FASHION FALLOWER AND INDUSTRY LEADER Zeynep Alpagot 080205005

FASHION FALLOWER AND INDUSTRY LEADER Zeynep Alpagot 080205005 Merve Arslan 050401008

n Zara Clothing is a fashion empire. n Zara was established by Omega in 1975. n Zara is owned under the Inditex Group, which owns plenty of other beauty companies.

n The first Zara store was located on a central street in La Coruna. Upon the success of Zara format, the firm started to expand opened further stores. n The store proved to be a success, and Ortega started opening more Zara stores in Spain.

n Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world. n Each year several hundred thousand SKU’s are produced based on 11, 000 distinct items varying in color, fabric and size.

n Zara has been to Turkey in 1998, and 50 are stores. n İnstead of reducing cost , zara makes faster production and creation in turkey.

n Zara has 1058 stores located in 68 countries around the world. The average Zara store is about 1500 square meters. Zara strategically opens its stores in heavily trafficked, high-end retail areas.

n The countries in which Zara operates are: Country Number of stores n Spain 364 -France 103 -Portugal 59 - Italy 57 - Germany 56 n United Kingdom 50 - Brazil 47 -Greece 43 -United States 30 n Japan 28 -Belgium 20 - Turkey 19 - Saudi Arabia 18 – Poland 17 -Russia 16 - Canada 14 - Israel 13 -Netherlands 13 -China 11 Sweden 9 -Austria 9 -Switzerland 9 -Argentina 9 -Venezuela 9 n n n n Chile 6 - Indonesia 6 - Ireland 6 -Czech Republic 5 - Kuwait 5 Malaysia 5 - Philippines 5 -Singapore 5 Cyprus 4 -Denmark 4 -Finland 4 - Lithuania 4 –Slovenia- 4 Serbia 3 -Colombia 3 -Hungary 3 - Latvia 3 - Morocco 3 Costa Rica 2 - El Salvador 2 - Iceland 2 - Jordan 2 - Lebanon 2 Luxembourg 2 -Panama 2 -Qatar 2 -Romania 2 -Uruguay 2

n Zara target market is for ladies who love to dress elegance , casual or more fashionable.

Zara’s marketing strategies Zara’s marketing strategy focuses on product variety, speed-to-market, and store location. It is also notable for what it excludes. Zara does not advertise in the traditional sense. If you want to find out what’s currently available at the Zara stores you have two options: go to the web site or go to the store. Zara puts 10, 000 different items on the store shelves in a single year. It can take a new style from concept to store shelf in 10 -14 days in an industry where nine months is the norm. In its primary European markets, Zara locates its stores close together.

Location Important For ZARA The manager of Zara says that: Around the world Brand n “These office buildings are full of the people we want as customers. We want them to stop in at lunch or after work. We want to see them often, so we have to change what we have on the shelves, ” said Zara’s Toronto store manager. “They could shop in a lot of other stores, so we have to make it worth their time to come here. ” Zara Quantity 1. 058 Zara Kids 205 Pull & Bear 663 Massimo Dutti 519 Bershka 698 Stradivarius 573 Oysho 422 Zara Home 272 Uterqüe 72 TOTAL 4. 907

Why does not Zara make an advertisement? n n why the company does not advertise. If a Zara customer wants to know what Zara has, he or she must go to the store. The stock changes often, with most items staying on the shelf for only a month, so the customer often finds something new and appealing. By the same token, if the customer finds nothing to buy this visit, the store’s regular customers know that tomorrow or next week new goods will be on Zara’s shelves. That makes it worth another visit.

Price strategy n Zara’s business model makes it more profitable then any other retailer. We already know from marketing that the retailer gets almost half the price of the commodity sold. So by playing both the role of the manufacturer and the role of the retailer, Zara is definitely much more profitable than the average retailer with similar posted prices. n Zara’s pricing strategy is to set price equal to cost plus a target margin. Zara prices are based on comparables within the target market, subject to covering costs plus a target margin.

Store Atmospherics is another significant strategy for retailer. Inside and outside of stores should be attractive for consumers in order to do shopping easily. n n Zara focuses on store atmospherics strategy. For instance; it provides refreshing, warm, hygineical stores.

Zara’s competitors n Zara’s strongest competitor is H&M. Zara has 1. 02 million euros in current assets. H&M however, has 3. 40 million euros in current assets. From this we can understand that Zara is less liquid, possibly because they have more fixed assets and turn their inventory over quickly.

n The most interesting of Zara’s competitors for comparison is Hennes and Mauritz(H&M). H&M differs from Zara becouse they outsource all of their production, spend more advertising and is price-oriented. n Key similarities for comparison between Zara and H%M are that are Europen based companies , are fashion forward at lower price retailers and have a strong international expansion strategy

General Evalutıon Zara, which contributes around 80 per cent group sales concentrates on three winning formula to bake its fresh fashions: n Short Lead Time = More fashionable clothes n Lower quantities = Scarce supply n More styles = More choice, and more chances of hitting it right All of the strategies and tecniks constitute Zara’s competetive advantages and makes the company different between competitors. Zara shows us their seriosness whit this slogan Cool Clothes Now, Not Later