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Zara - A Fast Fashion Retailer.flv
Shhh…#2
Retailer in the world
Skhuaban
InditexInditex Lineup
Who is Zara?
ZARAFor fashion conscious adults ages 25-35, For fashion conscious adults ages 25-35, Zara Clothing is the clothing retailer that Zara Clothing is the clothing retailer that incorporates modern telecommunication incorporates modern telecommunication technology in its marketing research & technology in its marketing research & supply chain in order to deliver fresh supply chain in order to deliver fresh customer inspired fashion designs at less customer inspired fashion designs at less than designer prices. than designer prices.
Zara
Marketing
Management
Binging Sexy Back
Manufacturers approach to Fashion Retailing
Fashion is
FunAgain ! ! !
Zara shopper’s goldZara shopper’s gold
Markdow
nMarkdownRetail
Retail
Profit Margin
Profit Margin
Profit Margin PM
Regular Retail Zara’s Model
“Consumers usually visit the average store four times annually, but Zara's customers visit its shops an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”
I Haven’t Heard of
Zara…
2% 50%
8%13%
2%25%
Ad Budgets of Retailers
% of Sales
Benetton 3Diesel 4H&M 4Gap 5.5Macy’s 6
Zara 0.3
Perceptual Map
Fashion Value
Pric
e
Everyday Low quality
XX
prices
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Birkin Bag RM 3999.00
Versace Dress RM1995.00
Gucci Handbag RM1150.00
RM65.00
RM 125.00
RM 73.00
ZARA
Imitation Is the sincerest form of flattery.
Turnaround Times30
26
24
24
12
10
5
Zara
Marketing
Management
Control Freak
Lean Mean Managemet Machine
Zara
Armani
Hilfiger
Design
Feedback
Cut
Production
Sale
Promo
Display
Shippment
Outsource
None
Outsource
Outsource
Outsource
Promo
Outsource
Outsource
Design
Outsource
Outsource
Outsource
Sale
Outsource
Display
Co-OP
Control
Simplicity is the ultimate sophisticationSimplicity is the ultimate sophistication..
-Leonardo Da Vinci-Leonardo Da Vinci
Head Office
& Design
lab
Manufacturing
Logistics
Europe Production Asian Production
Cost: $$$$$$$$$$
Fashion Value: ZZZZZZZZZZ
Cost: $$
Fashion Value: ZZZZZ
High fashion suits & skirts Commoditized eyeware and plain shirts
"The point of sale does not close the process but rather renews it, acting as a market information collection system that provides feedback to the design teams and reports the trends demanded by the customers. "
Immitaters of Fashion
Innovators of Management
Competitors Copying Zara Management
H&M Once a week shipments
Benetton Mid-season lineup adjustments
Production FacilitiesProduction Facilities
60%Spain
20%Europe 20%
Asia
0
5
10
15
2003 2004 2005 2006 2007
ZaraGapH&MBenetton
Sales in Billions of $
Profit in millions
0
1000
2000
2003 2004 2005 2006 2007
Zara
Gap
Small Boutique
Mid-sized storefront
Colosal sized department store
Zara . . . Now available in all sizes
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