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ZARA's Fast Fashion Success Story
- 2. • ZARA comes from the word ‘Zorba’ •Founded in 1975 by Amancio Ortega and Rosalia Mera •ZARA is based Spanish company based in Arteixo, Galicia • The Flagship company of Inditex Group, world’s largest apparel retailer.
- 7. STRENGTHS •Global Outreach •Strategic Locations •Seamless distribution Strategy •Minimalistic Store image •Fast Changing Location OPPORTUNITY •High demand for Street fashion at affordable prices •Growing markets in Asian countries, especially India and China. WEAKNESS •Brand image closely tagged to competitors •Lack of Marketing •Communications •Limited Stocks THREATS •Fierce Competition •Possible dilution of goods •Degradation of Brand Equity •Lawsuits associated to Sweatshops
- 9. The SUCCESS Cycle Creative Department Samples and prototypes Cutting: by machine Sewing: Fabric shipped to workshops Finalized garments: Pressing and ironing Shipping of the product Delivery of the products to the outlets
- 10. THE MARKETING MIX: PRODUCT PLACE PRICE PROMOTION
- 11. Because The PRODUCT is.. •Responds quickly to changing need of consumers •Does not out-source, in control of own products •Focus on selling and creating the latest trends •Highly recognized for street fashion
- 12. The PLACE is just like home because.. •Vertically Integrated retailer- Designs, manufactures and distributes the product itself •Is spread across 30 countries •90% of the stores are company owned •Have the best salesperson to help you with the best suggestions
- 13. PRICE isn’t always an Issue because.. •Affordable to ensure customer satisfaction compared to other competitors •Some stores premium where as others affordable, hence easy to choose •Pricing is made possible by optimizing development and training cost
- 14. PROMOTION one of the lesser known Strategy. •Word of mouth advertising •Uses the money to be used on advertisements on New Stores •Key marketing strategy based on Exclusivity, Experience, Differentiation & Affordability.
- 15. Brand Building Risk Reduction: High brand awareness and perception of high quality at affordable prices Differentiation: Fashionable, street fashion Relevance: Luxurious fashion, targets all section from street style to corporate world Social Esteem: Modern, cool and fashionable and confident Emotional Bond: unique, superior and latest
- 16. ZARA LOGISTICS
- 18. ZARA is not just a brand. It’s an Emotion. An Emotion to add fashion to daily life and spice up the monotonous trend.
- 19. Case Study Question 1. Would ZARA’s model work for other retailers? Why or why not? Ans. No. It’s hard for other brand to maintain the ZARA model and still make profits. Reason being- •Other brand do not have the high speed logistical support •Other brand focus on maintaining a fashion not creating one •Other brands have huge productions units which produces products in huge quantity which cannot be sold quickly •ZARA has the motive to come up with new fashion every week which other companies cannot live up to most of the time.
- 20. Case Study Question 2. What can ZARA do to ensure successful growth around the world while maintaining the same level and instant fashion? Ans. ZARA should focus on: •Investing more on advertisements so that it has a wider reach •Should target even the tier two cities unlike now who target only the metro cities Should try and open production unit in the east part of the world also so that the transportation can be made faster.
- 21. DISCLAIMER Created by Vivek Das of Christ University Bangalore during a summer internship under Prof. Sameer Mathur of IIM Lucknow.