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Zara Company Profile Powerpoint Presentation Slides CP CD

A corporate profile provides a comprehensive overview of essential information about an organization, aiding investors and stakeholders in assessing its value and performance. Explore our expertly designed Zara Company Profile PowerPoint presentation. Zara, a flagship brand of the Inditex fashion retail group, stands as a global icon in fast Fashion, boasting a distinctive business model. Originating in Spain in 1974, Zara has redefined the fashion landscape by delivering affordable, trendsetting apparel and accessories with unprecedented speed. Renowned for its agile supply chain, Zara adeptly designs, manufactures, and swiftly distributes chic collections to stores worldwide within weeks. All this information is displayed professionally in Fashion and retail PPT templates. This handy approach enables the brand to adapt to evolving fashion trends and customer preferences promptly. Demonstrating a commitment to sustainability and boasting an extensive global store network, Zara maintains its leadership position in the fashion industry, offering accessible and stylish clothing to a diverse clientele. Furthermore, the Clothing Company PPT slides present the brands innovative strategies that continue to shape the fast fashion landscape, making Zara a trailblazer in contemporary Fashion. Download our fully editable and customizable template, compatible with Google Slides, to effectively present your companys comprehensive profile.

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PowerPoint presentation slides

Deliver this complete deck to your team members and other collaborators. Encompassed with stylized slides presenting various concepts, this Zara Company Profile Powerpoint Presentation Slides CP CD is the best tool you can utilize. Personalize its content and graphics to make it unique and thought-provoking. All the fifty one slides are editable and modifiable, so feel free to adjust them to your business setting. The font, color, and other components also come in an editable format making this PPT design the best choice for your next presentation. So, download now.

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Content of this Powerpoint Presentation

Slide 1 : This slide introduces ZARA Company Profile. State your company name and begin. Slide 2 : This slide shows Table of Content for the presentation. Slide 3 : The slide illustrate showcase executive summary of Zara company. It includes elements such as top executives, competitors etc. Slide 4 : The slide presents Zara company overview. It includes about, information, top investors and some stats products such as clothing, accessories, footwear etc. Slide 5 : The slide showcases company vision and mission statement. It also include company core values such as professional ethics, commitment, confidence, loyalty etc. Slide 6 : The slide illustrate sales of Zara clothing brand by geographical region wise. It includes regions such as Asia, Europe Spain and America. Slide 7 : This slide showcases key facts and stats of Zara clothing brand. It includes social media followers, website visits, designs, country presence, store presence etc. Slide 8 : This slide displays history and milestone Zara clothing brand. It includes major milestone, history and background. Slide 9 : This slide showcases awards and recognition of Zara brand. It includes world largest fashion retailer award, best employers for women, best employers for new grads etc. Slide 10 : This slide presents products and services offered by Zara clothing brand. It includes products such as Zara Women, Zara TRAFALUC, men's clothing etc. Slide 11 : This slide showcases business model canvas of Zara clothing company. It includes key parameters such as key partners, activities, customer relationship etc. Slide 12 : This slide presents the presence of international stores across all the continents. It depicts total stores presence in different countries of world. Slide 13 : The slide illustrate sales of Zara clothing organization leadership and management team. It includes chairman, deputy chairman, CEO etc. Slide 14 : The slide presents sales of Zara clothing organization structure. It includes managing director, financial director, estimator, design, sales etc. Slide 15 : This slide showcases the employee count of Zara fashion company. It incudes key insights and employee numbers. Slide 16 : This slide displays marketing mix of Zara clothing company. It include fore elements of marketing mix such as product, price, place, promotion etc. Slide 17 : This slide showcases the partnerships and collaborations of Zara with other brand companies. It includes Good American, Sony PlayStation sneakers etc. Slide 18 : This slide presents Zara channels that helps in getting sales for their products. It includes channels such as retail stores, website, online store etc. Slide 19 : The slide showcases key competitors of Zara company. It includes rivalries name such as H&M, SHEIN, The Gap, Zalando, ASOS, Primark etc. Slide 20 : The slide displays Zara competitors operational comparison. It includes key parameters such as founded year, headquarter, founder, stores, employee base etc. Slide 21 : The slide showcase Zara competitors financial comparison. It includes revenue comparison brand valuation comparison and brand such as Zara, H&M, PVH, zalando etc. Slide 22 : The slide displays historical revenue of Zara for last Five year along with compounded annual growth rate along with historical revenue for past five years. Slide 23 : The slide showcase Zara online store revenue for past five years. Revenue and sales generate by e-commerce store for the period of five year. Slide 24 : The slide presents gross profit and gross profit margin of past five financial year of Zara company. It includes elements such as gross profit etc. Slide 25 : The slide showcase Zara organization earning before interest, tax, amortization and depreciation. It includes elements such as EBITDA, margin percentage, key insights etc. Slide 26 : The slide displays total asset of Zara company for past five year. It includes total asset, key insights, year by year trend etc. Slide 27 : The slide showcase stores count distribution of Zara by region wise and percentage of store count by region. It includes regions such as Europe, America etc. Slide 28 : This slide displays various marketing campaigns run by Zara company. It includes campaign such as the city campaign, forces of nature campaign etc. Slide 29 : This slide showcases marketing strategies used by Zara to develop brand image and reputation in marketplace. It includes fast fashion, limited editions etc. Slide 30 : This slide displays growth strategies of Zara clothing brand. It includes strategies such as market research, ecommerce, partnerships and franchising etc. Slide 31 : This slide showcases Zara value creation strategy to boost sales and revenue of organization. It includes differentiated market positioning etc. Slide 32 : This slide presents SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Zara company. Slide 33 : This slide also showcases SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Zara company. Slide 34 : This slide continues to display SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Zara company. Slide 35 : This slide showcase SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Zara company. Slide 36 : This slide showcase PESTLE analysis of Zara company. It includes factors such as political, economic, social technological legal and environmental. Slide 37 : This slide displays future plans of Zara clothing company. It includes market expansion, opening new stores, enhancing online presence. Slide 38 : This slide showcases various CSR corporate social responsibility initiatives taken by Zara for safety and protection of environment. Slide 39 : This slide presents corporate social activities activities conduced by Zara to protect environment. It includes encourages recycling, use of ecological fabrics etc. Slide 40 : This slide showcases case study of Zara operations transformation & decentralization. It includes elements such as an introduction, identification etc. Slide 41 : This slide displays Zara clothing brand case study to examine Zara's business model, supply chain strategy, and marketing approach. Slide 42 : This slide showcases client testimonials for purchasing from Zara. It includes positive review, demonstrating positive impact of clients. Slide 43 : This is a Thank You slide with address, contact numbers and email address. Slide 44 : This slide shows all the icons included in the presentation. Slide 45 : This slide is titled as Additional Slides for moving forward. Slide 46 : This slide shows SWOT analysis describing- Strength, Weakness, Opportunity, and Threat. Slide 47 : This slide depicts Venn diagram with text boxes. Slide 48 : This is Our Target slide. State your targets here. Slide 49 : This slide presents Roadmap with additional textboxes. It can be used to present different series of events. Slide 50 : This is an Idea Generation slide to state a new idea or highlight information, specifications etc. Slide 51 : This is a Thank You slide with address, contact numbers and email address.

Zara Company Profile Powerpoint Presentation Slides CP CD with all 60 slides:

Use our Zara Company Profile Powerpoint Presentation Slides CP CD to effectively help you save your valuable time. They are readymade to fit into any presentation structure.

Ratings and Reviews

by Donald Peters

March 3, 2024

by Wilson Campbell

March 2, 2024

How Zara’s strategy made her the queen of fast fashion

Table of contents, here’s what you’ll learn from zara's strategy study:.

• How to come up with disruptive ideas for your industry.
• How finding the right people is more important than developing the best strategy.
• How best to address the sustainability question.

Zara is a privately held multinational clothing retail chain with a focus on fast fashion. It was founded by Amancio Ortega in 1975 and it’s the largest company of the Inditex group.

Amancio Ortega was Inditex’s Chairman until 2011 and Zara’s CEO until 2005. The current CEO of Zara is Óscar García Maceiras and Marta Ortega Pérez, daughter of the founder, is the current Chairwoman of Inditex.

Zara's market share and key statistics:

• Brand value of $25,4 billion in 2022
• Net sales of $19,6 billion in 2021
• 1,939 stores worldwide in 2021
• Over 4 billion annual visits to its website
• Inditex employee count of 165,042 in 2021

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Humble beginnings: How did Zara start?

Most people date Zara’s birth to 1975, when Amancio Ortega and Rosalia Mera, his then-wife, opened the first shop. But, it’s impossible to study the company’s first steps, its initial competitive advantage, and strategic approach by starting at that point in time.

When the first Zara shop opened, Amancio Ortega already had 22 years of industry experience, ten years as a clever and hard-working employee, and 12 years as a business owner. Rosalia Mera also had 20 years of industry experience.

As an employee , Ortega worked in the clothing industry, first as a gofer and then as a delivery boy. He quickly demonstrated great talent for recognizing fabrics, understanding and serving customers, and making sound business suggestions. Soon, he decided to use his insights to develop his own business instead of his boss’s.

As a business owner , he started  GOA Confecciones  in 1963, along with his siblings, his wife, and a close friend. They started with a humble workshop making women’s quilted dressing gowns, following a trend at the time Amancio had noticed. Within ten years, that workshop had grown to support a workforce of 500 people.

And then, the couple opened the first Zara shop.

Zara’s competitive positioning strategy in its first year

The opening of the first Zara shop in 1975 wasn’t just a new store to sell clothes. It was the final big move of a carefully planned vertical integration strategy.

To understand how the  strategy was formulated , we need to understand Amancio’s first steps. His first business, GOA Confecciones, was a manufacturing business. He was supplying small stores and businesses with his products, and he wasn’t in contact with the end customer.

That brought two challenges:

• A lack of insight into market trends and no direct consumer feedback about preferences.
• Very low-profit margins compared to the 70-80% profit margin of retailers.

