Download - Zara: Fast Fashion
ZARA:fast fashion
Contents
Creation of ZARA
Environment Analysis
ZARA’s Strateies
Strategic Proposals
Creation of ZARA
1963-1974 Amancio Ortega Gaona founded Inditex1975 The first zara store was opened in Spain1976-1984 Spreading of zara store in Spain1985 Zara started to enter the overseas market (in Portugal)1989 Entering New York City, in USA1990 Entering Paris, in France1991-2004 Spreading to the whole world including Japan(1998)2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza
InditexChair man: Amancio Ortega GaonaLocation of Headquarter: Coruña in SpainAnnual profit: €94billion
Creation of ZARA
Zara
One brand of the Inditex groupZara's profit makes up 75% of the Inditex.Representative success case of Time to Market
Date of Establishment
The first retail shop was opened in 1975
Number of Stores
1440 Stores in 77 Countries
Domestic Expansion(Korea)
3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17)
Numbers of Employees
32,000employees (20,000 are stockman)
Creation of ZARA
Creation of ZARA
Fast fashionA contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market
Material Team
Design
Team
Testing
Stores
Production
Facility
Sales
Network
An end
-customer
ZARA’s Value Chain
External Environment
ZARA’s Environment Analysis
Competitor Analysis
Based on the most recent fashion trends presented at Fashion Week in both the
spring and the autumn of every year, these are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles
at a lower price
Zara’s SWOT Zara’s SWOT AnalysisAnalysis
Zara’s internal analysis
ZARA’s Internal Environment Analysis
1.ZARA’s Core Competence [Core Competency-Tree]
Vertical Vertical Systematization of Systematization of
Design and Design and Production ProcessProduction Process
Recreational Recreational ablility of ablility of FashionFashion
IT System for IT System for collecting collecting Customer Customer
InformationInformation
Real Real estateestate
Products meeting Products meeting the demand for fast-the demand for fast-changing and short changing and short life-cycled fasion life-cycled fasion
trendstrendsIncreasing Increasing
Property Values & Property Values & Increase asset, Increase asset, managementmanagement
Shirts, Shirts, Jeans, Jeans, JacketJacket
One-piece, One-piece, Skirts, Skirts, JacketJacket
Bags, Belts, Bags, Belts, PerfumesPerfumes
StoreStoress
2.Assessment for ZARA’s Core Competencies
3.ZARA’s Core Competence Analysis[VRIO]
[VRIO Framework]
YYeess
[VRIO Framework]
YYeess
YYeses
3.ZARA’s Core Competence Analysis[VRIO]
[VRIO Framework]
YYeess
YYeses
YYeess
3.ZARA’s Core Competence Analysis[VRIO]
[VRIO Framework]
YYeess
YYeses
YYeess
YYeess
3.ZARA’s Core Competence Analysis[VRIO]
2
Competitiveimplications
High possibility for maintaining Competitive advantage continuously
EconomicPerformance Above Average
3.ZARA’s Core Competence Analysis[VRIO]
ZARA’s Success Factors[4 Core Competencies]
ZARA’s Success Factors
5 Keys to Success
1. Utilizing shops actively
2. Short period of Collection preparation
3. The principal of small quantity production
4. Creating the value from product differentiation
5. Utilizing the advantage of geographical condition
Active Use of Stores
1) Changing the store layout in every
2weeks
2) Located in the very center of the city
3) Using the store to advertising
4) Collecting the data of customers
ZARA’s Success Factors
Short period of Collection preparation
Market
Research
Within
1 day
Design
Needs
Production
Closely located with HQ
Transport-ation
Small mass of product
CustomersDisplay
Tight control
of stores
Spending only 2 weeks from The market research to the sales
(Normally it takes 6 months)
ZARA’s Success Factors
Small Quantity Production
Small Quantity
Batch Production
Maximizing
Product
Scarcity
Push customers to
buy their product
immediately
Increasing the
frequency of visiting
the store of customers
Let customers open their
wallet
Continuous Production of New Product,
Without relying on HIT Product
ZARA’s Success Factors
Creating the value from product differentiationBecause of the fast turnover ratio, customers are hard to find the same cloth in the street
Customers enjoy the scarcity like high price product with relatively economical price
New arrivals by regional groups
ZARA’s Success Factors
Utilizing the advantage of geographical condition
Hiring the spanish and the portugueseinstead of people in the third world countries to utilize the advantage of
geographical condition
By positioning the design and production facility closely,
make the fast action to the marketsituation possible
Most of suppliers are located closely
ZARA’s Success Factors
ZARA’s Success Factors
5 Keys to Success
1. Utilizing shops actively
2. Short period of Collection preparation
3. The principal of small quantity production
4. Creating the value from product differentiation
5. Utilizing the advantage of geographical condition
Zara hits the global market
Weakness of Current Strategies
Strategic Suggestions