Zeynep Alpagot 080205005

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FASHION FALLOWER AND INDUSTRY LEADER

• Zeynep Alpagot 080205005
• Merve Arslan 050401008

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• Zara Clothing is a fashion empire.
• Zara was established by Omega in 1975.
• 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.
• 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.
• Each year several hundred thousand SKUs 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.
• Instead 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 areCountry
  Number of stores
• Spain 364 -France 103-Portugal 59- Italy 57-
  Germany 56
• United Kingdom 50 - Brazil 47-Greece 43 -United
  States 30
• 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
• 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.

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Zaras marketing strategies
Zaras 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 whats 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.
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Location Important For ZARA

• The manager of Zara says that
• 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 Zaras Toronto store manager.
  They could shop in a lot of other stores, so we
  have to make it worth their time to come here.

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Why does not Zara make an advertisement?

• 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 stores regular customers
  know that tomorrow or next week new goods will be
  on Zaras shelves. That makes it worth another
  visit.

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Price strategy

• Zaras 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.
• Zaras 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.

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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.
• Zara focuses on store atmospherics strategy.
  For instance it provides refreshing, warm,
  hygineical stores.

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Zaras competitors

• Zaras strongest competitor is HM.Zara has 1.02
  million euros in current assets. HM 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 Zaras competitors for
  comparison is Hennes and Mauritz(HM).HM differs
  from Zara becouse they outsource all of their
  production,spend more advertising and is
  price-oriented.
• Key similarities for comparison between Zara and
  HM are that are Europen based companies ,are
  fashion forward at lower price retailers and have
  a strong international expansion strategy

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General Evalution

• 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
  Zaras competetive advantages and makes the
  company different between competitors.Zara shows
  us their seriosness whit this slogan
• Cool Clothes Now, Not Later