PEST Policies of Zara

Topics: Trade, Economics, Culture Pages: 3 (285 words) Published: March 31, 2011
PEST Policies of Zara

• Growing population of professional women.

• Japan trendiest teenage market in the world.

• Europe 24%, US 29% Asia 23%.

• Income distribution varies widely from country to country.

• Younger adults and teenagers are more interested in apparel and trends.

• Markets just hit huge correction. On the way back up in 2003. (Check Spanish markets)

• Inflation.

• Difficult economic times make high priced fashionable clothing less desirable to much of the population.

• $900billion world retail spending. (2001)

• As income increases per capita expenditures on clothing decrease.

• 14% Unemployment all of Spain (Double Check)

• Seasonal Apparel sales

• Quick response developed. A set of practices and policies to increase speed and flexibility.

• Lots of logistics software flooding the market.

• Flexible manufacturing systems

• ERP/CMS/TQM being developed

• Trade regulated by MFA (a system of quotas) being phased out by 2005.

• Tariffs expected to be further reduced from the 7%-9% range at which they sit.

• Administrative barriers impeding entry to certain markets.

• Potential protectionism after expiration of MFA.

• Poor neighbors benefit from trade concessions. (Check case)

• EU has 100% FT between nations.

• Sweatshop trade.

• Different countries/regions have very different attributes and preferences.

• Exposed to a huge spectrum of customers with constantly changing tastes and willingness to spend.

• European design roots of apparel.

• Significant cultural different between some major markets.

• US market a challenge because Americans have a preference for domestic based retailers.

• Clothing trends are global.

• Pop culture in fashion.

• Styles move quickly: Global links/internet

Global :
• Buyer driven global apparel chain.

• Branded...
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