Date post: | 13-Apr-2017 |
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Marketing |
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Redefining Retailing
“ P O S S I B LY T H E M O S T I N N OVAT I V E A N D DEVASTATING RETAILER IN THE WORLD”DANIEL PIETTE - LOUIS VUITTON FASHION DIRECTOR
HISTORICAL BACKGROUND
Cofounded by Amancio Ortega & Rosalia Mera, 1975, Spain
Europe’s leading apparel retailer
Hold a brand value of $8.7 bn
More than 5900 stores in world
INVENTORY OF ZARA
Women’s
Men’s
Zara Kids
Zara footwear
WOMEN'S
MEN’S
ZARA KIDS
ZARA SHOES
ZARA’S STORE VALUES
# Adapt quickly to fashion in demand
# Improve quality
# Sell modern design at affordable prices
# Have a perfect distribution system
ABOUT ZARA
One of largest international fashion companies.
Belongs to Inditex, world’s largest distribution groups.
The customer is at heart of business model which includes design, production, distribution and sales
COMPETITORS
SEGMENTATION TARGETING STRATEGY
Demographics of customers like gender, psychographics and age
PARITY POINTS
International recognised European fashion brand
Prime retail location
POINTS OF DIFFERENCE
Fast fashion
Exclusivity
Understanding customers needs
ZARA’S BUSINESS MODEL
BEING ABLE T O O F F E R NEW ITEMS THAN WHAT SELLING IN O T H E R STORES.
REDUCE THE LEAD TIME FROM DESIGN TO DISTRIBUTION.
DESIGN AND PRODUCTION
# Employ hundreds of employs at its headquarters
# Speed fashion - Production houses near Spain
# High control of manufacturing process
“WHAT’S HERE TODAY MAYBE GONE IN 2 WEEKS” —NY TIMES
LOGISTICS
Delivery across the globe
Rapid delivery system
Having 50% of production units is key to its success model
CUSTOMERS
Customers needs are addressed with daily reports from ZARA stores managers
Customers feedback - good or bad- is reacted with immediate effect
STORES
ZARA never runs an ad campaign
ZARA stores are themselves ad elements
Spend only 0.3% of revenues in ads
Helps save revenue for the company
ZARA’S UNIQUE BUSINESS MODEL AND OTHERS
Zara stocks clothing in scanty quantities. They don’t order more stock in.
“They’ve trained consumers not to wait for it to go on sale,”
Zara’s factories are based in Europe, new designs get into stores in two weeks. Others have to get it from companies like China.
The cost of distribution is lower
EXPANSION OF ZARA
Incorporate technological advances like marketing on social network
Increase its presence in developng economies
Further close its communication loop
Give their capital assets to increase supply chain flexibility.
Partnering with other small retailers.
SUMMARYHistorical background
Inventory of ZARA
ZARA store values
About ZARA
Competitors
Segmentation targeting strategy
Parity and disparity points
Marketing Model
DISCLAIMER
www.zara.com
www.nytimes.com
www.facebook.com/zara
www.wikipedia.com/en/zara