Zara Report Part 1
Zara Report Part 1
Zara
Submitted To
Course Team of Fashion Business
Management
In fulfilment of the
BA (Hons) Degree in Fashion Business
Management
Declaration
I hereby declare that this case study is my own
work and that, to the best of my knowledge and
belief, it reproduces no material previously
published or written, nor material that has been
accepted for the award of any other degree by
any educational institution, except where due
acknowledgement is made in the text.
Table of
Contents
Table of
Contents
Zara found the need gap in the market that is keeping up with the
changing trends and providing them to their customers with a very
little delay. (MartinRoll,20)
I. Clothing
Women Men Kids
I. Accessories
Women Men Kids
I. Footwear
Women Men Kids
I. Fragrances
Women Men Kids
2. Price
The concept that Zara is focusing on is to provide the consumers their product at a
reasonable price. There are two types of stores, one where the customers will find
themselves in a premium store and second where the stores are very much affordable
than the premium one.
4 P's of Zara
2. Price
4 P's of Zara
1. Promotion
Zara has a unique marketing policy of “Zero investment in
marketing”. Its key marketing strategy is based on exclusivity,
experience, differentiation and affordability. They focus on using
the money on new stores. The products target population in age
group 18-40 that live in the cities. (Bhasin,2019)
2. Place
Zara is very unique and one of the things that make it a stand out
brand is the fact that it is a vertically integrated retailer. It is
present in over 30 different countries including India and its
expansion is ongoing. Therefore, you will soon be seeing more
Zara stores in more countries. 90% of Zara stores are owned by
the company and the rest are joint ventures of franchises. The
stores are spacious, well-lit, modern and predominantly whiter
and walled with mirrors. Zara hires young designers and trains
them to make quick decisions. (Bhasin,2019)
What did they initially start
with?
The first item that they ever sold was a bathrobe line as they
discovered that the women would mostly go for shopping in
robes due to lack of heating in their houses. The owner
started selling these from door to door before opening his
company. He saw an opportunity to sell them a stylish robe,
for a fraction of the cost of other stores. He used to work at
boutique La Maja with Rosalia Mera (who would later
become his wife) and her sister and they created a cheaper
version of a quilted robe that the store sold. (Marie Claire,
17)
Strength Weakness
Opportunities Threats (SWOT)
1. Strength
i. Unique designs-
One of the first and foremost managers of Zara lies in its design abilities. They
come in a lot of variations such as formal wear, casual wear, for kids, men, and
women. Zara consists of designers who know their customers very well.
(Marketing91,19)
Zara has a strong presence across the globe and they are still expanding till
date. They have 21 stores in India in 11 cities(business-standard,21). Zara
operates in India through the association of its parent Spanish clothing
company into talks with the Tata group from Trent LTD – Inditex Trent Retail
India Private Limited (Businessworld,21). In 2015 they had 2100 stores
worldwide with an average sale of 15.9 billion per annum (marketing91,19).
Strength Weakness
Opportunities Threats (SWOT)
They get their designs from conception to the stores in two weeks
whereas it takes six weeks or more for their competitors to do the same
which makes Zara the trendiest store in fashion. On an average 450
million items are designed every year by Zara. (marketing91,19).
2. Weaknesses
i. Generalised collection -
While it may lead to a cost advantage and cost is one of the strengths
of Zara, the lack of advertising is a weakness because the brand can
double its profit and its turnover by advertising its collection. By
advertising it will generate a lot of positive word of mouth for the brand.
(marketing91,19).
//04
Strength Weakness
Opportunities Threats (SWOT)
3. Opportunities
Top brands have some designs which are flagship designs for their store
whereas Zara lacks in that aspect and There should be some designs that are
sold from a Zara store which will bring great demand for these designs which will
furthermore better brand identity. (marketing91,19).
Since Zara is becoming more and more well known, this results in growing market
potential. If there is a rise in earning potential of consumers results in rise in
demand for status symbol. Zara its self is a status symbol and clothing industry.
