Zara Brand Report

ZARA

R A N D R E P O R T

ZARA IS A SPANISH MULTI-NATIONAL RETAIL CLOTHING CHAIN AND THE LARGEST CONSTITUENT COMPANY OF THE INDITEX GROUP. FOUNDED IN 1975, IT SPECIALISES IN FAST FASHION, AND SELLS CLOTHING, ACCESSORIES, SHOES, BEAUTY PRODUCTS, PERFUMES AND HOMEWARE. IN 96 COUNTRIES, THE COMPANY OPERATES OVER 2,270 STORES, WITH THEIR PRIMARY TARGET MARKET BEING YOUNG ADULTS, RANGING FROM 18-35 YEARS OF AGE. THEIR MISSION IS TO ‘GIVE CUSTOMERS WHAT THEY WANT AND GET IT TO THEM FASTER THAN ANYONE ELSE' AND THEIR VISION IS "TO CONTRIBUTE TO THE SUSTAINABLE DEVELOPMENT OF SOCIETY AND THAT OF THE ENVIRONMENT WITH WHICH WE INTERACT". (SAMUEL. ‘ZARA’S MISSION STATEMENT AND VISION ANALYSIS 2021’. HOW I GOT THE JOB, 10 APR. 2021) THE BRAND IS RENOWNED FOR DOING JUST THAT; KEEPING UP WITH FASTCHANGING FASHION TRENDS AND INCORPORATING THEM INTO THEIR COLLECTIONS WITH LITTLE DELAY, AND THIS HAS BEEN THE KEY TO ZARA'S SUCCESS. IN 2021 ZARA HAD THE HIGHEST NET SALES OF THE INDITEX GROUP WORLDWIDE, AMOUNTING TO JUST UNDER 20 BILLION EUROS. MORE RECENTLY, ZARA'S OWNER REPORTED A HUGE BOUNCEBACK IN SALES FOLLOWING THE EASING OF COVID RESTRICTIONS. SALES AND PROFIT WERE ALSO SAID TO BE SURGING THROUGHOUT THE FIRST HALF OF THIS YEAR, DESPITE THE CURRENT COST OF LIVING CRISIS.

BRAND MATRIX

I BELIEVE ZARA AS A BRAND HAVE VERY GOOD FASHIONABILITY, WITH A NICE PRICE RANGE. I THINK THIS KEEPS CUSTOMERS LOYAL BECAUSE THEY CAN KEEP ON TREND WITHOUT HAVING TO BREAK THE BANK OR SUBSTITUTE ON QUALITY WHICH IS COMMON IN BRANDS LIKE PRETTYLITTLETHING, SHEIN AND NEW LOOK. THEY DO HOWEVER HAVE SOME STRONG COMPETITORS LIKE H&M AND MANGO WHO ALSO OFFER GOOD QUALITY PIECES AT GOOD PRICES WHICH IS A THREAT, HOWEVER ZARA DOES SEEM TO HAVE SUBSTANTIAL CUSTOMER LOYALTY WHICH IS HIGHER THAN ANY OF ITS COMPETITORS.

HIGH PRICE

LOW FASHION

HIGH FASHION

LOW PRICE

SWOT ANALYSIS S W O T

MIXED PRICE RANGE SO APPEALS TO A WIDER RANGER OF PEOPLE HIGH END PRODUCTS AT AFFORDABLE PRICES

SPENDS LITTLE ON ADVERTISING ALLOWING THEM TO KEEP PRICES LOW WHILST MAINTAINING QUALTY

ALWAYS ON TREND

RESPONDS TO TRENDS AS SOON AS THEY EMERGE AND TAKE ONLY 2 WEEKS TO GET THEM INTO STORE AS OPOSE TO MOST OTHER COMPANIES WHO TAKE 6 WEEKS.

