Zara abstract brand study and latest trends in International business
1. Abstract Brand study of Zara and
trends in global fashion business
By –
Vrinda Baweja ( roll no. 34)
2. Objective -
• To Understand the trends in global fashion business of Zara in terms of market dynamics, trends in materials,
sourcing, consumer preferences and India’s role as supplier.
• To understand/analyze Zara-Inditex as a global buyer and India as a supplier to Zara-Inditex and it’s
distribution network worldwide
3. About Us
ZARA
Private Brand
Established: 1975
Arteixo, A Coruna, Spain
Founder: Amancio Ortega Gaona
Parent Company: Inditex
Retail Store worldwide:2250
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ZARA is one of the world’s largest international fashion company. It belongs
to Inditex, the world’s biggest fashion group.
It all began when Ortega established a dress-making factory, Inditex, in the
year 1963.Ten years later, he started off a small store that was named as
Zorba in La Coruna, Spain with a budget of a meagre 30 Euros. He then
changed the name as Zara with no particular intention. And that’s how the
world’s favorite fashion brand of today was born. Zara slowly expanded its
empire from the town in Spain to the rest of the country and then later to
Portugal. By the 1990’s the store had expanded into the United States,
France and most of the Europe. It entered the Indian market in 2010.
4. Reason behind
choosing ZARA
Over the years, Zara has remained
Faithful to its core values,
expressed simply in the same four
key words that define all its stores:
Beauty, Clarity, Functionality
and Sustainability.
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5. Zara – Marketing Mix
5
.
.
• Zara provides products for Women, Men and
Kids which includes clothing, accessories and
footwear.
• In apparels: Knitwear, sweatshirts, blazers,
suits, jackets, jeans, trousers etc.
• In footwear: Boots, leather shoes, sandals,
sneakers, casual shoes etc.
• In accessories: Sunglasses, jewellery watches,
hats, belts, scarves, perfumes etc.
Product
• Over 2256 stores in 88 different countries
the pricing tends to be different depending
on which country you are in .
• Zara has a premium pricing strategy, its not
as cheap as H&M however its not as
expensive as luxury fashion brands.
• Attractive to the younger target customer’s
is Zara’s TRF range. This range is slightly
more affordable and includes a lot more
trendy graphic pieces. This is a good
pricing strategy for Zara as it helps them to
appeal to a wide range of age groups.
• The current pricing strategy Zara uses is
value based pricing approach, based on the
purchasing power of consumer, how much
they are willing to pay.
Price
6. • Zara has enormous reach with stores in 88 countries with
over 2256 outlets.
• It also sells through its online stores
• Zara chooses their locations in a busy retail area with
other higher end retail stores around or close by and in a
demographic area with high consumers who have high
disposable income and have money, time and enjoy
shopping.
• Known for “not investing a lot into advertising in marketing”.
• Creates odd seasonal camping video or one page Vogue ad, it partially
relies on celebrity endorsements.
• Large social media presence with over 35M followers across their
Instagram and Twitter platforms, this enables them to share images of
clothing and celebrities wearing their clothing on everyday basis.
• Can subscribe to their newsletter
• Zara’s overall marketing strategies are definitely a lot more digital
than other brands.
Place
Promotion
8. Inditex Group’s of store in Asia
Source: Esri, DeLorme Publishing Company, Inc.
Projection: GCS China Geodetic Coordinate System 2000
Countries No. of Stores
China 589
Turkey 282
Thailand 23
Indonesia 67
Singapore 21
Malaysia 21
Kazakhstan 36
India 22
9. Number of Zara stores in India
States No. Of Stores
Punjab 2
New Delhi 5
Jaipur 1
Gujrat 1
Kolkata 1
Mumbai 6
Pune 2
Chennai 1
Hyderabad 1
Begaluru 3
11. Zara has more than 1800
suppliers in over 7,000
factories
List of suppliers and factories
Bifurcation of work
12. Spain
Knits and Woven garments for
womenswear, menswear and kids
wear Footwear
Turkey
T-shirts for women & men
China
Fabric-Sequin
Trims- tassel,Accessories-
pashmina ponchos, shawl and
pashmina scarf
Portugal
-Leather shoe
Morocco
-Denims
India
-Knits and Woven garments for
womenswear, menswear and
kidswear
-Footwear
Production of Zara products in different
Countries
13. SOURCING AND RAW MATERIAL
Sourcing
• Suppliers and manufacturers across 47 different countries source most of the
products –57% of them are close to our headquarters in Arteixo (A Coruña, Spain),
mainly in Spain, Portugal, Turkey and Morocco.