Hence Zara needs to capitalize on the growing market potential of existing
markets. (marketing91,19).
New markets will always give new business and potentially profitable business to
Zara. It needs to keep a constant eye on emerging markets, where the spending
power is rising and where people can spend on a semi premium brand like Zara so
that they can wear better and more stylish clothing. Such market expansion
insures the clothing brand against saturation in developed countries where the
competition is too high. (marketing91,19).
Strength Weakness
Opportunities Threats (SWOT)
4. Threats
i. Low advertising-
Zara needs to ask this question to itself. Looking back, will Zara think that it made
a mistake by not advertising its unique brand proposition from the start? The way
that Zara keeps rotating design, it can rope in a lot more consumers if it advertises
the fact that you will get the latest in designs from Zara. But maybe, if its consumer
base increases tremendously, coming up with new designs and differentiating
itself will become more and more difficult. So, the debate of whether Zara should
advertising or not, will be going on in the management room of Zara itself.
(marketing91,19).
ii. Competition-
Zara is not the only one that is known for its chic design. Vero Moda, H&M, and
Mango are also loved for their design. But the advantage to Zara is that the other
brands are quite costly when compared to Zara whereas Zara gives much better
designs at affordable prices. However, this competition leads to saturation in the
semi-premium segment indirectly affecting the margins. (marketing91,19).
iii. Reach-
Zara needs to increase its reach tremendously. Zara operates exclusively through
its own stores and does not have shop in shop kind of stores or smaller displays
(at least in Asia). This is where the competition gets its tremendous volumes from.
But these volumes are missing in Zara and the only answer to this is that Zara
increase its reach. If it does not, then competitors will eventually affect the brand
equity of Zara because of their sheer power of penetration (marketing91,19).
Corporate social responsibility
1. This is a self-regulating business model which helps in organization
to be socially accountable – itself, public and its stakeholders. By
incorporating this practice (Corporate Social Responsibility),
companies can be more conscious of the kind of impact that they
have on different aspects of society (Fernando, 21).
Inditex has pledged to fully eliminate plastic bags which are a part
of a milestone that has been achieved by Zara, Zara home, Massimo
dutti and Uterque. The plan to fully disassociate with all single use
plastics completely from its customers sale (2020 aim- 100% eco
efficient stores) (Thacker, 19).
Vidya project which was an initiative by Inditex launched in 2009.
This was started after their sustainable team uncovered that work
was outsourced undisclosed to unauthorized contractors, where there
was a high risk of poor working conditions and health and safety
practices .they transformed the working conditions among their
suppliers in Delhi, India. According to their official inspection there
are 24 suppliers with the lowest rating implying that they are
breaching some critical aspect of Zara’s code of conduct for
manufacturers and suppliers. This project ensures the following:
(Inditex)
4. Reusing Fashion-
Zara has been working towers extending the life of its products
through multiple ways such as social and environmental commitments.
The company provides a clothing collection program, of which the
received garments are distributed to non-profit organizations that
allow them to be reused or recycled. (Tom Swallow, 21)
2040 MILESTONES
0% Net emissions
Emergence of Zara in India
The brand that entered India in 2010 has helped plug the gap for trendy, casual
clothing. "Zara appeals to the country's fashion aspirants and has helped
plugged the supply gap in casual clothing," said Pakhi Saxena, practice head,
retail and CPG, Wazir Advisors. (Mint, 2020)
Inditex (The Company behind Zara) has entered India through a joint
venture with Trent Limited, a Tata Group company. Inditex controls 51
percent of the joint venture, while Trent Limited owns 49 percent.
(Mint,2020).