Amancio developed several ideas to improve distribution and get a direct relationship with the final purchaser. And he was always updating his factories with the latest technological advancements to offer the highest quality of products at the lowest possible price. But he was missing one essential part to reap the benefits of his distribution practices:  a store .

So, in 1972 he opened one under the brand name  Sprint . An experiment that quickly proved unsuccessful and, seven years later, was shut down. Although it’s unknown the extent to which Amancio put his ideas to the test, Sprint was a private masterclass in the retail world that gave Amancio insights that would later turn Zara into a global success.

Despite Sprint’s failure, Amancio didn’t abandon the idea of opening his own store mainly because he believed that his advanced production model was vulnerable and the rise of a competitor who could replicate and improve his system was imminent.

Adding a store to his vertical integration strategy would have a twofold effect:

• The store would operate as a direct feedback source. The company would be able to test design ideas before going into mass production while simultaneously getting an accurate pulse of the needs, tastes, and fancies of the customers. The store would simultaneously reduce risk and increase opportunity spotting.
• The company would have reduced operating costs as a retailer. Since the group would control all aspects of the process (from manufacturing to distribution to selling), it would solve key retail challenges with stocking. The savings would then be passed on to the customer. The store would have an operational competitive advantage and become a potential cash cow for the company.

The idea was to claim his spot in prime commercial areas (a core and persistent strategic move for Zara) and target the rising middle class. The market conditions were tough, though, with many family-owned businesses losing their customer base, giant players owning a huge market share, and Benetton’s franchising shops stealing great shop locations and competent potential managers.

So the first Zara store had these defining characteristics that made it the successful final piece of Amancio’s strategy:

• It was located near the factory = delivery of products was optimized
• It was in the city’s commercial heart = more expensive, but with access to affluence
• It was located in the city where Ortegas had the most customer experience = knowing thy customer
• It was visibly attractive = expensive, but a great marketing trick

Amancio’s team lacked experience and expertise in one key factor:  display window designing . The display window was a massive differentiator and had to be bold and attractive. So, Amancio hired Jordi Bernadó, a designer with innovative ideas whose work transformed display windows and the sales process.

The Zara shop was a success, laying the foundations for the international expansion of the Inditex group.

Key Takeaway #1: Challenge your industry’s conventional wisdom to create a disruptive strategy

Disrupting an industry isn’t an easy task nor a frequent occurrence.

To do it successfully, you need to:

• Understand the prominent business mode of your industry and the forces that contributed to its development.
• Challenge the assumptions behind it and design a radically different business model.
• Develop ample space for experimentation and failures.

The odds of instantly conquering the industry might be low (otherwise, someone would have already done it), but you’ll end up with out-of-the-box ideas and a higher sensitivity to potential disruptors in your competitive arena.

Recommended reading:   How To Write A Strategic Plan + Example

How Zara’s supply chain strategy is at the core of its business strategy

According to many analysts, the Zara supply chain strategy is its most important innovative component.

Amancio Ortega and other senior members of the group disagree. Nevertheless, the Inditex  logistics strategy  is extraordinarily efficient and plays a crucial role in sustaining its competitive advantage. Most companies in the clothing retail industry take an average of 4-8 weeks between inception and putting the product on the shelf. The group achieves the same in an average of two weeks. That’s nothing short of extraordinary.

Let’s see how Zara developed its logistics and business strategy.

Innovative logistics: how Zara’s supply chain evolved

The logistics methods developed by companies are highly dependent on external factors.

Take, for example, infrastructure. In the early days of Zara, when it was expanding through Spain, the company considered using trains as a transportation system. However, the schedule couldn’t keep up with Zara’s needs, which had the goal of distributing products twice a week to its shops. So transportation by road was the only way.

However, when efficiency is a high priority, it shapes logistics processes more than anything else.

And for Zara, efficient logistics was – and still is – of the highest priority.

Initially, leadership tried outsourcing logistics, but the experiment failed and the company assigned a member of the house with a thorough knowledge of the company's operating philosophy to take charge of the project. The tactic of entrusting important big projects to employees imbued with the company’s philosophy became a defining characteristic.

So, one of Zara’s early strategic decisions was that each shop would make orders twice a week. Since the first store was opened, the company has had the shortest stock rotation times in the industry. That’s what drove the development of its logistics methods. The whole strategy behind Zara relied on quick production and distribution. And the proximity of manufacturing and distribution was essential for the model to work. So Zara had these two centers in the same place.

Even when the brand was expanding around the world, its logistics center remained in Arteixo, Spain, despite being a less-than-ideal location for international distribution. At some point, the growth of the brand, and Inditex as a whole, outpaced Arteixo’s capacity, and the decentralization question came up.

The debate was tough among leadership, but the arguments were strong. Decentralization was necessary because of:

• Safety and security.  If there was a fire or any other crippling disaster there (especially on a distribution day), then the company would face serious troubles on multiple fronts.
• Arteixo’s limitations.  The company’s center in Arteixo was reaching its capacity limits.

So the company decided to decentralize the manufacturing and distribution of its brands.

Initially, the group made the decision to place differentiated logistics centers where the management of its chain of stores was based, i.e. Bershka would have a different logistics center than Pull&Bear, although they were both part of the Inditex Group. That idea emerged after Massimo Dutti and Stradivarius became part of Inditex. Those brands already had that geographical structure, and since the group integrated them successfully into its strategy and logistics model, it made sense to follow the same pattern with its other brands.

Besides, the proximity of the distribution centers to the headquarters of each brand allowed them to consolidate them based on the growth strategy and purpose of each brand (more on this later).

But just a few years after that, the group decided to build another production center for Zara that forced specialization between the two Zara centers. The specialization was based on location, i.e. each center would manufacture products that would stock the shelves of stores in specific locations.

Zara’s  supply chain strategy  is so successful because it’s constantly evolving as the group adapts to external circumstances and its internal needs. And just like its iconic fashion, the company always stays ahead of the logistics curve.

Zara’s business strategy transcends its logistics innovations

Zara’s business strategy relies on four key pillars:

• Flexibility of supply
• Instant absorption of market demand
• Response speed
• Technological innovation

Zara is the only brand in the Inditex group that is concerned with manufacturing. It’s the first brand in the clothing sector with a complete vertical organization. And the production model requires the adoption or development of the latest technological innovations.

This requirement is counterintuitive in the clothing sector.

Most people believe that making big investments in a market as mature as clothing is a bad idea. But the Zara production model is very capital and labor intensive. The technological edge derived from that investment gave the company, in the early days, the capability to manufacture over 50% of its own products while maintaining an extremely high stock rotation frequency.

Zara might be one of the best logistics companies in the world, but that particular excellence is a supporting factor, or at least a highly contributing factor, to its successful business strategy.

Zara’s business strategy is so much more than its supply chain strategy.

The company created the “fast fashion” term and industry. When other companies were manufacturing their collections once per season, Zara was adapting its collection to suit what people asked for on a weekly basis. The idea was to offer fashionable items at a fair price and faster than everybody else.

Part of its cost-cutting strategic priority was its marketing strategy. Zara didn’t – and still doesn’t – advertise like the rest of the clothing industry. Its marketing strategy starts with choosing the location of the stores and ends with advertising that the sales period has started. In the early years of the brand’s expansion, Amancio would visit potential store locations himself and choose the site to build the Zara shop.

The price was never an issue. If the location was in a commercial center, Zara would build its store there no matter how high the cost was because the company expected to recoup it quickly with increased sales.

Zara’s marketing is its own stores.

The strategy of Zara and her Inditex sisters

Despite Zara’s success (or because of it), Amancio Ortega created – or bought – multiple other brands that he included in the Inditex group, each one with a specific purpose.

• Zara  was targeting middle-class women. ‍
• Pull&Bear  was targeting young people under twenty-five years old with casual clothing. ‍
• Bershka  was targeting rebel teens, especially girls, with hip-hop-style clothing. ‍
• Massimo Dutti  was targeting both sexes with more affluence. ‍
• Stradivarius  was competing with Bershka, giving Inditex two major brands in the teenage market. ‍
• Oysho  was concentrating on women's lingerie. ‍
• Zara Home manufactures home textiles and decor.

Pull&Bear  was initially targeting young males between the ages of 14 and 28. Later it extended to young females of the same age and focused on selling leisure and sports clothing. It has the slowest stock turnaround time in the group.

Bershka’s  target group was girls between 13 and 23 years of age with highly individualized tastes. Prices were low, but the quality average. Almost a fiasco in the beginning, it underwent a successful strategic turnaround becoming today one of the biggest growth opportunities for the group. And out of all the Inditex chains, Bershka has the most creative designs.

Massimo Dutti  was the first retail brand Amancio bought and didn’t create himself. Its strategy is very different from Zara, producing high-quality products and selling them at a high price. It’s an extension of the group’s offer to the higher end of the price spectrum in the fashion industry. It’s also the only Inditex chain brand that advertises regularly.

Stradivarius  was the second acquired brand, with the purchase being a defensive move. The chain shares the same target group with Bershka, making it, to this day, a direct competitor.

Oysho  started as an underwear and lingerie company. Its product lines evolved to include comfortable night and homewear along with swimwear and a very young children’s line. The brand’s strategy was aggressive from its conception, opening 286 stores in its first six years of existence.

Zara Home  is the youngest brand in the Group and the only one outside the clothing sector, though still in the fashion industry. It was launched with the least confidence and with immense prior research. An experiment to extend the Zara brand beyond clothing, it was based on the conservative view that Zara could extend its product categories only to textile items for the home. But it turned out that customers were more accepting of Zara Home selling a wide variety of domestic items. So the brand made a successful strategic pivot.

Key Takeaway #2: The right people are more important than the best strategy

It might not be obvious in the story, but a key reason for Zara's and Inditex’s success has been the people behind them.

