fashion merchandising seminar; zara

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  • Running Head: ZARA 1

    Leighann clayton Fashion merchandising seminar

    Spring 2016

  • Running Head: ZARA 2

    Table of Contents

    I. Market research: Company profile 4-5 The brand 5-6 Fashion strategy 6-7 Market position 6-7 Product comparison 7-8 II. Line development: Target customer 10-11 Trend report 11-14 Concept board 14-15 Color/print/fabric story 15-17 Style sheets 17-22 Key items 22-24 Key outfits 22-24 III. merchandising plans: Quick costing 24-25 Six month merchandising plan 25-26 Formulas 25-26 Ratios Style distribution ratios 27-28

  • Running Head: ZARA 3

    Size distribution ratios 28-29 Color distribution ratios 28-30 Assortment plans 31-33 Purchase order 33 IV. RETAIL & LINE PRESENTATION: LINE PRESENTATION LAYOUT 34 PLANOGRAM 34-35 WINDOW DISPLAY 36-37 EXPLANATION OF PLANOGRAM WINDOW 37-38 REFERENCES 39-42

  • Running Head: ZARA 4

    COMPANY PROFILE Few clothing brands keep up with the latest fashion, are of high quality and yet, affordable. Its these qualities that made Zara, the Spanish clothing brand become the go-to fashion brand for all. (Zara Success Story, 2015.) Zara, a leading retailer in fast fashion is apart of Inditex, one of the largest fashion retailers in the world and publicly held company. Inditex is made up of 100 companies who operate 6,340 stores in 87 different markets. Manufacturing and distribution, along with textile design are categories within Inditex that expand over Asia, Europe and the Americas as well. With such success in expansion and production, Inditex has created subdivisions such as Bershka, Pull & Bear, Oysho, and Massimo Dutti. Zara, continues to market to over 1,991 stores worldwide targeting men women and children. Historically, Inditex was founded in Coruna, Spain during 1975. Compared to other chains, Zara uses short product life cycle to its advantage to compete in the market. Meeting strict demand expectations is what Zara prides itself on. Consumers who are primarily fast-fashion goers are loyal to the Zara brand based on their ability to keep their target market interested and at a higher level than competitors. Financially, Inditex has in the last five years continued to improve in every aspect of sales. From 2010-2014, the company has combined their brands to account for a $1,266,000 growth in gross revenue from 2010 to 2011 and a $2,153,000 growth from 2011 to 2012. From then on in the following years of 2012 to 2014, the company grew to $2,171,000 in increased gross revenue, continuing the forward progression. While each year Inditex created positive numbers, the jump from 2012 to 2013 fell a bit short compared to other years. Gross Revenue saw less of an increase over the past five years compared to gross profit and net profit. Net profit originated at $1,731,829 in 2010, and has substantially grown to $2,510,151 in 2014. This large jump over the years is due to the gross margin, profit and operating expenses. Over the past five years of 2010 to 2014, Inditex saw many different changes both economically and enviormental as well. For example, sales had been driven up from $12,527,000 to $18,117,000 and the number of employees hired from 100,138 to 137,054. These numbers are direct results of Inditex and Zara within the other brands, conforming to a more sustainable, eco efficient presence. Between all the brands, Zara is the leader contributing its online presence further with online stores in markets such as Romania and Greece. As a direct result from remaining eco-friendly and sustainable, Inditex continues to strengthen its employee team and prove they have some of the best and youngest minds within their company.

