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• Spanish based company, Europe’s leading
apparel retailer
• Fast fashion at affordable prices.
• More than $14.5 billion sales and 2000 stores
• 1975, founder Amancio Ortega
FACTS
Success factor
• New distribution model
• Focuses on 4 strategic elements
1. Design and production
• Hundreds of designers , thus new styles are
created
• Enforces the speed. Locates half of its production
facilities nearby in Spain , Portugal, and Morocco .
• Small quantity of each collection , willing to
experience occasional shortages to preserve an
image of exclusivity
• Clothes with longer shelf life like T-shirts are
outsourced to lower cost suppliers in Asia and
Turkey
2. Logistics
• Distribution process
• 50% of its production facilities nearby is key to
the success of this model
• New shipments twice a week in every store,
entice customers to visit the stores more
frequently and to make purchase decisions more
quickly
• An average shopper visits a main street store
three times a year, but at ZARA store average 17
trips
• Company sells more products at full price
3. Customers
• Monitoring customers’ changing needs, trends
and tastes
• React to the customer feedback
• Cuts its losses , impact is minimal due to the
small quantities of each style produced
4. Stores
• Does not run advertising campaigns
• Prestigious high traffic locations
• Spends only 0.3% of revenues on building
campaigns
Success Mantra:
-Design
-Production
-Distribution
“possibly the most
innovative and
devastating retailer in
the word”
• Expanded aggressively through-out Europe ,
Asia , the Americas and the Middle East
making sure it honors local tastes in each
region.
Challenges
• In United States: Obesity rates are high and
roomy clothes are preferred to the slim fits
and high fashion the company offers.
• Tight control on manufacturing as it expands
throughout the world
Would Zara’s model
work for other
retailers? Why or Why
not?
What can Zara do to ensure
successful growth around
the world while maintaining
the same level of speed and
instant fashion?
Introduction and History about ZARA
Key Success Factors
Advertisement and Branding
Challenges
Disclaimer
Created by Sanjali Maheshwari, Welingkar
Institute of Management, Mumbai during a
marketing internship under Professor Sameer
Mathur, IIM Lucknow.

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Zara sanjali maheshwari

  • 1.
  • 2. • Spanish based company, Europe’s leading apparel retailer • Fast fashion at affordable prices. • More than $14.5 billion sales and 2000 stores • 1975, founder Amancio Ortega FACTS
  • 3. Success factor • New distribution model • Focuses on 4 strategic elements
  • 4. 1. Design and production • Hundreds of designers , thus new styles are created • Enforces the speed. Locates half of its production facilities nearby in Spain , Portugal, and Morocco . • Small quantity of each collection , willing to experience occasional shortages to preserve an image of exclusivity • Clothes with longer shelf life like T-shirts are outsourced to lower cost suppliers in Asia and Turkey
  • 5. 2. Logistics • Distribution process • 50% of its production facilities nearby is key to the success of this model • New shipments twice a week in every store, entice customers to visit the stores more frequently and to make purchase decisions more quickly • An average shopper visits a main street store three times a year, but at ZARA store average 17 trips • Company sells more products at full price
  • 6. 3. Customers • Monitoring customers’ changing needs, trends and tastes • React to the customer feedback • Cuts its losses , impact is minimal due to the small quantities of each style produced
  • 7. 4. Stores • Does not run advertising campaigns • Prestigious high traffic locations • Spends only 0.3% of revenues on building campaigns
  • 9.
  • 10.
  • 11.
  • 12. “possibly the most innovative and devastating retailer in the word”
  • 13. • Expanded aggressively through-out Europe , Asia , the Americas and the Middle East making sure it honors local tastes in each region.
  • 14. Challenges • In United States: Obesity rates are high and roomy clothes are preferred to the slim fits and high fashion the company offers. • Tight control on manufacturing as it expands throughout the world
  • 15. Would Zara’s model work for other retailers? Why or Why not?
  • 16. What can Zara do to ensure successful growth around the world while maintaining the same level of speed and instant fashion?
  • 17. Introduction and History about ZARA Key Success Factors Advertisement and Branding Challenges
  • 18. Disclaimer Created by Sanjali Maheshwari, Welingkar Institute of Management, Mumbai during a marketing internship under Professor Sameer Mathur, IIM Lucknow.

Editor's Notes

  1. Succeeded by breaking every traditional rule in retailing industry First store was opened in 1975 To provide current, high-fashion styles at reasonable prices
  2. New distribution model to reduce the tie from design to distribution to just 2 weeks, while the industry average was of 6-9 months. Co. now make blw 10k-20k diff items a year.
  3. 1.
  4. 1.
  5. All the Print Ads, catalogue images of ZARA are highly fashionable which itself depicts about what the brand offers. It also posts all its latest collection, photoshoots and campaigns on their social media page