For example, a vast number of people in various positions from inside the group claim that Inditex cannot be understood without Amancio Ortega. Additionally, major projects like the development of Zara’s logistics systems and the group's international expansion had such a success precisely because of the people in charge of them.

Zara’s radically different model was a breakthrough because:

• Its leadership had a clear vision and a real strategy to execute it.
• People with a deep understanding of the company’s philosophy led Its largest projects.

Sustainability: Zara’s strategy to make fast fashion sustainable

Building a sustainable business in the fast fashion industry is a tough nut to crack.

To achieve it, Inditex has made sustainability a cornerstone of its business model. Its strategy revolves around the values of  collaboration ,  transparency,  and  innovation . The group’s ambition is to make a positive impact with a vision of prosperity for the planet and its people by transforming its value chain and industry.

Inditex’s sustainability commitments and strategy to achieve them

Inditex has developed a sustainability roadmap that extends up to 2040 with ambitious goals. Specifically, it has committed to

• 100% consumption of renewable energy in all of its facilities by 2022 (report pending).
• 100% of its cotton to originate from more sustainable sources by 2023.
• 100% of its man-made cellulosic fibers to originate from more sustainable sources by 2023.
• Zero waste from its facilities by 2023.
• 100% elimination of single-use plastic for customers by 2023.
• 100% collection of packaging material for recycling or reuse by 2023.
• 100% of its polyester to originate from more sustainable sources by 2025.
• 100% of its linen to originate from sustainable sources by 2025.
• 25% reduction of water consumption in its supply chain by 2025.
• Net zero emissions by 2040.

The group’s commitments extend beyond environmental issues to how its  manufacturing and supplying partners conduct their business . To bring its strategy to fruition, it has set up a new governance and management structure.

The Board of Directors is responsible for approving Inditex’s sustainability strategy. The  Sustainability Committee  oversees and controls all the proposals around the social, environmental, health, and safety impact of the group’s products, while the  Ethics Committee  makes sure operations are compliant with the rules of conduct. There is also a  Social Advisory Board  that includes external independent experts that advises Inditex on sustainability issues.

Finally, Javier Losada, previously the group’s Chief Sustainability Officer and now promoted to Chief Operations Officer, will be leading the sustainability transformation of the group. Javier Losada first joined Inditex back in 1993 and ascended its rank to reach the C-suite.

Inditex is dedicated to its commitment to reducing its environmental impact and seems to be headed in the right direction. The only question is whether it’s fast enough.

Key Takeaway #3: Integrating sustainability with business strategy is a present-day necessity

Governments and international bodies around the world are implementing more stringent environmental regulations, forcing companies to commit to ambitious goals and developing a realistic strategy to achieve them.

The companies that are impacted the least are those that always had sustainability as a  high priority .

From the companies that require significant changes in their operations to comply with the new regulations, only those who  integrate  sustainability into their business strategy and model will succeed.

Why is Zara so successful?

Zara is the biggest Spanish clothing retailer in the world based on sales value. Its success is due to its fast fashion strategy that is based on a strong supply chain and quick market feedback loops.

Zara's customer-centric approach places a strong emphasis on understanding and responding to customer needs and preferences. This is reflected in the company's product design, marketing, and customer service strategies.

Zara made fashionable clothes accessible to the middle class.

Zara’s vision guides its future

Zara's vision, as part of the Inditex Group, is to create a sustainable fashion industry by promoting responsible consumption and production, respecting the environment and people, and contributing to the communities in which it operates.

The company aims to offer the latest fashion trends to its customers at accessible prices while continuously innovating and improving its operations and processes.

Growth by numbers (Inditex)

The Secret of Zara’s Success: A Culture of Customer Co-creation

Zara is one of the world’s most successful fashion retail brands – if not the most successful one. With its dramatic introduction of the concept of “fast fashion” retail since it was founded in 1975 in Spain, Zara aspires to create responsible passion for fashion amongst a broad spectrum of consumers, spread across different cultures and age groups. There are many factors that have contributed to the success of Zara but one of its key strengths, which has played a strong role in it becoming a global fashion powerhouse as it is today, is its ability to put customers first. Zara is obsessed with its customers, and they have defined the company and the brand’s culture right from the very beginning.

The Zara brand offers men and women’s clothing, children’s clothing (Zara Kids), shoes and accessories. The sub-brand Zara TRF offers trendier and sometimes edgier items to younger women and teenagers.

The Zara brand story

Zara was founded by Amancio Ortega and Rosalía Mera in 1975 as a family business in downtown Galicia in the northern part of Spain. Its first store featured low-priced lookalike products of popular, higher-end clothing and fashion. Amancio Ortega named Zara as such because his preferred name Zorba was already taken. In the next 8 years, Zara’s approach towards fashion and its business model gradually generated traction with the Spanish consumer. This led to the opening of 9 new stores in the biggest cities of Spain.

In 1985, Inditex was incorporated as a holding company, which laid the foundations for a distribution system capable of reacting to shifting market trends extremely quickly. Ortega created a new design, manufacturing, and distribution process that could reduce lead times and react to new trends in a quicker way, which he called “instant fashion”. This was driven by heavy investments in information technology and utilising groups instead of individual designers for the critical “design” element.

In the next decade, Zara began aggressively expanding into global markets, which included Portugal, New York (USA), Paris (France), Mexico, Greece, Belgium, Sweden, Malta, Cyprus, Norway and Israel. Today, there is hardly a developed country without a Zara store. Zara now has 2,264 stores strategically located in leading cities across 96 countries. It is no surprise that Zara, which started off as a small store in Spain, is now the world’s largest fast fashion retailer and is the flagship brand of Inditex. Its founder, Amancio Ortega, is the sixth richest man in the world according to Forbes magazine.

Today, Inditex is the world’s largest fashion group with more than 174,000 employees operating more than 7,400 stores in 202 markets worldwide including 49 online markets. The revenues of Inditex was USD 23.4 billion in 2019. The other fashion brands in the Inditex portfolio are:

Zara Home: Home goods and decoration objects founded in 2003. Operating in 183 markets, 70 of them with stores.

Pull & Bear: Casual laid-back clothing and accessories for the young founded in 1991. Operates in 185 markets, 75 of them with stores.

Massimo Dutti: High end clothing and accessories for cosmopolitan men and women acquired in 1995. Operates 186 markets, 74 of them with stores.

Bershka: Blends urban styles and modern fashion for young women and men founded in 1998. Operates in 185 markets, 74 of them with stores.

Stradivarius: Casual and feminine clothes for young women acquired in 1999. Operates 180 markets, 67 of them with stores.

Oysho: Lingerie, casual outerwear, lounge wear and original accessories founded in 2001. Operating in 176 markets, 58 of them with stores.

Uterqüe: High-quality fashion accessories at attractive prices founded in 2008. Operating in 158 markets, 17 of them with stores.

Apart from fashion brands, Amancio Ortega has also set up a global real estate investment fund, Pontegadea Inversiones, which manages corporate offices across 9 countries including United States (Seattle), Britain (London), France (Paris), Canada, Italy, South Korea. These corporate properties house large companies including Facebook, Amazon and Apple, and prestigious luxury and retail brands.

The Zara brand strategy

In 2019, Zara was ranked 29th on global brand consultancy Interbrand’s list of best global brands. Its core values are found in four simple terms: beauty, clarity, functionality and sustainability.

The secret to Zara’s success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed. This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.

It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors. It quickly became the people’s favourite brand, especially with those who want to keep up with fashion trends. Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards.

The media often quotes that the brand produces “freshly baked clothes”, which survive fashion trends for less than a month or two. Zara concentrates on three areas to effectively “bake” its fresh fashions:

Shorter lead times (and more fashionable clothes): Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time (e.g. specific spring/ summer or autumn/ winter collections, recent trend that is catching up, sudden popularity of an item worn by a celebrity/ socialite/ actor/ actress, latest collection of a top designer etc.). While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.

Lower quantities (through scarce supply): By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items (and more specifically luxury), the lesser the availability, the more desirable an object becomes. Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat.

More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12,000 a year. Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer.

Zara only allows its designs to remain on the shop floor for three to four weeks. This practice pushes consumers to keep visiting the brand’s stores because if they were just a week late, all the clothes of a particular style or trend would be gone and replaced with a new trend. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.

In the following sections, the key components of Zara’s winning formula in the fashion retailing industry are illustrated.

Customer co-creation: Zara’s principal designer is the customer

Zara’s unrelenting focus on the customer is at the core of the brand’s success and the heights it has achieved today. There was a fascinating story around how Zara co-creates its products leveraging its customers’ input. In 2015, a lady named Miko walked into a Zara store in Tokyo and asked the store assistant for a pink scarf, but the store did not have any pink scarves. The same happened almost simultaneously for Michelle in Toronto, Elaine in San Francisco, and Giselle in Frankfurt, who all walked into Zara stores and asked for pink scarves. They all left the stores without any scarves – an experience many other Zara fans encountered globally in different Zara stores over the next few days.

7 days later, more than 2,000 Zara stores globally started selling pink scarves. 500,000 pink scarves were dispatched – to be exact. They sold out in 3 days. How did such lightning fast stocking of pink scarves happen?

Customer insights are the holy grail of modern business, and the more companies know about their customers, the better they can innovate and compete. But it can prove challenging to have the right insights, at the right time, and have access to them consistently over time. One of the secrets to Zara’s success includes using Radio Frequency Identification Technology (RFID) in its stores. The brand uses cutting-edge systems to track the location of garments instantly and makes those most in demand rapidly available to customers. Additionally, it helps to reduce inventory costs, provides greater flexibility to launch new designs, and allows fulfillment of online orders with stock from stores nearest to the delivery location thereby reducing delivery costs.

Another secret of Zara’s success is that the brand trains and empowers its store employees and managers to be particularly sensitive to customer needs and wants, and how customers enact them on the shop floors. Zara empowers its sales associates and store managers to be at the forefront of customer research – they intently listen and note down customer comments, ideas for cuts, fabrics or a new line, and keenly observe new styles that its customers are wearing that have the potential to be converted into unique Zara styles. In comparison, traditional daily sales reports can hardly provide such a dynamic updated picture of the market. The Zara empire is built on two basic rules: “to give customers what they want”, and “get it to them faster than anyone else”.

