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Inditex Zara slutversion

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					               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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posted:9/8/2011
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