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)
• 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
• Buyer driven global apparel chain.
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