صفحه 1:
Zara: Super-Fast Fashion
Professor: Dr. Ghazi Nouri
Presentor: Mohammad Javad Araee
صفحه 2:
Inditex
Inditex Brands Zara’s Distinct
Approach
* Zara (66% of sales)
۰ مناا 6 862۲ * Low advertising spend
* Massimo Dutti * No superstar designers
1 * Domestic manufacturing
تاو
* Stradivarius
* Fast fashion via supply
chain agility
* Zara Home
* Oysho
صفحه 3:
Ortega's Innovation: Fast
Fashion
2۶| Rapid design: Quickly capture and
create new fashion trends.
۱۸۲۵9۲۵۲۵۵ واه :وا ۲۵6۲۵۲۱۵6,
distribution centers, and stores
closely.
0 را نت Clem rs mee)
راو رات oe
صفحه 4:
A Brief History of Zara
Global Expansion
1988: First foreign store in Portugal
1989: Entered U.S. market
By 2000, developed a unique business مهار ای وردنت
Designers draw inspiration from fashion تبرت
کت رل Sate
Revolutionary Distributio ل ليا veer aso Pe IKctg
Twice-weekly deliveries from Artigo اللي ل ل ل لت
distribution center
Maximum 3 days worldwide delivery
Clothes arrive ready to display
Stores get limited quantities per size and
model
صفحه 5:
A Brief History of Zara
Store Management
Uniform design and layout worldwide
Store managers responsible for ordering
200 ۷6۵۱ ۲9 Internationalization Strategy
Initial entry through joint ventures (e.g., * ات لت
transportation costs and local market 0 uncom tain letter)
purchasing power
* Eventually buying out partners to
operate independently
Zara's Unmatched Spee
(Compared to competitors' 3-6 month
ارات ری:۱
Design-to-store time: Sometimes just 2
weeks!
صفحه 6:
Zara in 2018
Inditex sales (€bn) Zara sales (€bn, No. of stores
2003 2004 2005 2006 2% 7 2012 2013 2014 2015 2016 2017
صفحه 7:
Design
Collaborative Design Iterative Process
Zara's young designers The design team creates
collaborate in specialized many ideas and prototypes,
product groups like selecting only a few for
یت یراون Fal nla Par 1816 | production based on store
۱۱۱0۲6۴۱۱ ۳ feedback.
صفحه 8:
Production
Local Sewing
Sewing is done by about
200 contractors located
around La Corufa and
northwest Spain, before
items are returned to Zara
for quality checks and
distribution.
In-House Focus
Zara's own plants
concentrate on time-
توت روت
basic products are
outsourced to Asia.
صفحه 9:
Distribution
RFID Technology
intel Mase Mer td CRO Re Une Cor Cacen
10 ۵
Global Shipments
Airfreighted to stores outside Europe, arriving in 48-72
.لاوط
lee عونم
Arteixo, Zaragoza (women's garments), and Meco
(children's wear).
European Shipmen
برط دنامط 24 متطغتين فعممتطد ,هدموهءة2 مأ معغهل1امكومع
branded trucks.
۴۰۲۵۱۱ ۷
Breen eas Ca aCe Tate Ta
inventory.
صفحه 10:
Zara's Retail Strategy
Strategic Locations
Close to luxury fashion brands in top
shopping streets worldwide.
Impulse Buying
Limited stock creates urgency and multiple
.ك5 ]أوألا ع01]د
Order Frequency
Twice-weekly shipments keep stores stocked
رت لحان يننا
Customer Feedback
Stores listen to customers; feedback informs
design decisions.
صفحه 11:
The Fashion Clothing Business
Fabric & Wholesale
components Manufacture distribution
هفو ووه
Design Marketing Retail distribution
صفحه 12:
29
15
10
Exports vs Imports
ieee Ct in $) Pete mu tla)
1ت 175
28 Wie ec
26 ca
22 0 SACRA
یرس
18 6
۵/۵۵ طانامک 18
15 0
7 fon)
و 3
ee et Tee)
له
Mean
ان
Nara)
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acy
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لس ی
صفحه 13:
Major Global Fashion Companies Comparison
Coca omg coc} رس 0 80۴ ل كا Market Value
(%) للد عبن
000 cons 2494 0 188 182 40 71
iiss oo 286 222 17.0 257 9 0
5و2 94 13.1 234 ملعيو عير 61 237
1 دو 8۰0 15.9 مدنا 22 83 117
Fast Retalling Japan 146 103 107 165 7 46.2
Ce)
۷۶ هون وم 11.8 103 127 274 24 00
PVH Corp. هون 89 119 71 70 61 122
000000 هونا Ory ود 546 112 وه 65
00020 1 47 41 وود 340 a2 ومد
0000
Burberry Group و20 146 31 33 ی 47 95
صفحه 14:
Meeting current and future
challenges
al ۸9۱۱6 ۵۵۵
oa Rapid trend response
Loy Collaborative mana
تلبت ریت
Online and logistics innovation
ار Sustainability focus
C=)
Teele a
صفحه 15:
Thank You
Zara: Super-Fast Fashion
Professor: Dr. Ghazi Nouri
Presentor: Mohammad Javad Araee
Inditex
Inditex Brands
Zara’s Distinct
Approach
•
Zara (66% of sales)
•
Pull & Bear
•
Low advertising spend
•
Massimo Dutti
•
No superstar designers
•
Bershka
•
Domestic manufacturing
•
Stradivarius
•
Zara Home
•
Oysho
focus
•
Fast fashion via supply
chain agility
Ortega's Innovation: Fast
Fashion
Rapid design: Quickly capture and
create new fashion trends.
