retailing strategies

1. PREPARED BY:
Ankita Sharma
Twinkle
Chandni
Hema
Piyush

2.  Zara is the flagship chain store of Inditex Group owned
by Spanish tycoon Amancio Ortega, who also owns
brands such as Massimo Dutti, Pull and Bear, Oysho,
Uterqüe, Stradivarius and Bershka.
 The group is headquartered in A Coruña, Spain, where
the first Zara store opened in 1975.
 It is claimed that Zara launches around 10,000 new
designs each year.
 Its most unusual strategy was its policy of zero
advertising; the company preferred to invest a
percentage of revenues in opening new stores

3.  ZARA is a Spanish clothing and accessories retailer
 Zara delivers new products twice each week to its 1,763
stores around the world.
 Zara has developed a highly responsive supply chain that
enables delivery of new fashions as soon as a trend
emerges.
 Board Members:
 Mr. Pablo Isla Álvarez de Tejera
(Chairman and CEO)
 Mr. Amancio Ortega Gaona
(Founder of Inditex and Member of the Board)
 Mr. José Arnau Sierra
(Deputy Chairman)

5. ZARA BRANDS SUCCESS
Zara is one of the most well known brands in the
world and is also one of the largest international
fashion companies. They are the third largest
brand in the garment industry.
The Zara clothing line accounts for a huge bulk of
its parent group’s revenues.

6. Zara’s success proves that if a retailer can forecast
demand accurately, far enough in advance, it can enable
mass production under push control and lead to well
managed inventories, lower markdowns, higher
profitability (gross margins), and value creation for
shareholders in the short- and long- term.

8. ZARA’s BUSINESS MODEL: Adding value beyond profits

9. Main Issues
The elements supporting Zara’s business structure
and strategy are also greatly interlinked and
interdependent. The following three factors stand
out:
Extensive market research providing a constant stream
of inputs into the product development process, rather
than in batches or discrete seasons.
Locating various business function in close proximity of
the headquarters, and tight control, allows the various
functions to coordinate and take joint-decision very
quickly.These provide the capability to respond very
quickly to the market research-influenced decions.
Communication and information Technology are
absolutely vital to managing the constant interface of
various and management of the huge variety of product
information.

11. ZARA‘S STRATEGY OF DISTRIBUTION AND
VERTICAL INTEGRATION
 Zara is a chain that has developed a successful diverse
method of doing business in the fashion industry. Zara
by working through the whole value chain is very
vertically integrated and highly capital intensive.
 VERTICAL INTEGRATION: a distinctive feature of Zara’s
business model, has allowed the company to successfully
develop a strong merchandising strategy. This strategy
has led Zara to create a climate of scarcity and
opportunity as well as a fast-fashion system. Zara
manufactures 60% of its own products. By owning its in-
house production, Zara is able to be flexible in the
variety, amount, and frequency of the new styles they
produce

12. PRODUCTs
Zara stores have men's clothing and women's
clothing, each of these subdivided in Lower
Garment, Upper Garment, Shoes, Cosmetics and
Complements, as well as children's clothing (Zara
Kids).

13. Zara available in now all sizes..
Small boutiques
Mid sized store
Colossal sized
Department store

14. Strengths
1.Cost leadership strategy
2.Efficient distribution
3.Information technology
4.Fast delivery of new products ,and
trends
Weaknesses
1.Centralized distribution system
2.Doesn't spend much money on
advertising
3.Zara only has one manufacturing
and distribution centre in the world
Opportunity
1.Global market penetration
2.Online market
3.Distribution centre in us
Threats
1.Local competitors
2.Global competitors
3. Zara based in Spain and has a huge
no of stores in Europe will dent in
revenues.
SWOT
analysis
SWOT ANALYSIS

16. THANK YOU