Zara - a Successful Brand
Study Trip Report - Madrid
How did Zara become a successful player in the global fashion market?
1. Abstract
This academic report is connected to the study trip topic “Adaption of Spain to a globalized economy”. It is focused on the international development of Zara Clothing in an international competitive market and is based on current news, statistics and the company his annual report. A few years ago, the retailer introduced a unique business process, which makes them the leader in fast fashion. Although nobody has believed in its incredible business model, Zara demonstrates its global capability and sets every year a great performance.
Table of Contents
1. Introduction …………………………………………………………...3
2. The History of Zara …………………………………………………..4
3. The Expansion of Zara ………………………………………………5
4. Inside Zara ..…………………………………………………………..5 4.1 The Production Centers …………………………………5 4.2 Fast Fashion ………………………………………………6 4.3 Communication ……………………………………………7
5. Advertising ….…………………………………………………………8
6. The Store Environment……………………………………………… 9
7. Zara his Overall Performance in 2006 ….………………………… 9
8. Business Models ……………………………………………………10 8.1 PESTEL ………………………………………………….10 8.2 Porter’s Five Forces …………………………………….11 8.3 SWOT-Analysis ………………………………………….12 8.4 TOWS-Analysis ………………………………………….12
9. Conclusion: The Fastest Fashion ………………………………….14
10. References List …………………………………………………….15
1. Introduction
The Spanish Royal Family felt affected by Letizia Ortiz, today the wife of Spain his Crown Prince Felipe. When they communicated in public that they are going to married, she was casually dressed. Even though a scandal, a lot of Spanish women wore almost the same clothes only a few weeks later (“Inditex and fast fashion”, 2005).
Today many people all over the world try to look as good as celebrities do, but they don’t want to spend the same amount of money or they cannot afford it. That leads them to the mass market of clothing such as
How did Zara become a successful player in the global fashion market?
1. Abstract
This academic report is connected to the study trip topic “Adaption of Spain to a globalized economy”. It is focused on the international development of Zara Clothing in an international competitive market and is based on current news, statistics and the company his annual report. A few years ago, the retailer introduced a unique business process, which makes them the leader in fast fashion. Although nobody has believed in its incredible business model, Zara demonstrates its global capability and sets every year a great performance.
Table of Contents
1. Introduction …………………………………………………………...3
2. The History of Zara …………………………………………………..4
3. The Expansion of Zara ………………………………………………5
4. Inside Zara ..…………………………………………………………..5 4.1 The Production Centers …………………………………5 4.2 Fast Fashion ………………………………………………6 4.3 Communication ……………………………………………7
5. Advertising ….…………………………………………………………8
6. The Store Environment……………………………………………… 9
7. Zara his Overall Performance in 2006 ….………………………… 9
8. Business Models ……………………………………………………10 8.1 PESTEL ………………………………………………….10 8.2 Porter’s Five Forces …………………………………….11 8.3 SWOT-Analysis ………………………………………….12 8.4 TOWS-Analysis ………………………………………….12
9. Conclusion: The Fastest Fashion ………………………………….14
10. References List …………………………………………………….15
1. Introduction
The Spanish Royal Family felt affected by Letizia Ortiz, today the wife of Spain his Crown Prince Felipe. When they communicated in public that they are going to married, she was casually dressed. Even though a scandal, a lot of Spanish women wore almost the same clothes only a few weeks later (“Inditex and fast fashion”, 2005).
Today many people all over the world try to look as good as celebrities do, but they don’t want to spend the same amount of money or they cannot afford it. That leads them to the mass market of clothing such as
References: Ferdows, K., Lewis M. A., & J. A. D. Machuca. (2005). Zara’s Secret for Fast Fashion. Retrieved January 28, 2008, from http://www.hbswk.hbs.edu/archive/4652.thml Hampden-Turner, C. & Trompenaars, F. (1997). Riding the Wave of Culture. London: Nicholas Brealey Hancocks, P.(2004). Zara: A model fashion retailer. Retrieved January 28, 2008, from http://www.cnn.technology.printthis.clickability.com/pt/cpt?action=cpt&…om%2F2004%2FTECH%2F07%2F19%2Fspain.zara%2Fincex.html&partnerID=2016 Inditex and fast fashion. (2005). (Electronic version(. The Economist, June 16, 2005. Retrieved January 28, 2008, from http://www.economist.com/business/displaystory.cfm?story_id=4086117 Retrieved January 28, 2008, from http://www.inditex.com/en/who_we_are/timeline Inditex Group. (2005). Annual Report 2005. Retrieved January 31, 2008, from http://www.inditex.com/en/shareholders_and_investors/investor_relations/annual_reports Inditex Group. (2006). Annual Report 2006. Retrieved January 31, 2008, from http://www.inditex.com/en/shareholders_and_investors/investor_relations/annual_reports Retrieved January 28, 2008, from www.businessworld.in/index2.php?option=com_content&task=view&id=898&pop=1&page=0&Itemid=953 Landry, C. & Wood, P. (2008). The Intercultural City. London: Earthscan Spain to standardize women’s clothing sizes Retrieved January 31, 2008, from http://www.lilith-ezine.com/articles/fashion/Fashion-Models-Sizes.html Tiplady, R., (2006). Zara: Taking the Lead in Fast-Fashion. European BusnisseWeek research Retrieved January 31, 2008, from http://www.cato-at-liberty.org/2007/05/15/spain-immigration-up-unemployment-down/ Zara, a Spanish success story. (2001). CNN.com Europe/Business. Retrieved January 31, 2008, from http://edition.cnn.com/BUSINESS/programs/yourbusiness/stories2001/zara/ Zara bans fur. (2004). FashionUnited Group. Retrieved January 31, 2008, from http://www.fashionunited.co.uk/news/inditex.htm