ZARA Suzhou

1
ZARA Suzhou
2
Introduction

• Location
• Business Logistics
• Business Values

3
Suzhou, China

• Located Near Shanghai
• 2 hours by car (60 mi)
• Land Area
• 3416 mi2
• Approximately half the size of the Seattle-Tacoma
  area
• Population
• 11 Million (2006)
• Almost four times the population of the
  Seattle-Tacoma area

4
Suzhou Economy

• Suzhou has the fourth largest economy in China
  and is located on the Yangtze River Economic
  Belt, which is the fastest growing economic
  region in China
• Over 10,000 Foreign companies have operations in
  Suzhou
• China-Singapore Industrial Park
• Similar to Silicon Valley in California
• 60 Fortune 500 Companies are located in this area

5
Suzhou Economy (cont.)

• Tourism is also very popular
• 1,814,900 Million people visited Suzhou in 2006
• Tourism includes residents of China as well as
  other countries

6
Economic Statistics of Suzhou

• 2006 GDP 450 Billion RMB (58.2 Billion USD)
• Income per capita in 2006 was approximately
  10,000
• February 2007 Individual Income Average
• 3324.16 RMB (Approximately 430 USD)
• Disposable Income - 3117.36 RMB (Approximately
  404 USD)

7
Average Spending Breakdown
8
Suzhou Guanqian Shopping Street and Matro Mall

• Most popular shopping district in Suzhou
• In operation for approximately 200 years
• Located in the center of Suzhou

9
Matro Mall

• Operated by Suzhou Function Group
• Matro Mall Revenue
• 2003 400 Million RMB
• 2006 900 Million RMB
• Designer and Name Brand Retailers
• Gucci, Channel, Estee Lauder, Swiss Watch, MNG
• Highly Competitive Environment

10
Matro Mall Interior
11
Management Organization
12
Target Markets

• Matro Mall attracts a wide age group of shoppers
• Our Target Includes
• Middle class women from Suzhou
• Foreign Employees and Family
• Tourists

13
Marketing

• No mainstream advertising
• Continue the ZARA example
• Strictly window displays
• Because of the stores location inside of the
  mall, an outside window space will need to be
  purchased.
• Our store location is in the best place with lots
  of shoppers

14
Ownership and Financial Arrangements

• Limited Liability Company
• Financing though bank loans
• Bank of China
• Limited conditions are placed on loans for very
  profitable or very famous companies like ZARA

15
Value Proposition

• Fashionable Clothes at a reasonable price
• Quick response to customers needs and wants
• Offer Customers a comfortable environment
• Post-Selling Service

16
Business Vision

• ZARA is committed to satisfying the desires of
  our customers. As a result we pledge to
  continuously innovate our business to improve
  your experience. We promise to provide new
  designs made from quality materials that are
  affordable.

17
Growth Potential

• Possible future stores in other parts of the
  city, as well as other cities in china.
• China has the worlds largest population so
  demand is large
• Suzhou continues to grow very rapidly
• The city is becoming more widely known throughout
  the world
• Residents income continues to grow as well