HAS THE MOST NUMBER OF FASHION RETAIL STORES IN THE WORLD REFRESHES ITS ONLINE AND RETAIL COLLECTION TWICE EACH WEEK

HAS A LARGE INTERNATIONAL PRESENCE WITH STORES ACROSS 96 COUNTRIES

LARGE, SPACIOUS STORES

VISUAL MERCHANDISING - AESTHETIC AND ENTICING

ENVIRONMENTALLY AWARE

TOXIC-FREE MANUFACTURING PROCESS

INTERACTIVE MIRRORS

SELF CHECKOUT

STORE MODE FUNCTION ON THEIR APP RESELL, REPAIR & DONATE SERVICE

BALANCING OF FAST FASHION WITH SUSTAINABILITY

MINIMAL ONLINE PRESENCE

LACK OF ADVERTISEMENT

INSUFFICIENT PRODUCT

INFORMATION ON THE WEBSITE RESULTS IN A LOT PRODUCT RETURNS

DON'T OFFER KLARNA OR ANY PAY LATER SERVICES

CANT RELY ON SIZING AS IT FLUCTUATES MASSIVELY FROM PRODUCT TO PRODUCT RUDE EMPLOYEES

TAKES A WHILE TO RECIEVE YOUR ITEM WHEN YOU REQUEST IT FROM THE STOCKROOM USING THE APP LACK OF DISCOUNT/PROMOTION

LACK OF INFLUENCER/CELEBERITY COLABORATION

WIDEN THEIR GLOBAL MARKET AND INTRODUCE STORES TO PARTS OF THE WORLD LACKING IN THEM

BUILD A MORE EFFICIENT ECOMMERCE MARKETING STRATEGY

INCREASE SPENDING FOR MARKETING CAMPAIGNS

CREATE A TRADEMARK DESIGN TO GIVE THEM A UNIQUE SELLING POINT

DEVELOP FURTHER SUSTAINABILITY INITIATIVES WITHIN FAST FASHION

CREATE DISTRIBUTION ENTERS IN DEVELOPING COUNTRIES TO LOWER COSTS

COST OF LIVING CRISIS POSSIBLE RETURN OF COVID LEADING TO LOCKDOWN RESTRICTIONS AND CLOSURE OF STORES

CHEAP IMITATIONS/DUPES OF THEIR ITEMS MADE BY LOWER FASHION/LOWER PRICE COMPANIES LIKE SHEIN FAST FASHION COMPETITIONRIVALRY BRANDS SUCH AS MANGO, H&M, ASOS PEOPLE BECOMING MORE SELECTIVE ABOUT WHERE THEY SHOP DUE TO THE IMPACT OF FASHION ON PEOPLE AND THE ENVIRONENT

MARKETING PLACE

IT TOOK SOME TIME FOR ZARA, WHICH WAS INITIALLY ESTABLISHED IN SPAIN, TO BEGIN OPENING STORES ELSEWHERE. EXPANSION STARTED AROUND TEN YEARS AGO, IN SPAIN'S NEIGHBOUR; PORTUGAL, BEFORE CONTINUING ON TO EXPAND INTO INDIA, NEW YORK, ROME, LONDON, MADRID, SAINT PETERSBURG, AND PARIS. CURRENTLY, ZARA RUNS ABOUT 2,242 STORES IN 96 DIFFERENT COUNTRIES. THE COMPANY IS STILL EXPANDING TODAY, AND IS TARGETING AN INCREASING NUMBER OF GLOBAL CAPITALS AND CITIES.

ZARA HAS ALSO PLACED A LOT OF EMPHASIS ON SELLING ITS GOODS ONLINE. THE BUSINESS HAS MADE ADJUSTMENTS TO ITS WEBSITE TO MAKE IT EASIER FOR CLIENTS TO ORDER THE THINGS THEY WANT. IN ADDITION TO THESE WEBSITES, MULTI-BRAND INTERNET RETAILERS ALSO CARRY ZARA MERCHANDISE. TECH-SAVVY CUSTOMERS CAN QUICKLY ACCESS ZARA PRODUCTS THANKS TO THESE INTERNET SELLING PLATFORMS. THIS ALSO TARGETS Y OUNGER PEOPLE WHO LOVE TO SPEND THE MAJORITY OF THEIR TIME ONLINE AND ON SOCIAL MEDIA. THE COMPANY'S ROBUST INTERNET PRESENCE ALSO ATTRACTS MILLENNIALS, WHO HAVE BECOME DEVOTED CLIENTS. THROUGH THE USE OF INTERNET CHANNELS, ZARA HAS BOOSTED ITS LOCATION STRATEGY.

