ZARA - Department of Textile Engineering

SOUTHEAST UNIVERSITY
Department of Textile Engineering
Presentation on
ZARA
Prepared By : Mazadul Hasan sheshir
ID: 2010000400008
13th Batch
Wet Processing Technology
Email:
Southeast University
Southeast University
Department Of Textile Engineering
I/A 251,252 Tejgaon Dhaka Bangladesh
Prepared By :
۞
What is ZARA?

ZARA is one of the world’s most successful fashion retailers
house about in 59 countries.

On the other hand ZARA is considered as one of the greatest
global fashion companies also belongs to the Inditex as one of
the greatest groups of distribution in world.
۞
Origin & History

The name “ZARA” comes from “Zorba”

ZARA established in 1975.


ZARA was establishes by RosaliaMera and Ortega.

In 1980, the company started its international expansion
through Porto, Portugal.

In 1989 it entered the United States and in 1990 France.

ZARA mainly based on Inditex Group

Zara is the flagship of Inditex

Inditex Group is a large company based out of Spain.

Inditex operates over 4,350 stores worldwide with brands
like Massimo Dutti, Bershka, Oysho, Pull and Bear, Zara,
Zara Home, Uterque, and Stradivarius

Product line & Quality of ZARA.

Zara believes in three fundamental components such as
concept, value drivers and capabilities.

Mainly ZARA has 3 product lines for men, women and
children.

The devise team of the Zara has skills to produce the
clothes according to the needs of the consumer at the
current moment .

"Zara has also been described as a "Spanish success

story" by CNN.

It is said that Zara needs just two weeks to develop a new
product and get it to stores.
۞
Products & Manufacture

The company can design a new product and have
finished goods in its stores in four to five weeks

ZARA launches and produces approximately 10, 000 new
designs yearly.

ZARA It produces about 11,000 distinct items
annually compared with 2,000 to 4,000 items for its
key competitors.

It can modify existing items in as little as two weeks.

50% of the products Zara sells are manufactured in
Spain, 26% in the rest of Europe, and 24% in Asian
and African countries and the rest of the world.

Zara manufactures the majority of its products – mainly the most
fashionable - in its own network of Spanish factories.

ZARA take their products almost 24% from Bangladesh about 51
factories. Such as-

Mesh Export House Ltd.(290 shipments)


Norp Knit Industries Ltd. (402 shipments)

Envoy Fashions Ltd. (1,047 shipments )

Intl Knitwear And Apparels. (316 shipments )

G.H Haewae Co. Ltd. (636 shipments )

Global Knitwear Ltd. (235 shipments)
And so on.
۞
Distribution & stores

Zara‘s major distribution centers are in La Coruña
and Zaragoza.

ZARA operated approximately 507 stores in different
countries throughout the world in 2001.

On September 6, 2010, Financial Times reported that
Inditex launched the first online boutique for its best-
selling brand Zara.

On November 4, 2010, Zara Online extended the service to
five more countries: Austria, Ireland, the Netherlands,
Belgium and Luxembourg.

In 2011, Zara entered the Australian market .


In November 2011, Zara entered the South African
market.

There are a total of 1763 Zara stores and 171 Kiddy's
Class stores. Some Zara stores operate as Lefties
stores instead of Zara, a brand for low-cost fashion.

Zara continued to open stores around the world until
there were stores in seventy countries.

This includes more than 519 stores in Spain, 116
stores in France, 87 stores in Italy, and 45 stores in the
USA .
۞
ZARA’s main competitors

The H&M and The Gap Inc are the main competitors.

The main competitors of ZARA are “H&M & Gap Inc”
established many years ago before ZARA
establishment.

H&M established in 1947 & Gap Inc established in
1969.

While Zara controls its entire production chain, Gap
Inc and H&M outsource all their production.


Zara’s vertical integration enables the firm to have a

faster turnaround than its competitors.

Product and geographic diversification has been used
by the three clothing brands as their main directions
for growth. Gap Inc and H&M have also developed new
channels of sale.