Integrated system: Align factories,
distribution centers, and stores
closely.
Speed to market: Minimize time from
design to store shelves.
A Brief History of Zara
Global Expansion
•
1988: First foreign store in Portugal
•
1989: Entered U.S. market
•
By 2000, developed a unique business
system
Design and Production Process
Designers draw inspiration from fashion
shows and street styles.
Revolutionary Distribution
•
Twice-weekly deliveries from Artigo
distribution center
•
Maximum 3 days worldwide delivery
•
Clothes arrive ready to display
•
Stores get limited quantities per size and
model
Initially mostly domestic production, later
50% delegated to external suppliers.
A Brief History of Zara
Store Management
•
Uniform design and layout worldwide
•
Store managers responsible for ordering
•
and weekly reporting
Internationalization Strategy
Centralized pricing, but adjusted for
•
transportation costs and local market
purchasing power
Initial entry through joint ventures (e.g.,
in Italy and Japan for prime locations)
•
Eventually buying out partners to
operate independently
Zara's Unmatched Speed
Design-to-store time: Sometimes just 2
weeks!
• (Compared to competitors' 3-6 month
timelines)
Zara in 2018
Design
Collaborative Design
Iterative Process
Zara's young designers
The design team creates
collaborate in specialized
many ideas and prototypes,
product groups like
selecting only a few for
women's, men's, and
production based on store
children's wear.
feedback.
Production
In-House Focus
Local Sewing
Zara's own plants
Sewing is done by about
concentrate on time-
200 contractors located
sensitive items, while more
around La Coruña and
basic products are
northwest Spain, before
outsourced to Asia.
items are returned to Zara
for quality checks and
distribution.
Distribution
Distribution Centers
1
Arteixo, Zaragoza (women's garments), and Meco
(children's wear).
2
RFID Technology
Introduced in 2014, tracks every garment from factory
European Shipments
3
to sale.
Consolidated in Zaragoza, shipped within 24 hours by
branded trucks.
4
Global Shipments
Airfreighted to stores outside Europe, arriving in 48-72
Retail Strategy
Stores receive immediate shipments with no back
inventory.
5
hours.
Zara's Retail Strategy
Order Frequency
Strategic Locations
Twice-weekly shipments keep stores stocked
Close to luxury fashion brands in top
with new items.
shopping streets worldwide.
Customer Feedback
Impulse Buying
Stores listen to customers; feedback informs
Limited stock creates urgency and multiple
design decisions.
store visits.
The Fashion Clothing Business
Fabric &
components
1
Wholesale
distribution
Manufacture
2
Design
3
4
Marketing
5
6
Retail distribution
Exports vs Imports
Country (Exports)
Export Value (Billion $)
Country (Imports)
Import Value (Billion $)
China
175
European Union
96
European Union
28
United States
96
Bangladesh
26
Japan
29
Vietnam
22
Hong Kong (mostly China
15
imports)
Hong Kong (Re-exports)
18
Canada
10
India
18
South Korea
9
Turkey
15
Australia
7
Indonesia
7
China
7
Cambodia
6
Switzerland
6
Major Global Fashion Companies Comparison
Company
Country
Sales ($B)
Total Assets ($B)
Operating Margin
ROE (%)
(%)
Inventory
Market Value
Turnover
($B)
Christian Dior
France
49.4
87.3
18.8
18.2
4.0
77.1
Inditex
Spain
28.6
24.2
17.0
25.7
9.7
94.9
H&M
Sweden
23.4
13.1
9.4
23.5
6.1
23.7
Gap
USA
15.9
8.0
9.3
29.2
8.3
11.7
Fast Retailing
Japan
14.6
10.3
10.7
16.5
6.7
46.2
VF Corp.
USA
11.8
10.3
12.7
27.4
7.4
30.6
PVH Corp.
USA
8.9
11.9
7.1
7.0
6.1
12.2
Hanesbrands
USA
6.5
6.9
11.2
54.6
3.5
6.5
Michael Kors
UK
4.7
4.1
15.9
34.0
8.2
10.0
UK
3.5
3.1
14.6
20.9
4.7
9.5
(Uniqlo)
Holdings
Burberry Group
Meeting current and future
challenges
Agile production
Rapid trend response
Collaborative management
Online and logistics innovation
Sustainability focus
Thank You