By 2022, online sales are expected to reach more than 25% of total
sales, Inditex—founded by Amancio Ortega, one of Europe’s
wealthiest men—said on 10 June. The company is transitioning
globally investing over $3 billion over the next three years to digitize
consumer shopping experience as the pandemic accelerates
consumer pivot to e-shopping. The move could see Inditex shut stores
across its brands such as Zara, Pull&Bear, Stradivarius, Massimo
Dutti, and Bershka, among others
Stores in India
8. Madhya Pradesh
9. Karnataka
10. Andhra Pradesh
Rajasthan Uttar
Pradesh
Madhya
Gujarat
Pradesh
Maharashtra
Andhra
Pradesh
Karnataka
Tamil
Nadu
Timeline
2010- Zara goes online and our 5,000th store opens in Rome
·Zara begins to sell its products online in September and by the end of 2010
the online platform is live in 16 European markets. We mark our 5,000th
store with the opening of an eco-efficient Zara store in Rome, and present
our new Environmental Strategy Plan, called Sustainable Inditex 2011-2015.
Timeline
Competion
Analysts considered its three closest
comparable competitors to be The Gap, H&M,
and Benetton. All three had narrower vertical
scope than Zara, which owned much of its
production and most of its stores. The Gap and
H&M, which were the two largest specialist
apparel retailers in the world, ahead of Inditex,
owned most of their stores but outsourced all
production. Benetton, in contrast, had invested
relatively heavily in production, but licensees
ran its stores.(Zhou, 2006). Other International
competitors are Forever 21, Boohoo, Marks &
Spencer, UNIQLO and Mango.
| PRODUCT IDEATION
& CONSUMER
MARKET RESEARCH
Background Research
Chromatic colours are those which undergo a reversible
change in colour. This Phenomenon is induced by various
external stimuli. Thermochromatic chromatic pigment powder
is now entering the sports apparel industry. The thermal
chromatic pigment has somewhere redefined the workout
regimes. The technology is suitable to apply on wearable
and useful tool to measure body temperature. The
mechanism of this heat changing pigment works when the
body temperature changes, further having a change in
apparel’s temperature too.
Product ideation
Although Zara has recently launched “Zara Athleticz” for
men, we are targeting women and their Athletic wear where
we will be using thermal chromatic pigment which changes
its colour with heat that releases from the body during
activities. (Gaurav Khanna, 2008)
This will reduce the Wardrobe size which will play a major
part in Zara being more sustainable.
6 Questions
Ques1. How big is your potential market?
Ans1. Smart clothing is becoming all the rage, with garments that can do things like light
up or detect the wearer’s pulse. Now, designers are also experimenting with colour
changing clothing ink, and how it can be integrated into smart textiles for a variety of
fashionable and functional results. Thermochromic inks have been in use for decades,
from novelty items such as mood rings, to packaging that indicates when your food or
drink is at the right temperature, to more utilitarian applications such as thermometers
and battery indicators. Color-changing clothing, however, is relatively new and still being
developed.
Researchers and designers around the world are developing techniques and technology
with exciting possibilities. Color-changing textiles are still in their infancy, but knowledge
around them is beginning to spread. As the properties and interactions of these inks with
fabrics become better known and communicated, these techniques will doubtless begin
to make their way into the mainstream textile market, providing countless new design
opportunities.
Hypothesis
Statement 1: Have they heard about the concept of
thermochromatic activewear? (Thermochromic inks have
the property to change colour with temperature.
Chromatic colours are those which undergo a reversible
change in colour. This Phenomenon is induced by
various external stimuli. The mechanism of this heat
changing pigment works when the body temperature
changes, further having a change in apparel’s
temperature too.)
Research
Design - Survey
Primary Secondary
Qualitative
Survey on Company’s
questions
product ideation website
and personal
Quantitative
interviews Articles
questions
Research Methodology
Quantitative Qualitative
Research research
Questionnaire
Personal
Responses- 47
interviews
Types of
questions-
MCQ’s and
open ended.
Questionnaire
Questionnaire
Questionnaire
Questionnaire
Questionnaire
Questionnaire and Analysis
1. For the product ideation the TG chosen was from 15-45 years old. 77.9% are from the age
Group of 15 to 25 years, 19.5% belongs to the 25–35 years and 2.7% belongs to the 34–45 years.
