PEST Policies of Zara

Only available on StudyMode
  • Download(s) : 353
  • Published : March 31, 2011
Open Document
Text Preview
PEST Policies of Zara

Demographic:
• 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.

Economic:
• 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

Technological:
• 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

Political/legal:
• 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.

Socio/cultural:
• 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...
tracking img