Stella Mccartney for Zara by Allee Lizama

for

Spring / Summer 2015

Alexzandra Lizama Buying and Product Development I Tutor Susan Acton London College of Fashion April 2014

Background

Zara is the world’s largest fashion retailer because of its well-known process of innovation. Fast fashion, creativity, flexibility, quality design and rapid turnaround are all part of its approach to expand internationally at such a fast pace.

Zara is the flagship brand of the Spanish retail giant, Inditex group. Inditex is the world’s largest fashion group, which owns many other brands, including as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties, and Uterque. Zara was founded in 1975 by Amancio Ortega, when he decided to expand his factory into Arteixo by opening a store in the La Coruna region of Galicia, Spain. Its first store carried low-priced lookalike products of popular, higher-end fashion brands. The store proved to be a success in the early 1980’s, and Ortega began opening more Zara stores throughout Spain. In 1988, Zara decided to venture into the international market. This was spurred by Portuguese youths crossing the border into Spain to shop in Zara. It opened its first intl. store in Oporto, Portugal. Subsequently, Zara opened new stores in New York in 1989 and Paris in 1990, the fashion capitals of the world. Zara has expanded since and currently operates a total of 1,671 stores in continents such as Europe, America, Africa, Asia, and Oceania, of which 333 are in Spain.

Mission Statement “Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts.”

Zara has become an icon for Spanish fashion. Revenues 13. 79 billion euros in 2012 Profits 1.932 billion euros in 2013

S T R E E T S T Y L E

High Fashion At Affordable Prices

Brand Identity

Physique high reactiveness and flexibility, market-oriented Relationship trusted quality, fair exchange for value Reflection style, individualism, assurance Self-Image confident, trendy, unique Culture European, international, good relationship with customers

Personality Aggressive yet calm, mature, confident,

Zara is known for excellence and goodquality designs. Zara locations tend to be upscale and in the worldâ&#x20AC;&#x2122;s largest cities. Zaraâ&#x20AC;&#x2122;s strategy is to get as close as possible to luxury brands while maintaining its midrange affordable prices.

beautiful, well-kempt, modest, unpretentious, low profile Zara does not forsake quality and comfort for price. Q U A L I T Y

F A S T F A S H I O N

D E S I G N LUXURY

/Animal-Friendly//Sustainability//Femininity//Sports Luxe/

L a b e l

As the daughter of Paul and Linda McCartney, Stella grew up well acquainted with celebrities and the fashion industry. In her teens she worked with Christian Lacroix, later leaving to study fashion in London. For her graduation show, Stella had friends such as Naomi Campbell and Kate Moss walk to help her line garter attention. In 1997, McCartney accepted the position as the creative director for ChloĂŠ, a brand renowned for their delicate, feminine clothing. In 2001 Stella McCartney started her own line under the Gucci group.

O v e r v i e w

natural confidence

sharp tailoring

blends sweet elements with streetworthy rocker accents

eminently wearable yet directional

sexy femininity

animal-free clothing

From Left to Right: S/S 2003, S/S 2002, A/W 2014, S/S 2014, S/S 2002 A/W 2014, Lingerie Ad S/S 2012, Campaign A/W 2011, S/S 2013 S/S 2003, S/S 2011, S/S 2002, A/W 2006, A/W 2012, S/S 2011

Marketing Mix Product

Price

Place

Promotion

Participation

Zara offers a wide variety of clothing catering to men, women, young adults and children. Zara is famous for their vertically integrated approach that allows them to refresh inventory twice a week.

Zara prices based on the market rather than on cost. Thus, they price at a premium in higher cost markets, but still remain affordable.

Zara has heavily invested in locations that are in close proximity to luxury shopping retailers in the largest cities all over the world. This way they position themselves as â&#x20AC;&#x2DC;affordable luxuryâ&#x20AC;&#x2122; rather than cheap fast fashion.

Zara functions on a minimalistic advertising structure. They retain their growth and popularity through a powerful word-ofmouth network.

Zara currently uses technology to gain an understanding of what products consumers in different markets like and what their needs are

A womenâ&#x20AC;&#x2122;s only 6 piece designer collaboration with Stella McCartney

Value-Added Pricing for the designer name-tag

In all major Zara retailers, excluding some more rural areas

Zara should pursue tasteful promotion through social media and some high fashion magazines only, avoiding commercial venues to keep their images positioned on par with luxury brands

Zara could use stronger social media campaigns to create more personal ties between consumers and the brand

SWOT Analysis for

Strengths

Weaknesses

Opportunities

Threats

global outreach

brand images closely tagged to competitors

demand for highfashion at affordable prices

Fierce Competition

strategic locations

limited stocks

growing Asian market, especially China

Lawsuits related to sweatshops in Argentina

seamless distribution strategy

lack of marketing communications

using designer collaborations to increase their image of affordable luxury

Possible imitation of goods by other high-street retailers

minimalistic store image

fast-changing collections

Dilution of brand equity

A designer collaboration with the already trendy Zara should target the early adopters who are the fashionistas that buy emerging trends. They are the people who will wait in line to buy a designer collaboration. The early majority will buy the line over the rest of its cover. The line will be aimed at aspirers, who buy for status and esteem, and young succeeders, who have jobs that come with some status and dress trendy.

