Presentation of Zara:
Armancio Ortego was borned on the 28th of March 1986 at Léon in Spain. At 14 years old, he starts his career as a delivery man, and it is during a tour that he notices a beautiful clothe, for his girlfriend, through a shop window. As he cannot afford to buy it, he decides to replicate it. And the result will be so satisfying, that he produces several copy.
After thisevent, he creates, with the help of his uncle, a pull over which know a huge success. Thanks to the benefits,Armancio Ortega opens his first shop in 1975 named ZARA by referring a travel to Zadar in Croatia.
Fom the beginning until today, the principle is simple: provide an opportunity for everyone to afford luxury model inspired from fashion show at a reasonable price.
In 1985, he createsInditex for “industrio de diseno textile” which is composed today by Zara, Massimo Dutti, Pull and Bear, Stradivarius, Bershka, Oysho, Uterqüe and since 2003 Zara home.
Today, Zara is present in 77 countries with a network of 1748 stores with locations in the world’s largest cities. In less than 30 years, Zara is becoming the leader in the clothes and accessories retail just behind its legendarycompetitor H&M.
ZARA through the world
Zara and by extansion Inditex, has not been impacted by the actual crisis on the textile market. Indeed, Inditex’s benefits on 2009/2010 increase of 5% to reach 11,08 billion dollars with a turnover of 11 billion dollars (increase of 7%).
Region Turnover (%)
Europe (without Spain) 45,7
1975: Open ofthe first Zara store in Corona (Spain)
1985: Creation of Inditex
1988: the first Zara’s store opens abroad in Porto (Portugal)
1989-1980: the group enter United state (New york 1989) and France (Paris 1990)
2001:Inditex goes public quoted at 14,70 euros, today the price about 53 euros.
2003: Launch of Zara home
2004: the 2000th store opens in Hong-Kong to enter Asian market.
2010:Implementation of store in India, collaboration with the Indian group Tata
Control of the value chain
Fluidity, reactivity and fiability regarding the supply chain
Quality and originality of products
Low marketing costs
The developed information system
High cost for creation and production
Increase of demand regardingcustomers
Risk of being out of stock
High costs to compensate the lack of marketing
(location of stores)
Textile is an high competitive sector
Change of trends
The 4 P’s of marketing provide explanations of Zara’s success. To attract, satisfy and fidelyse the customer, Zara clearly identified its target market as young people butnot as an age group but like a way of thinking. On that segment of market, creativity and reactivity are the key issues, The strength of Zara is to incorporate this fundamental notions in the marketing mix.
The products provided by Zara are mainly clothes but also accessories as belts, umbrellas, caps… and even cosmetic products and perfumes. Each years, designers create 11 000 newarticles whereas 3 000 for the competitors, but a series of article is composed of only few thousand of articles to provide a feeling of exclusivity for the customers. Indeed, a Zara’s season rarely spend more than one month, it is the rarity marketing.
The ability to link originality and trend from the fashion shows to the customers’ expectations is the real strength of Zara.
• In the onehand to focus on the new trends imposed by the high fashion, Zara dispose of about 40 researchers tend assisting to fashion shows everywhere in the world.
• And on the other hand to follow the customers expectation, statistical data (sales, reaction and wishes from clients,…) are regularly sent from stores to the headquarter.
Thanks to this powerful information system, Zara is always aware of...
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