AS ONE OF THE TOP RETAILERS, ZARA CATERS TO A WIDE RANGE OF CUSTOMERS WITH ITS EXTENSIVE PRODUCT SELECTION. PRODUCTS ARE AVAILABLE FOR ADULTS, AND CHILDREN, BOTH MALE AND FEMALE. BECAUSE OF THE VARIETY OF ITEMS, THERE IS SOMETHING FOR EVERYONE, WHETHER THEY CHOOSE CASUAL OR FORMAL WEAR. CUSTOMERS HAVE A WIDE RANGE OF OPTIONS TO SELECT FROM BECAUSE THE STYLES OF THEIR PRODUCTS VARY SO WIDELY.

ZARA CREATES NEW CLOTHING DESIGNS ALL YEAR LONG AND ONLY PRODUCES A SMALL QUANTITY BEFORE MOVING ON TO THE FOLLOWING DESIGNS. WITH SUCH SHORT PRODUCTION RUNS, DESIGNS SELL OUT MORE QUICKLY, MEANING HARDLY ANY LEFTOVERS. THE LARGER VARIETY AND RANGE OF OPTIONS FOR THE CONSUMER ARE MADE POSSIBLE BY THE GREATER NUMBER OF DESIGNS. IN ADDITION, BECAUSE THERE WILL BE FEWER PEOPLE WHO OWN THE PARTICULAR OUTFIT THAT THE BUYER JUST PURCHASED, THE SMALLER QUANTITY OF GARMENTS PRODUCED PER DESIGN ALSO SIGNIFICANTLY BOOSTS ITS WORTH FOR THE CUSTOMER. TO PUT IT ANOTHER WAY, THERE IS GREATER EXCLUSIVITY, WHICH INCREASES ATTRACTION. RATHER THAN OUTSOURCING, ZARA PRODUCES EVERYTHING IN-HOUSE. THIS GUARANTEES THAT THE BRAND HAS COMPLETE CONTROL OVER THE QUALITY OF ITS GARMENTS AND SHORTENS THE PRODUCTION PROCESS' OVERALL DURATION.

ZARA IS COMMITTED TO MAKING SURE THAT ITS PROCEDURES PROMOTE SUSTAINABLE DEVELOPMENT. THE COMPANY USES BIODEGRADABLE COVERS AND BAGS AND RECYCLES ITS SECURITY TAGS AND HANGERS. ADDITIONALLY, SOME OF THEIR PRODUCTS ARE MADE USING ORGANIC COTTON. THIS BOOSTS THE CONSUMER BASE FOR THE BUSINESS AND APPEALS TO THOSE WHO ARE PASSIONATE ABOUT PROTECTING THE ENVIRONMENT.

MARKETING PROMOTION

BECAUSE ZARA DOESN'T INVEST IN ADVERTISING, ITS MARKETING STRATEGY IS VERY DISTINCT. ZARA DON'T EVEN PRODUCE ADVERTISEMENTS, UNLIKE THE MAJORITY OF OTHER FASHION COMPANIES WHO HEAVILY INVEST IN MARKETING THEIR BRANDS. INSTEAD OF SPENDING MONEY ON PRICEY MARKETING ADVERTISEMENTS, ZARA HAS TARGETED SOCIAL MEDIA AND WORD-OF-MOUTH PROMOTION. WHEN THE COMPANY WANT TO PROMOTE AN UPCOMING EVENT, THEY POST ON ONE OF THEIR SOCIAL MEDIA HANDLES LIKE INSTAGRAM FOR EXAMPLE. THEIR 45 MILLION FOLLOWERS THEN SEE, READ AND SHARE THIS CONTENT AND THEIR STRATEGY IS IN EFFECT.

ZARA ALSO ADVERTISES ITS GOODS BY OPENING UP SPECIFIC RETAIL LOCATIONS. THE COMPANY ADVERTISES ITS BRAND TO THE RESIDENTS OF THAT AREA THROUGH ITS INVITING OUTLETS. ADDITIONALLY, THE BUSINESS DOES NOT INCLUDE ITS BRANDING ON ANY OF ITS PRODUCTS. ZARA CONSIDERS A LOGO TO BE BOTH EXPENSIVE AND UNNECESSARY. AS A RESULT, THE COMPANY CONCENTRATES ON DEVELOPING NEW RETAIL LOCATIONS IN DESIRABLE AREAS AND MARKETING THROUGH SOCIAL MEDIA.

