2. “ P O S S I B LY T H E M O S T I N N OVAT I V E A N D
DEVASTATING RETAILER INTHE WORLD”
DANIEL PIETTE - LOUISVUITTON FASHION DIRECTOR
3. HISTORICAL BACKGROUND
Cofounded by Amancio Ortega &
Rosalia Mera, 1975, Spain
Europe’s leading apparel retailer
Hold a brand value of $8.7 bn
More than 5900 stores in world
10. ZARA’S STORE VALUES
# Adapt quickly to fashion in
demand
# Improve quality
# Sell modern design at affordable
prices
# Have a perfect distribution
system
11. ABOUT ZARA
One of largest international
fashion companies.
Belongs to Inditex, world’s
largest distribution groups.
The customer is at heart of
business model which includes
design, production, distribution
and sales
19. # Employ hundreds of
employs at its headquarters
# Speed fashion -
Production houses near
Spain
# High control of
manufacturing process
“WHAT’S HERETODAY MAYBE GONE IN 2
WEEKS” —NYTIMES
26. ZARA never runs an ad campaign
ZARA stores are themselves ad
elements
Spend only 0.3% of revenues in
ads
Helps save revenue for the
company
27. ZARA’S UNIQUE BUSINESS
MODEL AND OTHERS
Zara stocks clothing in scanty quantities.They don’t order more
stock in.
“They’ve trained consumers not to wait for it to go on sale,”
Zara’s factories are based in Europe, new designs get into stores
in two weeks. Others have to get it from companies like China.
The cost of distribution is lower
28. EXPANSION OF ZARA
Incorporate technological advances
like marketing on social network
Increase its presence in developng
economies
Further close its communication
loop
Give their capital assets to increase
supply chain flexibility.
Partnering with other small
retailers.
