PORTFOLIO || GROUP 1
Rebecca Moroukian Eleftheria Christogeorgou Eddie Liang
PORTFOLIO || GROUP 1
Rebecca Moroukian Eleftheria Christogeorgou Eddie Liang
FAST FASHION
About: Fast Fashion Retailers quickly manufacture inexpensive fashion trends, allowing for mainstream consumers buying current fashion at affordable price.
1990s-2000s
1975
1820-1840
1800
INDUSTRIAL REVOLUTION. •Factories •Textile Machines •Mass Production
FIRST ZARA STORE OPENS IN A CORUNA, SPAIN.
1960s-1970s
YOUNGER GENERATION VALUED: •Trend-Focused •Inexpensive Clothing •Expressing Their Style
FAST FASHION TAKES OFF DOMINATION HIGH STREET FASHION
1989 ZARA OPENS FIRST STORE IN NYC THE NEW YORK TIMES COINS THE TERM ‘FAST FASHION’
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ZARA HISTORY
Zara: 1963-2016 1963
1985
2001
FIRST ZARA STORE OPENS IN A CORUNA, SPAIN.
INDITEX IS FOUNDED It establishes a distribution system capable of reacting to shifting market trends extremely quickly.
INDITEX GOES PUBLIC
1960 1989
1983
ZARA GOES TRANSATLANTIC
ZARA EXPANDS IN SPAIN
2010 ZARA GOES ONLINE
2019
2016
DRIVING DIGITAL AND SUSTAINABILITY TRANSFORMATION
INTERNATIONAL RECOGNITION OF ZARA'S SUSTAINABILITY WORK
Brand Concept & Brand concept fashionable and affordable clothes
Zara’s Template trendy and decently made but inexpensive beautiful,
products
sold
in
high-end-looking
stores
Brand’s Value Proposition also includes large choice of styles, scarcity and prime locations 6
Value Proposition
Zara’s strategy is to offer cutting
edge
fashion
at
affordable prices by following fashion
and
identifying
the
current fashion movements The approach of Zara to fashion and its business model shrinks the
gap
creation
between and
the
fashion customer,
bringing customers closer than ever to the products they want, all at an affordable price
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ZARA
MERCHENDICE
WOMEN’S CLOTHES MEN’S CLOTHES SHOES ACCESSORIES COSMETICS SWIMWEAR PERFUMES
CHILDREN’S CLOTHES
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Target Customers & Demographic Segmentation
Age 18- 35-year-old Mainly young customers and the millennial generation
Gender Both genders, but mainly women Product line: 60% women’s, 25% men’s, 15% children’s
Income Price-conscious Mid-range incomes Price sensitive young people Mid level consumers People who want clothing at affordable pricing
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Market Segmentation Psychographic Segmentation
Highly sensitive to the latest fashion trends Interested in new fashion on social media and magazines such as Vogue
Social media platforms such as Instagram • TikTok • Twitter
Wants fashionable, trendy and unique outfits at affordable prices
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Similarities
&
Similarities
All brands are in the fast fashion Industry and target trendy seeking customers Affordability Worldwide brand recognition All have product lines for most age groups
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Dierences Differences
Zara seeks to be high end
prices their products in 2
affordable clothing as to the
categories, upper garment and
competitors such as H&M ,
lower garment
Uniqlo and Forever 21 Rather than spend profits on Rather products
than into
segmentheir collections
with varying price points,
advertising,
Zara
spends
money on opening more retail locations.
Zarat
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PANDEMIC OPPORTUNITIES
Background Major effects of COVID-19 on fashion industry and stores Physical stores closed as lockdowns forced shoppers to stay away. In other cases, other social distancing regulations limited the amount of people that could be found in a store at the same time. E-commerce boomed as locked-down consumers had
more goods than ever delivered to their homes. Online shopping increased significantly.
The pandemic opportunities we came up with focus on these two consequences of the pandemic. They aim not only to tackle this issue, but enhance Zara’s brand image and support is value proposition.
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Pandemic Opportunity One
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Pandemic Opportunity 1 Goal: To enhance online shopping experience, eliminate waste and reduce the product returns percentage of online purchases. Background information: ● At least 30% of all products ordered online are returned as compared to 8.89% in brick-and-mortar stores ● Returns in the U.S alone create 5 billion pounds of landfill waste and 15 million tons of carbon emissions annually Zara’s app already includes sizing guide/ help where by
adding your height, weight and how you want the outfit to fit you, a specific size is suggested. In addition to this, pictures of different models with different body types and proportions can be added, to provide extra visual help and allow consumers clearly see what the fit of the product is. This can increase the chances of buying the right product and size, therefore decrease the rate of returns and limit the negative impact of returns. Eco-friendliness and sustainability can be promoted through this action.
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Pandemic Opportunity Two
Pandemic Opportunity 2 Goal: Encourage in-store shopping at the stores remaining open during the pandemic and offer higher sense of security and flexibility to consumers, while at the same time abiding by social distancing regulations (if any). Background information: Social distancing as a regulation or a norm can limit the number of customers that can be present inside store premises. In order to keep consumers informed about the number of customers found in each store, a feature showing this information can be added on Zara’s app,
where store locations, operating times etc. can be already found. This information can include: number of consumers in the store, remaining capacity, number of people in line waiting to get it (if applicable), estimated wait time. The capacity of each store can be monitored by the security guards who can keep track of when a customer enters/ leaves the store on their cell phones or tablets, and have this data directly appear on the app. This will allow consumers to decide if they want to visit a store at this specific time, based on the data given and avoid overcrowding, long waiting lines and bad in-store experience/ service.
Pandemic Opportunities Suggested: COVID-19 has been challenging for humanity in many aspects. The fashion industry has been impacted by this pandemic to a great extent. These pandemic opportunities can offer a competitive advantage to Zara over other fast fashion brands, tackle the issues caused by COVID-19 and improve the way Zara presents itself. In 2020, it is important for fast fashion brands to adopt sustainable actions that better serve its customers and take care of our planet. Such initiatives can also provide better service to consumers, increase customer loyalty and improve brand image.
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