Академический Документы
Профессиональный Документы
Культура Документы
Company Profile
Zara is the flagship chain store of Inditex Group Owned by Spanish company tycoon Amancio Ortega, who also owns brands Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries Vertically integrated retailer Unlike similar apparel retailers, it controls most of the steps on the supply-chain: It designs, produces, and distributes itself
Local Brand
Global Brand
Its image and positioning strategy are global but adapted to the conditions of each country , since consumers perceive fashion products as culture-bond.
Zara brand was ranked 77thin the list of the world s 100 best known brands created every year by Inter-brand and has overtaken fashion brands like Hermes, Prada and Armani.
It is claimed that Zara takes just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year
Mission Statement
ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your shopping experience. We promise to provide our customers with new designs that are affordable, made from quality materials, and follow the latest fashion trends
Global Expansion
Zara, the most internationalised chain of Inditex, opened its first store in 1975 in La Corua, north-west Spain 1980s: It expanded within the domestic market, opening stores in all Spanish cities with population greater than 100,000 inhabitants Internationally expanded of Zara with the opening of a store in Oporto (Portugal) in 1988.
January 2006: It was operating in 59 countries with 852 stores: 664 stores were located in Europe (259 in Spain), 112 in America, 45 in Middle-East and Africa and 31 in Asia. International sales accounted for 72 percent of its total turnover in 2009, with Europe being its largest market by far.
Zaras positioning strategy is based upon design, quality and price To communicate its benefits, in some cases Zara has had to educate the market and influence consumers shopping habits Efficient segmentation has a lot to do with Zara s success. Segmentation divides a heterogeneous marketplace into smaller and more manageable homogenous
Average consumer would look for affordable and comfortable clothing for casual purposes that would not take too much out of his/her purse Consumer profile analyze by Zara s specialists, and they use this analysis in order to tailor marketing communication in different countries to reach the target audience. Zara s marketing campaigns have been known for their simplicity and efficiency
Standardization
Customization
Best Strategy
It followed standard procedures in selecting and entering a certain market, which made scaling operations easier (flagship store: market test for 4Ps) expanding into countries with similar culturefavorable micro and macro economic conditions backward market-based pricing reporting and ordering procedures Zara always retained the right to open companyowned stores and the option to buy out its partners in case of problems.
Market Concentration
Diversification
Market Concentration
NARROW FOCUS
COUNTRY FOCUS
Diversification
COUNTRY DIVERSIFICATION
GLOBAL DIVERSIFICATION
Expansion Strategies
Own subsidiaries
Joint ventures
Franchising
Own subsidiaries
Zara has adopted this strategy for most European and South American countries that were perceived to have high growth potential and low business risk
Joint ventures
In 1999 Zara entered into a joint venture with the German firm Otto Versand and benefited from the latter s experience in the distribution sector and knowledge of one of the largest markets in Europe. In Italy Inditex held a 51percent investment in Zara. However, Zara has recently increased its ownership to 78percent in Germany, 80percent in Italy and 100percent in Japan.
Franchising
Zaras franchisees follow the same business model as the own subsidiaries regarding the product, store location, interior design, logistic, human resources, etc. However, they are responsible for investing in fixed assets and recruiting the staff. Zara gives franchisees the chance of returning merchandise and exclusivity in their geographic area, although Zara has the right to open its own stores in the same location.
Ethnocentric
Geocentric
At the early stages , Zara was following an ethnocentric orientation whereby the subsidiary companies had to be a replication of the Spanish stores . Zara decided to move towards a geocentric orientation, allowing the company to adopt in some cases local solutions rather than merely replicate the home market. However, there are some adjustments in its marketing mix because of the customer s size differences in Asian countries, laws issued that require for example the availability of garments for youths in all sizes in Buenos Aires, cultural differences in Arab countries where some garments cannot be sold. Each store manager, based on the customer s remarks on the products, decides the specific garments that will put on display in the store to meet the customer s taste in that area.
REFRENCES
(Business Week) http://www.businessweek.com/globalbiz/content/apr2006/gb20060404 _167078 (CNN) http://edition.cnn.com/BUSINESS/programs/yourbusiness/stories2001/z ara/ http://www.inditex.es/en/press/press_releases/extend/00000788 Zara Fashion (http://www.slashdoc.com/documents/54309) http://www.fashionunited.co.uk/news/inditex.htm Case study : Internationalization Of Zara ( Brunel Business School, Brunel University ) http://www.tx.ncsu.edu/jtatm/volume5issue1/Zara_fashion.htm
THANK YOU !