analysis A commercial team from the headquarters conduct both the macro and micro analysis of the market. Macro analysis is focused on local macro economic variables such as: tariffs, taxes, legal cost etc. Micro analysis is performed onsite and focused on variables such as demand, channels, store locations, competitors etc.

A commercial team from the headquarters conduct both the macro and micro analysis of the market.

Macro analysis is focused on local macro economic variables such as: tariffs, taxes, legal cost etc.

Micro analysis is performed onsite and focused on variables such as demand, channels, store locations, competitors etc.

Market Entry If the commercial team’s evaluation becomes positive…then the next possible step would be to assess: “ HOW TO ENTER THE MARKET?”

If the commercial team’s evaluation becomes positive…then the next possible step would be to assess:

“ HOW TO ENTER THE MARKET?”

Modes of market entry Zara used three modes of market entry internationally: Company owned stores (Spanish stores) Joint-ventures & Franchises

Zara used three modes of market entry internationally:

Company owned stores (Spanish stores)

Joint-ventures &

Franchises

Problems & Challenges Most serious threat to Zara fashion is to sustain its success and maintain its growth rate Expanding operations in different regions (America, Asia, Europe etc.), requires Addressing different fashion trends at a time. (i.e. given different sizes/ trends in different regions, Pulling a new fashion cloth or apparel from one region and putting it in other region is a challenging task itself

Most serious threat to Zara fashion is to sustain its success and maintain its growth rate

Expanding operations in different regions (America, Asia, Europe etc.), requires

Addressing different fashion trends at a time. (i.e. given different sizes/ trends in different regions,

Pulling a new fashion cloth or apparel from one region and putting it in other region is a challenging task itself

Problems & Challenges (Cont’d) Zara also has the inability to penetrate American apparel market. This may be due to the American taste differ from the European taste. Zara requires joint-ventures & acquisition of small chains to scale up its operations. However In a 50:50 joint venture, it is very difficult for Zara to impose its business model to the other The company could not acquire large market shares in the domestic market Local retailers may follow Zara's formula to success and can emerge as big threat to its success.

Zara also has the inability to penetrate American apparel market. This may be due to the American taste differ from the European taste.

Zara requires joint-ventures & acquisition of small chains to scale up its operations. However

In a 50:50 joint venture, it is very difficult for Zara to impose its business model to the other

The company could not acquire large market shares in the domestic market

Local retailers may follow Zara's formula to success and can emerge as big threat to its success.

Recommendation Invest in Internet Retailing Decentralization New ways of cutting Cost Expanding its local market share Less expansive in developing countries

Invest in Internet Retailing

Decentralization

New ways of cutting Cost

Expanding its local

market share

Less expansive in developing countries

Conclusion Zara as a “bench marker” Zara and the fashion industry In order to sustain in the leading position Come up with new ideas Create new ways of marketing New production methods

Zara as a “bench marker”

Zara and the fashion industry

In order to sustain in the leading position

Come up with new ideas

Create new ways of marketing

New production methods

Query….

Add a comment

Related presentations

Related pages

Zara Leads In Fast Fashion - Forbes

Zara – Fast Fashion for women, men, children. 1,923 stores in 88 countries. 2014 sales $12.6 Billion with 53 stores in the United States. EBIT ...
Read more

Why Zara is a ‘Fast Fashion’ Pioneer - Corporate ...

Why Zara is a ‘Fast Fashion’ Pioneer. By. Kathy Chu. Jun 24, ... which illustrated just why Zara is known as a pioneer of “fast fashion. ...
Read more

Zara: IT for Fast Fashion - Harvard Business Review

Zara: IT for Fast Fashion. MENU. SUGGESTED TOPICS; SUBSCRIBE Hi, SIGN IN. ... Zara's CIO must decide whether to upgrade the retailer's IT infrastructure ...
Read more

[Case Study] Zara Fast Fashion - Scribd

Zara: Fast Fashion Case Study. IEOR 153 Logistics Network Design and Supply Chain Management Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz ...
Read more

Fast fashion - Wikipedia

Fast fashion is a contemporary term used by fashion retailers to express that designs move from catwalk quickly to capture current fashion trends. Fast ...
Read more

Zara: Fast Fashion by Kristyn Mark on Prezi

Zara: Fast Fashion Competitors ... H&M differs from Zara- Outsource production, spend more money on advertising and are price orientated Business Comparison
Read more

Zara's Secret for Fast Fashion - HBS Working Knowledge ...

Spanish retailer Zara has hit on a formula for supply chain success that works. By defying conventional wisdom, Zara can design and distribute a garment to ...
Read more

Zara: Fast Fashion by Katie Colasono on Prezi

Zara: Fast Fashion ... Zara used to translate the price for the local currencies on their tags. Full transcript. More presentations by Katie Colasono
Read more

ZARA Official Website

Latest trends in clothing for women, men & kids at ZARA online. Find new arrivals, fashion catalogs, collections & lookbooks every week.
Read more