Due to Zara’s competitive customer research capabilities, its product offerings across its stores globally reflect unique customer needs and wants in terms of physical, climate or cultural differences. It offers smaller sizes in Japan, special women’s clothes in Arab countries, and clothes of different seasonality in South America. These differences in product offerings across countries are greatly facilitated by the frequent interactions between Zara’s local store managers and its creative team.

In the fashion world, a trend starts small, but develops fast. Zara employees are trained to listen, watch and be attentive to even the smallest seismographic signals from their customers, which can be an initial sign that a new trend is taking shape. Zara knows that the quicker it can respond, the more likely it is to succeed in supplying the right fashion merchandise at the right time across its global retail chain. Zara has set up sophisticated technology driven systems, which enable information to travel quickly from the stores back to its headquarters in Arteixo in Spain, enabling decision makers to act fast and respond effectively to a developing trend. Its design teams regularly visit university campuses; nightclubs and other venues to observe what young fashion leaders are wearing. In its headquarters, the design team uses flat-screen monitors linked by webcam to offices in Shanghai, Tokyo and New York (the leading cities for fashion trends), which act as trend spotters. The ‘Trends’ team never goes to fashion shows but tracks bloggers and listens closely to the brand’s customers.

The fact that Zara’s designers and customers are inextricably linked is a crucial part of the brand strategy. Specialist teams receive constant feedback on the decisions its customers are making at every Zara store, which continuously inspires the Zara creative team.

Zara’s super-efficient supply chain

Zara’s highly responsive, vertically integrated supply chain enables the export of garments 24 hours, 365 days of the year, resulting in the shipping of new products to stores twice a week. After products are designed, they take around 10 to 15 days to reach the stores. All clothing items are processed through the distribution center in Spain, where new items are inspected, sorted, tagged, and loaded into trucks. In most cases, clothing items are delivered to stores within 48 hours. This vertical integration allows Zara to retain control over areas like dyeing and processing and have fabric-processing capacity available on-demand to provide the correct fabrics for new styles according to customer preferences. It also eliminates the need for warehouses and helps reduce the impact of demand fluctuations. Zara produces over 450 million items and launches around 12,000 new designs annually, so the efficiency of the supply chain is critical to ensure that this constant refreshment of store level collections goes off smoothly and efficiently.

Here are some of the characteristics of Zara’s supply chain that highlight the reasons behind its success:

Frequency of customer insights collection: Trend information flows daily into a database at head office, which is used by designers to create new lines and modify existing ones.

Standardization of product information: Zara warehouses have standardised product information with common definitions, allowing quick and accurate preparation of designs with clear manufacturing instructions.

Product information and inventory management: By effectively managing thousands of fabric, trim and design specifications and their physical inventory, Zara is capable of designing a garment with available stock of required raw materials.

Procurement strategy: Around two-thirds of fabrics are undyed and are purchased before designs are finalized so as to obtain savings through demand aggregation.

Manufacturing approach: Zara uses a “make and buy” approach – it produces the more fashionable and riskier items (which need testing and piloting) in Spain, and outsources production of more standard designs with more predictable demand to Morocco, Turkey and Asia to reduce production cost. The more fashionable and riskier items (which are around half of its merchandise) are manufactured at a dozen company-owned factories in Spain (Galicia), northern Portugal and Turkey. Clothes with longer shelf life (i.e. the one with more predictable demand patterns), such as basic T-shirts, are outsourced to low cost suppliers, mainly in Asia. Even when manufacturing in Europe, Zara manages to keep its costs down by outsourcing the assembly workshops and leveraging the informal economy of mothers and grandmothers.

Distribution management: Zara’s state-of-the-art distribution facility functions with minimal human intervention. Optical reading devices sort out and distribute more than 60,000 items of clothing an hour.

In addition to these supply chain efficiencies, Zara can also modify existing items in as little as two weeks. Shortening the product life cycle means greater success in meeting consumer preferences. If a design does not sell well within a week, it is withdrawn from shops, further orders are canceled and a new design is pursued. Zara closely monitors changes in customer preferences towards fashion. It has a range of basic designs that are carried over from year to year, but some in-vogue, high fashion, inspired by latest trends items can stay on the shelves for less than four weeks, which encourages Zara fans to make repeat visits. An average high-street store in Spain expects customers to visit thrice a year, but for Zara, the expectation is that customers should visit around 17 times in a year.

This expectation for such a high frequency of repeat visits is evidence of Zara’s confidence that it is keeping on top of changing consumer needs and preferences and is helping them shape their ideas, opinions and taste for fashion. In reality, Zara is also helping in giving birth to new trends through its stores or even helping in extending the longevity of some seasonal styles by offering affordable lines.

Sustainability at the core of Zara’s operations

Sustainability has been a hot topic in business for the last decade and is now quickly becoming a must-have hygiene factor for companies that want to resonate with and win the loyalty of its global customers. For Inditex, this means having a commitment to people and the environment.

Commitment to people: Inditex ensures that its employees have a shared vision of value built on sustainability through professional development, equality and diversity and volunteering. It also ensures that its suppliers have fundamental rights at work and by initiating continuous improvement programs for them. Inditex also spends over USD 50 million annually on social and community programmes and initiatives. For example, its “for&from” programme which started in 2002 has enabled the social integration of people with physical and mental disabilities, by providing over 200 stable employment opportunities across 15 stores.

Commitment to environment: Being in a business where it taps on natural resources to create its products, Inditex makes efforts to ensure that the environmental impact of its business complies with UNSDGs (United Nations Sustainable Developmental Goals). Inditex has pledged to only sell sustainable clothes by 2025 and that all cotton, linen and polyester sold will be organic, sustainable or recycled. The company also runs Join Life, a scheme which helps consumers identify clothes made with more environmentally friendly materials like organic cotton and recycled polyester.

Additionally, Inditex takes wide-ranging measures to protect biodiversity, reduce its consumption of water, energy and other resources, avoid waste, and combat climate change. For example, it has outlined a Global Water Management Strategy, specifically committing to zero discharge of hazardous chemicals. It has also been expanding its waste reduction programme through which customers can drop off their used clothing, footwear and accessories at collection points in 2,299 stores in 46 markets today.

Zara’s culture: The word “impossible” does not exist

Zara has a very entrepreneurial culture, and employs lots of young talent who quickly climb through the ranks of the company. Zara promotes approximately two-thirds of its store managers from within and generally experiences low turnover. The brand has no fear in giving responsibility to young people and the culture encourages risk-taking (as long as learning happens) and fast implementation (the mantra of fashion).

Top management gives its store managers full liberty and control over their store’s operations and performance with clearly set cost, profit and growth targets with a fixed and variable compensation scheme. The variable component amounts to up to half of the total compensation – making store level employees heavily incentive-driven.

In addition, once an employee is selected for promotion, his or her store develops a comprehensive training program for that individual with the human resources department, which is followed up by periodic supplemental training – reflecting Zara’s commitment to talent development. The organizational structure is also flat with only a few managerial layers.

Customers are the most important source of information for Zara, but like any other fashion brand, Zara also employs trend analysts, customer insights experts, and retains some of the best talents in the fashion world. The creative team of Zara comprises of over 200 professionals. They all embody and enact the corporate philosophy that the word “impossible” does not exist in Zara.

For example, while many companies struggle with long lead times in discussions and decision making, Zara gets around this challenge by getting various business functions to sit together at the headquarters and also by encouraging a culture (through structures and processes) where people continuously talk to each other. The sales and marketing teams who receive trend feedback talk regularly with designers and merchandisers. It is important that there is constant two-way communication so that sales and marketing teams can talk about new lines to customers and designers / merchandisers have a strong visibility of customers’ needs and preferences enacted at a store level. The production scheduling is also closely coordinated so that there is no time wasted on approvals. The design team structure is very flat and focuses on careful interpretation of catwalk trends that are suitable for the mass market – the Zara customer. The design and product development teams, who are based in Spain, work closely to produce 1,000 new styles every month.

Besides being customer centric, another important reason why Zara’s employee strategy is so successful is the fact that it empowers its staff to make decisions based on data. Zara has no chief designer. All its designers are given unparalleled independence in approving products and campaigns, based on daily data feeds indicating which styles are popular.

Due to the unwavering focus on the customer, the entire business model is designed in such a way that the pattern of needs for the finished goods dictate the terms of the production process to follow, instead of having the raw materials determine the nature of the production process – something that is very rare in multinational companies of similar scale.

In sum, the entire brand culture is extremely customer-centric, which has been and continues to be a significant contributor to Zara’s success.

The Zara brand communication strategy

Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. It spends a meager 0.3 per cent of sales on advertising compared to an average of 3.5 per cent by competitors. The brand’s founder Amancio has never spoken to the media nor has in any way advertised Zara. This is indeed the mark of a truly successful brand where customers appreciate and desire the brand, which is over and above product level benefits but strongly driven by the brand experience.

Instead of advertising, Zara uses its store location and store displays as key elements of its marketing strategy. By choosing to be in the most prominent locations in a city, Zara ensures very high customer traffic for its stores. Its window displays, which showcase the most outstanding pieces in the collection, are also a powerful communication tool designed by a specialized team. A lot of time and effort is spent designing the window displays to be artistic and attention grabbing. According to Zara’s philosophy of fast fashion, the window displays are constantly changed. This strategy goes down to how the employees dress as well – all Zara employees are required to wear Zara clothes while working in the stores, but these “uniforms” vary across different Zara stores to reflect socio-economic differences in the regions they were located. This effectively communicates Zara’s focus on the mass market, yet another detail that reflects its close attention on the customer.

