Zara Brand Report - Ellie Preston

Page 1

Illustrated Brand Report Ellie Preston

Figure 1. Zara S/S 2017 lookbook

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2.

Figure 2. Zara S/S 14 Lookbook


Contents 5

6

7

Introduction:

Target Audience:

Price: Zara’s price

Summary

Summary of Zara customer

and information

8

9

10

Promotion: Zara’s mar-

People: The people that

Physical Evidence:

of Brand Report

ranges

keting and social media

are involved in Zara as

about the bricks and

a brand

mortar stores

11

12

13-19

Process: Zara’s buying and

shopping experience

Place: Where does

Zara stand in fast fashion?

References

& Bibliography

Figure 3. Zara S/S 14 Lookbook

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Figure 4. Zara S/S 14 Lookbook

Introduction

4.


Figure 5. Zara Fall 2013 Lookbook

This report will discuss the present, and future

videos.

situation of Inditex ‘Flagship brand’ Zara. This

The initial research mainly includes articles,

includes where Zara currently stands in the fast

journals and blogs. Of course, a lot of informa-

fashion market, how it’s different from its compet-

tion was also found from Zara and Inditex’s own

itors and what Zara does to market itself in the

sites and reports, which were very useful. Over-

fast fashion industry. Graphs and statistics have

all, this report definitely helps to outline what

been included in this report as well as my own pho-

Zara is doing to be unique in it’s market, yet at

tographs and observations, which have all helped to

the same time also highlights what Zara is missing

visually display the undergone research. The report

and what they could to to better their brand as a

is also interactive, with the majority of imag-

whole.

es being clickable, and linking to useful posts or

5.


Figure 6. Blogger What Olivia Did wearing Zara bag

Target Audience

After my observations both in the UK and in Paris, It is clear that although Zara caters for both males and females right up from the ages of newborn, Zara’s main target audience is definitely females aged 18-30+. This is due to the stocking of clothing in a wide variety of different peoples styles from classic and smart to crazy, graphic and bold. Another reason for Zara having a younger, female demographic is the fact that they’re able to trend forecast and produce similar garments to what can be seen on the catwalk very quickly. This is appealing to younger females, who may want to follow the latest trends but might not have the money to spend on luxury garments. Another aspect of Zara’s target audience is their socioeconomic grouping. Although Zara is a fast fashion, high street store, its definitely clear that they have customers of a higher social class than most of its typical rivals. Zara’s customer socioeconomic grouping is probably B, C1, C2. Whereas its rivals such as H&M and Topshop are probably more C2, D. This is definitely reflected in the style and quality of clothing that Zara produces as well as the simplistic layout of their website and stores. However, its clear that Zara does still want to appeal and be relatable for their younger and less educated audience which is some-

6.

thing that is reflected in their TRF range.


Woman

Inditex summary page, over 2,000 stores in 88 different countries, the pricing tends to be different depending on which country you’re in. According to Unknown(2014), with Zara being a Spanish brand the cheapest place to shop at Zara is in Spain. The same garments are available in Zara’s all over the world, however there tends to always be an increase on the price anywhere from 30% to over 100% depend-

TRF

ing on where in the world you live, this is said t be due to shipping, customs and transport charges. In the UK and across most of Europe, the increase is around 32% on the Spanish price. However, despite the price increase, Zara is still considered an affordable and well priced place to

TRF range prices

As Zara is a global brand with currently, according to its

Figure 7 & 8. Screenshots of Zara’s women and

Price

shop. Zara’s pricing Is definitely quite mid point for the high street. Its not as cheap as Primark or H&M, however its not as expensive as more premium high street retailers such as Whistles or Reiss. Something that is definitely attractive to the younger target customers is Zara’s TRF range. This range is slightly more affordable and includes a lot more trendy, graphic pieces. This is a good pricing strategy for Zara as it helps them to appeal to a wide range of age

Figure 9. A graph to show Zara and H&M’s discounting

groups. Here, figure 9 shows that unlike a lot of its rivals, Zara tends to do massive sales, bi-annually. This is instead of

discounting items throughout the year. This sales technique helps to excite and attract their customers.

7.


