ZARA:

fast fashion
Contents

Creation of ZARA

Environment Analysis

ZARA’s Strateies

Strategic Proposals
Creation of ZARA

1963-1974 Amancio Ortega Gaona founded Inditex

1975 The first zara store was opened in Spain
1976-1984 Spreading of zara store in Spain
1985 Zara started to enter the overseas market (in
Portugal)
1989 Entering New York City, in USA
1990 Entering Paris, in France
1991-2004 Spreading to the whole world including
Japan(1998)
2007 Entering R.O.Korea in 30, April at COEX Mall and
Lottte Young Plaza
Creation of ZARA

Inditex
Chair man: Amancio Ortega Gaona
Location of Headquarter: Coruña in
Spain
Annual profit: €94billion
Creation of ZARA

Zar a
One brand of the Inditex group
Zara's profit makes up 75% of the
Inditex.
Representative success case of Time
to Marke t

Date of
The first retail shop was opened in 1975
Establishment
Number of
1440 Stores in 77 Countries
Stores
Domestic
3 Stores were opened at Coex,Lotte Department Store etc. in
Expansion(Kor
April30,2007(now 17)
ea)
Numbers of
32,000employees (20,000 are stockman)
Employees
Creation of ZARA
ZARA’s Value Chain

Fa st fashion
A contemporary term use d by fashion
retailers to acknowledge that designs
move from catwalk to s t o r e in the
fastest time (2weeks!) to capture
current t re nds in the market

De s ign Te s ting Producti Sales An end

Mate r ial on
Te a m St ore s Network - cus tome r
Te a m Facility
ZARA’s Environment Analysis

External Environment
Based on the most recent fashion trends
presented at Fashion Week in both the spring
and the autumn of every year, these are
designed and manufactured quickly and
cheaply to allow the mainstream consumer to
take advantage of current clothing styles at a
lower price

Competitor Analysis
ZARA’s Internal Environment Analysis

Za ra ’s S WOT
Analysis

Zara’s inte rna l

an alys is
1.ZARA’s Core Competence [Co r e C o m p e t e n c y - T r e

S hirts , O ne - pie c e, B a g s , B elts , S to re

Je a ns , S kirts, P erfume s s
Ja c ke t Ja c ke t

P ro d uc ts me eting the
d ema nd fo r fa s t-
c ha ng ing a nd s ho rt
life - c yc le d fa s io n
trend s
Inc rea s ing
P ro p erty Va lues &
Inc rea s e a s s et,
ma na g eme nt

Vertical System IT Sy stem for

Recreational
atiz ation of Desig co llectin g C R eal
n an d abl ility of ustomer
2.Assessment for ZARA’s Core Competencies
3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Fra me work]

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3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Fra me work]

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3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Fra me work]

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3.ZARA’s Core Competence Analysis[VRIO]

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3.ZARA’s Core Competence Analysis[VRIO]

Competitive HighpossibilityformaintainingCompetitive
implications advantagecontinuously
Economic
Performance Above Average
ZARA’s Success F a c t o r s [4 Core Competencies]
ZARA’s S u cces s Factors

5 Keys to Suc c e ss

1. Utilizing shops actively

2. Short period of Collection preparation

3 . T h e principal of small quantity production

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

 ZARA’s S u cces s Factors

Active U s e of St or e s
1) Changing the s t o r e layout in e v e r y
2weeks

2) Located in the very cen ter of the city

3) Using the s t o r e to advertising
4) Collecting the data of custo mers
 ZARA’s S u cces s Factors

Short period of
Collection preparation

Spending only 2 w e e k s from

T h e market r e s e a r c h to the sa l e s

(Normally it t a ke s 6 months)

Market
De s ign P r oduction Tr ans port- Dis play Customers
Re s e ar ch ation

Tight
Within Closely Small
Ne e ds control
located ma s s of
1 day of s t o r e s
with HQ product
ZARA’s S u cces s Factors

Small Quantity Production

Continuous Production of New Product,

Without relying on HIT Product

Increasing
Small Max imizing Push Let
the
Quantity customers to cus tome r s
Product frequency of
Batch buy their open their
visiting the
P r oduction Scarcity product wallet
s t o r e of
immediately
customers
ZARA’s S u cces s Factors

Creating the value

from product differentiation
Be c a use of the fast turnover ratio,
c ust ome rs a r e hard to find the sa me
cloth in the s t r e e t

Customers enjoy the scarcity like high

price product with relatively economical
price

New arrivals by regional groups

 ZARA’s S u cces s Factors

Utilizing the advantage of

geographical condition
Hiring the spanish and the portuguese
instead of people in the third world
countries to utilize the advantage of
geographical condition

By positioning the design and

production facility closely,
make the fast action to the market
situation possible

Most of suppliers a r e located closely

ZARA’s S u cces s Factors

5 Keys to Suc c e ss

1.Utilizing shops actively

2.Short period of Collection preparation

Za3r.aThhietsptrhinecgiploabalolf msmaraklletquantity production

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

Weakness of Current Strategies
Strategic Suggestions