To tap into the emerging e-commerce trend, Zara launched its online boutique in September 2010. The website was initially available in Spain, the UK, Portugal, Italy, Germany and France, and was extended to Austria, Ireland, the Netherlands, Belgium and Luxembourg. Over the next 3 years, the online store became available in the United States, Russia, Canada, Mexico, Romania, and South Korea. In 2017, Zara’s online store launched in Singapore, Malaysia, Thailand, Vietnam and India. More recently in March 2018, the brand launched online in Australia and New Zealand. Today, its online store is available in 66 countries. As of 2019, online sales grew to constitute 14% of Zara’s total global sales.

As a fast fashion retailer, Zara is definitely aware of the power of e-commerce and has built up a successful online presence and high-quality customer experience.

Zara’s future brand and business challenges

Charting a new digital strategy in the COVID-19 crisis: With its primarily offline shopping experience, Zara has been hard hit by global store closures amid the COVID-19 crisis in 2020, with sales falling 44% year-on-year in Q1 2020 and the company reporting a net loss of USD 482 million. Inditex has announced that it will be closing between 1,000 to 1,200 stores worldwide, focusing on smaller ones in Asia and Europe. While online sales have been encouraging – Zara’s online sales for Q1 2020 grew 50% – it is not enough to mitigate the damage.

Amancio Ortega plans to spend USD 1.1 billion scaling up its digital strategy and online capabilities by 2022 and a further USD 2 billion in stores to improve integration between online and offline for faster deliveries and real-time tracking of products. Its goal is for online sales to constitute at least 25% of total sales. To achieve this goal, Zara will need to think of new ways to engage its customers digitally, not just through its online store, but through online communities and social media.

Mobile commerce: Zara woke up late to the potential of mobile commerce and needs to catch up fast with competitors. Different forms of market analysis strongly point towards a scenario wherein spends on mobile commerce will overtake desktop based ecommerce by 2021. On an average, most brands currently get about 15-20% of their website traffic via mobile devices and this is growing rapidly. With the deluge of investments planned in the mobile commerce space and Zara’s competitors already having an advantage on the mobile front, Zara needs to quickly make mobile shopping not only an effortless experience but also a delightful one.

Price is not an advantage anymore: Offering the latest fashion lines at affordable prices continues to be a strategic advantage for Zara, but cannot continue to be the only one. Across the world, and closer to home in Europe, competitors are cutting prices and refining their business models to cut the competitive advantage that Zara has. Swedish fast fashion retailer H&M, which is placed #30 just behind Zara on Interbrand’s list, launched an online store in Spain in 2014 to take own Zara in its home turf. Again in its home market, it now faces increasing competition from brands like Mango, which cut prices and started focusing on fashion segments in which Zara enjoyed popularity. In addition to H&M and Mango, other competitors like Gap and Topshop are all fighting for a share of the fast fashion retail market pie. Also with the rise of e- and m-commerce, the number of indirect competitors has mushroomed. We now have online fashion aggregators that bring in multiple brands under one single online platform and cut through borders and price segments. Some examples of such aggregators who are doing well include Lyst, Farfetch, Spring and Yoox Net-a-Porter.

For Zara to effectively compete and maintain its strategic advantage, the focus needs to shift away from price but towards quality. Even today the Zara brand enjoys high levels of appeal, which is evident by the serpentine queues outside its stores when it launches in new markets. There is a need for Zara to start investing in building a strong brand positioning and aggressively communicate it. Additionally, Zara needs to adopt, imbibe and leverage social media and digital platforms in its advertising and communication strategies deeper going forward.

Need for marketing strategy to evolve: As discussed above, Zara does not engage in advertising and instead uses its store locations as a marketing strategy. However, brand communication is crucial in attracting new customers to the brand to support its growth. Without advertisements, Zara relies heavily on word of mouth or social media. This causes the perception of potential customers towards Zara to be heavily shaped by family and friends, which may not be accurate. In addition, Zara’s social media platforms such as Facebook and YouTube exists merely as a feed for updates rather than a platform that consumers can interact with. Its videos on YouTube are also seeing very low viewership in comparison with its follower count, which is not ideal as videos are a powerful medium for brands in the fashion industry. This is a gap that Zara needs to plug immediately as the reach and impact of social media marketing gets stronger. As Zara’s target customer segments start using more social and digital platforms for communication and for sharing their lives, it is important for Zara to have a strong presence on such platforms.

Family business planning and succession: With various technological and business disruptions in the past decade, leadership in the 21st century will be influenced by constant change, geopolitical volatility, and economic and political uncertainty. For Zara’s first 36 years in business, the brand has been controlled by its founder Amancio Ortega, who is currently 85 years old. In 2011, Ortega passed the chairman title on to Pablo Isla, Zara’s Deputy CEO since 2005.

Succession is currently taking place at Inditex and generational transfer will empower the next generation in one of the wealthiest business families in the world. Pablo Isla, chairman of Inditex since 2011, steps down in April 2022, and 37-year-old Marta Ortega will take over as chair in the company that her father Amancio Ortega started with his ex-wife Rosalia in 1975 in Galicia, Spain. Marta Ortega is the youngest of Amancio Ortega’s three children.

Marta Ortega will become a non-executive chair, and will head the Inditex group, the portfolio of companies including supervision of strategic operations. She has been with Inditex for over 15 years, starting out working in a Zara store at King’s Road in London, and as an assistant at the portfolio brand Bershka. In recent years, Marta Ortega has been involved in strategy, brand building and fashion proposals for the Inditex portfolio of brands.

Marta Ortega will not be involved in daily management of the financial performance to shield her and the family from too much public exposure. Amancio Ortega has always been known for appearing less in public and avoiding any media exposure. His photo did not appear in the Inditex annual report until 2000. Marta Ortega seems to be more open to media interviews and public appearance, and granted her first interview with Wall Street Journal in August 2021.

Óscar García Maceiras will be appointed CEO of Inditex in April 2022 and will run the daily business. He joined Inditex in March 2021 and is currently general secretary of Inditex and secretary of the board.

The sharing of executive powers between the chair and the CEO to enhance corporate governance has historically been less common in the corporate world in Spain but is often seen in Europe and elsewhere. Inditex will therefore return to dual leadership in April 2022 with Marta Ortega as chair and García Maceiras as CEO, the very same structure that ran for six years with Amancio Ortega as chairman and Pablo Isla as CEO until 2011.

Despite working at Inditex for over 15 years, Marta Ortega Pérez does not hold an office. Her father, Amancio Ortega, never had an office either and always preferred to work in an open space in the fashion design department to be close to teams around him.

To effectively manage the above changes, Zara’s next generation leadership needs to step up to the succession planning challenge by being resilient in staying true to the brand promise to consistently produce “freshly baked clothes” for its fashion-forward consumers, and by balancing both short-term (profitability) and long-term goals (growing the business and reaching more consumers).

More importantly, despite Zara’s global reach and consequent product standardization, it needs to constantly find new ways to serve local fashion needs and preferences of its consumers across the globe. This will be a challenge for the brand’s leadership in the next decade.

Conclusion: Take Zara’s cue and listen to your customers

The Zara brand was born with a keen eye on its customer – its ability to understand, predict and deliver on its customers’ preferences for trendy fashion at affordable prices. In addition to its effective supply chain, the brand’s ability to have its customers co-create designs is unique and provides it with a competitive advantage. Most fashion trends often start unexpectedly, originate from uncommon places and grow out of nowhere. With reference to the pink scarf trend mentioned above, it could have been that Hollywood actress Scarlett Johansson had worn a pink scarf to a charity gala the evening before in Los Angeles, or golf star Michelle Wie had showcased a pink scarf at a celebrity tournament in Asia. The fact that Zara was able to quickly jump on to this trend and provide hundreds of customers with the pink scarves they desperately wanted to buy.

In a world swamped with Big Data, and yet more collected at an even more rapid pace than before, brands still need to be careful and observant. Big Data does not provide answers to all business challenges, and it may be too hyped to be considered as the Holy Grail.

One of the secrets behind Zara’s global success is the culture and the respect for the fact that no one is a better, authentic trendsetter than the customer himself or herself – and this philosophy needs to be continually reflected in all its business strategies going forward.

So, why not consult your customers for a start? Zara always does.

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May 02, 2012

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ZARA. Baki USLU Barış BOZOĞLU. Outline. History of Zara The Textile and Apparel Industry The Zara Model The Problem (outsourcing benefits and risks) Questions. History of ZARA. 1963 The founder of Zara, Amancio Ortega Ganoa Started his career as a clerk 1975

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ZARA Baki USLU Barış BOZOĞLU

Outline • History of Zara • The Textile and Apparel Industry • The Zara Model • The Problem (outsourcing benefits and risks) • Questions

History of ZARA • 1963 The founder of Zara, Amancio Ortega Ganoa Started his career as a clerk • 1975 First Zara store opened in La Coruna, Spain • 1989 There were 82 Zara stores in Spain Ortega began international expansion in Portugal, Paris, New York

In 2001 Zara was a world brand with 1200 stores in all around the world • Most of the products were produced in Spain

The Textile and Apparel Industry • Global textile and apparel industry was 5.7% of the whole manufacturing output of the world.(1999) • The clothing market in the major countries $580 bilion • 40% labor cost in textile • 60% labor cost in apparel • Apparel production is related to the fabric

The Textile and Apparel Industry in the E.U and Spain • Textile and apparel workers consist of 7.6% percent of total E.U manufacturing workers • Italy 31% • U.K 15% • Germany 14% • France 13% • Spain 9% • Portugal 6%

E.U is the second textile exporter in the world Spain • Spanish textile and apparel industry was comprimised mostly of many very small firms and had not been strong in R&D. • Wages increase

THE ZARA MODEL Zara’s Planning and Design Cycle • Designers start to work on designing collection a year ago for initial collection • There are 200 designers • They made 11.000 designs every year

Patterns and Samples • In some cases designs made by 3rd party suppliers

Production Sourcing and Scheduling • 50% of the garments are outsourced • Garments with fashion styling manufactured in Spain basics and knits are outsourced • Zara’s season inventory • In the beginning of the season 60% of the collection is ready while others are 80% • 25% of the season’s collection is stored in stores in the beginning of the season • 85% of the inhouse production is that season’s production