This shows that majority or youngsters and these days people I really interested into fitness which
beneficial for Zara if they launch a women’s wear collection of activewear.
3. 66.1% are students, 25.9% are from service sector, and 8% are from the business sector.
Since majority are students we can state that as if Zara launches activewear for women, it will
create a lot sales since youth integrates exercise.
5. 66.4% are college students, 16.8% are graduates and 11.5% are post graduates. As Zara
is trying to achieve full sustainability, young audiences are usually well acquainted with the
importnce of sustainability .
6. 100% are aware about the brand Zara. This shows that even though Zara is a brand
evangelist they have still gained a profitable brand name and assuming if they use different
social media strategies they can manage to build a huge consumer base.
7. 84.1% are consumers of Zara, 8% are not the consumers of Zara and 8% are prospects
of Zara. In the given above chart, we saw that majority of the respondents are youngsters
which also correlates with the fact that Zara being a fast fashion brand Communicate with
its consumers in all aspects by creating varieties for everyone.
8. 51.3% of the respondents are not aware about zara’s sustainability program. This
indicates that Zara is not advertising/marketing there programs about sustainability on a
wider range.
9. 49.6% believes that fast fashion brands can be sustainable in the coming future and
on the other hand 12.4% believes that they cannot. As mentioned on Zara site, they
have milestones for For the coming years which states how they will be replacing and
natural products with natural products.
10. Majority of the respondents will describe Zara as trendy and 40.7% will describe it as
affordable. According to Zara they bring new designs after every two weeks and they
don’t stock up any collection for more than a certain period of time. They change their
designs according to the trends going on which makes it trendy also being a fast fashion
brand it is also affordable at good quality.
11. 33.3% of respondents have said that the shop once a months from Zara which
implicates that since the majority of the respondents are college students and Zara is a
premium fast fashion brand, they provide products for various age groups.
12. 53.6% chose the first option that is a dress and 38.4% chose bottom wear. We
have integrated tops for active it in our new collection as well which is again beneficial
for Zara since they know that 37.2% respondents are already buying and are interested
in this particular product.
13. Majority of the respondents chose off-line stores that is 38.6%. We can assume
that being a fast fashion brand and the fabrics that are used can be challenging when it
comes to buying from online sites.
14. 53.6% which is the majority have chosen the second option that is thousand to
Rs.5000 per visit on an average which indicates that respondents from students might be
spending this amount due to the cost of products which is again comparatively high.
16. Since we are launching activewear for women 89.5% people already
purchasing active wear. This shows that when Zara launches this collection
they will get a good amount of sales for it.
17. 56.3% have heard about the idea of thermal chromatic active wear. Even though
this is a new concept for the brand the respondents are still aware about it. This will
really help the brand to start with this collection.
18. According to sources an article has said that thermo chromatic pigment has a limitation in colours
and according to the survey 53.6% of the respondents prefer mid tones which will help us decide the
colour for the coming articles.
19. 47.7% have voted for leggings and 40.9% have voted for T-shirts. Which is a great fit
for any sports or active wear.
Hypothesis Testing
Q1 at most 30% people know about thermochromatic pigment
H1 (alternative) more than 30% of people know about thermochromatic pigment.
Hence, since P-Val = 0.0014 which is less than of significance at 1% therefore we
reject null.
2 Name – Komal
Q- What is your profession?
A-Designer at burgerbae
Q- What do you Zara as a brand can improve?
A-To be more sustainable and actually adhere to it.
Q- Do you often come to Zara?
A-Yes I do. I come at least twice a month.
Q- Where did you graduate from?
I studied Fashion Designing from Nift Ludhiana.
3- Name- Ashi
Q- What is your profession?
A-Content creator at Burger Bae
Q- Where did you graduate from?
A-I studied from - Nift Ludhiana
Q- What can Zara as a brand improve?
