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

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
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

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

Design Testing Productio Sales An end

Material n Facility
Team Stores Network -customer
Team
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

Zara’s SWOT Analysis

Zara’s internal
analysis
 1.ZARA’s Core Competence [Core Competency-Tree]

Shirts, Jeans, One-piece, Bags, Belts, Stores

Jacket Skirts, Jacket Perfumes

Products meeting the

demand for fast-changing
and short life-cycled fasion
trends

Increasing Property
Values & Increase
asset, management

Vertical Systematization IT System for

Recreational
of Design and Production collecting Customer Real estate
Process ablility of Fashion Information
2.Assessment for ZARA’s Core Competencies
 3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Framework]

Yes
 3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Framework]

Yes

Yes
 3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Framework]

Yes

Yes

Yes
 3.ZARA’s Core Competence Analysis[VRIO]

[VRIO Framework]

Yes

Yes

Yes

Yes
3.ZARA’s Core Competence Analysis[VRIO]

Competitive High possibility for maintaining Competitive

implications advantage continuously

Economic
Performance
Above Average
ZARA’s Success Factors[4 Core Competencies]
ZARA’s 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

 ZARA’s 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
 ZARA’s Success Factors

Short period of
Collection preparation

Spending only 2 weeks from

The market research to the sales

(Normally it takes 6 months)

Market
Design Production Transport- Display Customers
Research ation

Tight
Closely Small mass
Within Needs control of
located of product
stores
1 day with HQ
ZARA’s Success Factors

Small Quantity Production

Continuous Production of New Product,

Without relying on HIT Product

Increasing the
Small Quantity Maximizing Push customers Let customers
frequency of
Batch to buy their open their
visiting the
Product product
Production store of wallet
Scarcity immediately
customers
ZARA’s 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

 ZARA’s 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

ZARA’s Success Factors

5 Keys to Success

1. Utilizing shops actively

2. Short period of Collection preparation

Zara3.hits
Thethe
principal
global of small quantity production
market

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

Weakness of Current Strategies
Strategic Suggestions