Why Zara Should Pursue A Designer Collaboration Part of Zara’s appeal is its seeming omnipresence and word-of-mouth marketing strategy. Zara is known for creating highstreet products inspired by many designers including Celine, Tom Ford, Stella McCartney, Alexander Wang, Saint Laurent, and many others. Zara tends to be on-trend rather than garishly trendy, and has a reputation of higher quality compared to its high-street counterparts. However, with a well-executed designer collaboration, Zara can use a value-added pricing strategy to bring in additional revenue, and further strengthen their image as ‘affordable luxury’. They need to avoid the H&M strategy of attempted hype through heavy commercial advertising, and instead pursue well thought-out advertising and let the collection speak for itself.

Ansoff’s Matrix: Creating New Product for an Existing Market Product Development

Stella McCartney for Zara is a spring / summer 2015 line of clothing for dreamers. The line is stylish and understated with a youthful edge. It offers designer style at mid-range high-street prices. Inspired by the textures and movement of nature as well as modern artwork, this line is brimming with dark spring colors that add richness and emotional tactility to the collection. The pieces are made up of clean lines, structured pieces, flowing fabrics, and printed textural patterns. Launched in early spring, this line is light and airy, yet transitional. The key items include athletic-inspired trousers and an oversized blazer in our seasonal Marbled ash print. This line is not bright, flashy, or bodyconscious. It is just the right amount of subtle sexines without excessive embellishment. It is not too grungy or over-dressed.

Pen Portrait For Stella McCartney at Zara Elena is a twenty-four year old publicist living in London. Elena lives in a flat with her two best friends and pays all of her bills on her own. She has only been out of university for two years and is still paying off student loans. She works Monday-Friday from 9am5pm, but enjoys pre-work exercise classes and post-work happy hour drinks. Elena spends her weekends bar hopping, shopping, and brunching with her friends. She cares a lot about being stylish, and doesn’t aim to look ‘sexy’. While, she occasionally splurges on designer pieces, her entry-level salary doesn’t allow her to buy everything designer. Elena dresses sophisticated and polished,enjoying classic feminine silhouettes and neutral color palettes with subtle sporty influences. She is in the process of building a strong work wardrobe that can translate from day to night.

Elena Sarinana

What Elena Likes: yoga pilates running animal rights eating healthy shopping candles flowers spa days wine lacy lingerie European travelling being on trend Speaking French and Spanish

What Elena Doesn’t Like: Reality TV Anything Bedazzled Tanning Salons Clubbing Polyester BodyCon Dresses Anything Zebra Print Fake Nails Fast Food Grungy Styles

Phasing Phasing is the process of spreading out product sales along a bell-shaped curve so that product is on the self for the entirety of its cover. 75% of product should be sold in the middle 50% of the bell-shaped curve, with sales tapering off as the cover ends. In order to do this, a buyer must successfully predict how much product is needed. As the second graph on the right shows, if there are three short hits to go with the core season product, the aim is to have less than 25% of the stock left as you introduce the new product. This way, each season seamlessly sells at its peak, and a new product is introduced as sales taper. As the third graph shows, advertising changes the situation because the item sells quickly and then sales taper rapidly. Buyers must account for this so that they don’t run out of product during the peak. For this line, I am working to create ‘massclusivity’ by hyping up demand without the supply to back it up since we are selling the designer experience at Zara prices. Cover will be 6 weeks, with predicted advertising sell-through, which we will account for with large quantities of product for the debut. The line should be 75% sold in three weeks time.

Launched for early spring for the month of March, pieces that are light and airy yet transitional. Only on cover for six weeks. The two main buying seasons are Spring / Summer and Autumn / Winter because of the haute couture runway cycle at the top of the fashion totem pole. Thus, this structure dominates the industry, although designers often do additional lines such as resort. However, the consumer demand on high street is for new products more often once a season. Thus, buyers respond by supplying a core group of products for a season along with several hits that come in and taper out throughout the season.

Sizing Ratio (In UK Female Sizes) Size 6

Size 8

Size 10

Size 12

Size 14

Size 16

XX-Small

X-Small

Small

Medium

Large

X-Large

Fabrics Viscose Jersey: -gives a silky sheen/ appearance Polyester Elastane: -man-made material -comfort and stretch -silky-shiny sheen -holds its shape -holds color well

-breathable -weighty drape -made of wood pulp and cotton lint -man-made natural fibre -jersey weave with elastane to stabilize -works well for prints -soft touch -saturated colors that do not fade

Marbled Ash Print Printed Pattern Inspired by Josias Scharf artwork

Fabrics

Cotton Poly Blend Woven with Elastane

100% Viscose Chiffon Woven

-Shiny Quality

-a fabric made by weaving together natural and manmade fibers

-doesnâ&#x20AC;&#x2122;t wrinkle

-woven creates stiff texture that holds shape

-can be woven sheer (for paneling)

-cotton keeps it light and cool

-drapes flowy

-polyester gives the fabric strength and durability

-holds shape

-Elastane gives it slight give and increased comfort for movement

Fabrics

Cotton Poly Blend Woven Cotton Modal Jersey Knit

-knitting makes soft

-a fabric made by weaving together natural and manmade fibers

-smooth texture

-woven creates stiff texture that holds shape

-modal helps hold color

-cotton keeps it light and cool

-modal lowers shrinkage

-polyester gives the fabric strength and durability

-modal reduces pilling -flowy draping

-good draping for holding a pleat

Sourcing Dockets: Cut Make and Trim (CMT): Often buy specific pieces for your production factory. Used in the higher-end market where attention to details and preciseness is essential. Also used when a market isn’t fully vertical.

