zara的品牌策略分析

Differentiation Strategy
Differentiation of product innovation
Differentiation of product service
Internationalization Strategy
Strategic goal is build a global multinational apparel retail After nearly, from easy to difficult
35% 40~50% 85%
Zara
Outsourcing
Production in owned plant
The Challenges from Competitor
5源自文库
Competition analysis
Competitor-Product
Uniqlo：

H&M ：

Good condition products Strong stability
Manufacturing
More than 400 Tailors
Distribution
• Click to add Text Headquarter
Warehouse and other warehouse all around the world
Delivery & Return
Deliver from headquarter to store directly.
◆ Chinese market is one of the most profitable market. The whole sales in the Chinese market is even more than that of the United States market.
2 Strategic Management
Vertical Integration
◆ 49% of products of Inditex are produced in Europe.
◆ 35% and 16% of products are produced in Asia and the other European Country
Value Drivers
tangible value:high turnover,net margin,market capitalization intangible value:customer loyalty,brand recognition
Product Development
A Large Design Team
react rather than predict over 400 people 12000 styles per year
Leading time 15 days
Strategic Partnerships and Cost of Production
Proximity effect in buying fabrics
Free Powerpoint Templates
Content
1 2 3
Introduction of ZARA
Strategic Management ZARA' s Business Model Supply Chain Management
4
5
Challenges from Competitor Strategic Recommendations
Season (6 months)
Visiting Fashion Show
Design
Release Collection
Prodcution
Distribution and Sales
Purchasing Discount
Design & Purchasing Textile
65% 55% 15%
Capabilities
product development, strategic partnerships and cost of production, advertising and marketing, information and communication technologies
Information and Communication Technologies
Hybrid model incorporate human intelligence and IT applications
well-managed inventories,linkages between demand and supply,reduced costs from obsolete merchandise
4 In-House Strategy
Small Quantity Batch Process
Vertical Integration Supply Chain Management
Supply Chain Management
JIT System
Super Reaction Production System
◆ Inditex had a relationship with more than 1200 outsourcing company in 2008
◆ Inditex keep 50% of supply and demand of the fabric by using in-house way and 50% of supply demand is balanced by outsourcing.
3、The Success in Chinese Market
◆ It is already one of China's retailers ,whose trade is the highest revenue and profits.
◆ It's profit is four times than that of the other domestic apparel enterprises.
Small Quantity Batch Process
◆ Principle of small quantity batch process
◆ Produce 100,000~ 350,000 clothes for a product ◆ Increase the number of times being released ◆ To make customers experience the new products
Cutting (Owned Facotry)
Sewing (Outsourcing) Finishing (Owend Facotry) Releasing Distribution
Store
1 week
1 week
3 days
JIT System
◆ ZARA adopt JIT ( Just In Time) to minimize Inventory cost
Scarce Supply More Choice
Basic Components
Concept
maintain design,production and distribution process that will enable Zara to respond quickly to shifts in consumer demands
2、Brand Characteristics
◆ Create the mode of Precise Fashion . ◆ “Dell computer in fashion industry“. ◆ Become a flag in the fashion apparel industry. ◆ The integrity between the its brand spirit and the consumer’s deep demand.
◆ Very small amount of production to minimize Inventory
◆ Keep producing characterful clothes
Super Reaction Production System
Before Season (9 months)
Traditional Textile Brand
6
1、 Brand Introduction
1
◆ ZARA is a subsidiary of Spain's Inditex group. ◆ Established in 1975 in Spain . ◆ A clothing brand.
◆ Specialized in ZARA brand clothing chain retail
In-House Strategy
Textile & Color
Basic Fabric Purchase & Dying
Design & Order
Lead Time 3 weeks
Designer POS Data Analysis and Communicating with Manager
From low risk to high risk, low degree of control to high degree of control .
3
ZARA'S BUSINESS MODEL
GOALS
Short Lead Time
More Fashionable Clothes
Lower Quantities More Styles
Brand Introduction
◆ Establish more than 2000 clothing Chain store in 56 countries all over the world now. ◆Entered into Hong Kong in 2004, Shanghai in 2006, Beijing in 2007.
Supply Chain Management
Sales Analysis& Designs
Revision of the pattern (Utilization of previous pattern) Purchase of the Fabrics (Owned Factory)
Manufacturing
Spanish domestic market European Market
Middle East and Asian markets
Internationalization
Market development strategy
Competitive Strategy
Cost Leadership Strategy Do not discount policy a small number but variety styles clothes
Flexibility in adapting product lines to market trends
Lower inventory costs
Advertising and Marketing
Advertisement cost advantage
0.3% & 3-4%
Marketing Tools location,store layout,product life cycles

VS
ZARA ：
Quite fashion Update in time Enough pattern Poor quality
Corporate Strategy
Competitive Strategy
Internationalization Strategy
Corporate Strategy
★very clear business scope —“Fast Fashion Retail”.
★ Developmental strategies ★ Market development strategy Production development strategy.