Zara has become one of the world's leading fashion retailers through its innovative organizational strategies. It produces around 10,000 new designs each year through a rapid 14-day production cycle. This allows Zara to get new fashion trends to its over 2,700 stores across 60 countries quickly. Zara's global expansion plan aims to open one new store every day. Its strategies include company-owned stores, franchises, and joint ventures. Zara's success is driven by its internal resources, customer, production, and communication strategies that focus on rapid replenishment, limited production runs, and investing savings from zero advertising back into the customer experience.

1. THE
ZARA
CASE
A RETAILER GROUP MOVING VERY FAST
Manage Value Girls
present

3. THE EVOLUTION
From designing, production
and distribution of textiles
on its own
One of the world’s
leading brands in 2005
thanks to
- A new innovative organization.
- Global presence with more than 2700 stores spread
across 60 nations.
- With the production of around 10.000 new design.

4. INDITEX
GROUP Oysho
Zara Home
58%
22%
20%
Kiddy’s Class
Pull&Bear
Massimo Dutti
Bershka
Stradivarius
ZARA

5. THE GLOBAL EXPANSION
Zara took major place in the market in the late 1990s
thanks to
1. COMPANY-OWNED STORES.
2. FRANCHISES.
3. JOINT VENTURES.

7. ZARA’S GLOBAL EXPANSION PLAN
Europe United States Asia
- Switzerland and Sweden.
- First store in Milan.
- Zara Home was established in
London in 2003.
decided to open a store everyday anywhere in the world and increase its stores’ strength to 4000 by 2009
- Intentioned to expand in China and in
the rest of Asia.
- Hong Kong was an important part of the
expansion strategy:
1) Shop window that shows European’s
style;
2) Most efficient port in the world;
3) Offers very stable environment for
growth.
- Was established a store in the biggest
shopping destination in China, in
Shangai.
- Between 2009 to 2011 plans to open
six new stores in Japan.
- Stores opened in Orlando,
Philadelphia, Miami, Las Vegas, Costa
Meca, Puerto Rico, San Francisco.
- By the year 2009 Zara intends to
establish a chain of 50 new stores.

8. 1) INTERNAL RESOURCES STRATEGIES
2) CUSTOMER STRATEGIES
3) PRODUCTION STRATEGIES
4) COMMUNICATION STRATEGIES

9. INTERNAL RESOURCES
STRATEGIES
- Bringing out a number of different collections each season instead of
the usual two each year.
- One logistic center in Arteixo (Spain):
1) Direct distribution to each shop;
2) No need to have central offices in the new countries’ location.
- Strategic location for each store:
1) The best;
2) The most expensive.

10. CUSTOMER STRATEGIES
- New trends every 30 days.
- Limitation of the production of each style:
1) Fresh apparel every week;
2) The consumer buys following the strategy of “now or never”;
3) Giving the chance to the costumer to be a little bit exclusive.
- Clearing up the styles disliked by consumers.
- Listening to customers’ requests through the head office.
- A wide range target in reference to age and price.

11. PRODUCTION STRATEGIES
- More style quantities instead of more quantities per style -
> about 12.000 every year.
- Vertical integrated business —> distinctive operational
structure:
Half of the production comes from 22 Spain-based
factories and the other half of the production comes from
400 outside suppliers.

12. COMMUNICATION STRATEGIES
- The strategy of zero advertising —> costs saved must
be invested in consumers and stores:
1) Frequent stores opening in world’s major cities;
3) Critical attention to every store’s details;
2) Efficient costumer care services.

13. SWOT
S W
O T
- Designing, production and distribution
rapidity about 14 days for the launch of a
new collection and styles;
- Production is mostly made by Zara-owned
companies and then there are less costs in
general;
- Large target and low prices;
- Wide choice of price;
- Zero advertising strategy permits saving.
- Large quantitative of products and global
expansion determinate:
1) Large quantitative to export;
2) A little edge of error;
- Only one base in Spain;
- Zero advertising leads to less visibility.
- A big global expansion leads to a market
expansion;
- Strategic zone for the stores location;
- Good relationship with costumers, whose
choices and needs always come first.
- If another retailer company reaches Zara’s
expansion and quantity of production
maintaining a lower costs/prices.

14. + better then Zara
- worst then Zara
= equal to Zara
Legend:

15. GAP
- Decentralized business concept;
- Form strategic alliances and
partnerships with leading
conglomerates across the
continent;
- Three-nine month new
collections.
WHO IS? WHICH ARE ITS FEATURES?
Established in 1969 GAP is a global retailer
which is involved in the production of
apparel, accessories and personal care
products for men, women and children.
Over the years the brand reached a very
large part of the world with around 3.000
company-owned stores.
In 2006 GAP saw a sales decrease in the
European market and then, to be able to
meet their tastes, began to collaborate with
designers sensitive with the European style
and opened a design studio in London.

16. H&M
- 20 days to launch the collection;
- 30%/50% cheaper then Zara;
- Spends a lot on ads and ropes in
leading movie stars;
- Divides its production and
purchase operations;
- Best location - lease instead of
buy.
WHO IS? WHICH ARE ITS FEATURES?
A Sweden-based company establish
in 1947 which offers apparel,
accessory and cosmetic for women,
men and children at an affordable
price. Following TV, music videos
and streets H&M (Hennes & Mauritz)
designs new collections and refresh
styles frequently.
Today the brand has over 1000
stores in around 22 nations, always
located in the best and strategic
location.

17. EL CORTE INGLES
El Corte Inglés was established
in 1934 and is a mixed retail
group with a wide chain of
hypermarket and department
stores. Its offer includes apparel,
linens and groceries, but provide
also insurance, online shopping,
telecommunication, financial,
travel and retail consulting
services.
WHO IS? WHICH ARE ITS FEATURES?
- The control of the 90% of the
Spanish mixed retail market;
- Outsourcing a big part of its
production.

18. BENETTON
WHO IS? WHICH ARE ITS FEATURES?
Benetton Group S.p.A. one of
the biggest fashion retailer
company which produce
fashion apparel, footwear and
accessories for women, men
and children.
- Offering its product under
many other brand like the
Playlife, United Colors of
Benetton, Killer Loop and
Sisley;
- A presence with around 5000
stores acrosss the globe;
- Outsourcing a big part of its
production.

19. In the end Zara, born as a clothing shop in 1975, has become the major fashion retailer
in the world, with stores located in more than 60 nations, and an example followed by
the others retailer groups. Its strategy led Zara to a global expansion because of its
ability to find and create new solutions for the market like:
- One logistic center;
- Production and reassortment rapidity;
- Give an appeal of exclusivity to something that it’s for the mass market;
- The attention for the customers.
All of these following a vision:
“Give the public what it wants, at the lowest possible price, in the shortest time possible”
According to our analysis, Zara’s expansion has grown rapidly from 2000, thus it doesn’t
have to be seen as something negative if the brand will maintain the same standard in
production and exploitation.