The development of electronic commerce sets Gap Inc
and H&M apart from Zara which does not offer its
products online.
۞
Factors for Bussiness:

Political Factor

Zara as one of the best retail brands worldwide has various
interactions with governmental policy for intervention in the
economy and legal aspects in decision making processes.

Zara is required to understand the system of trade for
importing the products and goods in different countries.

Economical factor

Global growth increased to 3.6 percent in the first quarter of 2012
and Global trade rebounds in parallels with industrial production in
the first quarter 2012, which, in turn, benefited trade-oriented
economies, notably Germany and those in Asia.

Zara always aware of GST, Duties and Tariffs.


Social factor:

Regarding the social media trend development it’s a must for Zara
to establish a social media relationship to satisfy customer’s
demands due to change in generation choices.

It’s one of Zara’s strength to provide direct social contact to the
customers as per Newsletter, Facebook, Twitter, Pinterest,
YouTube, Flickr, Web mobile or a customer account.

Environmental factor:

It has been examined that Earthquake in region of Japan impacted
several factories to be destroyed, comprising Honda, Nestle and
heavy industries.

The earthquake happened on 11 March 2011 around 14.46pm.
۞
Current and future influence of the Trends & Moving forward

It is viewed that the Zara Company moves towards greater
comfort, design and quality. The Company believes in
manufacturing of sustainable products with the help of fair
fabrics and recycled materials.

The devise team of the Zara has skills to produce the clothes
according to the needs of the consumer at the current
moment.


It can be said that products, style and culture of the Zara
reflect the business and consumer needs.

Still, Zara is able to make up for some cost rises by
increasing prices overseas.

Finally, firm financial performance can also be impacted
by broader economic conditions.

When the economy falters, consumers simply buy less
and may move a greater share of wallet to less stylish
but even lower-cost offerings from deep discounters like
Wal-Mart.
۞
Zara Marketing Mix

Product
Zara manufactures and sells products such as
clothes, shoes, cosmetics and accessories for men,
children and woman.

Price
Zara provides for people with lower income so
its prices are very reasonable that everybody can
afford that.

Place
Zara is present in about 30 countries at private
locations. There are 600 commercial stores and Zara is
selling its service through out the world.


Promotion
Zara focuses less on advertisement based
marketing, but more on internet online marketing
opportunities as Ecommerce strategy, social media
and online shops.
Strengths:
→
Strong Branding (loyalty & awareness )
→
Fulfills customer demand.
→
Distribution.
→
Cost leadership strategy by cost efficiency.
→
Multi-Chanel strategy by extending online
sales.
→
Financial performance.
Weaknesses:
→
Pressure of cost leadership to achieve high
quality standard.
→
Short lead time, less color variation, less
pattern cut, more size zero.
→
Rapid growing effect a lack in E-commerce.
→

Cost up.
Opportunities:
→
Global expansion in key market.
→
Expansion in E-commerce.
→
Launching online store in key market.
→
Company image & Social engagement.
Threats:
→
Exchange rate fluctuation.
→
Expansion strategy regarding market entry
barrier.
→
Change in customer demand.
Internal
External
Helpful Harmful

SWOT Analysis of ZARA
۞
Logistics

Speed is clearly an over-riding concern for Zara
logistics.

One senior manager put it―For us, “Now distance

is not measured in kilometers.”

The integrated logistics system is able to fulfill
orders within 24 hours for Europe, 48 hours for
America and a maximum of 72 hours for Asia.

Compared to similar companies in the industry,
shipments are almost flawless - 98.9% accurate.
۞
Conclusion

Zara is a successful international retailer which, in less
than 30 years.

ZARA has transformed itself from a Spanish local brand
into a truly global brand.

Zara has potential for the sustainable growth because of its
capability and competitive advantage to experience the
challenges of fashion industry.


The basic concept of the Zara is to keep production,
design and production process which shall enable Zara
to react promptly to shifts in demands of consumers.

It is advisable to the Company that they should
continue to innovate and re-invent themselves to
remain fresh and creative in the fashion and apparel
industry.

Questions?
Thanks to
all
Cutesy :
ZARA