Promotion Zara is famously known for not investing a lot into advertising and marketing. Although Zara does create the odd seasonal camping video or one page Vogue ad, it mainly relies on celebrity endorsements such as Olivia Palermo and the Duchess of Cambridge, Princess Kate to gain the attention of customers.(Kalab, I. 2016). By celebrities that are considered to be extremely fashionable wearing their clothes, it helps to create a very loyal fan base and creates the illusion that they shop in Zara stores on a regular basis.

Figure 10. Zara Woman S/S 17 Lookbook

Zara also has quite a large social media presence, with over 17 million followers across their Instagram and Twitter platforms alone. This enables them to share images of clothing, and celebrities wearing their clothing on an

Figures 11, 12 and 13 are all

instant and everyday basis, with the customers then able

Screen shots of Zara’s social

to buy the items in just a few clicks. You’re also able to

media accounts showing their fol-

subscribe to Zara’s weeklty newsletter through their web-

lowers. Their twitter account has

site, which then allows them to send you any information

over 1.22 million while their Ins-

about sales or upcoming trends on a weekly basis, straight

tagram and Facebook accounts have

to your inbox. Overall, Zara’s marketing strategies are

over 40 million followers when put

definitely a lot more digital than some brands. By skipping

together. Recently, as the screen

out the typical billboards and TV ads Zara can definitely

shot shows, facebook is gaining

cater and focus spending money on having a larger online

around 36,000 likes a week.

presence.

8.

Figures 11, 12 & 13.


People Zara was founded by Amancio Ortega Gaona in 1975 and according to its page on Business of fashion, is currently employing over 10,000 people across the world. As mentioned in Promotion, Zara heavily relies on celebrities to boost their sales so by being featured by bloggers, Youtubers and general celebrities is a big boost to their profits. Because of Zara’s wide product range, ability to bring garments from concept to shop floor in just two weeks and excellent value for money, celebrities are then wearing these products which in turn makes it a lot easier and relatable for an average, everyday person to see an image on Instagram, click the link on the outfit and buy it, as spoken about by Tom, M. (2012). Zara doesn’t ever conduct any collaborations with brands or celebrities, unlike its competitors such as H&M and Topshop who do this regularly. H&M yearly collaborates with luxury brands such as Kenzo, Balmain and Alexander Wang. Whereas Topshop uses a lot of ‘models of the moment’ such as Cara Delevigne and Gigi Hadid in their campaigns and has seasonal collections with Beyonce’s ‘Ivy Park’ line. This could be an area that is missing in Zara’s overall marketFigure 14. Olivia Palemero wearing a Zara top

ing strategy and is definitely something that could boost Zara’s image and profits. 9.


Physical Evidence Zara stores around the world all tend to look very similar. They all usually have glass fronts with simple and minimalistic window displays, with the store name varying between black, white, gold or silver. From my observations of looking in Zara stores in the UK and in Paris, depending on the size of the store there tends to be 1-3 entrances, with all of those entrances having members of security. The inside of Zara stores also tend to be very similar, with a simple and easy to navigate layout, Ibrahimi, M. (2016). Most of the stores are kept very monochromatic on the inside, usually the ceilings, floors and walls are white with black and silver accents. This store layout definitely helps to keep familiarity for its customers and also makes the store feel a lot more luxurious than Zara’s competitors such as H&M or Topshop. The clothes in Zara are usually laid out into clear sections, often with newer or more popular trend

Figure 15. Inside Paris Champs Elysee’s Store

pieces closer to the front of the store to grab the attention of customers walking in. Last year, technology was introduced into some of Zara’s

is said to hopefully be rolling this technology out into

Spanish stores according to De Klerk. (2016). This in-

new stores soon, which will put it in front

cluded touch screen tablets in changing rooms where you

its other fast fashion competitors on the technology front.

can request to be brought a different size as well as self-checkout machines to try and reduce queue sizes. Zara

10.

of a lot

of


Process

thats available on multiple different devices such as smart phones, tablets and even Apple Watch. It sends you notifications for when an item you want is back in stock, when your order is able to go and be collected and even allows you to scan items on the go. A quote taken from Zara’s Chief executive, Pablo Isla states how Zara try to provide a seamless, multichannel way of shopping, “Both our online and

