final Presentation
Shayna Salzman // Liza Kruth // Josie Chan FASM 245 Professor Daniel Green
BRAND HISTORY -Founded in 1975 by Amancio Ortega and Rosalía Mera. -Opened the first store in 1975 in central A Coruña, Galicia, Spain. -In the 1980s, Ortega changed the design, manufacturing, and distribution process to reduce lead times and react to new trends in a quicker way, which he called “instant fashions”
COMPANY MISSION
Zara is one of the biggest international fashion companies with the customer at the heart of their unique business model, which includes design, production, distribution, and sales through their extensive retail network.
BRAND IDENTITY RECAP -Zara is a part of the Inditex group -Have 7475 stores globally -87 stores in the United States -Sell to any age and any gender -Zara is a specialty store that offers product assortments of the following -Women’s apparel -Men’s apparel -Kid’s apparel -Shoes -Accessories -Cosmetics -Home accessories
TARGET CUSTOMER
STRIVERS:
STRIVERS ACHIEVERS EXPERIENCERS
-Fun loving -Center of street culture -Have a desire to better their lives
ACHIEVERS: -Goal oriented -Hard working -Pure conscious -Tech savvy
EXPERIENCERS -First in and first out of trends -They want everything -Very sociable and spontaneous -Heightened sense of visual stimulation
SWOT ANALYSIS STRENGTHS -Founders of fast fashion -Effective supply chain management -Have a vertical Integration system -Strong international presence -Short product development time -Pricing strategy -Store locations as a marketing tool
WEAKNESSES
OPPORTUNITIES
THREATS
-In store designs and trends are too broad -Balancing too many trends at one time -Not enough exposure in the US marketplace -End up wasting product -Competitors manage social media more effectively -How people see them as not being sustainable
-Developed social media presence -Figure out ways to be more eco-friendly and sustainable -Expand number of stores in the US markets -Add in a new product category
-H&M, ASOS, Topshop, etc -Have a fluctuation in their cost of goods sold -Are currently not a sustainable brand -Fast fashion could go out of style
COMPETITIVE CHART
High Quality
Low Price
High Price
Low Quality
TOP 3 COMPETITORS
-Has a wide range of product categories
-Partnered with GLAAD which has a big voice in
-500 stores worldwide
-Sells its product portfolio through many different
the LGBTQ community
-Has a user friendly and interactive website
brands
-They keep up a positive brand image
-Stores are set out for ease in categories
-Produces over 30 sizes for all the same price
-Has a wide size range
-Strong financial performance
-They have invested a lot in both their technology
-In FY 2015, H&M showed a 19.4% growth over the
and distribution
-They use social media as their
FY in 2014
-ASOS Foundation
advertisements
-Only have stores present in 65 markets globally
-ASOS Insiders
-TAPP
-COS, Weekday, Monki, etc.
-Helps the company focus on their operations
-Have more physical brick and mortar stores
-Influential Marketing Initiative
-Petite, maternity, etc.
-’Brand Me’
PRODUCT CATEGORY INFORMATION -Inditex surpasses H&M as the 3rd top firm in apparel and footwear globally -16% growth in 2016, 12% growth in 2017 -Beginning to use their supply chain for footwear and other categories besides apparel -Broad global footprint, but lack of presence in North America -Inditex remains one of the top women’s footwear companies in Spain -Asia Pacific was the largest footwear market for 2017 -Placing a greater emphasis on footwear means: -Potential for growth -Higher ticket prices -A vehicle to show brand aesthetic and design -Consumers expect fast fashion to be more disposable, but see the difference with footwear -Allows for weaker price sensitivity and higher margins -Puts more emphasis on quality, comfort, and functionality than apparel
PRODUCT CATEGORY INFORMATION In the United States: -Grew a CAGR of 20% between 2013-2017 due to the popularity of fast fashion -They are in the right position to deal with the continuous retail changes and meet the needs of the US market and consumer E-commerce: -Launched e-commerce stores for Zara in Singapore, Malaysia, Thailand, and Vietnam in 2017 -Launched e-commerce stores in Zara in Australia and New Zealand in 2018
CURRENT FASHION TRENDS
HOME HUB
WANDERLUST
SOLE MODELS
MID-CALF BOOT
CORPORATE PLAN
STORE PLAN: NEW YORK FLAGSHIP
STORE PLAN: MIAMI
ASSORTMENT PLAN
ASSORTMENT PLAN
OPPORTUNITIES
-Have a chance to penetrate the US market even more with shoes -This is a very aggressive plan, but it is necessary for Zara to expand further in the shoe market -People are going to take the risk and spend money and affordable shoes that they fall in love with in the moment