MARKETING PRICE

ZARA EMPLOYS A DISTINCTIVE APPROACH TO PRICING. DESPITE HAVING HIGH-END PRODUCTS, ZARA MAINTAINS COMPETITIVE PRICING WHEN COMPARED TO BRANDS OFFERING SIMILAR ITEMS. PRICES REMAIN HIGH BECAUSE THE CORPORATION DOES NOT CUT CORNERS ON QUALITY. HOWEVER, THE OVERALL GOAL IS TO MAKE SURE THAT EXPENSIVE CLOTHING IS STILL ACCESSIBLE.

ZARA IS ABLE TO LOWER ITS PRICES BY CUTTING PRODUCTION EXPENSES. THEY ARE ABLE TO SELL THEIR PRODUCTS AT SIGNIFICANTLY LOWER RATES ON THE RETAIL MARKET THANKS TO THE DECREASED PRODUCTION EXPENSES. THE ITEMS ARE NOW MORE AFFORDABLE FOR COMMON PEOPLE WHO WISH TO WEAR HIGH-END CLOTHING. THEREFORE, THE PRICING STRUCTURE MAKES EXPENSIVE ITEMS ACCESSIBLE TO THOSE WITH LOWER INCOMES.

KEEPING ITS PRICES IN LINE WITH THE MARKET IS ANOTHER PRIORITY FOR ZARA. PRICES ARE DETERMINED BASED ON THE COUNTRY AND THE LOCAL ECONOMY. ZARA MARKETS ITSELF AS A MANUFACTURER OF PREMIUM CLOTHING WITH AFFORDABLE LOCAL PRICING. TO KEEP EXPENSES AFFORDABLE FOR LOCAL CUSTOMERS, THE BUSINESS OFTEN RUNS SALES CAMPAIGNS. THIS GUARANTEES GREATER CUSTOMER LOYALTY AND BETTER PROFIT MARGINS AS A RESULT.

CUSTOMER PROFILE

NAME: AMELIA AGE: 23

GENERATION: Z

INCOME: 75,000

OCCUPATION: INFLUENCER/YOUTUBER

ACORN CATEGORY: CITY SOPHISTICATES

INTERESTS: HIGH END FASHION, DESIGNER BAGS & SHOES, MUSIC, TRAVELLING & PILATES

AMELIA IS AN AVID FASHION LOVER AND HAS MADE HERSELF A CAREER AS AN INFLUENCER SURROUNDING JUST THAT. HER FAVOURTIE STORES ARE SELFRIDGES, ZARA AND PLT. SHE SPENDS MOST OF HER TIME CREATING CONTENT FOR HER INSTAGRAM, WORKING WITH BRANDS, FILMING VIDEOS, TRAVELLING WITH HER BOYFRIEND AND SPENDING TIME WITH FAMILY. SHE ALSO ENJOYS GOING TO MUSIC CONCERTS AND OUT FOR DRINKS WITH FRIENDS. SHE IS VERY WELL EDUCATED AND HAS A DEGREE IN LAW THAT SHE COMPLETED BEFORE FINDING SUCESS ON SOCIAL MEDIA.

