Equity (CBBE) (Keller‚ 2008) Salience Zara is a well-known and ranked number one clothing brand in Spain‚ and it is the brand chain store of the Inditex Group owned which ranked number three in the world (INDITEX Group‚ 2012). Zara used fast fashion model – limited and variety. Zara resist a trend within the worldwide industrial- product manufacturing in low-cost area. That prove its product has a certain quality. Related to fast fashion‚ Zara has asserted that it only needs 2 weeks time to
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Mary Rose Batoon Fashion Retail Branding and Promotion Professor Dena Strong March 3‚ 2015 Zara 1. What are the Main Challenges in the business model adopted by Zara? Based on weaknesses and threats on Zara SWOT analysis‚ the main challenges they are facing today are the high dependence on European Markets‚ Intense completion in the retail market‚ Rising labor wages‚ especially in Europe‚ and the risk of foreign exchange fluctuations. Others also include the problems faced by management in the organization
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Introduced to Thailand for the first time in February of 2006‚ Zara today has three stores located in the three most luxurious malls of Bangkok. Zara’s much anticipated opening was very well received by the Thai community. This study investigates views from both Zara and its customers in order to identify important issues regarding consumer’s interaction with Zara and vice versa. An in-depth interview with Zara’s brand manager introduced three main issues concerning value perception from consumers
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Profit Growth in the Next Three To Five Years Introduction Zara is a Spanish company that starts its business as a clothing manufacturer. It started to grow from a small company over the decades until it possesses few factories that allocate their products to other countries. Zara crosses over the border of its own country‚ Spain and could be found in upscale locations in the cities like Europe‚ United States‚ Middle East‚ and Asia. Zara has its system of 1603 stores in 78 countries. Its stores are
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Quality ZARA become expanding too fast in international market‚ but doing so company needs to increase the capacity of production‚ they started employ original equipment manufacturer(OEM). This leaded to low quality due of using lower qualification by OEM. For example in China they want to have biggest market share as foreign cloth maker with low cost‚ attracting colleague students and young people; but their product were failed frequently in the quality test made by government ‚ out of 57 product
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the Fashion World Upside Down 13 December 2007 Introduction ZARA is the flagship chain store for the Spanish Inditex Group owned by Spanish tycoon Amancio Ortega‚ who also owns brands such as Massimo Dutti‚ Pull and Bear‚ Stradivarius and Bershka. Today‚ Inditex is probably the world ’s fastest growing clothing retailer with over 3‚100 stores around the world in over 70 countries (more than four times the 2000 figure) the Zara format taking around 1‚000 of those stores. In March 2006‚ the
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Spanish retailer‚ Zara‚ has crafted a sweet success story riding on its image as a low-cost‚ high fashion store. Nirmalya Kumar and Sophie Linguri take to the High Street to look at Zara’s route from rags to riches. I n 1975‚ the first Zara store was opened in La Coruña‚ in Northwest Spain. By 2005‚ Zara’s 723 stores had a selling area of 811‚100 square metres in 56 countries. With sales of e3.8 billion in the financial year 2004‚ Zara had become Spain’s best-known fashion brand and the flagship
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1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? We think H&M’s financial results are the most interesting one to compare with Inditex’s. H&M is the most important and largest competitor of Inditex and due to their similar background‚ both being large international European apparel brands and offers fashionable
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Design As the flagship brand of Inditex‚ Zara possesses a large amount of capital for investment in product design. Moreover‚ the young but capable designers in Zara have the sensitivity to capture the newest trendy style. They are the typical air traveler busy shuttle back and forth all kinds of fashion shows and trade fairs in Paris‚ New York‚ London‚ and Milan‚ from which they can get inspiration and recognize the fashion trend accurately. Therefore‚ Zara could rapidly design and release fashion-sensitive
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products are shipped twice a week allowing constant changes in style selection. Customers enjoy coming to Zara because each time they shop‚ they find new clothes‚ shoes and accessories. This intrigues them and‚ as a result‚ prompts them to visit Zara’s stores more often than its competitors’. By constantly introducing new‚ low-price items‚ Zara entices new and existing clients to return to Zara regardless of sales. Such a business model increases customer satisfaction as well as company profits
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