Pros / Cons of Major Production Countries:

Asia: China- exceptional quality, cheap, mass production, long lead times

Fully-Factored: The factory is vertically integrated and supplies everything from fabric to button to zip. All you need to provide them with are dockets for each item.

Types of Manufacturing:

Thailand- cheap, mass production, questionable labor policies, long lead times

One-off Production: is the kind of production where only one specialist item is required and it would be constructed by a craftsman. one of a kind, or very few, haute couture, bespoke, domestic Batch Production: is is a technique used in manufacturing, in which the object in question is created stage by stage over a series of workstations, and different batches of products are made. Mass-Market Production: is the production of large amounts of standardized products, including and especially on assembly lines.

Technology: used for trend-forecasting and historical analysis in the early stages of development, used for creating lay plans by garment technologists in later stages of development Just-In-Time Manufacture (JIT: is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying cost using a various forms of technology to keep track. Computer-Aided Design (CAD): is the use of computer systems to assist in the creation, modification, analysis, or optimization of a design.CAD software is used to increase the productivity of the designer, improve the quality of design, improve communications through documentation, and to create a database for manufacturing. Computer-Aided Manufacture (CAM): is the use of computer software to control machine tools and related machinery in the manufacturing of workpieces. “Use CADCAM” (nearly all batch or mass) Computer-Integrated Manufacture (CIM): umbrella term for when the computer is bringing the technology of every process together is the manufacturing approach of using computers to control the entire production process.[1][2] This integration allows individual processes to exchange information with each other and initiate actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main advantage is the ability to create automated manufacturing processes.

Bangladesh- cheapest, mass production, questionable labor policies, long lead times

Western Europe: England heritage brands, faster lead times, high quality Scotland- high quality tartans, plaids, knitwear, cashmere, and tweed Italy- high quality leather, mens woolen cloths, bespoke tailoring cloth tends to be from Italy, lots of silk products come from italy France- haute couture and lace Portugal- high quality mens tailoring and trousers Morocco- high quality menswear, chinos

Sourcing Zara is a vertically-integrated company that has the capabilities to produce a large majority of their items within Zara-owned Spanish factories. Because the line will have a short-lead time, it is logical to manufacture in Spain rather than overseas. Additionally, customers perceive Made in Spain items as superior quality and more consciously made than items made in Asia. The line will be created using fully-factored dockets, will be batch-produced, and will use CADCAM technologies.

Made in Spain

Price Points

X:Y by types of products

Buying Profit is the difference between the Cost Price and the Retail Selling Price Cost Price: the price paid by the Retailer to the Manufacturer/ fashion house. It usually includes the C.M.T (The Cost, Make and Trims of the garment/ garment components). Retail Selling Price: The price the customer pays for the garment. This price is often three or four times as much as the cost price. However, this is not pure profit. The retailer much account for all of their overhead costs and factor them into their retail selling prices. These include location rents, wages, office costs, travel, utilities, distribution costs, markdowns/ sales/ returns. Generally, only 85% of garments are sold at full retail price. Equation: selling price- cost price x 100% selling price Margin: Once a retailer has considered their overheads, they create a markup for all of their garments to cover these costs. Standard Margin: 66.67% Unique Selling Price: When advertising and other marketing tactics create demand for a product line with limited supply, this will slightly raise prices.

Zara ranges from £10- £100 with the occasional higher quality piece being more. Our prices will be very similar, but due to projected demand with a limited supply, we will use a unique selling price markup. In contrast to H&M’s model, this line will not be heavily advertised, as is typical Zara style. It will keep a sense of exclusivity that is central to Zara’s marketing strategy (or lack thereof).

Color Palette: Marbled Ash

Pantone 111306

Pantone 13-4108

Ashed Lavender

Marbled Ash Pattern

Stripped Bare

Marbled Ash

Spring/ Summer 2015

Visual Range Plan & Specification Sheets for

Marbled Ash

Marbled Ash Range Plan

Inspiration: Stella McCartney Spring 2014

Sporty Printed Bomber Jacket Ref: 2197/543 Composition: Outer Shell: Woven 95% Polyester 5% Elastane

Description: A dressy bomber jacket in our seasons marbled ash print. Features a two-way zip fastening with the Stella McCartney circle tag pull. Has a pointed collar and ribbed trims in bla

Lining: 100% Acetate Cuff: 100% viscose