Strategy of Zara & Burberry

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[STRATEGY OF ZARA & BURBERRY]|
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TABLE OF CONTENTS

INTRODUCTION……………………………………………………………….1

STRATEGIES……………………………………………………………………..1

CONCLUSION: COMPARISON ZARA VS BURBERRY…………….4

REFERENCES.……………………………………………………………………5

Introduction
ABOUT ZARA…
Zara started operations in Spain in 1975, and now operates in 74 countries worldwide. Zara is one of the largest international fashion companies and it is owned by INDITEX, one of the world’s largest distribution groups. Their unique business model includes design, distribution, production and sales and they do all this through their retail network, where they think the customer is at the heart of it all. Through their business model, they want to contribute to the sustainable development of society and the environment in where they interact. ABOUT BURBERRY…

Burberry was founded in 1856 and has become the leading British luxury brand globally. Their business is driven by: design, marketing and retail-led strategies; channel diversity such as: retail, digital commerce, wholesale and licensing; and multi-category competency like: non-apparel, womenswear, menswear and childrenswear.

STRATEGIES
Burberry’s strategy … is divided in five small themes:
Leveraging the franchise:
Through more coordinated use of brand assets and greater integration of its global organization, they have the opportunity to operate more efficiently and effectively. By marketing innovation:
* Brand new website: launching their new Burberry.com site started in the fourth quarter of 2010/11. * Social media: Burberry further built its leadership position amongst luxury brands on Facebook, ending the year with approaching five million fans, as well as almost 200,000 followers on Twitter and over four million channel views on YouTube Intensifying non-apparel development

Non-apparel remains a key driver of growth, contributing 40% of retail/wholesale sales during the year. It has always been the Group’s fastest growing product category. * Via licensing:
The company has three global licensing agreements: fragrance (Interparfums), timepieces (Fossil) and eyewear (Luxottica). Burberry has strengthened its organization to manage these relationships more intensively, more closely coordinating strategies to explode the potential of licensed products in line with owned categories. Accelerating retail-led growth

Retail-led growth refers not only to the operation of Burberry’s own stores, but also to a fundamental shift in the Group’s operating structure. For example a global Customer Service team was established during the year to offer 24/7 tailored support to customers in 14 languages, by telephone, email and through the new “Click to Call and Click to Chat” functions on Burberry website. Client Services, which provides a personalized luxury service to the Group’s most important clients, expanded to 30 locations across the world, and the Burberry Experience sales and service programme was successfully extended from the Americas, Asia and Europe to Emerging Markets including China. Investing in under-penetrated markets

By an extended presence in Latin America, India and new markets, the Group continued to extend the Burberry presence in these high growth markets. They have also continued to invest in its wholesale presence globally, building separate London, Brit and childrenswear corners in department stores, exiting generic outerwear departments and adding real estate for menswear. Pursuing operational excellence

Burberry continues to pursue its goal to be recognized as much for operational expertise as for product and marketing excellence. ZARA’s Strategy:
Their strategy basically is to have total control of every part of the business. Zara designs, produces and distributes itself. Everything is coordinated from its headquarters on an industrial estate in Sabon-Arteixo, outside La Coruña in Spain. They have a so called a "fast-fashion" system...
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