In-house Manufacture

In-house Manufacture • 40% of fabric produced in-house • Cutting • Sewing

In Season Production • Modified in response to market demand • If an item was not selling • If an item sells • If a product sell very well • If a product’s sale is not satisfactory

Distribution • Zara’s distribution center in Arteixo • New distribution center in Zaragoza • Shipment

Retailing • Store managers decide for the items from the distribution center • Stores receive new inventory several times a week • Sale

Pricing Strategy • Pricing strategy= cost + target margin • Single Tag to Bar Code

Growth Strategy • Stores operated by Zara, franchise, alliances • USA market

Sourcing Dilemma? • Increase outsourcing vs. keeping current model

Benefits and Risks of Outsourcing • Economies of Scale; • Manufacturing costs is reduced with outsourcing by aggregating orders from different buyers • Focus on Core Competency; • A careful decide on what to outsource helps the buyer to focus on its core competency • Zara has the ability to give a quick response

Increased Flexibility; • Ability to better react to changes in customer demand • Ability to use the supplier’s technical knowledge to accelerate product development cycle time • Ability to use the supplier’s technical knowledge to accelerate product development cycle time • Conflicting Objectives; • Flexibility vs. cost reduction

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Transcript: ZARA. GROUP 1: MEUNIER LUC POTLURI SUDHA VARSHINI SUGIARTO IGNATIUS HANNY WIBOWO DHIYA NAJMILIA YIN HUIZE OUR COMPANY Zara SA, stylized as ZARA, is a Spanish apparel retailer based in Arteixo, A Coruña, Galicia, Spain. The company specializes in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and perfumes. It is the largest company in the Inditex group, the world's largest apparel retailer. OUR COMPANY Our Products Products: Zara stores have men's and women's clothing as well as children's clothing (Zara Kids). Zara Home designs are in European stores. Most Zara customers range from 18- mid 30s years old. After products are designed, they take 10 to 15 days (about 2 weeks) to reach the stores. All the clothing is processed through the distribution center in Spain. Latest items are inspected, sorted, tagged, and loaded into trucks. In most cases, the clothing is delivered within 48 hours (about 2 days). Zara produces over 450 million items per year. Zara also includes accessories, shoes, swimwear, beauty, and perfumes. In May 2021, Zara launched its first beauty line, ZARA Beauty. Assets: The company has 1,866 suppliers and 7,232 factories all over the world. There are 2259 Zara stores in 96 countries. Zara introduced HighAF in 2021. In early 2020 due to the COVID-19 pandemic, ZARA stores worldwide had closed temporarily due to restrictions. However, in April 2020, ZARA owner ramped up shipment to Asia as China ended lockdown after 76 days. Assets & Nature of Business Nature of business: Manufacturing fast fashion businesses produce more than 30,000 designs per year. The entire process from factory to shop floor is coordinated from Zara’s headquarters by using information systems. The point‐of‐sale (POS) system on the shop floor records the information from each sale, and the information is transmitted to headquarters at the end of each business day. Using a handheld device, the Zara shop managers also report daily to the designers at headquarters to let them know what has sold and what the customers wanted but could not find. The information is used to determine which product lines and colors should be kept and which should be altered or dropped. The designers communicate directly with the production staff to plan for the incredible number of designs—more than 30,000—that will be manufactured every year. PERFORMANCE PERFORMANCE Specifics Specifics Regional Performance Regional Performance National Performance National Performance YOUR JOURNEY Partner Up Day 4 Day 2 Day 5 Today Day 3 TRAINING TIMELINE Certification Certification Results Results PEOPLE Name, title Name, title Name, title PEOPLE

ZARA Presentation

Transcript: Competitive Market: ZARA is a Spanish Clothing and Accessories retailer based in Arteixo, Galicia. It was founded in 1975 by Amancio Ortega and Rosalia Mera, the former being the richest man in the world of 2016. SWOT ANALYSIS AND Weakness: High labor cost in various countries Intense competition Diversified Market Share Fast Fashion: Fast delivery affordable Price, Latest fashion trends (Fashion imitator) Strong Supply Chain Strategic Location: Close to Luxury Brands (Ex., VR Surat) It has 1,808 Stores in 88 countries. With the motto of spending less on advertising and more on selecting a prime location, ZARA has been a Marketing pioneer and never fails to maintain it's level of sophistication. Quality: Differs from America between China Expand Market Reach Diversify Market Segments Improve online Marketing All about your favorite brand Opportunity: Threats: Strengths: What makes it stand out of the crowd? Prime Location with Organised Shelves. Presented by: Priyanka Ahuja Shubham Bansal Sagar Chawla Yash Jain

Transcript: The similarities between Zara and Louis can be attributed to fast fashion's manipulation of their marketing mix strategies to be similar to prestigious luxury brands. Such as limited edition pieces or lines, and collaborations with high end designers. Zara wants to appear special in the same way Louis Vuitton does, but at a much more fast paced and cheap way. Zara started adjusting their manufacturing process as early as the 1980's. Their goal was to jump onto new trends as quickly as possible. Zara and Louis Vuitton Zara today Zara has clothing and accessories. They try to offer their customers with as many options as possible. In today's Zara stores a customer can go into their store and find everything they need for a complete wardrobe. Their customer could hypothetically only shop at Zara for their wardrobe and have everything they would ever need. Zara Today Cont. Today, Zara has grown into the world's largest fashion retailer. It is owned by the Inditex group. The Inditex group is also owned by Amancio Ortega (Spain's richest man, world's 3rd richest man) Pablo Isla is the current Chairman. The group designs, manufactures, and distributes all of their products themselves. Ortega Inditex Global Presence Change in the marketplace cont Zara is a spanish brand that was founded in 1975 by Amancio Ortega and Rosalía Mera. It's first store was located in downtown La Coruña, Galicia, Spain. It was originally named Zorba, but there was a bar located nearby that had the same name. The signs were already made so they came up with Zara with the letters they had available. Zara continues to sore above their competitors and brings in billions in profit a year. They are considered the leader in creating "fast fashion" and the industry watches closely to see what they will do next. From the start Zara produced lower priced designs that looked intentionally similar to higher priced brands. This proved to be very profitable for the first Zara and they started opening more stores throughout Spain. In 1980 Zara began moving to Portugual and their international expansion only continued to grow after that, making their brand available in over 88 countries by the mid-1990's. Beginnings Beginnings cont. Zara in the middle, compared to Celine Change in the marketplace Zara Change in marketplace cont. Zara has also never relied on fashion shows to premier new lines like most did/do. They get new products in their stores twice a week. In the past this was unheard of and still is to a degree. Zara is way ahead of it's competitors, in that they produce around 11,000 unique designs a year, while their competitors only produce around 2,000-3,000 a year at the most. What's interesting is that Zara's competitors followed Zara's example, yet still cannot come close to touching them. Even with Zara's higher price point than some competitors, like H&M for example. It takes them around 4-5 weeks to test and produce new designs. Very very fast in the industry. Zara Today Cont. As mentioned about the Inditex Group, Zara designs, manufatures, and distributes all of their products themselves. It is not completley common to find a company that does not outsource at least one of those jobs. Since Zara does everything themselves they have a very high control over what products they sell. Zara is considered a pioneer among the "fast fashion" industry. They are the leaders in what occurs in that market. Zara made a great change when they decided not to rely on advertising because they would rather use that money to open new stores. Beginnings Cont. Louis Vuitton fashion director Daniel Piette once described Zara as "possibly the most innovative and devastating retailer in the world." Zara is a threat to Louis Vuitton and those like it because Zara creates easy fashionable designs that give the look of luxury without paying the price tag. One no longer has to buy exclusively luxury to get the look in fashion ads. This creates less of a need to buy all Louis Vuitton products for example, if the customer wants a certain look. Zara tries to create a luxury appeal to their customers, just as Louis Vuitton does. This has added to the popularity of mixing fast fashion with luxury, as mentioned, instead of buying more luxury. Like a full Zara outfit with a Louis bag or shoes. The need for things like Louis Vuitton has dropped with Zara's popularity. There are over 2,000 Zara stores in over 88 countries today. They also offer online shopping that began in 2010. They aim to have their stores look very high end and modern. They offer Womens, mens, and children clothing. As well as some "home" products at certain locations. Zara and Louis Vuitton cont. Example of a simple Zara Campaign

ZARA presentation

Transcript: ZARA Zara’s international operations and business strategy By Aleksandra Boliglowa Katarzyna Misiarz Kexin Xie Lin Wu Learning objectives To present a company’s competitive advantages in terms of its operations management To analyse the company’s responsiveness to globalization To identify main issues within the company’s operation management that affect or may affect the company in the future To propose possible solutions to the problems that company experiences or may experience “Fashion will last forever. It will exist always. It will exist in its own way in each era’’ (Alaia, 2011) What does Zara do? High-fashion clothing for middle-class urban women, men and children (Inditex , 2011) Were Zara does it? Zara operates in 78 countries network of 1.557 stores in upscale locations in the world's largest cities. Zara’s MISSION ‘Zara is in tune with its customers, who help it give shape to the ideas, trends and tastes developing in the world.’(Inditex, 2011) Zara’s key advantageous of its business strategy Vertically integrated business model (Harrigan, 1986) Production- ‘in house’ production allows to be flexible in the variety, amount and frequency of the styles they produce (Craig et al, 2004) Inventory management (Caro, 2009) Centralized distribution facility- cost effective, minimalized lead time, increased delivery speed (Palladino, 2010) 1.Short lead time High costs of logistics (Heard and Plossl, 1984) High cost of technology equipment also product control system(Slack et al , 2010) Risk of poor quality products(Songini, 2001) No room for future expansion 2.Centralization of the business (Dornier, 1998) Lack of prospects for further expansion of business overseas Zara is able to supply only limited amount of stores in US and Japan not able to produce large quantities Our recommendation To open a new distribution centre overseas Zara will be able to maintain the short lead time also logistics costs will decrease Volume of production will be smaller that provides the company with more time for quality checks To outsource a professional IT specialists who can provide more efficient solutions To invest in training their own staff to use IT systems Once new distribution centre is opened, Zara can easily implement more advanced IT systems 4. Zara’s strategy concentrated mainly to target European market (Allwood, et al, 2006) Zara relies heavily on European customers. Standardization of products- Zara is unable to implement their fashion designs overseas Our recommendation... To employ people from different backgrounds in order to help with the market research Product design in relation to the fashion differences in different countries. (Roy, 2010) SUMMARY Zara has a successful business model that provides the company with competitive advantage. However: the increasing market demands may lead the company to further IT investments (that will be more responsive to the global environment) Zara has to focus on global expansion in order to maintain a sustainable business Before we finish..... MERRY CHRISTMAS!!! Issues related to their business strategy: We recommend... Thank you for listening ANY QUESTIONS WELCOME!!! 3. High reliance on technology (McAfee et al, 2004) Using POS system (Microsoft DOS) Zara’s technology is not up to date compared with the rivals. High costs to change over the operating system. Operations in Zara are maintained by their own team of IT specialists

