Group B6

Chitransh Chaudhary
Chiranjeeb Mukherjee
Ishika Gupta
Naireeta De
Sudeshna Halder
Varshika Dharia

ZARA: FAST
FAshiON
• Company:
Zara, a part of Inditex Group, was
established in 1975
1440 stores in 73 countries

• Customer:
Main focus on fashion-conscious
females

• Competition:
Gap, H&M, Benetton
 • Medium – high quality
fashion at affordable
price
• Continued variation for
adapting to trends
• Attractive stores and
ambience for great
experience
CUSTOMER VALUE
PROPOSITION
 Place: Stores located in prime location (average
size: 1376 sq. m); regularly refurbished

Systems: stock tracking and

Communication: very subtle demand forecasting Product: latest fashion trends
advertisement; only 0.3% of Fast fashion; quick movement from
revenue spent on media catwalk to stores
advertising
Stores were used for
communication

Logistics: Suppliers:
centralized combination of
Value : affordable range clothing People: staff was highly trained
internal and
Products were priced differently for distribution system external Uniforms of sales assistant designed to
different regions, with price tags in represent socioeconomic differences of
domestic currency different neighbourhoods
 •International market expansion:
Managing too many channels
Key issues becomes difficult.
Zara Different markets have
business is different consumer behaviour
facing patterns
•Revenue lost due to products going
out of stock very soon
 Solutions to key
issues

• Better forecasting would eliminate the risk of stockout

and Zara can continue with their policy of creating
scarcity without losing on revenue
• Increasing their advertisement spend and creating an
image like ‘Zara Women’ can generate more hype and
attract new customers
• For economies of scale, ultimately go for
decentralisation of distribution centres when opening
more stores
• To reduce transportation costs, manufacture in home
countries where the law allows you to
THANK
YOU