Zara is a leading global fashion retailer founded in Spain in 1975. It has over 5900 stores worldwide and belongs to Inditex, the largest fashion retailer group. Zara's innovative business model focuses on quick response to fashion trends through a unique supply chain model that allows it to design, produce, and deliver new fashion to stores in just 2 weeks. This fast fashion approach has allowed Zara to stay on the cutting edge of trends and be very successful internationally.

1. Redefining Retailing

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

5. INVENTORY OF ZARA
Women’s
Men’s
Zara Kids
Zara footwear

6. WOMEN'S

7. MEN’S

8. ZARA KIDS

9. ZARA SHOES

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

12. COMPETITORS

13. SEGMENTATIONTARGETING
STRATEGY
Demographics of customers
like gender, psychographics
and age

14. PARITY POINTS
International recognised
European fashion brand
Prime retail location

15. POINTS OF DIFFERENCE
Fast fashion
Exclusivity
Understanding customers needs

16. ZARA’S BUSINESS MODEL

17. BEING ABLE
TO O F F E R
NEW ITEMS
THAN WHAT
SELLING IN
O T H E R
STORES.
REDUCE THE LEAD
TIME FROM DESIGN
TO DISTRIBUTION.

18. DESIGN AND PRODUCTION

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

21. LOGISTICS

22. Delivery across the globe
Rapid delivery system
Having 50% of production units is
key to its success model

23. CUSTOMERS

24. Customers needs are addressed
with daily reports from ZARA
stores managers
Customers feedback - good or
bad- is reacted with immediate
effect

25. STORES

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.

29. SUMMARY
Historical background
Inventory of ZARA
ZARA store values
About ZARA
Competitors
Segmentation targeting strategy
Parity and disparity points
Marketing Model

30. DISCLAIMER
www.zara.com
www.nytimes.com
www.facebook.com/zara
www.wikipedia.com/en/zara