ZARA:

fast fashion

Contents

Creation of ZARA

Environment Analysis

ZARAs 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: Corua in
Spain
Annual profit: 94billion

Creation of ZARA

Zara
One brand of the Inditex group
Zara's profit makes up 75% of the Inditex.
Representative success case of Time to
Market
Date of
Establishment

The first retail shop was opened in 1975

Number of
Stores

1440 Stores in 77 Countries

Domestic
3 Stores were opened at Coex,Lotte Department Store etc. in
Expansion(Kore
April30,2007(now 17)
a)
Numbers of

32,000employees (20,000 are stockman)

Creation of ZARA

ZARAs Value Chain

Fast fashion
A contemporary term used by fashion
retailers to acknowledge that designs
move from catwalk to store in the
fastest time (2weeks!) to capture
current trends in the market

Material
Team

Design

Testing

Team

Stores

Producti
on
Facility

Sales

An end

Network

-customer

ZARAs 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

ZARAs Internal Environment Analysis

Zaras SWOT
Analysis

Zaras internal
analysis

1.ZARAs Core Competence [Core Competency-Tr

Shirts,
Jeans,
Jacket

One-piece,
Skirts,
Jacket

Bags, Belts,
Perfumes

Store
s

Products meeting
the demand for fastchanging and short
life-cycled fasion
trends

Increasing
Property Values &
Increase asset,
management

Vertical Systematization of
Design and Production
Process

Recreational ablility
of Fashion

IT System for
collecting Customer
Information

Real estate

2.Assessment for ZARAs Core Competencies

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]

Y
e
s

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]

Y
e
s
Ye
s

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]

Y
e
s
Ye
s

Ye
s

3.ZARAs Core Competence Analysis[VRIO]

[VRIO Framework]

Y
e
s
Ye
s

Ye
s

Y
es

3.ZARAs Core Competence Analysis[VRIO]

Competitive
implications

High possibility for maintaining

Competitive advantage continuously

Economic
Performance

Above Average

ZARAs Success Factors[4 Core Competencies]

ZARAs Success Factors

5 Keys to Success

1. Utilizing shops actively

2. Short period of Collection preparation

3. The principal of small quantity production

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

ZARAs Success Factors

Active Use of Stores
1) Changing the store layout in every
2weeks
2) Located in the very center of the city
3) Using the store to advertising
4) Collecting the data of customers

ZARAs Success Factors

Short period of
Collection preparation
Spending only 2 weeks from
The market research to the sales
(Normally it takes 6 months)

Market
Research

Within
1 day

Design

Needs

Production

Transportation

Closely
located
with HQ

Small
mass of
product

Display
Tight
control
of stores

Customers

ZARAs Success Factors

Small Quantity Production

Continuous Production of New Product,
Without relying on HIT Product

Small
Quantity
Batch
Production

Maximizing
Product
Scarcity

Increasing
Push
the
customers to
frequency
buy their
of visiting
product
the store of
immediately
customers

Let
customers
open their
wallet

ZARAs Success Factors

Creating the value
from product differentiation
Because of the fast turnover ratio,
customers are hard to find the same
cloth in the street
Customers enjoy the scarcity like high
price product with relatively
economical price
New arrivals by regional groups

ZARAs Success 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 are located closely

ZARAs Success Factors

5 Keys to Success

1. Utilizing shops actively

2. Short period of Collection preparation

3. The
of market
small quantity production
Zara
hitsprincipal
the global

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

Weakness of Current Strategies

Strategic Suggestions