• Committed to supporting more sustainable cotton production and wood-based
fibres never come from primary or high ecologically relevant forests.
• Resources are used efficiently and nothing goes to waste
• Recycled polyester and polyamide
• Lyocell, viscose and other wood-based fibres
Raw material
• Inditex is into sustainable cotton production, such as organic, recycled cotton. It is
mostly sources from Western Europe. Zara collaborate with Lenzing, the
manufacturer of TENCEL™ Lyocell that is transforming the cotton waste into high-
quality sustainable fibers.
• Recycled polyester and polyamide.
• Member of the Textile Exchange, which promotes recycled polyester and nylon as
preferred fibres. It reduces the consumption of natural resources, including energy,
oil and water, and significantly cuts down on waste to landfill.
14. India as a supplier and manufacturer to ZARA
• Zara does 20% of sourcing and manufacturing from Asia.
• According to the Inditex report Zara has
131 suppliers in India, and 367 factories
• In India following products are produced for Zara-
• Knits and Woven garments for-
• Womenswear
• Menswear
• Kids swear
• Footwear
• The major exporters in India
manufacturing for Zara are as follows-
• Shahi export's
• Monica Garments
• Tempe group (Inditex)
15. •SHAHI Exports Pvt. Ltd. is engaged in the
manufacture and export of readymade
garments in the International market.
•They provide knitted womenswear and kid
swear apparel to Zara
•Being the No 1 .Export house of India it has
an annual turnover of 450 million USD.
•The Group is into manufacturing of a wide
range of Men’s, Ladies wear, Kidswear and
also in Home products.
•It caters to a versatile client base of US &
European market like Walmart, Target, A&F,
Hugo Boss, FCUK, H&M, Liz Claiborne, GAP,
CK, Espirit, Zara etc
SHAHI EXPORTS
16. MONICA GARMENTS
• Monica Garment is a fully compliance
export house recognized by govt. of
India. This company was promoted in
1990 by Mr. Anil Varma and who have
vast experience in this industry and was
associated with this industry from 1975
onwards. During last 2 decades the only
point of our success is good quality and
timely deliveries.
• The company is using all sort of fabric
which is required by the international
buyers all over the world. We are very
strong on printed and value added
garments of cotton, viscose, polyester,
yarn died, and all sort of bead and
sequence work. Their specialization is
hand, machine and chiefly embroidery.
We have strong base in Jodhpur/Jaipur
and Surat/Ahmedabad printing.
17. TEMPE INDITEX
• The leading brand in the footwear sector
working with the Inditex Group.
• They design, market and distribute the footwear
and accessories sold by the eight brands of
Inditex Group: Zara, Pull&Bear, Massimo
Dutti, Bershka, Stradivarius, Oysho, Zara
Home and Uterqüe
• Their headquarters and two logistics centres,
are located in one of Spain’s major footwear
production hubs in Elche, Alicante.
• Manufacture more than 90 million units a
year, distributing them to locations all over
the world.
21. Latest Technology
Zara’s first tech enabled pop up store opened on January 26, 2018
The Westfield Stratford City pop up store
• 48,000 sq. ft.
• Automated collection points
• Robotic systems to manage to handle package collection
• Sensors to project images of shoppers
Order pick-up point
22. Latest Technology
Zara’s first tech enabled pop up store opened on January 26, 2018
The Westfield Stratford City pop up store
• 48,000 sq. ft.
• Automated collection points
• Robotic systems to manage to handle package collection
• Sensors to project images of shoppers
Order pick-up point
24. Augmented Reality Stores
Custom made for Zara, the new technology is accessible on mobile
devices with the help of the Zara AR application. The experience begins
by using the application at shop windows, podiums located in stores.
25. Global flagship store on corso Vittorio Emanuele in Milan
Zara on Corso Vittorio Emanuele in Milan has opened the
second pop-up store in the world, designed to buy online in
store and pick up there the purchased goods. On a 200 m2 area,
a selection of the latest trends in womenswear is available for
customers to be ‘tried on’ with digital 3D technologies.
The digital system will be equipped with an optical reader able to scan
QR codes or decode the PIN code received by customers at the
moment of the online purchase, and, to send the order to the
warehouse within a few seconds via an expressly devised platform,
making it possible to deliver the goods in 24 hours in any part of Italy.