ZARA
By: Agata Sciupider
ABOUT THE COMPANY.. ¡ Zara (owned by Inditex) is one of the world’s largest and fastest-growing leaders of “fast fashion” retail. § It has stores in 82 different countries § 1,631 worldwide § 207 in America (the largest store is in Chicago on Michigan Avenue)
¡ Amancio Ortega opened up his first Zara store in 1975 in downtown A Coruna, Spain. ¡ With a staff of 200 designers, the company is able to bring out a garment from initial design to the selling floor in as little as two weeks. (retail average: 6 months) § All Zara stores are connected to the company’s headquarters through an IT Network which allows the company to track purchases and receive design feedback from store managers § This IT Network is a way that Zara is able to react quickly to consumer demands and fashion trends.
MICHIGAN AVENUE
ZARA’S NON-SEASONAL PRODUCTION MODEL ¡ What does it mean? § Unlike other retailers who change fashion trends twice a year, Zara changes its fashion trends frequently. § Produce small and limited runs.
¡ With this model, Zara’s customers are aware that they should make quick purchases because a certain design is not likely to remain in the store for long and most likely won’t be available again. § You have the reassurance that you won’t run into someone wearing the same design as you are. § Encourages Zara customers to come back more often in order to discover the latest designs.
¡ This production model also helps Zara with: § Minimizing it’s storage expenses § Selling out a large percentage of its designs at full price (avoiding markdowns)
VALUE PROPOSITION
“The latest fashion trends of tomorrow.”
WWW.ZARA.COM
WWW.ZARA.COM/US
NAVIGATION ¡ The website has a tool bar on the side § You chose the category of merchandise you’re looking for
¡ Once you select the category, a second tool bar appears on top § To help you find products faster (color, quality, size, price range)
¡ 3 clicks to a solution
WWW.ZARA.COM ¡ It wasn’t until September 6, 2010 when Financial Times reported that Inditex launched the first online boutique for Zara. § Only in 6 countries that were the most important to the company’s 76 markets. (Spain, the UK, Portugal, Italy, Germany and France) § The US online store wasn’t operating until September 7, 2011 § Before that, people were only able to look at the designs but not purchase online
¡ Zara’s chief executive, Pablo Isla stated that they were simply “waiting for online demand to build before launching into cyberspace.” ¡ Merchandise includes: § Men’s and women’s clothing, § Shoes and accessories, § Children’s clothing (ZARA Kids)
¡ The website has a ‘Buying Guide’ § A video guide on how to make online purchases § How you can pay § About their delivery process § Return and exchange policies
ZARA’S BUYING GUIDE
SITE CONCEPT AND OBJECTIVES ¡ My objectives: § Increase social media exposure § Although Zara has over 13 million ‘Likes’ on Facebook § They are not too big on Twitter. § With ZERO tweets and only a little over 25,000 followers, there has to be something done in order to reach out to potential customers.
§ Focus on online marketing § The company is already successful with production, distribution and expansion, they should start focusing on mastering the online world as well. § Advertising for this company is nonexistent.
§ Why? § Production speed is high § By the time any ads would come out, the product may not even be in stores anymore. § The internet is the best way to communicate and promote the brand and its website. (It can only benefit the company more.)
§ E-mail and mobile marketing § Why? § It’s a way you can build a relationship with the consumer, since communication is lacking. (emails and mobile marketing is direct and fast.)
BUSINESS MODEL
¡ Zara’s website states: § “The customer is at the heart of our unique business model which includes design, production, distribution and sales through our extensive retail network.”
¡ B2C
ALEXA.COM ¡ Global ranking: 1,516 ¡ US ranking: 2,333 ¡ Bounce rate: 14% ¡ Average time on website: 6:49 (1 month) ¡ Percentage of visits that came from search engine: 14.5% (1 month)
DEMOGRAPHI CS
VISITORS BY CONTRY
Age: 18-34 Gender: female No children Education: graduate school
US: 13.2% SPAIN: 11.6% FRANCE: 9.6% UK: 6.4% ITALY: 5.4%
COMPETITIO N The GAP H&M Forever 21
BUDGET ¡ Estimated Avg. CPC: $0.69 ¡ Estimated Daily Clicks: 2.35 ¡ Estimated Daily Cost: $2.21 ¡ Local Monthly Searches: 25,949 ¡ Budgetà § I want to increase traffic to about 600 more people ~ $414.00 a month
CRM ¡ In order to build relationships, Zara needs to stay in touch with its customers. § Focus on email, mobile, and social media presence § § § §
New trends coming out Getting people to sign up for email newsletters Contests (People!) Phone apps
§ Zara allows online customers to ‘share’ a picture of a specific item they like on: § Pintrest § Facebook § Twitter
§ Online ‘review’ section for the website.
PEOPLE!
CONCLUSION ¡ Being such a successful international company, ZARA has perfected: § the way their workers communicate with one another, § Their distribution channels § Production speed
¡ I feel that with such great success, the company should really focus on creating more revenue by being more in tuned with their online audience. § They should have an option to write reviews, § They should start using Twitter, just because the page exists, it doesn’t count if it’s not being used. § Social media will connect the company with its younger age demographic.
¡ In stores, they should collect customer ’s emails so more newsletters can be sent out. ¡ Focus on online marketing which is fast and can really benefit the company.
BIBLIOGRAPHY ¡ www.Alexa.com ¡ http://www.zara.com/webapp/wcs/stores/servlet/home/us/en/ zara-us-S2012 ¡ http://www.inditex.com/en/who_we_are/concepts/zara ¡ http://galenet.galegroup.com.emils.lib.colum.edu/servlet/ BCRC? vrsn=unknown&locID=uiuc_columbia&srchtp=glbc&cc=1&c=1 &mode=c&ste=74&tbst=tsCM&tab=4&ccmp=Zara+France +S.A.R.L.&mst=zara&n=25&docNum=I2501310991&bConts= 8997 ¡ http://www.lexisnexis.com.emils.lib.colum.edu/hottopics/ lnacademic/?shr=t&sfi=AC00NBGenSrch&csi=220620