Zara, founded by Amancio Ortega and Rosalía Mera in 1975, is the flagship store of the Inditex Group and has become the world's largest fashion retailer known for its rapid production and innovation in the industry. The company faced controversies regarding toxic clothing production and offensive designs but has since committed to a toxic-free production process. Zara's success stems from its ability to swiftly adapt to fashion trends while maintaining low advertising costs, leveraging a unique supply chain that allows for quick response to consumer demand.

1. BRAND STUDY
PROJECT

3. FOUNDERS OF BRAND ZARA
AMANCIO ORTEGA ROSALIA MERA

4. AMANCIO
ORTEGA • Amancio Ortega Gaona ; born
28 March 1936) is a Spanish
fashion businessman and
founding chairman of
the Inditex fashion group, best
known for its chain
of Zara clothing and accessories
retail shops.
• In October 2015, he was ranked
as the richest person in the
world for four hours by Forbes,
just ahead
of American billionaire Bill
Gates, with a net worth of USD
$78.6 billion.

5. ROSALIA
MERA • Rosalía MERA
Goyenechea
(28 January 1944 – 15 August
2013) was a Spanish
businesswoman and
entrepreneur. At the time of her
death, she was the richest
woman in Spain and the world's
richest self-made woman.
• In 1975, she co-founded the Zara
retail chain with her then-
husband Amancio Ortega Gaona.
The company grew to become
the world's largest fashion
retailer.

6. INTRODUCTION
• Zara (Spanish: [ˈθaɾa]) is a Spanish clothing and
accessories retailer based in Arteixo, Galicia, and
founded in 1975 by Amancio Ortega and Rosalía Mera.
It is the flagship chain store of the Inditex group, the
world's largest apparel retailer. The fashion group also
owns brands such as Massimo Dutti, Pull and
Bear, Uterqüe, Stradivarius, Oysho and Bershka.
• Zara was described by Louis Vuitton Fashion Director
Daniel Piette as "possibly the most innovative and
devastating retailer in the world." Zara has also been
described as a "Spanish success story" by CNN

7. ORIGIN AND HISTORY
• Amancio Ortega opened the first Zara store in 1975 in a
central street in downtown A Coruña, Galicia, Spain.
• Ortega named his store Zorba after watching the classic
film Zorba the Greek, but apparently there was a bar that was
called the same, Zorba, two blocks away, and the owner of the
bar came and said, "this is going to confuse things to have two
Zorbas.
• " They had already made the molds for the letters in the sign,
so they just rearranged them to see what they could find, and
they found Zara, which leaves fans wondering where the
additional A came from, but there is speculation that they had
more than one set of letters.

8. TOXIC FREE PRODUCTION
• In 2011, Greenpeace started a dialog with Zara to ban harmful toxins from the clothing
production. In November 2012, Greenpeace published the "Toxic threads: the big
fashion stitch-up" report, in which Zara was identified as the worst.
• In 6 of the 10 clothes that were examined, nonylphenol ethoxylates were found, and in
2 cases cancer-inducing amines from azo dyes were found.After this publication, Zara
was chosen as an example as biggest retailer in the world to raise awareness.
• Multiple protests were held at Zara shops all over the world, demanding Zara to come
up with an ambitious plan to detox its clothes and value chain.
• After 9 days of intense public pressure, Zara decided to switch to a fully toxic-free
production.] The fashion retailer promised to stop discharging toxins for its clothing
production, which also affects 7 other brands in the Inditex Group: Pull &
Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Üterque.
• Some of the most damaging toxins will be refrained of earlier, for example PFC's will be
banned by 2015. Zara also promised to make information about its suppliers
discharging of toxins publicly available for at least 100 suppliers (at least 40 of which are
located in China) by the end of 2013. With this commitment, Zara
follows Nike, Adidas, Puma, H&M, Marks & Spencer,C&A and Li- Ning, who
implemented a Detox-policy as well.

