Zara:: Fast Fashion

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 Marke t
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 Producti Sales An end

Material on
Team Stores Network -customer
Team Facility
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 in te rn al
an alys is
1.ZARA’s Core Competence [Core Competency-Tree
S hirts , O ne - p ie c e , B a g s , B e lts , S to re
J e a ns , S kirts , P e rfume s s
J a c ke t J a c ke t
Pro d uc ts me e ting the

d e ma nd fo r fa s t-
c ha ng ing a nd s ho rt
life - c yc le d fa s io n
tre nd s
Inc re a s ing
P ro p e rty Va lue s &
Inc re a s e a s s e t,
ma na g e me nt
Vertical IT System for

Recreational
Systematization of collecting Real
Design and ablility of Customer
2.Assessment for ZARA’s Core Competencies
3.ZARA’s Core Competence Analysis[VRIO]
[VRIO Framework]
Y
e
s
[VRIO Framework]
Y
e
s
Y
es
[VRIO Framework]
Y
e
s
Y
es
Y
e
s
[VRIO Framework]
Y
e
s
Y
es
Y
e
s
Y
e
s
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

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
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
Within Needs control
located mass of
of stores
1 day with HQ product
Small Quantity Production
Continuous Production of New Product,

Without relying on HIT Product
Increasing
Small Maximizing Push Let
the
Quantity customers to customers
Product frequency of
Batch buy their open their
visiting the
Production Scarcity product wallet
store of
immediately
customers
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

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

5 Keys to Success
1. Utilizing shops actively
2. Short period of Collection preparation
3. The
Zara hitsprincipal of market
the global small quantity production
4. Creating the value from product differentiation
5. Utilizing the advantage of geographical condition

Weakness of Current Strategies
Strategic Suggestions

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ZARA:

1963-1974 Amancio Ortega Gaona founded Inditex

Design Testing Producti Sales An end

Pro d uc ts me e ting the

Vertical IT System for

Competitive High possibility for maintaining Competitive

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

Active Use of Stores

Spending only 2 weeks from

(Normally it takes 6 months)

Small Quantity Production

Continuous Production of New Product,

Creating the value

Customers enjoy the scarcity like high

New arrivals by regional groups

Utilizing the advantage of

By positioning the design and

Most of suppliers are located closely

1. Utilizing shops actively

2. Short period of Collection preparation

4. Creating the value from product differentiation

5. Utilizing the advantage of geographical condition

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