Introduction • Zara has 2000 stores in 50 countries • Amancia Ortega • Keen on avoiding public eye • International expansion started in the late 80ies, in Portugal The Zara Concept The democratization of fashion Zara and Inditex • Principles of Inditex • Zara accounts for • 70% of sales • 76% of operating profit Zara’s business process re-engineering • Shorten turnaround times and great flexibility • Underlying business process • Zara’s market-pull, demand chain approach • Shorten communication channels: 22-30 days • Continuous replenishment & regular introduction of new lines • The use of Information technology The retail chains Inditex currently operates 8 brands 4430 stores worldwide Launched in 1975 1,341 stores in 73 countries (2009) •In step with society, •Dressing the ideas •Trends and tastes that society itself created •Extended into home furnishing in August 2003 -a way of life Launched in 1991 602 stores in 41 countries (2009) •Originally positioned below Massimo Dutti •Age group : 14 – 28 •Womenswear was added 1998 •Adapt to the needs of young people •Casual laid-back clothing - fashion and quality Launched in 1985, bought by Inditex 1996 488 stores in 41 countries (2009) 1. Target market: urban, independent and cosmopolitan men and women between 25- 45 2. Offers: traditional styles updated by new fabrics, high quality clothing, affordable prices - Not just a product, more an attitude Launched in April 1998 626 stores in 41 countries (2009) Offering a meeting point for street fashion, music and art. •Watch videos •Listen to music •Read magazines Age group: 13- 23 Fashion for men was added in winter 2002 - always the latest trends 482 stores in 33 countries (2009) Launched by competitor Pigaro • Target young women in the 15- 25 bracket 2100 in 1994. •Offering international fashion with cutting- edge Inditex takeover 1999 designs (90,5%) •A mix between Pull & Bear and Bershka •Higher quality and price point than Bershka Launched in September 2001 382 stores in 23 countries •Is targeted at the Zara customer •Fun, sexy feminine lingerie •Offers high quality, fashionable lingerie, informal home wear and swimwear at attractive prices Failure of other brands.. • Bretto – for trendy young suburban women • Pull & Bear concept <Often> for the urban male • Kiddy’s Class childrenswear launched 1991 Retail Internationalization • Culture of diversity • Co-operation and Franchise • Local markets • Zara culture • Auditing function The future of Inditex • Historically rapid growth and expansion • Questions for the future: - Possible wider expansion into Asia - Assess sustainability of business approach - Location of production Learning Points • What are the main aspects behind the success of Zara? • Zara has to adjust their thinking to establish in certain markets. How much should they allow themselves to deviate from their original concept? • As of today, Zara always try to attain their textile in local markets. What would happen if the production was to be moved to China?
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