2. ZARA is a Spanish clothing and accessories retailer based
in Arteixo, Galicia.
Founded in 24 May ,1975 by Amancio Ortega and Rosalía Mera.
Zara needs just two weeks to develop a new product and get it to
stores, compared to the six-month industry average, and launches
around 10,000 new designs each year.
Zara was described by Louis Vuitton Fashion Director Daniel Piette as
"possibly the most innovative and devastating retailer in the world.
1763 stores , 78 countries worldwide.
Zara has continually maintain its mission to provide fast and
affordable fashionable items .
Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and
five other apparel retailing chains, continued a trajectory of
rapid, profitable growth by posting net income of €€ 340 million on
revenues of €€ 3,250 million in its fiscal year 2001.
Zara welcomes shoppers in 86 countries to its network of 1.763
stores in upscale locations in the world's largest cities.
Zara's approach to design is closely linked to their customers.
3. Around the world
Zara Kids 171
Pull & Bear 817
Massimo Dutti 630
Zara Home 364
Inditex is a global specialty retailer that designs, manufactures, and sells
apparel, footwear, and accessories for women, men and children through its
chains around the world. Zara is the largest and most internationalized of the six
retailers that Inditex owns. By the end of 2001, Zara operated 507 stores around
the world, including Spain.
•Gap, H&M and Benetton are considered Inditex's
three closest comparable international
• Zara, is relatively perceived as more fashionable
than all the other three and prices less than
Benetton and Gap but higher than H&M.
• In these four competitors, Benetton and Gap
place at relatively less fashionable and higher
price, while Zara and H&M is more fashionable
and price lower.
Competitors of inditex
4. • Zara has developed a highly responsive supply chain that enables
delivery of new fashions as soon as a trend emerges.
• Zara delivers new products twice each week to its 1,763 stores
around the world.
• Rather than subcontracting manufacturing to Asia, Zara built 14
highly automated Spanish factories, where robots work around the
clock cutting and dyeing fabrics and creating unfinished “gray
goods,” the foundations of their final products.
• Zara has also created a partner network of more than 300 small
shops in Portugal and Galacia to handle the finishing work
where, the gray goods are transformed into dresses and suits.
• Inditex SA grew revenue 10% to $19.15 billion for its fiscal year
ending January 31, 2012.
11,000 new items per
Compare to 2,000 –
H&M and GAP .
Zara always focus on
reducing time .
Zara holds 6 days worth
of inventory, while H&M
holds 52 days, and
Retailer holds 94 days
of inventory .
7. Key success factors of Zara
Short Lead Time = More fashionable clothes
Lower quantities = Scarce supply
More styles = More choice, and more chances of hitting it.
Zara stores have men's clothing and women's clothing, each of these
subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and
Complements, as well as children's clothing (Zara Kids). Currently their
sizing on women's clothing goes to a US size 12 or a UK size 14 .
10. Zara produced a range with better
fabrics and more "womanly" cuts,
Zara Basic essential fashion-fix
pieces and fashion for younger
Lightness to the garments, with
looser silhouettes seen on flowy
dresses, sarong pants, pleated
culottes, softly-constructed blazers
and silky tops.
Zara discover delicate cherry
blossom prints on green silk dresses
, kimono-inspired shapes at Zara
Basic and Oriental watercolor
prints on slim pants and chiffon
Zara produced a range of
lightweight cotton tops and paisley-
print shirts, paired with comfortable
cotton twill shorts, cropped linen
pants and linen blazers.
The collection features hints of ethnic
Asian touches like robes, beads and
string tie belts that provide hippie-
11. Zara produce a unique and sophisticated range for children’s .
Zara kids clothing is a great place to shop and It felt secure in finding
fun, unique, great quality clothes there at a reasonable price point.
Zara kids clothing offers a whole new lifestyle for children, which serve to be
tomorrow's fashionistas. Indeed they can be a bit more expensive as
compared with adult clothing, but the brand's collections are truly worth
12. Zara Foot Wear , are one of the leading manufacturers offering a wide array
of ladies foot wears that are beautifully crafted.
Their range include ladies sports sandal, formal sandal, fashionable
sandals, bellies, designer sandals, shoes, high heel sandals, flat sandals and
Established at Dehradun, in Uttaranchal, in the year 2004.
Under the guidance of Mr. Shafiullah Khan, who has with him extensive
experience of footwear industry. His able handling of the operations and
dedicated support of our team help us in delivering ladies fashionable
sandals and shoes.
