Zara - a Successful Brand

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  • Topic: A Coruña, Inditex, Zara
  • Pages : 14 (3432 words )
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  • Published : July 29, 2009
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Study Trip Report - Madrid

How did Zara become a successful player in the global fashion market?

1. Abstract

This academic report is connected to the study trip topic “Adaption of Spain to a globalized economy”. It is focused on the international development of Zara Clothing in an international competitive market and is based on current news, statistics and the company his annual report. A few years ago, the retailer introduced a unique business process, which makes them the leader in fast fashion. Although nobody has believed in its incredible business model, Zara demonstrates its global capability and sets every year a great performance.

Table of Contents

1. Introduction …………………………………………………………...3 2. The History of Zara …………………………………………………..4 3. The Expansion of Zara ………………………………………………5 4. Inside Zara ..…………………………………………………………..5
4.1 The Production Centers …………………………………5
4.2 Fast Fashion ………………………………………………6
4.3 Communication ……………………………………………7 5. Advertising ….…………………………………………………………8 6. The Store Environment……………………………………………… 9 7. Zara his Overall Performance in 2006 ….………………………… 9 8. Business Models ……………………………………………………10

8.1 PESTEL ………………………………………………….10
8.2 Porter’s Five Forces …………………………………….11
8.3 SWOT-Analysis ………………………………………….12
8.4 TOWS-Analysis ………………………………………….12 9. Conclusion: The Fastest Fashion ………………………………….14 10. References List …………………………………………………….15

1. Introduction

The Spanish Royal Family felt affected by Letizia Ortiz, today the wife of Spain his Crown Prince Felipe. When they communicated in public that they are going to married, she was casually dressed. Even though a scandal, a lot of Spanish women wore almost the same clothes only a few weeks later (“Inditex and fast fashion”, 2005). Today many people all over the world try to look as good as celebrities do, but they don’t want to spend the same amount of money or they cannot afford it. That leads them to the mass market of clothing such as Hennes & Mauritz, Gap, H. Vögele, C&A and so on. These fashion retailers are delighted to increase their sales, whereas the consumers are frustrated. They see the same dress on another person, which is not unrivaled anymore. Zara Clothes provides the latest trends with a fast reaction on consumer’s demand at a low price. It copies trendsetters all over the world, from celebrities to commuters. Through their interesting communication, unique distribution process and innovative designers, Zara is able to send out their collection in 15 days from the design until the final delivery to the shelves of the stores. The textile industry calls it “fast fashion”. This report considers Zara his interesting development from a small retailer to a global player in the fashion industry, with its astonishing business strategy. They developed an interesting way of internal communication and prove, that one location can lead all its worldwide retailers.

2. The History of Zara

1970’s
• Amancio Ortega Gaona, owner of Zara, opened the first store 1975 in La Coruna. • The fashion entrepreneur decided to expand the business as people reacted very positive to its concept and opened further retailers in Spanish main cities.

1980’s
• Inditex took over Zara in 1985 as the head of the group. • One year later in 1986 Inditex devoted a manufactory for Zara to improve the logistics and increase revenues. • The first retailer abroad was opened in Oporto, Portugal, in 1988, followed by New York in 1989 and Paris 1990.

1990’s
• Continue expansion to international markets such as Mexico, Greece, Belgium, Japan, the United Kingdom, Venezuela, Turkey and Sweden.

The 20th Century – the new era of Zara
• Inditex (ITX) is listed at Bolsa Madrid, the Stock Exchange for foreign and domestic companies and consequently went public. • Inditex opened a new logistic centre for Zara in Zaragoza, Spain. • Introduction of the eight chain of Inditex, Zara Home. • Inditex...
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