Transcript: Background Market segmentation SWOT Background Market segmentation SWOT analysis n Thank you for your attention! Geographic segmentation: • Europe • Asia-Pacific • Americas • Africa Where ever you go the clothing lines are the same • Zara is a spanish clothing retailer founded in 1975 by Amancio Ortega and Rosalia Mera. • The headquarter is in Arteixo, Galicia. • Zara's Unique Selling Proposition (USP) is to create or imitate the latest trends within a short two-week period; • Zara strategy policy is ‘zero advertising’. Background • That needs to buy low priced clothing with good quality. • That likes to change their fashion constantly or on a weekly basis. • Need an alternative from Zara’s competitors like H&M and Mango • Easy located shop and accessible in city centers. • Like to shop on end season sales for the clothes they couldn’t buy. • Choose from multiple fashion selections and categories (sports, casual, formal wear) • Online market • Found in 88 countries around the world (easy to access Zara no matter where you are whether in travel or in your local city) SWOT Psychographics: Teenagers: Demographics Gender: Teenagers (boys & girls) Ages: From (16-30)

Transcript: BOOK REPORT MACBETH About Author INFO ABOUT SHAKESPEARE Author WILLIAM SHAKESPEARE William Shakespeare was born on April [1564], He was an English poet,playwright and actor.He is widely regarded as the greatest writer in the English Language and the worlds greatest dramatist.He is often called England's national poet and the 'Bard of Avon'.He died on April 23 [1616] in Stratford-upon-Avon. Works SHAKESPEARE'S WORKS. William Shakespeare wrote many novels example:Macbeth,Julius Caesar,Hamlet,Romeo and Juliet etc.He also wrote many poems example: The Tempest,All The World's A Stage etc. IF MUSIC BE THE FOOD OF LOVE , PLAY ON!! Main Characters MAIN CHARACTERS Macbeth is a brave general and the protagnist of the novel .Because of his evil wife Lady Macbeth he goes to the wrong path. MACBETH King Duncan is a fictional character in the novel.He is the father of two youthful sons ,Malcolm and Donalbain.He was murdered by his trusted general Macbeth. KING DUNCAN Lady Macbeth is a leading character in the novel.She is the ambitious wife of Macbeth and is a very greedy person who doesn't think of someone other than her ownself. LADY MACBETH summary and characters A brave Scottish general named Macbeth,recives a prophecy from the trio of witches that one day he will became the King of Scotland . consumed by ambition and spurred to action by his wife,Macbeth murders King Duncan and takes the Scottish throne for himself .He is then wracked with guilt and paranoia. SUMMARY BANQUO Banquo is Macbeth's brave and noblest friend as well as his second victum.He is the brave noble general whose children according to the witches prophecy will inherit the Scottish throne and he was murdered by Macbeth. BANQUO MACDUFF Macduff was the Thane of Fife,He is a legendary hero and play a pivotal role in the novel. Macduff kills Macbeth in the final act. his wife name is Lady Macduff who is murdered by Macbeth. MACDUFF MALCOLM Malcolm is the eldest son of King Duncan of Scotland,He has a brother named Donalbain.He immediatly leaves Scotland after his father's death. Malcolm Review BOOK REVIEW YOUR OPINION Your Opinion In my Opinion,This book contains a moral for every person who came into this world and the author of this book is trying to tell us that power, money and greed can only make our life miserable and nothing else so we should try to be happy in every moment of your life.#STAY HAPPY #CHANGE YOUR LIFE.

zara presentation

Transcript: Uses distribution centres – “fast fashion” Highly automated Little need for human labour Provides a quick delivery of goods to the consumers Emphasis on Logistics Warehouse - Computerised system Increase in costs because of a higher turnover of clothes Lack of Sales and discounts Miss out on extra sales Expansion could result in loss of focus & slow down the fast pace Retail Outlets - In 70 countries with over 2,900 stores The Logistics Chain Consumer 1. Two weeks from design to sale - flexibility with changing trends Marketing Speed has paid off for 8400 stores in 85 countries and growing Overall sales of €13.8 billion per year €2 billion profits per year 37th best global brand according to Interbrand Transportation Affects pricing, delivery performance and the condition of goods upon arrival - Highly flexible - Efficient for short- hauls - Ideal when speed is necessary - Reaches long distance markets - Reduces inventory levels - Reduces packaging costs - Reduces need for warehousing Zara’s Supply Chain Customer satisfaction vs. Minimum Costs Logistics functions Unique supply chain Administered VMS Marketing channel reduces conflict Number one fast-fashion brand Value added through sufficient logistics 2005 “Active collaboration” with MIT researchers Development of mathematical model Focus on better stock allocation Addressed the world of “fast fashion” Increased sales 3-4% Disadvantages of Fast Fashion Types of Vertical Marketing -Corporate -Contractual -Administered Zara’s key to success Customer service and satisfaction Powerful competitive advantage Huge cost savings Product variety IT developments Any Questions? Unique in sourcing goods Designs set to local cooperatives for sewing Completed in Zara’s facilities Nicole Kehoe 09403523 Brian Kelleher 09417711 Ross Moylan 09610162 David Regan 09374370 Ronan Yeates 09377212 Textile Production - Sewing, Ironing, Wrapping - "Moving in a dynamic environment“ Quick response is one of the pillars of our success.” Customer-centred logistics thinking preferred by today’s marketers Zero- advertising strategy Advantages of Fast Fashion “Zara – The fast and furious giant of fashion.” “providing a targeted level of customer satisfaction at the least cost”. Fast turnaround High quality clothes Limited availability Trends addressed immediately Low prices Employees How does Zara’s marketing system reduce conflict? High level of control – all channel members share a common goal Information system – allows for easy flow of communication, connecting different channel members. Organizational structure – 3 parallel but operationally distinct lines - flat Raw Materials - Cotton Too much too fast? The Zara brand and Inditex Group are rapidly growing In China from July to November Inditex opened 61 new stores Almost 400 new Inditex stores each year Headquarters and important factories in A Coruña, Spain 200 designers in the midst of the production process What is Channel Conflict? Situation when a producer or supplier bypasses the normal channel of distribution and sells directly to the end user. Selling over the internet while maintaining a physical distribution network is an example of channel conflict Horizontal conflict is when the disagreement is between channel members at the same level e.g two different Centra stores. Vertical conflict is when the disagreement is between channel members at different levels e.g Peugeot car dealership. Examples of Conflict in Zara Vertical – use of sweatshops by a supplier in Brazil Horizontal – conflict between some of the 250 sewing subcontractors To Conclude.. The benefits of it's vertical marketing tactics have led to expansion in Europe. Began cautiously in US New global store concept opened in March on Fifth Avenue, NYC “Value Added?” 2. Large number of units - formidable high street presence 3. Creates an exclusive brand, merchandise only available for a short window of time 4. Encourages repeat visits from customers -Buy it now or miss out! Mathematical Retail Model What is Vertical Marketing? Focus on customer instead of marketing 5 elements -Store location -Store window -Store image -Good display -Customer service Maximum customer satisfaction: Rapid delivery Large inventories Minimum Cost: Slower delivery Smaller inventories Large shipping lots What is Fast Fashion? Distribution - Trucks/Cargo Jet Group 20 Thursday 11:00 – 13:00 Zara is a Spanish clothing and accessories line that was founded in 1975. During the 1980s Zara began to change the design, manufacturing and distribution process in a bid to be able to react to trends before any other high street store. Zara boast that they can develop a new product and have it on shelves worldwide, in just two weeks. “Possibly the most innovative and devastating retailer in the world.” "Spanish success story"