ZARA is able to design classic designs like desert boots or brogues over to
espadrilles, sneakers and loafers. The pieces convince not just through the
design but through material, suede, perforated leather or premium canvas and
details, like pearls, studs, leather strings or fringes.
15. Zara Home specializes
Its textile collections – bed, table and bath linens – are complemented
by dishware, cutlery, glassware and decorative accents.
Zara Home stores offer inspiration in a range of themed display
environments: Contemporary, Classic, Ethnic and White. Zara Home
constantly updates the merchandise in its shops to include the hottest
trends in home decoration.
Zara Home was founded in 2003 and it now has 364 stores in 37 countries.
16. Zara available in now all sizes..
Mid sized store
17. Zara brands success
Zara is one of the most well known brands in the world and is also one
of the largest international fashion companies. They are the third
largest brand in the garment industry.
The Zara clothing line accounts for a huge bulk of its parent group’s
Indidex ;annual report: sales distribution
18. Zara is known to use teams of designers instead of individuals.
Zara has to face a lot of competition from H&M, Gap and Benton
internationally. Fortunately Zara is considered to be more fashionable
than the rest of the brands despite the fact that its price is less than
Benetton and Gap. H&M is still cheaper than Zara but is equally
fashionable as Zara. Gap and Benetton are less fashionable and more
Zara started out with low priced products which were pale imitations of
high end fashion products. This move led to Zara being a smashing
success and allowed them to expand by opening more stores in Spain.
Zara is unique in the way that it does not spend money on marketing
and instead concentrates on opening new stores instead. Their brave
experiments have led them to be labeled as one of the most
innovative retailers in the world.
1.Cost leadership strategy
4.Fast delivery of new products
1.Centralized distribution system
2.Doesn't spend much money
3.Zara only has one
manufacturing and distribution
centre in the world
1.Global market penetration
3.Distribution centre in us
3. Zara based in Spain and has a
huge no of stores in Europe will
dent in revenues.
21. Production & Distribution
• Maintain quality
• Cost leadership
• Can offer more products than other
• fast distribution system
• Ability to produce new products
• Coordinate with R & D stores to get new trends
• Customers response
• Product distribution system
• Improving inventory system
• Stores ordering system
• R & D
• Market & location of stores
• Market penetration
• Consumer behavior analysis
23. •Zara’s consumers are young, highly
sensitive to latest fashion trends .
•Zara sells apparel, footwear and
accessories for women, men and
•Zara offers fashion at affordable price by
following the most up to date fashion
Zara Target .&.price
“ZARA is committed to satisfying the desires of our customers. As a result
we pledge to continuously innovate our business to improve your
experience. We promise to provide new designs made from quality
materials that are affordable”
“Through Zara’s business model, we aim to contribute to the sustainable
development of society and that of the environment with which we
25. BRAND POSITIONING
Zara among others, has
about 3,000 stores
worldwide H&M, based in
Swede n, has 2,500 (when
you include its smaller lines
of stores); and
Mango, based in
Spain, 2,400.Zara accounts for nearly
70% of Inditex’s
income, and, therefore, ma
kes it the pillar of Amancio
Ortega’s –the 3rd richest
26. Zara controls and coordinates perfectly all the process and
allows reducing the times to minimums.
Zara provided a considerable number of products, which were
more than rival corporations in the fashion industry.
It produced approximately 11,000 different products per
year, while its major rivals only produce 2,000 to 4,000.
Zara spent four to five weeks on the process of designing a new
product and getting finished products in its stores .
So, Zara already was the leading brand in `fast fashion’. Zara
could redesign existing products in no more than two weeks.
Zara is indeed an unique brand that, instead of creating an
Now that major fast fashion competitors are adopting Zara’s
model, Inditex will be -necessarily- bringing to the fashion retail
1. Zara has an unordinary supply chain, which gives them a highly
2. Zara has successfully introduced a new, unique business model into
the apparel manufacturing and retail industry.
3. zara choose to handle design, production, and distribution in-house
and concentrate the whole production close to their headquarters in
4. By entire process, Zara can react much faster than its competitors do
to both the ephemeral trends in the world of fashion and the capricious
tastes of its customers.
5. Zara have achieved their success by thinking out of the box.
6. Their success is directly related to their ability to understand their
customers most innate needs and desires and tie these to successful
innovation strategies, which ultimately lead to these new and unique
approaches to their business.