Zara - A Fast Fashion Retailer.flv

Shhh…#2

Retailer in the world

Skhuaban

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Who is Zara?

ZARAFor fashion conscious adults ages 25-35, For fashion conscious adults ages 25-35, Zara Clothing is the clothing retailer that Zara Clothing is the clothing retailer that incorporates modern telecommunication incorporates modern telecommunication technology in its marketing research & technology in its marketing research & supply chain in order to deliver fresh supply chain in order to deliver fresh customer inspired fashion designs at less customer inspired fashion designs at less than designer prices. than designer prices.

Zara

Marketing

Management

Binging Sexy Back

Manufacturers approach to Fashion Retailing

Fashion is

FunAgain ! ! !

Zara shopper’s goldZara shopper’s gold

Markdow

nMarkdownRetail

Retail

Profit Margin

Profit Margin

Profit Margin PM

Regular Retail Zara’s Model

“Consumers usually visit the average store four times annually, but Zara's customers visit its shops an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”

I Haven’t Heard of

Zara…

2% 50%

8%13%

2%25%

Ad Budgets of Retailers

% of Sales

Benetton 3Diesel 4H&M 4Gap 5.5Macy’s 6

Zara 0.3

Perceptual Map

Fashion Value

Pric

e

Everyday Low quality

XX

prices

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

Birkin Bag RM 3999.00

Versace Dress RM1995.00

Gucci Handbag RM1150.00

RM65.00

RM 125.00

RM 73.00

ZARA

Imitation Is the sincerest form of flattery.

Turnaround Times30

26

24

24

12

10

5

Zara

Marketing

Management

Control Freak

Lean Mean Managemet Machine

Zara

Armani

Hilfiger

Design

Feedback

Cut

Production

Sale

Promo

Display

Shippment

Outsource

None

Outsource

Outsource

Outsource

Promo

Outsource

Outsource

Design

Outsource

Outsource

Outsource

Sale

Outsource

Display

Co-OP

Control

Simplicity is the ultimate sophisticationSimplicity is the ultimate sophistication..

-Leonardo Da Vinci-Leonardo Da Vinci

Head Office

& Design

lab

Manufacturing

Logistics

Europe Production Asian Production

Cost: $$$$$$$$$$

Fashion Value: ZZZZZZZZZZ

Cost: $$

Fashion Value: ZZZZZ

High fashion suits & skirts Commoditized eyeware and plain shirts

"The point of sale does not close the process but rather renews it, acting as a market information collection system that provides feedback to the design teams and reports the trends demanded by the customers. "

Immitaters of Fashion

Innovators of Management

Competitors Copying Zara Management

H&M Once a week shipments

Benetton Mid-season lineup adjustments

Production FacilitiesProduction Facilities

60%Spain

20%Europe 20%

Asia

0

5

10

15

2003 2004 2005 2006 2007

ZaraGapH&MBenetton

Sales in Billions of $

Profit in millions

0

1000

2000

2003 2004 2005 2006 2007

Zara

Gap

Small Boutique

Mid-sized storefront

Colosal sized department store

Zara . . . Now available in all sizes