9. CONTROVERSAIL PRODUCTS
• In 2007, Zara withdrew a handbag from their shelves after a customer noticed a swastika on the bag's
design. The bag came from an external supplier and Zara said the symbol was not visible when the
handbag was chosen. Zara spokesman Susan Suett said had they noticed the handbag featured the
symbol, they would not have sourced it. Once informed of the swastika symbol, they immediately
withdrew the item from their shelves.
• In 2009, there was an email rumor claiming that Zara "has been openly anti-Semitic for a long time." The
email contained a picture of the handbag that featured a swastika symbol in 2007. The Anti-Defamation
League addressed the email and said Zara is not anti- semitic and the incident involving the bag was
remedied by removing the bag from their shelves. The handbag was produced by an India-based supplier
and the swastika is a religious symbol for Hindus and Buddhists that represents the sun, strength, and
good luck.
• In August 2014, Zara received criticism for selling a toddler T-shirt for closely resembling uniforms worn by
Jewish concentration camp inmates. The T-shirt was striped and featured a yellow star very similar to the
Star of David. Zara said that the design of the shirt was inspired by "the sheriff's stars from the classic
western films." After being on sale for a few short hours, Zara immediately removed the shirt and
apologized. The shirt was stitched in Turkey and sold in Zara's Albanian, French, Israeli, and Swedish online
stores.
• Zara received heavy criticism for selling the T-shirt in Israel because Israel does not have sheriffs.
Additionally, the word "Sheriff" is outlined in transparent letters on the bright yellow star. Hana Levi Julian
wrote in the Jewish Press that the design of the word makes it difficult to see.
• The company said that the sales received from the T-shirts were marginal and any remaining T-shirts
would be destroyed. The Anti-Defamation League response to the shirt was "The shirt emblazoned with
the yellow star is in poor taste and is deeply offensive to Jews and Holocaust survivors. To anyone who
knows their history, this kind of imagery should be off-limits. We welcome Zara's recognition of the shirts
potentially offensive imagery and removal from sale."

10. PRODUCTS

12. STORE LAYOUT

13. WINDOW DISPLAY

14. PROMOTIONS

15. STORES
• There are over 2000 Zara stores located across 88
countries. Some Zara stores operate as Lefties stores
instead of Zara, a brand for low-cost fashion.
• Zara stores are located in shopping malls and in the most
important retail streets worldwide. Zara usually selects the
best located and most expensive real state locations in the
world to open its flagship stores.Zara has flagship stores
on Fifth Avenue in New York, Oxford Street in London, Calle
Serrano in Madrid,Via del Corso in Rome,Champs-Élysées in
Paris, Nevsky Prospect in Saint Petersburg, GUM in
Vladivostok, Shibuya and Ginza districts in Tokyo,
Myeongdong in Seoul, among many others.
• The number of Zara stores in each country, as of 11
October 2015

16. MANUFACTURING & DISTRUBITION
• Zara is a vertically integrated retailer. Unlike similar apparel retailers, Zara controls
most of the steps on the supply-chain, designing, manufacturing, and distributing
its products.
• It is claimed that Zara needs just one week to develop a new product and get it to
stores, compared to the six-month industry average, and launches around 12,000
new designs each year. Zara has resisted the industry-wide trend towards
transferring fast fashion production to low-cost countries. Perhaps its most
unusual strategy was its policy of zero advertising; the company preferred to invest
a percentage of revenues in opening new stores instead. This has increased the
idea of Zara as a "fashion imitator" company and low cost products. Lack of
advertisement is also in contrast to direct competitors such as Uniqlo and United
Colors of Benetton.
• Zara set up its own factory in La Coruña (a city known for its textile industry) in
1980, and upgraded to reverse milk-run-type production and distribution facilities
in 1990. This approach, designed by Toyota Motor Corp., was called the just-in-
time (JIT) system. It enabled the company to establish a business model that
allows self-containment throughout the stages of materials, manufacture, product
completion and distribution to stores worldwide within just a few days

17. • Zara can offer considerably more products than similar companies. It produces
about 11,000 distinct items annually compared with 2,000 to 4,000 items for its
key competitors. The company can design a new product and have finished goods
in its stores in four to five weeks; it can modify existing items in as little as two
weeks.
• Shortening the product life cycle means greater success in meeting consumer
preferences. If a design doesn't sell well within a week, it is withdrawn from shops,
further orders are canceled and a new design is pursued.
• Zara relies on sophisticated information technology, such as PDAs with wireless
transmission capabilities, in the hands of store managers, to monitor customers'
fickle fashion changes. Zara has a range of basic designs that are carried over from
year to year, but some fashion forward designs can stay on the shelves less than
four weeks, which encourages Zara fans to make repeat visits. An average high-
street store in Spain expects customers to visit three times a year. That goes up to
17 times for Zara.
• On 6 September 2010, Financial Times reported that Inditex launched the first
online boutique for its best-selling brand Zara. The website began in Spain, the UK,
Portugal, Italy, Germany and France—six countries that were among the most
important of the company's 76 markets.
• When asked about the company's late arrival to internet retailing, Pablo Isla, chief
executive, said they had been waiting for online demand to build before launching
into cyberspace.
• All items on sale at Zara outlets are available online and at the same prices.