  • Running Head: ZARA 5

    The Brand Zara is a fast fashion retailer comprised of fresh merchandise to be produced and sold to consumers. Zara retains a mission statement stating that through Zaras business model; they aim to contribute to the sustainable development of society and in the environment we interact. Replenishing stock isnt an idea that exists to the company. Receiving new shipments twice a week helps to ensure continued popularity to its brand loyal customers. This fresh approach to retail sales allows for a unique concept and identifiable brand for others to compete with. Impulse shopping habits are what drive sales for Zara and the rest of the Inditex brands. Zara prides themselves on its high reactiveness and flexibility and being market-oriented. Fashion forward at low price is what Zara is known for as well as staying on trend. This brand is moderately priced often compared to H&M in regards to price points. The brand also is only carried in its own stores, not any other retailers. Zara is a successful brand based off of its market segment. They segment their brand into geographic segments and age related segments. Savvy marketers and retailers know that customer-clothing preferences vary in different regions or geographical areas (Suttle, 2016). Global presence is something Zara has established in its brand and continues to open more stores yearly. With their age related segment, they have been able to attract and establish a young age appeal with trendy pieces and styles. They have also been able to appeal to women and men in their early twenties to late 30s. Their brand has remained ever growing with their ability to establish a strong brand and keep loyal customers coming back.

    $- $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00

    2010

    2011

    2012

    2013

    2014

    ZARA/INDITEX Financial Performance

    gross revenue gross procit net procit

  • Running Head: ZARA 6

    Fashion Strategy Zara production is a global process. Indonesia is a starting point, which leads to Spain and on into other countries to produce the garments. The brand is limited to apparel, but also produces bags, footwear, intimate wear, home goods and other categories. Since Zara focuses on its fast fashion its design process emphasizes just that. Designing special pieces and manufacturing them within small quantities helps reduce turnover for the brand. Zara also has their design team, production, laborers and textile manufacturers in the same building and same location. This aspect makes Zara almost impossible to compete with. Sourcing is part of the merchandise for Zara. Its headquarters in Spain accounts for their cutting, fabric sourcing, and sewing facilities. In 2013, the Inditex supply chain was made up of 1,592 suppliers in 46 different countries. (Inditex, 2016). MARKET POSITION: Competitors Zara has many competitors in the same price range and theyre considered fast-fashion. Two of their top competitors are Uniqlo and H&M. Zara, however, is roughly four times more profitable than average retailers due to mainly higher margins, turnover, and reduced inventory risk. (Petro, 2016). Zara, in comparison has built its strategy around consumer trends and embracing fast-changing tastes of its customers. (Bagaria, 2014). Uniqlo is a Japanese company who addresses trends less likely to go under quickly. H&M is a mix of both Zara and Uniqlo in the sense the brand remains on trend, but keeps a commitment to certain products. Zara is one of the best at fast-fashion and keeps its edge on the competition with producing 36,000+ designs each year. At a rate of orders being delivered within a span of two days max, it makes it hard for other companies to compete. Uniqlo and H&M are direct competitors of Zara, but in their own manner. Uniqlo is a strong retailer in Asia and over seas with a successful backround in modern styles and high quality basics. Uniqlo hold over 30,000 employees worldwide and is in the process of expanding further into Europe and America (Success Story). H&M is also a huge competitor of the two. As a fast fashion leader with ever-changing trends and production, they have established themselves as a customer favorite. With Uniqlo and H&M both continuing to expand and in the same market, it is clear Zara will need to adapt and keep tabs on both brands in the future. With similar markets, styles and price ranges, brand quality and personality is what truly separates these competitors.

  • Running Head: ZARA 7

    Product Comparison As we compare all three brands, its easy to see their trends and offerings tend to be in the same ballpark. Zara currently is in its Spring/Summer season via site and is featuring long, boxy jackets with fitted collars. Darted blouses and pants are trending, with floral prints and lace undertones. H&M is currently also in their spring season with flared pants, with fitted features and floral print as well. Suede and fringe appear very simply throughout with hints of faux fur. Uniqlo is featuring their classic trench jacket along with oversized dress shirts and t-shirts. Floral print and seersucker are what Uniqlos trend are comprised of and seem to be heading into this season. Each brand is offering around the same design scheme, floral into spring and trench jackets with synched or tied waists. Uniqlo offers a unique perspective, as a trendy Jap