ZARA: Fast Fashion

Июль 24, 2022

Содержание

2. Think, what’s fast fashion? It’s the retail strategy that will allow you to adapt your merchandise
3. What is ZARA? “was born” in 1975 in Spain; founder - Amancio Ortega; parent - Inditex,
4. THE 7 "P's" FORMULA 1. PRODUCT: clothing garment 2. PRICE: mass production price 3. PROMOTION: two
5. GROWTH OPTIONS PROBLEMS TARGETED GOAL ⮊ open 55-65 stores, from which 80% will be outside of
6. PORTER'S 5 FORCES ENTRY THREATS high costs deals; difficulties with building new BE; ZARA’s competitive advantage
7. PORTER'S 5 FORCES Cont. BARGAINING BUYER POWER most depends on customer preferences; ZARA’s ability of non-stop
8. What to do? Decision №1 why not to try ZARA’s strategy with other Inditex chains? prime
9. OUR CHOICE ⮊ FOCUS ON EXISTING CHAINS AND EXISTING MARKET (ZARA, ESPECIALLY (!!!)).
11. Скачать презентацию

Слайд 2

Think, what’s fast fashion?
It’s the retail strategy that will allow you

to adapt your merchandise to current & emerging trends ASAP (!!!).
The main advantage? Of course, SPEED.

Слайд 3

What is ZARA?
“was born” in 1975 in Spain;
founder -

Amancio Ortega;
parent - Inditex, which includes not only ZARA;
main tool - IT elaborations;
only 2 weeks needed for designing garment process;
most stores - company-owned.

Слайд 4

THE 7 "P's" FORMULA
1. PRODUCT:
clothing garment
2. PRICE:
mass production price
3. PROMOTION:
two big

annual sales (winter,
summer)

4. Packaging:
almost no special packaging except branded carton packets
5. Place:
main streets & malls
6. People:
attempts to get every socioeconomic segment
7. Positioning:
catwalk image

Слайд 5

GROWTH OPTIONS PROBLEMS
TARGETED GOAL ⮊ open 55-65 stores, from which 80%

will be outside of Spain. Three available potential alternatives:
Europe - Italy:
North US & Asia:
South US & Middle East

largest apparel market in Europe;
frequent fashion-forward shoppers;
almost high probability of good profitability.

US market problems with overcapacity;
almost no customer fashion stimulus;
core Asian problem - too many joint ventures.

Слайд 6

PORTER'S 5 FORCES
ENTRY THREATS
high costs deals;
difficulties with building new BE;

ZARA’s competitive advantage is economies of scale (!)

BARGAINING SUPPLIER POWER

ability to easily switch to another supplier;
low fabric price ? decrease of bargaining SP

Слайд 7

PORTER'S 5 FORCES Cont.
BARGAINING BUYER POWER
most depends on customer preferences;

ZARA’s ability of non-stop designing;
“I find ? I buy”;
10 000 volunteers strategy.

RIVALRY THREAT

competitors: H&M and Gap;
be fashionable > good quality.

THREAT OF
SUBSTITUTES

vintage clothes;
thrifting shops;
re-inventing of old looks & clothes.

Слайд 8

What to do? Decision №1
why not to try ZARA’s strategy with

other Inditex chains?
prime concerns, perhaps, should be toward Zara as it is the most largely recognizable from all chains;
try to occupy this fashionable country - Italy (infiltration).

Слайд 9