INSTAGRAM: BRITNEY DEVILLIERS

EVALUATION

THE BRAND'S APPEAL AMONG YOUTHFUL DEMOGRAPHICS IS BOOSTED BY ZARA'S CAPACITY TO IDENTIFY THE APPROPRIATE TREND AT THE IDEAL TIME AT AN INEXPENSIVE PRICE. DUE TO ITS EXTENSIVE SELECTION FOR ALL GENDERS, ZARA HAS A STRONG ATTRACTION AMONG BOTH MEN AND WOMEN. ITS WIDE SELECTION OF CHILDRENSWEAR APPEALS TO YOUNG PARENTS, WHILST ITS ASPIRATIONAL FASHION-FORWARD TRENDS AND QUALITY STANDARDS INCREASE ITS APPEAL AMONG MILLENNIALS. ALTHOUGH IT DOES OFFER SOME LUXURY RANGES, ITS STANDARD COSTS ARE REASONABLE, MAKING IT SUITABLE FOR A WIDER RANGE OF INCOME BRACKETS. THE CAPTIVATING VISUAL MERCHANDISING AND MODERN DESIGN GIVE ZARA STORES MUCH DESTINATION APPEAL. THEY HAVE ALSO TAKEN CREATIVE MEASURES TO INTEGRATE THEIR OFFLINE AND ONLINE CHANNELS, BUILDING PHYSICAL STORES, AND LAUNCHING MOBILE APP FEATURES LIKE CLICK AND FIND, WHICH LETS CUSTOMERS LOCATE SPECIFIC ITEMS IN-STORE, AND CLICK AND TRY, WHICH LETS THEM RESERVE FITTING ROOMS THAT CAN BE ACCESSED VIA A QR CODE. IN ORDER TO INCREASE CONVENIENCE AND SHORTEN THE CUSTOMER TRIP, THEY HAVE ALSO ADDED SELF CHECKOUTS TO MANY OF THEIR LOCATIONS. SALES AND PROFT OF THE COMPANY, CURRENTLY APPEAR TO BE RISING AT AN ADVANCED RATE, SETTING THEM IN A COMFORTABLE POSITION HOWEVER PHOTOGRAPHS FROM THEIR WEBSITE HAVE ATTRACTED CRITICISM FROM CUSTOMERS FOR THE UNREALISTIC MODEL POSES THAT STOP THEM FROM PROPERLY VIEWING THE ITEMS AND HOW THEY APPEAR ON. GOING FORWARD, THEY SHOULD MAKE THESE IMAGES MORE ACCURATE TO INCREASE ONLINE SALES AND REDUCE RETURNS. THEY SHOULD ALSO TRY TO INCREASE ONLINE SPENDING BY ENHANCING THE ENGAGEMENT ON THEIR SOCIAL MEDIA PAGES, SUCH AS THROUGH COLLABORATIONS WITH INFLUENCERS. THIS IS A MARKETING TACTIC THAT THEY HAVE SO FAR AVOIDED, COMPARED TO THE MAJORITY OF OTHER FASHION BRANDS THAT HAVE DEMONSTRATED ITS EFFECTIVENESS IN INCREASING AUDIENCE AWARENESS AND APPEAL. HOWEVER, THEY WOULD NEED TO BE CAUTIOUS WHEN CHOOSING THOSE TO COLLABORATE WITH, AS NOT TO COMPROMISE THE DESIRED BRAND IMAGE THEY HAVE SUCCESSFULLY ATTAINED.

BIBLIOGRAPHY

SAMUEL. ‘ZARA’S MISSION STATEMENT AND VISION ANALYSIS 2021’. HOW I GOT THE JOB, 10 APR. 2021,

HTTPS://HOWIGOTJOB.COM/MISSION-STATEMENT/ZARAS-MISSION-STATEMENT-AND-VISION-ANALYSIS/. ACCESSED 29 NOV 2022.

PARTRIDGE, JOANNA. ‘ZARA’S OWNER REPORTS SURGING SALES DESPITE COST OF LIVING PRESSURES’. THE GUARDIAN, 14 SEPT. 2022. THE GUARDIAN, HTTPS://WWW.THEGUARDIAN.COM/FASHION/2022/SEP/14/ZARASOWNER-REPORTS-SURGING-SALES-DESPITE-COST-OF-LIVING-PRESSURES. ACESSED 29 NOV 2022.

‘THE BUSINESS OF FASHION’. THE BUSINESS OF FASHION,

HTTPS://WWW.BUSINESSOFFASHION.COM/ORGANISATIONS/ZARA. ACCESSED 29 NOV. 2022.

‘ZARA (RETAILER)’. WIKIPEDIA, 29 NOV. 2022. WIKIPEDIA, HTTPS://EN.WIKIPEDIA.ORG/W/INDEX.PHP?

TITLE=ZARA_(RETAILER)&OLDID=1124553581. ACESSED 29 NOV 2022.

GLOBALDATA LOGIN. HTTPS://LOGIN.GLOBALDATA.COM/LOGIN/INDEX/RETAIL?

RETURNURL=%2FANALYSIS%2FDETAILS%2FZARA-RETAIL-SHOPPER-PROFILE-SPAIN-CLOTHING-FOOTWEAR. ACCESSED 29 NOV. 2022.

HTTPS://ACORN.CACI.CO.UK/LOGINC. ACCESSED 29 NOV. 2022. BRANDS. HTTPS://WWW.INDITEX.COM/ITXCOMWEB/EN/BRANDS. ACCESSED 29 NOV. 2022.