A- I believe that zara is my go to place for casual wear and formal wear, it suits my style so
i think it is doing pretty great.
6- Name- Avantika
Q- What is your profession?
A- Doctor
Q- Where did you graduate from?
A- Studied from- Sms medical college
Q- Do you think that zara can achieve 100% sustainability in the coming years?
A- I believe that there is no reason to recycle in terms of closing the loop and that fast
fashion brands cannot be sustainable no matter what they do because their model is
completely different.
Personal Interview
6- Name- Ananya
Q- What is your profession?
A- I am currently Studying computer science
Q- What do you think zara can improve in?
A- I believe the cost is too much for the material and the fitting..
Q- Do you often come to zara?
A- No, I visit the stores twice in three to four months.
7 Name – Arpita
Q- What is your profession?
A-Working at E and Y
Q- What do you think Zara as a brand can improve?
A- I believe they are doing pretty well but maybe if they can work on sizes.
Q- Do you often come to Zara?
A-Yes I do.
Q- Where did you graduate from?
I studied from Delhi University
8 Name – Ashwarya
Q- What is your profession?
A- I am studying Business Management studies from Delhi University
Q- What do you think Zara as a brand can improve?
A- I think they should open more stores because since I'm not in delhi and I don't have
access to retail Zara stores.
Q- Do you often come to Zara?
A- As of now I'mshopping on online basis.
1. Name- Smita
Q- What is your profession?
A-Lee and funk/ Works as a VM
Q- Is zara your go to brand?
A- Go to brand is zara
Q- Do you often come to zara?
A-This is my go to place for formals as i have to go to work so this is where i come 90%
of the times.
Q- What do you think they can improve as a brand?
A-To be more systematic when sales are going on because right now i can’t find any
sales person which can be looked upon.
Day in a life of (DILO)
1.
8:00- Wakes up
9:00-10:00- breakfast
10:00-10:30- meditation
11:30-1:30 classes
2:00-3:00- lunch
3:40-5:00- Gym
5:30-6:30 - snacks and freshen up
7:00-9:30- study
9:40-10:30 - dinner
10:30-12- reading articles
Around 12:00-12:30- sleeping
2.
8:30 am - wake up
9:00 am - attend online college lectures
11:00 am - Has breakfast
12:00 pm- Start with college assignments and attend lectures
simultaneously.
2:00 pm - Lunch watching Netflix
3:00 pm - Scrolls on social media for an hour
4:00 pm - Work on the laptop for an internship
6:00 pm - goes out with friends
7:00 pm - goes to the gym to workout
9:00 pm- has dinner
10:00 pm - scroll on mobile, complete college assignment
12:00 am - sleep around 12-12:30 pm
Wordcloud
sustainability
unique
High different than black and
fashion others white
Incorporated in the year 1991, in Delhi (India), we, “Krishna Trading Company” are a
prominent trader and supplier of premium quality Indian Spices, Cardamom, Ayurvedic
Drugs, and Ayurvedic Herbs. The offered range comprises Turmeric Finger, Red Chilli,
Dry Ginger, Nuts Meg, Black Pepper, Celery Seed, Coriander Seed, Cumin Seed, Dill
Seed, Fennel Seed, Green Cardamom, Cardamom Large, Small Cardamom, Himalayan
Herbs, Indian Herbs. The offered range of products is appreciated for purity, non-toxicity,
effectiveness, freshness, and long shelf life. All of their products are procured from the
most reputed names in the industry who process these products in compliance with the
international quality standards. They also ensure that products that reach the market are
of set industry standards. Each product is strictly tested on the ground of quality
parameters by our experts. They also lay emphasis on packaging & delivery of products.
(IndiaMart)
Registered Address 2199, 5th Floor, Gali Hinga Beg, Giriraj MarketKhari Baoli,
New Delhi - 110006, Delhi, India
Total Number of Employees 11 to 25 People
The common thread in these ideas is that design will be less about the product or
experience in itself, and more about how it serves humanity, whether it’s a smart-tech
jacket, new materials offering enhanced comfort and protection, or a virtual therapy
app providing reassurance.
