Business Ethics &

Sustainablity

Group 12
 Overview
Revenue and Target Market Market Segmentation
Market Share: Profile: Strategy:
Zara: 70% of Inditex Group sales Focus: Young adults aged 18-40, Target: Young to middle-aged
in 2021, €16.6 billion revenue. Millennials, Gen Z. adults, primarily females.
Second-largest apparel brand Global presence: Nearly 2,000 Offerings: Zara Kids, Zara Home
globally, after Nike. stores in 100 countries. for specific segments.

Geographic Behavioural Marketing

Reach: Insights: Strategy:
Presence: 96 countries, Spain Target: Customers valuing rapid Focus: "Instant fashion" concept.
largest market. fashion changes, quality, Supply chain: Swift production,
Expansion: Key markets affordability. distribution (10-15 days).
include China, France, Russia. Loyalty: Strong inclination to shop Advertising: Minimal, emphasis on
at Zara outlets. customer experience, technology.
ZARA’s UNIQUE
Technological Advancement:

03.
Utilization: Cutting-edge technology like
RFID and data analytics.

MODEL
Purpose: Optimizing operations and
enhancing customer experience.
Outcome: Sustained position as a
frontrunner in fashion retail, fostering
customer engagement and loyalty.

Rapid Fashion Strategy: Sustainability Endeavours:

01. 04.
Initiatives: Sustainable sourcing, waste
Strength: Swift response to evolving trends and
reduction measures.
consumer preferences.
Goal: Mitigating environmental impact.
Process: Conceptualizing, manufacturing, and
Impact: Resonates with environmentally-
disseminating new designs within weeks.
conscious consumers, enhances brand
Result: Ensures fresh and enticing product lineup
reputation and allure.
for target demographic.

Vertical Integration: Corporate Social Responsibility:

02. 05.
Benefit: Control over entire supply chain Emphasis: Ethical labor standards, community-
from design to distribution. centric initiatives.
Advantages: Greater authority over Actions: Upholding international labor norms,
product quality and delivery schedules. advocating inclusivity.
Impact: Enables agility, efficiency, and Result: Bolsters societal influence, cultivates
innovation, facilitating quick adaptation trust among stakeholders.
to market dynamics.
 ZARA’s Revenue Streams

Collaborations and Limited

Retail Store Sales E-commerce
Edition Collections

Supply Chain Management Sustainability Initiatives International Expansion

Key Operations

DESIGNING
MANUFACTURING

DISTRIBUTION CHANNELS
AND LOGISTICS
RETAIL PROCESSES
 KEY RESOURCES
Inventory and Store Networks: Technology and Software:
.
Essential for meeting demand and Enhances efficiency and streamlines
market expansion. processes.
Extensive inventory and store network Supports innovation in e-commerce and
are key. operations.

Intellectual Property: Human Resources:

Protects brand identity and ensures Drives innovation and customer
market differentiation. experience.
Includes trademarks, designs, and Dedicated team across functions is vital.
patents.
CHANNELS AT ZARA
E-commerce Platform
Physical Stores
ZARA’s Sustainable 100% RENEWABLE ELECTRICAL
ENERGY:

Practices
Reduces carbon footprint and dependence on
fossil fuels.
Demonstrates corporate responsibility.
Contributes to combating climate change.

ZARA PRE-OWNED INTERNATIONAL ACCORD & LEAF

COALITION:
Encourages reuse and recycling of clothing. Promotes global environmental conservation.
Reduces waste in the fashion industry. Supports sustainable forestry practices and
Promotes responsible consumption habits. protects ecosystems.
Contributes to biodiversity conservation.

50% JOIN LIFE COLLECTION TERRA CARTA:

Emphasizes eco-friendly materials and Commits to sustainability and
efficient manufacturing. decarbonization.
Reduces environmental impact. Showcases ethical leadership.
Supports ethical sourcing practices. Contributes to global sustainability efforts.
 EURATEX RECYCLING REHUBS: 100% IN-STORE CLOTHING
Promotes circularity and reduces COLLECTION PROGRAMME:
environmental impact.
Supports sustainable waste management. Encourages clothing recycling and reuse.
Promotes circular economy principles.
Encourages industry-wide collaboration for
Fosters responsible consumption habits.
conservation.

100% TRAINING IN CIRCULAR 100% ECO-EFFICIENT STORES:

DESIGN, GLOBAL FASHION AGENDA: Optimizes resource consumption and
Fosters innovation and sustainability culture. reduces emissions.
Reflects commitment to minimizing
Invests in employee development.
environmental harm.
Promotes responsible business practices Promotes sustainable retail practices

ZERO DISCHARGE OF CANOPY STYLE COMMITMENT:

HAZARDOUS CHEMICALS (ZDHC):
Protects forests and biodiversity.
Eliminates harmful chemicals from
Supports responsible sourcing practices.
manufacturing processes.
Contributes to environmental stewardship.
Promotes worker and environmental health.
 AREAS OF
IMPROVEMENT
SUPPLY CHAIN
TRANSPARENCY CIRCULAR ECONOMY
INITIATIVES
DESIGNING
WATER MANAGEMENT
PRACTICES
COMMUNITY ENGAGEMENT

SUSTAINABLE MATERIAL
DISTRIBUTION CHANNELS SOURCING
INNOVATION AND
AND LOGISTICS COLLABORATION

ETHICAL LABOR PRACTICES

TRANSPARENCY AND
REPORTING
 CHALLENGES FACED BY
ZARA
Heavy reliance on fast fashion Use of non-sustainable Vertical integration and supply
model materials chain complexity.

Global expansion and resource Labour practices and social

intensiveness. responsibility

Consumer behaviour and Regulatory compliance and

Waste management
demand for cheap fashion environmental regulations
Thank
you very
much!
 Visions and predictions
for a green future

Planning Strategy
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Conclusions
and reflections
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