SOUTHEAST UNIVERSITY

Department of Textile Engineering

Presentation on ZARA

Prepared By : Mazadul Hasan sheshirID: 201000040000813th Batch Wet Processing Technology Email: mazadulhasan@yahoo.comSoutheast University

Southeast University Department Of Textile

EngineeringI/A 251,252 Tejgaon Dhaka Bangladesh

Prepared By :

۞What is ZARA?

ZARA is one of the world’s most successful fashion retailers house about in 59 countries.

On the other hand ZARA is considered as one of the greatest global fashion companies also belongs to the Inditex as one of the greatest groups of distribution in world.

۞Origin & History

The name “ZARA” comes from “Zorba”

ZARA established in 1975.

ZARA was establishes by RosaliaMera and Ortega.

In 1980, the company started its international expansion through Porto, Portugal.

In 1989 it entered the United States and in 1990 France.

ZARA mainly based on Inditex Group

Zara is the flagship of Inditex

Inditex Group is a large company based out of Spain.

Inditex operates over 4,350 stores worldwide with brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Zara, Zara Home, Uterque, and Stradivarius

Product line & Quality of ZARA.

Zara believes in three fundamental components such as concept, value drivers and capabilities.

Mainly ZARA has 3 product lines for men, women and children.

The devise team of the Zara has skills to produce the clothes according to the needs of the consumer at the current moment .

"Zara has also been described as a "Spanish success story" by CNN.

It is said that Zara needs just two weeks to develop a new product and get it to stores.

۞Products & Manufacture

The company can design a new product and have finished goods in its stores in four to five weeks

ZARA launches and produces approximately 10, 000 new designs yearly.

ZARA It produces about 11,000 distinct items annually compared with 2,000 to 4,000 items for its key competitors.

It can modify existing items in as little as two weeks.

50% of the products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and African countries and the rest of the world.

Zara manufactures the majority of its products – mainly the most fashionable - in its own network of Spanish factories.

ZARA take their products almost 24% from Bangladesh about 51 factories. Such as-

Mesh Export House Ltd.(290 shipments)

Norp Knit Industries Ltd. (402 shipments)

Envoy Fashions Ltd. (1,047 shipments )

Intl Knitwear And Apparels. (316 shipments )

G.H Haewae Co. Ltd. (636 shipments )

Global Knitwear Ltd. (235 shipments)

And so on.

۞Distribution & stores

Zara‘s major distribution centers are in La Coruña and Zaragoza.

ZARA operated approximately 507 stores in different countries throughout the world in 2001.

On September 6, 2010, Financial Times reported that Inditex launched the first online boutique for its best-selling brand Zara.

On November 4, 2010, Zara Online extended the service to five more countries: Austria, Ireland, the Netherlands, Belgium and Luxembourg.

In 2011, Zara entered the Australian market .

In November 2011, Zara entered the South African market.

There are a total of 1763 Zara stores and 171 Kiddy's Class stores. Some Zara stores operate as Lefties stores instead of Zara, a brand for low-cost fashion.

Zara continued to open stores around the world until there were stores in seventy countries.

This includes more than 519 stores in Spain, 116 stores in France, 87 stores in Italy, and 45 stores in the USA .

۞ZARA’s main competitors

The H&M and The Gap Inc are the main competitors.

The main competitors of ZARA are “H&M & Gap Inc” established many years ago before ZARA establishment.

H&M established in 1947 & Gap Inc established in 1969.

While Zara controls its entire production chain, Gap Inc and H&M outsource all their production.

Zara’s vertical integration enables the firm to have a faster turnaround than its competitors.

Product and geographic diversification has been used by the three clothing brands as their main directions for growth. Gap Inc and H&M have also developed new channels of sale.

The development of electronic commerce sets Gap Inc and H&M apart from Zara which does not offer its products online.

۞Factors for Bussiness:Political FactorZara as one of the best retail brands worldwide has various interactions with governmental policy for intervention in the economy and legal aspects in decision making processes.

Zara is required to understand the system of trade for importing the products and goods in different countries.

Economical factor Global growth increased to 3.6 percent in the first quarter of 2012 and Global trade rebounds in parallels with industrial production in the first quarter 2012, which, in turn, benefited trade-oriented economies, notably Germany and those in Asia.

Zara always aware of GST, Duties and Tariffs.

Social factor:Regarding the social media trend development it’s a must for Zara to establish a social media relationship to satisfy customer’s demands due to change in generation choices.

It’s one of Zara’s strength to provide direct social contact to the customers as per Newsletter, Facebook, Twitter, Pinterest, YouTube, Flickr, Web mobile or a customer account.

Environmental factor:It has been examined that Earthquake in region of Japan impacted several factories to be destroyed, comprising Honda, Nestle and heavy industries.

The earthquake happened on 11 March 2011 around 14.46pm.

۞Current and future influence of the Trends & Moving forward

It is viewed that the Zara Company moves towards greater comfort, design and quality. The Company believes in manufacturing of sustainable products with the help of fair fabrics and recycled materials.

The devise team of the Zara has skills to produce the clothes according to the needs of the consumer at the current moment.

It can be said that products, style and culture of the Zara

reflect the business and consumer needs.

Still, Zara is able to make up for some cost rises by increasing prices overseas.

Finally, firm financial performance can also be impacted by broader economic conditions.

When the economy falters, consumers simply buy less and may move a greater share of wallet to less stylish but even lower-cost offerings from deep discounters like Wal-Mart.

۞Zara Marketing Mix

ProductZara manufactures and sells products such

as clothes, shoes, cosmetics and accessories for men, children and woman.

PriceZara provides for people with lower income

so its prices are very reasonable that everybody can afford that.

PlaceZara is present in about 30 countries at private

locations. There are 600 commercial stores and Zara is selling its service through out the world.

PromotionZara focuses less on advertisement based

marketing, but more on internet online marketing opportunities as Ecommerce strategy, social media and online shops.

Strengths:→ Strong Branding (loyalty & awareness )→ Fulfills customer demand.→ Distribution.→ Cost leadership strategy by cost efficiency.→ Multi-Chanel strategy by extending online

sales.→ Financial performance.

Weaknesses:→ Pressure of cost leadership to achieve high

quality standard.→ Short lead time, less color variation, less

pattern cut, more size zero.→ Rapid growing effect a lack in E-commerce.→ Cost up.

Opportunities:→ Global expansion in key market.→ Expansion in E-commerce.→ Launching online store in key market.→ Company image & Social engagement.

Threats:→ Exchange rate fluctuation.→ Expansion strategy regarding market entry

barrier.→ Change in customer demand.

Inte

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Helpful Harmful

SWOT Analysis of ZARA

۞LogisticsSpeed is clearly an over-riding concern for Zara logistics.

One senior manager put it―For us, “Now distance is not measured in kilometers.”

The integrated logistics system is able to fulfill orders within 24 hours for Europe, 48 hours for America and a maximum of 72 hours for Asia.

Compared to similar companies in the industry, shipments are almost flawless - 98.9% accurate.

۞Conclusion

Zara is a successful international retailer which, in less than 30 years.

ZARA has transformed itself from a Spanish local brand into a truly global brand.

Zara has potential for the sustainable growth because of its capability and competitive advantage to experience the challenges of fashion industry.

The basic concept of the Zara is to keep production, design and production process which shall enable Zara to react promptly to shifts in demands of consumers.

It is advisable to the Company that they should continue to innovate and re-invent themselves to remain fresh and creative in the fashion and apparel industry.

Questions?

Thanks to all

Cutesy :

ZARA