The result is a highly versatile trend of juxtapositions and seemingly opposing ideas –
digital tools to recreate natural or even spiritual experiences.
The first of the processes to set the patterns of the fabric, an Indian tech spokesperson
even compared the process to a game of Tetris, which is to fit as many pieces as possible
into one piece of material, to be more economical with the fabric.
The fabric is laid out under large cutting machines, and the
paper is placed on top.
Both materials are held in place with a tight plastic sheet. The
machine slices through the material, cutting out the individual
pieces of fabric. On thinner fabrics, 200 layers can be cut at one
time.(Anon,18)
Garment production process of
Zara
Once they have been cut, the paper and fabric pieces are
boxed up together. The paper has all the details for the
factory workers to see where these pieces need to be sent
next, and which part of the garment they will make up.
Items that are ready for shipment are removed from the
boxes and distributed between the specific stores.(Anon,18)
Garment production process of
Zara
2019- Present
PR Event by Zara
We cordially invite you to our Promotion Dinner party for our new collection called as
“Thermochrom by Zara” on 23rd December 2021 at 8:00 PM.
Our Collection consists of very exciting designs and concepts which we will be
showcasing.
As per our survey, majority of the people are between the age group of 15-25 which
are also extremely active on social media. We will have merchandise with
thermochromatic pattern on it with our hashtag printed on it – “#thermochrombyZARA”
and photo booth where our spotify playlist would be visible. So all they have to do it
scan that spotify QR and hashtag on top of it. For online promotions we will have 3-D
models for showcasing our collections by giving a 260 degree view online on all social
media handles.
Promotion Strategy
Press release
Maison Joseph Drouhin is a French wine producer based in Burgundy that was
founded in 1880. The estate owns vineyards in Chablis, the Côte de Nuits, Côte de
Beaune and Côte Chalonnaise, as well as in the Willamette Valleyin Oregon.
Drouhin is also one of the major négociants of Burgundy and produces wines made
from purchased grapes grown in different parts of Burgundy. Today both Maison
Joseph Drouhin and Domaine Drouhin Oregon are owned and operated by the
great-grandchildren of Joseph Drouhin.
As for financial sponsors we will be collaborating with Paytm and Google pay.
Visual display
Planogram
Promotion Strategy
The market with the highest prices was South Korea (96% more
expensive than in Spain) followed by the USA (92%) and China
(78%). Given these results, it’s not surprising that Asia recorded
the largest sales in 2014 for Inditex, accounting for 21.1% of the
company’s total turnover as compared to 20.4% during the
previous year.
Signage
What is Omni-channel ?
An omnichannel strategy is a method that helps
you create a seamless experience for customers
across all the channels through which you sell. It
encompasses the online and offline touchpoints
of your brand, from a point-of-sale system to an
Instagram shoppable post, and it’s not just for
retailers anymore. (Jordan,2021)
Age - 19
Location - Delhi
Hobbies - Playing
guitar and clicking
pictures
Purchses from
Zara twice a month
9:00 Wakes up
11:30 Sleeps
Media Touchpoints
Social Media
Instagram Snapchat
Television
Advertisement on food ordering platforms
Radio
Hoardings
Metro
Audio Pictoral
Email marketing
3 times a
1. 2 Months Rs. 15,000
year
4 times a
2. 1 Month Rs. 25,000
year
2 times a
3. 6 Months Rs. 8,000
year
3 times a
4. 3 Months Rs. 9,000
year
]
Consumers who purchases
above the monetary value of
Premium 1,000 to 10,000
]
Consumers who purchases
above the monetary value of
Gold
10,000 to 20,000
Silver
] Consumers who purchases
below the monetary value of
1,000 to 10,000.
Retention Techniques: