3. 1. INTRODUCTION
Overvie
w
Founded in 1974 by Mr Amancia Ortega
ZARA is a Spanish clothing retailer based in Galicia, Spain
Part of and a flagship of its parent company Inditex
World renowned brand in the clothing industry
Operates 2,220 stores and present in 88 countries
Has long been regarded as a leader in fast fashion, owing to its very
responsive supply chain
Presents itself as an environmental friendly company
10. 04. PESTLE ANALYSIS
Spanish lifestyle and retail brand Zara
In Zara PESTLE analysis, we are going to take a closer look at
this lifestyle and retail brand, and how its future may be affected
by associated global changes.
ZARA
Political
Economic
Social
Technology
Legal
Environment
11. Political Factors that Affect Zara
• European Trade Agreements
• Zara as a Spanish brand enjoys all of the benefits of operating a business out of the European
Union. In a political context, one of the biggest pros of running a company in the EU is the country’s
extensive trade agreements. Not only does this make it incredibly easy to import raw materials and
export finished products within the European Union, but it also means that Zara can send its
merchandise across the world with little effort and for a low cost
• political disruption
• Another major factor that affects the market is political disruption as it affects the economy and
disrupts supply chain. Zara overcame this problem by limiting its supply chain operations in its
home country and some neighboring nations.
12. Economical Factors that Affect Zara
• Low Cost of Labor
• Since Spain has one of the highest unemployment rates within Europe, this means that it has a
relatively low cost of labor — especially in comparison to other Western European countries, such
as France, Germany, and the United Kingdom.
• Relative Affordability
• Zara is considered a relatively affordable brand in comparison to other European highstreet fashion names. This
allows the company to thrive even in poorer countries
• Price discrimination
• Due to different customs duties and level of tariffs in various countries, the prices of zara products vary
in different countries, According to some research demonstrating pricing differences in various
countries, 22% to 24% higher in France, Italy and Germany ,, big differences between the countries.
13. Social Factors that Affect Zara
• Fashionable Brand
• Zara delivers a good-quality product for not a lot of money. And thanks to the brand’s clever
marketing efforts, it feels rather exclusive for buyers. Overall, this strong, positive brand presence
allows Zara to collect healthy profit margins for its shareholders, while buyers still feel like they’re
getting a great deal.
• Sizes of clothes
• Zara creates its products while keeping the basic factors like, geographical position, race
and origin of the country population. So you can find clothes for someone who is very
skinny or for someone who is heavy weighter. It gives the company a social advantage
14. Technological Factors that Affect Zara
Role Just like a tech
firm
A nearly physical
online experience
Inference
15. Legal Factors that Affect Zara
Ethics and
sustainability
Litigation
Changes In
Different
Countries
Copyright
Issues
Future
16. Environmental Factors that Affect Zara
Environmentally
sustainable
business
Fast Fashion
Impact
Environmental
Disasters
What lies
ahead?
17. 05. CONCLUSION
Zara manages to stay up at the revenue growth due to its unique
and strong model of the business.
Unique supply chain infrastructure and efficiency of the business
operation give the company the competitive advantage, which
reflects in their sales and revenues.
19. • Q. Tian, Research on the Marketing Strategy of Spanish Brand ZARA in China. Dalian Maritime University,2019. DOI: 10.26989/d.cnki.gdlhu.2019.000349
• W.C. Li, Research on the Marketing Strategy of Fast Fashion Brand ZARA in China. Jilin University of Finance and Economics, 2019. DOI: 10.26979/d.cnki.gccsc.2019.000483
• L.Y. Guo, Analysis of the Supply Chain Management Model of Fast Fashion Apparel Industry. Chinese and Foreign Entrepreneur, 11(2019) 224-225.
• K. Ning, The Way of Cost Management of "Fast Fashion" Brands - Taking Spanish product ZARA as an Example. China Business Review, 18(2020) 24-25. DOI: 10.19699/j.cnki.issn2096-
0298.2020.18.024
• https://www.businessoffashion.com/organisations/zara
• https://toughnickel.com/industries/Business-Operations-of-Clothing-Retailer-Zara
REFERNCES
