Z A R A

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) In June, 2010 first store in India 1,671 Zara stores across the globe 10,000 new designs each year

Creation of ZARA
Inditex
Chair man: Amancio Ortega Gaona Location of Headquarter: Corua in Spain Annual profit: 94billion

Zara
One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Market

Products and Services

They produce fashionable garments for all age groups They provide fashion at affordable cost They have a huge margin for their products The have backward and forward integration with products being sold at

their own retail stores and design hubs

are owned. Production hubs are outsourced but

Zara maintains control by taking a part

of the equity share in those firms.

ZARA vs Competitors

Strategy
Following trend very fast rather than innovation

Setting up Production And Design hubs near by to reduce

lead time Limited units , to create artificial scarcity. Large number of designs compared to average retailers. Very strong Market research

They invested a lot in I.T to enable retailers to bring their

views to design team

Strategy
Even though they produce garments in European nations like Spain and Portugal than in Asian countries which would have given them 16-17 times wage advantage Zara went for more control by locating plants near by. Zara provides /supplies value for money Fashion retailers spend on average 3.5% of revenue on advertising their products, while Zara's parent company Inditex spends just 0.3%. Castellano's computerized system, the company reduced its design to distribution process to just 10 to 15 days.

SWOT Analysis

Indian Market

Indian luxury market = $4.8 billion (Rs 25,440 crore).

ZARA have 8 stores in India.

Some competition = Uniqlo and United Colors of Benetton.

Margin is very Less = Zara prices in India are indexed almost on

par with its home market Spain. Zara's international operations sport higher prices as merchandise is shipped from Spain. In this case, they seem to be taking a conscious hit as the aggressive pricing absorbs the import tariffs that are at 40%.

Indian Market
Dominated by Menswear Lead time is very large because brands does not have their own production hubs Culture Lacks communication between various departments Sense of fashion is very different in different regions. Indians are very less inclined to new designs, they are ready to wait