18. ADVERTISING MEDIA
• Online ads
• Websites
• Newspapers
• Pamplets
• Available at all kinds of services

19. SUCCESS
• Few clothing brands keep up with the latest fashion, are of high quality and yet, affordable. It
is probably the amalgamation of all these qualities that made Zara, the Spanish clothing
brand become the go-to fashion brand for all. It is no surprise that Zara, which started off as a
small store in Spain is now the world’s largest retailer and its founder, Amancio Ortega, the
4th richest man in the world.
• It all began when Ortega established a dress-making factory, Inditex, in the year 1963.Ten
years later, he started off a small store that was named as Zorba in La Coruna, Spain with a
budget of a meagre 30 Euros. He then changed the name as Zara with no particular intention.
And that’s how the world’s favourite fashion brand of today was born.
• Zara slowly expanded its empire from the town in Spain to the rest of the country and then
later to Portugal. By the 1990’s the store had expanded into the United States, France and
most of the Europe. Today, Zara has close to 6500 stores across 88 countries around the
world.
• The secret to Zara’s success largely was because of the way it kept up with street fashion with
the changing times. The brand takes a look at how fashion is changing every day. It makes
new designs and puts them into stores in a week or two.
• Most other fashion brands would take a whole six months to get their new designs into the
market. That’s where Zara beat the rest of them and became the favourite brand among
people who liked to keep up with the fashion.
• Ortega was famous for his view on clothes as a perishable commodity; that people would
love to use them and throw them away, just like yogurt or bread. It is often cited that he
produces ‘fresh baked clothes’ that survive the changing street fashion trends for not more
than a month or two. You go to the store a week too late and all the clothes would be
changed.

20. • Zara is also known to be one of the most eco-friendly
companies. It uses solar panels and wind turbines in
the headquarters in La Coruna.
• Zara is also known to be one of the few clothing brands
that produces 100 % toxic-free clothing, but not until
after the uproar that was caused on how it was using
the cancer-inducing azo dyes in its clothing.
• There’s one thing about Zara that is surprising. The
name has poor marketing for all the success it
continues to bask in. The brand does not advertise
itself in any form at all. Amancio had never spoken to
the media nor has in any way advertised Zara.
• Zara needed no advertisement to become such a
widely loved brand. Talk about quality doing all the
work!

21. S
U
C
C
E
S
S

22. ZARA
• Parent Company - Inditex Group
• Category - Apparel and Accessories
• Sector - Lifestyle and Retail
• Tagline/ Slogan - Zara
• USP - Perfect combination of high end, chic
clothing at affordable prices

23. STP
• Segment
• Clothes for people with a combination attitude of
work and play
• Target Group
• People with Medium to high purchasing power
who love to look glamorous at all times
• Positioning
• Fashionable look alike merchandise which is still
extremely innovative, an irony of sorts

24. SWOT ANALYSIS
Strengths
• 1. They have about 74 stores all over the world
• 2. Part of one of the most biggest Spanish retailers in the world
• 3. Have a well established brand name worldwide
• 4. Their supply chain management is extremely low cost as well as
most of their processes like operations, manufacturing are all
vertically integrated
• 5. Unlike other retailers they handle all their processes as well as
follow Just in Time system (Value Chain Management)
• 6.Clothes are produced at a low cost with the most innovative and
fashionable designs
• 7. Extremely trendy, well designed and fast delivery of new
products

25. WEAKNESSES
• 1.They use an unusual strategy of no
advertisements
• 2.Target segment is not extremely consumer
loyal and might go for cheaper and newer
collections

26. OPPORTUNITIES
• 1.There are more global markets which they
can explore
• 2.They can also enter into segments and
expand those areas where they haven’t
• 3.Online marketing and E Retail is gaining
importance

27. THREATS
• 1.The high end fashion merchandisers can be a
major threat to them
• 2.Economic downturn can also be a threat to
their target segment
• 3.There is a large amount of consumer
switching taking place

28. COMPETITORS
• 1.Uniqlo
• 2.Mango
• 3.H&M

29. THANKYOU..!!