Figure 16. Screen shots of the new Zara App

bricks-and-mortar stores are seamlessly connected, driven by platforms such as mobile payment, and other technological initiatives that we will continue to develop,” Via Kowsmann (2016). As mentioned by Sowray, B. (2015). Zara has a very fast turn around. Their team of designers are able to take a complete design concept and have it on our shop floors within only 3 weeks. This works well for Zara as it is known for being able to bring take garments from the catwalks, make them their own and also make them a lot cheaper for the everyday buyer who wants to follow the latest trends. Unlike a lot of Zara’s competitors, it only locks in 50-

As mentioned in Physical evidence, if Zara decides to intro-

60% of its seasonal collections by the beginning of each

duce this technology into its stores around the world it will

season, (Lu, C. 2014). The other 50% are manufactured and

definitely be revolutionary for the fast fashion industry, as

designed while each season is still actually happening,

so far this has only really been seen for mid point and lux-

allowing a lot of movement for different trends to come in

ury brands such as Burberry and Rebecca Minkoff. Another more

and for others to fade out. This often allows Zara to be

digital aspect of Zara’s shopping experience is Zara’s app

further ahead, trend wise, than some of its rivals.

11.


Place If you compare the prices of Zara to the likes of its main rivals, H&M, Topshop and River Island, its clear to see that on a whole, especially for its TRF range the prices are extremely similar to those of Topshop and River Island. With it tending usually to be more expensive than H&M, especially for basic pieces. However, Zara does also tend to have some more expensive pieces such as leather jackets and cashmere clothing that many of its rivals tend to steer away from because of their younger target audience. A lot of these more expensive and better quality pieces definitely benefit Zara in appealing to a more higher class, and older aged customer base. From my observations, its clear that Zara stores tend to always be in most large UK towns and cities. Mainly in popular, busy places along the high streets and in some cases even featured amongst more expensive stores such as French Connection and Hugo Boss. By placing Zara stores in these areas it helps to gain a large footfall of customers and also leads their audience to believe that they’re shopping in a more luxury store. The newer, more ‘trend setting’ pieces are often featured at the front of the store, so that they’re noticed when you first walk in. Most items are then either hung up or on shelves around the edges of the store which helps for easy navigation.

12.

Figure 17. Zara Paris Store - Champs Elysees


References

Figure 18. Zara S/S 14 Lookbook

13.


De Klerk, A. (2016). ZARA TO INTRODUCE REVOLUTIONARY IN-

Unknown. (2014). ZARA PRICES WORLDWIDE COMPARATIVE: SPAIN

STORE TECHNOLOGY. Harper’s Bazaar. Retrieved from http://

IS THE CHEAPER. Zara Forwarding. Retrieved from http://

www.harpersbazaar.co.uk/

zaraforwarding.com/spain/

Kalb, I. (2016). If You Think Zara Does Not Do Marketing,

Images:

Think Again. Huffington Post. Retrieved from http://www.

Figure 1. (2017). Zara S/S 17 Lookbook. Retrieved

huffingtonpost.co.uk/

from http://www.zara.com/uk/en/campaign/woman-%7C-campaign-c566145.html

Kowsmann, P. (2016, Sep 21). Inditex’s unique fast-fashion model delivers more breakneck growth; owner of zara retail

Figure 2. (2014). Zara S/S 14 Lookbook. Retrieved from

chain said sales growth continued into current quarter.

https://uk.pinterest.com/zaraofficial/campaign-ss14/

Wall Street Journal (Online) Retrieved from https://search. proquest.com/docview/1821623237?accountid=14620

Figure 3. (2014). Zara S/S 14 Lookbook. Retrieved from https://uk.pinterest.com/zaraofficial/campaign-ss14/

Lu, C. (2014). Zara supply chain analysis - the secret behind Zara’s retail success. Trade Gecko. Retrieved from

Figure 4. (2014). Zara S/S 14 Lookbook. Retrieved from

https://www.tradegecko.com/

https://uk.pinterest.com/zaraofficial/campaign-ss14/

Sowray, B. (2015). The 5 ingredients of Zara’s success. The

Figure 5. (2013). Zara Fall 2013 Lookbook. Retrieved from

Telegraph. Retrieved from http://www.telegraph.co.uk/

http://thestyleobsessedcookie.blogspot.co.uk/2013/08/zarafall-2013.html

Tom, M. (2012). 7 Star-Studded Reasons You Should Be Shopping at Zara Right Now. Pop Sugar. Retrieved from https:// www.popsugar.co.uk/

14.

Figure 6. Purvis, O. (2016). Blogger Olivia Purvis wearing Zara bag. Retrieved from http://www.whatoliviadid. com/2016/09/wonderful-copenhagen.html


Figure 7. (2017). Own Screenshot from Zara Woman. Taken from http://www.zara.com/uk/en/woman-c358532.html

Figure 14. Palermo, O. (2016). Olivia Palermo wearing Zara

Figure 8. (2017). Own Screenshot from Zara TRF. Taken from

ia-at-schiaparelli-aw16-couture/

top. Retrieved from http://oliviapalermo.com/snapped-olivhttp://www.zara.com/uk/en/trf-c358533.html Figure 15. (2017). Own image taken inside Paris, Champs Figure 9. A graph made using information from Smith, K.

Elysees’s Zara store.

(2015). information used to make a graph showing H&M and Zara’s discounting. Retrieved from https://edited.com/

Figure 16. (2015). Zara app for Apple Watch email screen-

blog/2015/03/5-things-making-zara-and-hm-successful/

shot. Retrieved from https://milled.com/Zara/3EMHegitKyisxf7H

Figure 10. (2017). Zara S/S 17 Lookbook. Retrieved from http://www.zara.com/uk/en/campaign/woman-%7C-cam-

Figure 17. (2017). Own image taken of outside of Paris,

paign-c566145.html

Champs Elysees’s Zara store.

Figure 11. (2017). Own Screenshot of Zara’s Twitter ac-

Figure 18. (2014). Zara S/S 14 Lookbook. Retrieved from

count. Taken from https://twitter.com/ZARA?ref_src=tws-

https://uk.pinterest.com/zaraofficial/campaign-ss14/

rc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor Figure 19. Natasha. (2014). Zara S/S 14 Lookbook. Retrieved Figure 12. (2017). Own Screenshot of Zara’s Instagram Ac-

from http://fabfashionfix.com/zara-springsummer-2014-cam-

count. Taken from https://www.instagram.com/zara/

paign/#prettyPhoto

Figure 13. (2017). Own Screenshot of Zara’s Facebook

Figure 20. (2012). Zara and Freja Beha Erichsen A/W 2012

account. Taken from https://www.facebook.com/pg/Zara/

Campaign. Retrieved from http://stylebygabriela.blogspot.

likes/?ref=page_internal

co.uk/2012/08/zara-campaign-for-woman-and-man.html

15.


Figure 19. Zara S/S 14 Lookbook

Full Bibliography

16.


Admin. (2014). ZARA PRICES WORLDWIDE COMPARATIVE: SPAIN IS

De Klerk, A. (2016). ZARA TO INTRODUCE REVOLUTIONARY IN-

THE CHEAPER. Zara Forwarding. Retrieved from http://zara-

STORE TECHNOLOGY. Harper’s Bazaar. Retrieved from http://

forwarding.com/spain/

www.harpersbazaar.co.uk/

Akbareian, E. (2014). High street giant Zara launches new

Harbott, A. (2011). Analysing Zara’s business model [Blog

tagging technology to restock sizes and styles faster. The

post]. The Digital CIO. Retrieved from http://www.harbott.

Independent. Retrieved from http://www.independent.co.uk/

com/2011/03/03/analysing-zaras-business-model/

Bailay, R. (2017). Lagging behind Zara and H&M in India, US

Ibrahimi, M. (2016). Zara store design [Presentation].

label Gap finally looks to cut prices by 10-15%. Economic

Slide Share. Retrieved from http://www.slideshare.net/Mo-

Times. Retrieved from http://economictimes.indiatimes.com/

hannadIbrahimi/zara-store-design

Bateman, C. (2017). Zara Has an Outlet Store Called Left-

Inditex. (2016). Annual report 2015. Inditex. Retrieved

ies, and It’s Expanding. Allure. Retrieved from http://www.

from http://static.inditex.com/annual_report_2015/en/

allure.com/ Inditex. (2015). Zara annual report 2015. Inditex. ReBhasin, H. (2016). Marketing mix of Zara. Marketing 91. Re-

trieved from http://static.inditex.com/annual_report_2015/

trieved from http://www.marketing91.com/

en/year-review/retail-formats/zara.php

Claire, M. (2017). The Zara leather biker jacket you’ll

Inditex. (Unknown). Brands: Zara. Inditex. Retrieved from

want to buy. Marie Claire. Retrieved from http://www.marie-

http://www.inditex.com/en/brands/zara

claire.co.uk/ Inditex. (Unknown). About us: Our History. Inditex. ReCoruna, L. (2012). Inditex, Fashion forward. The Economist.

trieved from https://www.inditex.com/our_group/our_history

Retrieved from http://www.economist.com/

17.


Jones, J. (2015). Zara to install iPads in changing rooms

Lutz, A. (2015). This clothing company whose CEO is richer

as fashion meets technology. The Local. Retrieved from

than Warren Buffett is blowing the competition out of the

http://www.thelocal.es/

water. Business Insider. Retrieved from http://uk.businessinsider.com/

Kalb, I. (2016). If You Think Zara Does Not Do Marketing,

Petro, G. (2012). The Future Of Fashion Retailing: The Zara

Think Again. Huffington Post. Retrieved from http://www.

Approach (Part 2 of 3). Forbes. Retrieved from https://www.

huffingtonpost.co.uk/

forbes.com/

Kowsmann, P. (2016, Sep 21). Inditex’s unique fast-fashion

Ruddick, G. (2014). How Zara became the world’s biggest

model delivers more breakneck growth; owner of zara retail

fashion retailer. The Telegraph. Retrieved from http://www.

chain said sales growth continued into current quarter.

telegraph.co.uk/

Wall Street Journal (Online) Retrieved from https://search. proquest.com/docview/1821623237?accountid=14620

Schlossberg, M. (2016). Affluent shoppers are abandoning traditional retailers — and now cheap fast fashion is tak-

Loeb, W. (2015). Zara leads in fast fashion. Forbes. Re-

ing over. Business Insider. Retrieved from http://uk.busi-

trieved from https://www.forbes.com/

nessinsider.com/

Lopez, C., & Fan, Y. (2009). Internationalisation of the

Smith, K. (2015). The 5 things making Zara and H&M success-

spanish fashion brand zara. Journal of Fashion Marketing

ful [Blog post]. Edited. Retrieved from https://edited.com/

and Management, 13(2), 279-296.

blog/2015/03/5-things-making-zara-and-hm-successful/

Lu, C. (2014). Zara supply chain analysis - the secret

Sowray, B. (2015). The 5 ingredients of Zara’s success. The

behind Zara’s retail success. Trade Gecko. Retrieved from

Telegraph. Retrieved from http://www.telegraph.co.uk/

https://www.tradegecko.com/ Tom, M. (2012). 7 Star-Studded Reasons You Should Be Shop-

18.


ping at Zara Right Now. Pop Sugar. Retrieved from https://

Yuchenpang. (2016). Zara’s secret to success retail – its

www.popsugar.co.uk/

pricing strategy [Blog post]. Retrieved from https://mpk732t12016clusterb.wordpress.com/

Unknown. (2015). NEW | ZARA for Apple Watch now available. Milled. Retrieved from https://milled.com/ Unknown. (2016). Zara on the Forbes World’s most Valuable brands. Forbes. Retrieved from http://www.forbes.com/companies/zara/ Unknown. (Unknown). Why Your Favorite “Cheap” Stores Aren’t What They Used To Be… Refiniery 29. Retrieved from http:// www.refinery29.uk/?utm_r29_redirect=us Unknown. (Unknown). Social media analytics for Zara. TalkWalker. Retrieved from https://www.talkwalker.com/industry-research/retail/zara-social-media-analytics Unknown. (Unknown). 15 Zara Secrets The Press-Shy Brand Hasn’t Made Public. Refinery 29. Retrieved from http://www. refinery29.uk/ Unknown. (Updated regularly). BOF: Zara. Business of Fashion. Retrieved from https://www.businessoffashion.com/

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Figure 20. 20. Zara 2012 Campaign


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