Open a Zara Store
Open Zara Store in Suzhou
Zara Project Report
Yang Cao
Kalele Perreira
Hunan Lei
Nicholas Case
Business 201, Section 1
Professor Eli Berniker
May 20, 2007
Table of Contents
Introduction to the project: p.3
Intro to Zara: p.3—4
Business Vision: p.4
Location: p.4—7
Target Market: p.7—8
Business Start—up and Operation: p.8—14
Future Growth: p.14—15
Invest Recommendation: p.15—16
Why we choose Bank of China to get our initial fund? p.16
References: p.17
This report is a comprehensive plan to open a Zara clothing in Suzhou, China
Introduction to Zara
Zara was founded by Amancio Ortega in 1963. The business began as a small outfit producing lingerie items. The first Zara retail store opened in 1975, and was known for selling low-priced imitations of more up market fashion trends. Today Zara accounts for approximately 80% of the total sales of its parent company, Inditex Group. (Brand Watch Zara, 2004, p.2). There are 4 main processes within Zara’s value creation: designing, sourcing and manufacturing, distributing, and retailing. Zara has several competitive strengths, such as a quick inventory response time. Most apparel retailers receive weekly shipments of new inventory； however Zara stores receive shipments biweekly. (Brand Watch Zara, 2004, p.4) Zara is also able to respond to emerging fashion trends very rapidly and as a result in some respects Zara is a leader in the fashion industry. Many believe that if you want to know today’s fashion trends, just go look at the window displays of a Zara store. The window displays at Zara stores are another aspect of the business that makes it unique. Zara spends almost nothing on conventional advertising, as all of its marketing is found in its stores. Zara designers create prominent window displays that are visual attracting to consumers. The company carefully selects sites for new stores so that the window displays are positioned in
Zara Project Report
Yang Cao
Kalele Perreira
Hunan Lei
Nicholas Case
Business 201, Section 1
Professor Eli Berniker
May 20, 2007
Table of Contents
Introduction to the project: p.3
Intro to Zara: p.3—4
Business Vision: p.4
Location: p.4—7
Target Market: p.7—8
Business Start—up and Operation: p.8—14
Future Growth: p.14—15
Invest Recommendation: p.15—16
Why we choose Bank of China to get our initial fund? p.16
References: p.17
This report is a comprehensive plan to open a Zara clothing in Suzhou, China
Introduction to Zara
Zara was founded by Amancio Ortega in 1963. The business began as a small outfit producing lingerie items. The first Zara retail store opened in 1975, and was known for selling low-priced imitations of more up market fashion trends. Today Zara accounts for approximately 80% of the total sales of its parent company, Inditex Group. (Brand Watch Zara, 2004, p.2). There are 4 main processes within Zara’s value creation: designing, sourcing and manufacturing, distributing, and retailing. Zara has several competitive strengths, such as a quick inventory response time. Most apparel retailers receive weekly shipments of new inventory； however Zara stores receive shipments biweekly. (Brand Watch Zara, 2004, p.4) Zara is also able to respond to emerging fashion trends very rapidly and as a result in some respects Zara is a leader in the fashion industry. Many believe that if you want to know today’s fashion trends, just go look at the window displays of a Zara store. The window displays at Zara stores are another aspect of the business that makes it unique. Zara spends almost nothing on conventional advertising, as all of its marketing is found in its stores. Zara designers create prominent window displays that are visual attracting to consumers. The company carefully selects sites for new stores so that the window displays are positioned in
References: Brand Watch Zara. (2003). Retrieved May 13, 2007, from http://www.3isite.com/articles/Deconstructing_Zara_handout_version.pdf. Harvard Business School. (2003). Zara: Fast Fashion [Multimediamedia Case]. Su Tong, Ma Lulu, and Huang Su. (2007). 2006 Suzhou Economy Report. Retrieved May 13, 2007, from http://www.sztj.sz.js.cn/news/2007/1/30/tjj/1.htm. Suzhou Government. (2007). Traveling Statistics Report. Retrieved May 12, 2007, from http://www.sztjj.gov.cn/ydtj/200702.htm#12. Suzhou Government (2007). Suzhouness Life Report in 2007.2. Retrieved May 12, 2007, from http://www.sztjj.gov.cn/ydtj/200702.htm#15. Zara reconstruye el imperio español (2003). Retrieved May 12, 2007, from http://www.wharton.universia.net/index.cfm?fa=viewfeature&id=565&language=englis&language=english.&language=english.