Shhh

#2
Retailer in the world

Inditex Lineup

Skhuaban

Who is Zara?

ZARA
For fashion conscious adults ages 25-35, Zara Clothing is the clothing retailer that incorporates modern telecommunication technology in its marketing research & supply chain in order to deliver fresh customer inspired fashion designs at less than designer prices.

Zara
Marketing
Binging Sexy Back

Manufacturers approach to Fashion Retailing

Management

Fashion is

Fun

Again ! ! !

Zara shoppers gold

Profit Margin

PM

Markdown

Regular Retail

Zaras Model

Consumers usually visit the average store four times annually, but Zara's customers visit its shops an average of 17 times a year. The high traffic in the stores circumvents the need for advertising

I Havent Heard of Zara

2%

50%

25%

2%

8% 13%

% of Sales

Benetton Diesel H&M Gap Macys

3 4 4 5.5 6

Ad Budgets of Retailers

Zara

0.3

Perceptual Map

X X

Price
prices Everyday Low quality

Fashion Value

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Birkin Bag

RM 3999.00

RM65.00

Versace Dress

RM1995.00

RM 125.00

Gucci Handbag

RM1150.00

RM 73.00

Z A R A

Imitation
Is the sincerest form of flattery.

Turnaround Times
30 26 24

24 12 10 5

Zara
Marketing
Control Freak

Lean Mean Managemet Machine

Management

Control
Sale Promo Feedback Design

Zara
Cut Display

Production Shippment
Sale Outsource Outsource Design Outsource Display Outsource Co-OP Outsource Promo None Outsource

Armani

Hilfiger
Outsource Outsource Outsource Outsource

Simplicity is the ultimate sophistication.

-Leonardo Da Vinci

Head Office & Design lab

Manufacturin g

Logisti cs

Europe Production

Asian Production

Cost:

$$$$$$$$$$

Cost:

$$

Fashion Value: ZZZZZZZZZZ

High fashion suits & skirts

Fashion Value: ZZZZZ

Commoditized eyeware and plain shirts

"The point of sale does not close the process but rather renews it, acting as a market information collection system that provides feedback to the design teams and reports the trends demanded by the customers. "

Immitaters of Fashion

Innovators of Management

Competitors Copying

Zara

Management

H&M

Once a week shipments

Benetton

Mid-season lineup adjustments

60% Spain

20% Europe

20% Asia

Production Facilities

15

10

0 2003 2004 2005 2006 2007

Zara Gap H&M Benetton

Sales in

Billions

of $

2000

Zara Gap

Profit in millions

1000

0 2003 2004 2005 2006 2007

Zara . . .

Now available in all sizes

Small Boutique

Mid-sized storefront

Colosal sized department store