Zara presentation

Transcript: R about Compare the business model to its competitors... How can Zara gain competetive advantage through SCM? Improvements for the Future... Where is volatility/fluctuation in the textile and apparel industry? How does Zara handle volatility/fluctuation? Zara can design, produce and deliver new garment and put it on display in its stores worldwide in a mere 15 days. How is this possible? Why is Zara more and more using outsourcing? What are the key issues for Zara to decide what to make internally and what to make from outside suppliers? ZARA Business Model Vertical integration In-house production Control Flexibility Efficient Distribution Model Internal Communication System Short Lead-time Fast response to Market Demand Variety of items Small batches High Skilled Workforce & Independent Foreign Suppliers Int Production Culture IT TECHNOLOGY Bargain Power Low Costs Focus Expansion Strategy Flexible Capital Sustained profit Control competetive advantage flexibility and creating of scarcity Freshness Top location few advertisement low level of inventory Improvements Cooperation with any channel of production over the world -> so new improvements in operation technology can be applied into Zara instead of keep using the old ones More advertising -> advertising might be important in the future when competitors are becomming more competetive and demands are declining Cooperation with vary range of designers -> can maintain ist competetive advantage to be the fast fashion Making more distributions centers -> they will enable Zara to be more faster, effective and efficient in distributing their products to the retailers  Zara keeps almost half of its production in-house.  Zara puts price tags on items before they’re shipped and tolerates, even encourages, occasional stock-outs Zara can design, produce and deliver new garment and put it on display in its stores worldwide in a mere 15 days. How is this possible? 3 Principles of End-to-End control of the supply chain, which is enabled by In-House production. An integrated organization without bureaucracy where the communication can flow easier. Advantages of In-House Production Shorter lead-times and ability to respond fast Control over schedules and capacities Reduction of risk and uncertainty regarding independent suppliers How does Zara use IT and communication Technology in their Supply Chain? ZARA has more than 1,600 shops worldwide. ZARA utilizes human intelligence (from store managers and market research) and information technology in order to have a hybrid model for information flow from stores to headquarters. IT improvement measures THANK YOU for staying How does Zara handle volatility/fluctuation? HTTP & HTTPS hybrid model for information flow from stores to headquarters A DB Inventory Control Norbert End-to-End control of the supply chain, which is enabled by In-House production. "regular customs know that new products are introduced every two weeks and would not be available tomorrow" PART 4 Quick decisions Consumer confidence and spending rates fluctuate month to month. Production Outsourcing is dedicated to low-cost basic clothes Group of Commercials Product Managers Presented by Zara can design, produce and deliver new garnement and put it on display in it´s stores worldwide in a mere 15 days. How is this possible? Information Flow Regional Headquarter ZARA´s 200 person designer team produce about 12,000 different Designs a year. ZARA can keep costs down by keeping stocks low. ZARA´s throughput time of a product to 3-4 weeks from design to distribution. Part 2 "fast production and distribution offer the latest fashion" „Instant Fashion“ THANK YOU for staying Zara produced in 2000 44% in-house. Why is this percentage so high? culture Outsourcing ZARA can keep costs down by keeping stocks low. A Store Employee Consumer confidence and spending rates fluctuate month to month. Production Improvements for the future... EVA Outsourcing is a way to decrease costs Using of the same suppliers (which originates from the in-house business-model) Suppliers have to be in accordance to code of conduct (no forced labour, no child labour, no discrimination, safe working conditions, wages are paid, environmental awareness, etc.) Outsurcing is dedicated to low-cost basic clothes Their competitors spend on average 2% of total revenue on IT and have 2.5% of their total workforce devoted to IT. Part 1 Logistic Inventory Reduce the risk of uncertainty regarding independent suppliers (e.g. child labour) How does Zara use IT and communication Technology in their Supply Chain? Store Manager DB Inventory Microsoft DOS Disk Operating System A HQ regional managers collect and analyse the feedback. Team sits with designers to use the information to create new lines and tweak existing ones-deciding with the commercial team on the fabric, cut, and price points of a new garment. Describe the business model of Zara... Store POS Group of Commercials Product Managers Store Manager Int

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Related Papers

Journal of Fashion Marketing and Management

Lucy Collier

Hitesh Parwani

Amanda Queiroz Campos

This paper consists of a comparative study of the contextual contrast between data from the business model of the Spanish brand Zara, and data from the brand’s sister store in the city of Florianopolis, located in the south of Brazil. The data collection methods were participant observation in the local shopping mall store, and semi-structured interviews with employees and former employees of this store. Theoretical references to globalization, fashion and modernity ground this study. The aim is to investigate the non-hegemonic aspects of globalization in the specific case of the importation of the Zara brand—which operates as a fast-fashion company—to Brazil. The study contends that the speed of change in fashion trends is characteristic of modernity’s radicalization, and that the copying of Zara’s business model and products by national and local companies is characteristic of popularization of fashion products. The extent to which fashion is a non-hegemonic system is considered through Zara’s “inspired appropriation” of great designs from prêt-à- porter collections as well as the reproduction of Zara’s clothes by other Brazilian fast-fashion retail chains—for example by the local Sul Center. The dynamism generated, among others, by the copying mechanism stimulates the creative efforts of fashion designers, making fashion an even stronger creative center.

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José Antonio Miranda Encarnación

This article deals with the influence of the country brand in the fashion industries. It explains how some Spanish fashion companies have achieved a prominent position in the international market without the support of a positive ‘country-of-origin effect’ and why their success has not generated a reinforcement of the image of Spain in the fashion market. The paper examines the evolution of the image of Spain and the Spanish fashion abroad, and the internationalisation of the main Spanish fashion companies, highlighting the keys of the limited influence of the country brand in the success of these companies. Free online copy: https://www.tandfonline.com/eprint/6ID9YX5FXX97KITEUR4Z/full?target=10.1080/00076791.2017.1374370

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Purpose – The purpose of this paper is threefold: first, to establish the role of the pop-up store within the international location strategy of fashion retailers, second, to identify the factors influencing pop-up store location choice and the importance retailers ascribe to it and third, to assess how pop-up locations are sourced and selected. Design/methodology/approach – A multiple case study was adopted. Research was conducted using secondary data sources, observation and semi-structured interviews with senior executives with strategic responsibility for store/brand development internationally. Manual content analysis was conducted. Findings – Key findings cover the role of Pop-up stores within international retail location strategy, notably features, forms and function, with the latter highlighting the importance of opportunistic market testing and trial, reduced risk, regeneration, ROI- and CRM-driven decisions; the factors impacting location choice and selection, specifically the trade-offs between reactive and proactive approaches and the importance of networks and intuition, and future pop-up directions. Research limitations/implications – Due to the chosen research approach, the results may lack generalization outside of the given sector and marketplaces. Several avenues for future research are elucidated including exploration of pop-up transformations including pop-up rebrand, technology enabled, experiential and third place. Originality/value – The study contributes to the nascent field of research by providing new insight into the role of pop-ups within international location strategy, the factors influencing location choice and selection and offers a pop-up location taxonomy.

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Royal versatility ftw.

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As far as items in your closet that go the distance and feel classic enough to reach for season after season, a cropped blazer is it . But there’s something special about the $70 Zara style Princess Beatrice wore as she phone banked during the BGC Group Charity Day on behalf of the Cantor Fitzgerald Relief Fund, which every year raises millions in memory of those lost on September 11 and the devastating attacks on the World Trade Center.

First, it’s classic—something you can throw on and go with a dress, jeans, even a midi skirt . In Beatrice’s case, she opted to pair it with a polka dot shirtdress, which gave her entire ensemble professionalism and polish. Second, it’s affordable. For just $70, it will work with numerous pieces already in your closet. That versatility—and, frankly, the three different color options it comes in (black, ecru and light khaki)—turn it into an instant staple. The pockets and the pretty button detailing only add to the blazer’s uniqueness.

Zara Crop Flap Blazer

Now, the good news: It’s still fully in stock in all colors, so snag it while you can. (Beatrice, as you can see, opted to wear it in black.)

As for Beatrice’s day spent volunteering for the BGC Group Charity Day, she wasn’t the only royal to cover the phones: Mike Tindall —Beatrice’s cousin Zara Tindall’s husband—was also there to support.

The cause, in honor of the countless lives lost on 9/11, is of course an emotional one. Speaking about her participation , Beatrice said, “I am thrilled to be here today celebrating the incredible work that charities do on a daily basis. The 30 charities represented here support a wide range of important causes, from children in care to those in medical need and have a positive impact on many different parts of the community. I am so pleased to be part of Charity Day and support these grass roots organizations.”

Here, here.

The Best Dressed Royal Was Just Revealed—Here, 3 Outfits That Helped Her Seal the Deal (& That I’m Totally Copying)

Senior Director, Special Projects and Royals

• Writes and produces family, fashion, wellness, relationships, money and royals content
• Podcast co-host and published author with a book about the British Royal Family
• Studied sociology at Wheaton College and received a masters degree in journalism from Emerson College

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Princess Beatrice Wore a $70 Zara Blazer & It Will Go With Almost Anything in Your Closet

PureWow Editors select every item that appears on this page,, and the company may earn compensation through affiliate links within the story You can learn more about that process here. Yahoo Inc. may earn commission or revenue on some items through the links below.

Read the original article on Purewow .

As far as items in your closet that go the distance and feel classic enough to reach for season after season, a cropped blazer is it . But there’s something special about the $70 Zara style Princess Beatrice wore as she phone banked during the BGC Group Charity Day on behalf of the Cantor Fitzgerald Relief Fund, which every year raises millions in memory of those lost on September 11 and the devastating attacks on the World Trade Center.

David Benett/Getty Images

First, it’s classic—something you can throw on and go with a dress, jeans, even a midi skirt . In Beatrice’s case, she opted to pair it with a polka dot shirtdress, which gave her entire ensemble professionalism and polish. Second, it’s affordable. For just $70, it will work with numerous pieces already in your closet. That versatility—and, frankly, the three different color options it comes in (black, ecru and light khaki)—turn it into an instant staple. The pockets and the pretty button detailing only add to the blazer’s uniqueness.

Zara Crop Flap Blazer

Now, the good news: It’s still fully in stock in all colors, so snag it while you can. (Beatrice, as you can see, opted to wear it in black.)

$70 at Zara

As for Beatrice’s day spent volunteering for the BGC Group Charity Day, she wasn’t the only royal to cover the phones: Mike Tindall —Beatrice’s cousin Zara Tindall’s husband—was also there to support.

Dave Benett/Getty Images

The cause, in honor of the countless lives lost on 9/11, is of course an emotional one. Speaking about her participation , Beatrice said, “I am thrilled to be here today celebrating the incredible work that charities do on a daily basis. The 30 charities represented here support a wide range of important causes, from children in care to those in medical need and have a positive impact on many different parts of the community. I am so pleased to be part of Charity Day and support these grass roots organizations.”

Here, here.

The Best Dressed Royal Was Just Revealed—Here, 3 Outfits That Helped Her Seal the Deal (& That I’m Totally Copying)