ZARA: fast fashion 1

Contents Creation of ZARA Environment Analysis ZARA’s Strateies Strategic Proposals 2

Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 Spreading of zara store in Spain 1985 Zara started to enter the overseas market (in Portugal) 1989 Entering New York City, in USA 1990 Entering Paris, in France 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza  3

Creation of ZARA Inditex Chair man: Amancio Ortega Gaona Location of Headquarter: Coruña in Spain Annual profit: €94billion 4

Creation of ZARA Zara One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Market Date of Establishment The first retail shop was opened in 1975 Domestic Expansion(Korea) 3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17) _One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Market (언니! 근데 여기에서 Time to market이 어떤건지 아시나요?ㅠㅠㅠ)   Date of establishment: The first retail shop was opened in 1975 Number of stores: 1440 stores in 77 countries.(이게 인디텍스 홈페이지에 나와 있는 수치라서 이거로 바꾸는 게 좋을 것 같아요!) Domestic(Korea) expansion: 30, April, 2007. 3 stores were opened at coex, lotte ect. (Now, we have 17) Number of employees: 32,000 people 5

Creation of ZARA 6

ZARA’s Value Chain Fast fashion A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market Material Team Design Team Testing Stores Productio n Facility Sales Network An end -customer A term used by fashion retailers product driven 7

ZARA’s Environment Analysis External Environment Based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year, these are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price Competitor Analysis 8

Zara’s internal analysis ZARA’s Internal Environment Analysis Zara’s SWOT Analysis Zara’s internal analysis 'Proud Realisers of Added Value'의 약어로, 말 그대로 보자면 ‘부가 가치를 새롭게 깨달은 사람들’이라는 뜻이다. 프라브족은 명품이나 브랜드가 무조건 좋은 것은 아님을 자각하여, 브랜드보다는 최신 유행과 싼 가격에 자신의 개성을 추구하는 사람들이다. 9

1.ZARA’s Core Competence [Core Competency-Tree] Shirts, Jeans, Jacket One-piece, Skirts, Jacket Bags, Belts, Perfumes Stores Products meeting the demand for fast-changing and short life-cycled fasion trends Increasing Property Values & Increase asset, management Vertical Systematization of Design and Production Process Recreational ablility of Fashion IT System for collecting Customer Information Real estate 10

2.Assessment for ZARA’s Core Competencies 11

Valuable ? 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework] Yes Despite variety of racial, cultural and generational differences, share senses toward fashion This makes ZARA have competitive advantage against external threats and new opportunities 12

Valuable ? 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework] Yes Yes Hired more than 200 designers Based on IT System, prompt responses to customer needs and trends are applied to PRODUCTION LINE Core competence which other companies cannot follow 13

Valuable ? Costly to Imitable? 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? [VRIO Framework] Yes Yes Costly to Imitable? Yes 14

Valuable ? Costly to Exploited by Imitable? organization ? 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? [VRIO Framework] Yes Yes Exploited by organization ? Costly to Imitable? Yes Yes 15

High possibility for maintaining Competitive advantage continuously 3.ZARA’s Core Competence Analysis[VRIO] Competitive implications High possibility for maintaining Competitive advantage continuously Economic Performance Above Average High possibility for maintaining Competitive advantage continuously 2 16

Utilizing Stores Recreation of Fashion Vertical Systematization ZARA’s Success Factors[4 Core Competencies] Utilizing Stores Recreation of Fashion Vertical Systematization Of Production Process IT System 현 전략 17

ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation 3. The principal of small quantity production 각 항목에 대한 간단한 사례를 구두로 전하는걸로 하자…피티가 너무 길어진다.. 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition 18

ZARA’s Success Factors Active Use of Stores Changing the store layout in every 2weeks Located in the very center of the city Using the store to advertising Collecting the data of customers 19

ZARA’s Success Factors Short period of Collection preparation Spending only 2 weeks from The market research to the sales (Normally it takes 6 months) Market Research Within 1 day Design Needs Production Closely located with HQ Transport- ation Small mass of product Display Tight control of stores Customers 20

ZARA’s Success Factors Small Quantity Production Continuous Production of New Product, Without relying on HIT Product Small Quantity Batch Production Maximizing Product Scarcity Push customers to buy their product immediately Increasing the frequency of visiting the store of customers Let customers open their wallet 21

ZARA’s Success Factors Creating the value from product differentiation Because of the fast turnover ratio, customers are hard to find the same cloth in the street Customers enjoy the scarcity like high price product with relatively economical price New arrivals by regional groups 22

ZARA’s Success Factors Utilizing the advantage of geographical condition Hiring the spanish and the portuguese instead of people in the third world countries to utilize the advantage of geographical condition By positioning the design and production facility closely, make the fast action to the market situation possible Most of suppliers are located closely 23

ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation Zara hits the global market 3. The principal of small quantity production 다음 슬라이드가 Zara Brand Loyalty 설명하는건데 그건 그냥 말로 설명할께 추가로 불라불라 이렇게 ㅋㅋㅋㅋ 여기까지 5개 Key factor 설명했는데 뒤에 또 나오니까ㅋㅋㅋㅋㅋ p25 삭제한다??? 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition 24

Weakness of Current Strategies 25

Strategic Suggestions 26

27