FASHION FALLOWER AND INDUSTRY LEADER
Zeynep Alpagot 080205005
Merve Arslan 050401008
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Zara Clothing is a fashion empire.
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Zara was established by Omega in
1975.
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Zara is owned under the Inditex Group,
which owns plenty of other beauty
companies.
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The first Zara store was located on a central street in
La Coruna. Upon the success of Zara format, the firm
started to expand and opened further stores.
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The store proved to be a success, and Ortega started
opening more Zara stores in Spain.
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Zara is the largest and most internationalized of the
six retailers that Inditex owns: (Zara, Massimo
Dutti, Pull & Bear, Bershka, Stradivarius, and
Oysho). By the end of 2001, Zara operated 507
stores around the world.
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Each year several hundred thousand SKU’s are
produced based on 11,000 distinct items varying in
color, fabric and size.
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Zara has been to Turkey in 1998, and 50 are stores.
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İnstead of reducing cost , zara makes faster production
and creation in turkey.
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Zara has 1058 stores located in 68 countries
around the world . The average Zara store is about
1500 square meters. Zara strategically opens its
stores in heavily trafficked, high-end retail areas.
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The countries in which Zara operates are:
Country Number of stores
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Spain 364 -France 103-Portugal 59- Italy 57- Germany 56
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United Kingdom 50 - Brazil 47-Greece 43 -United States 30
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Japan28 -Belgium20- Turkey 19 - Saudi Arabia 18 –
Poland 17 -Russia 16- Canada 14- Israel 13 -Netherlands 13 -China 11
Sweden 9 -Austria9-Switzerland9 -Argentina9 -Venezuela 9
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Chile 6- Indonesia 6- Ireland 6 -Czech Republic 5- Kuwait 5
Malaysia 5- Philippines 5 -Singapore 5
Cyprus 4-Denmark 4 -Finland 4- Lithuania 4 –Slovenia- 4
Serbia 3 -Colombia 3 -Hungary 3- Latvia 3- Morocco 3
Costa Rica 2- El Salvador 2- Iceland 2- Jordan 2- Lebanon 2 Luxembourg
2 -Panama 2 -Qatar 2 -Romania 2-Uruguay2
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Zara target market is for
ladies who love to dress
elegance , casual or more
fashionable.
Zara’s marketing strategies
Zara’s marketing strategy focuses on
product variety, speed-to-market, and
store location. It is also notable for
what it excludes. Zara does not
advertise in the traditional sense. If
you want to find out what’s currently
available at the Zara stores you have
two options: go to the web site or go to
the store. Zara puts 10,000 different
items on the store shelves in a single
year. It can take a new style from
concept to store shelf in 10-14 days in
an industry where nine months is the
norm. In its primary European markets,
Zara locates its stores close together.
Location Important For ZARA
The manager of Zara says that:
Around the world
Brand
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“These office buildings are full
of the people we want as
customers. We want them to
stop in at lunch or after work.
We want to see them often,
so we have to change what
we have on the shelves,” said
Zara’s Toronto store manager.
“They could shop in a lot of
other stores, so we have to
make it worth their time to
come here.”
Zara
Quantity
1.058
Zara Kids
205
Pull & Bear
663
Massimo Dutti
519
Bershka
698
Stradivarius
573
Oysho
422
Zara Home
272
Uterqüe
72
TOTAL
4.907
Why does not Zara make an
advertisement?
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why the company does not
advertise. If a Zara customer wants
to know what Zara has, he or she
must go to the store. The stock
changes often, with most items
staying on the shelf for only a
month, so the customer often finds
something new and appealing.
By the same token, if the customer
finds nothing to buy this visit, the
store’s regular customers know that
tomorrow or next week new goods
will be on Zara’s shelves. That
makes it worth another visit.
Price strategy
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Zara’s business model makes it more
profitable then any other retailer. We already
know from marketing that the retailer gets
almost half the price of the commodity sold.
So by playing both the role of the
manufacturer and the role of the retailer,
Zara is definitely much more profitable than
the average retailer with similar posted
prices.
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Zara’s pricing strategy is to set price equal
to cost plus a target margin. Zara prices are
based on comparables within the target
market, subject to covering costs plus a
target margin.
Store Atmospherics
Store Atmospherics is another
significant strategy for retailer.
Inside and outside of stores should be
attractive for consumers in order to
do shopping easily.
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Zara focuses on store
atmospherics strategy. For
instance; it provides refreshing,
warm, hygineical stores.
Zara’s competitors
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Zara’s strongest competitor is H&M.Zara has 1.02 million euros in
current assets. H&M however, has 3.40 million euros in current assets.
From this we can understand that Zara is less liquid, possibly
because they have more fixed assets and turn their inventory
over quickly.
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The most interesting of Zara’s
competitors for comparison is Hennes
and Mauritz(H&M).H&M differs from
Zara becouse they outsource all of
their production,spend more
advertising and is price-oriented.
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Key similarities for comparison
between Zara and H%M are that are
Europen based companies ,are
fashion forward at lower price retailers
and have a strong international
expansion strategy
General Evalutıon
Zara, which contributes around 80 per cent group sales
concentrates on three winning formula to bake its fresh fashions:
 Short Lead Time = More fashionable clothes
 Lower quantities = Scarce supply
 More styles = More choice, and more chances of hitting it right
All of the strategies and tecniks constitute Zara’s
competetive advantages and makes the company
different between competitors.Zara shows us their
seriosness whit this slogan
Cool Clothes Now, Not Later