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The first Zara store was located on a central street in La Coruna. Upon the success of Zara format, the firm started to expand and opened further stores. The store proved to be a success, and Ortega started opening more Zara stores in Spain.
Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world.
Each year several hundred thousand SKUs are produced based on 11,000 distinct items varying in color, fabric and size.
nstead of reducing cost , zara makes faster production and creation in turkey.
Zara has 1058 stores located in 68 countries around the world . The average Zara store is about 1500 square meters. Zara strategically opens its stores in heavily trafficked, high-end retail areas.
The countries in which Zara operates are: Country Number of stores Spain 364 -France 103-Portugal 59- Italy 57- Germany 56
Chile 6- Indonesia 6- Ireland 6 -Czech Republic 5- Kuwait 5 Malaysia 5- Philippines 5 -Singapore 5 Cyprus 4-Denmark 4 -Finland 4- Lithuania 4 Slovenia- 4
Serbia 3 -Colombia 3 -Hungary 3- Latvia 3- Morocco 3 Costa Rica 2- El Salvador 2- Iceland 2- Jordan 2- Lebanon 2 Luxembourg 2 -Panama 2 -Qatar 2 -Romania 2-Uruguay2
Zara target market is for ladies who love to dress elegance , casual or more fashionable.
These office buildings are full of the people we want as customers. We want them to stop in at lunch or after work. We want to see them often, so we have to change what we have on the shelves, said Zaras Toronto store manager. They could shop in a lot of other stores, so we have to make it worth their time to come here.
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why the company does not advertise. If a Zara customer wants to know what Zara has, he or she must go to the store. The stock changes often, with most items staying on the shelf for only a month, so the customer often finds something new and appealing. By the same token, if the customer finds nothing to buy this visit, the stores regular customers know that tomorrow or next week new goods will be on Zaras shelves. That makes it worth another visit.
Price strategy
Zaras business model makes it more profitable then any other retailer. We already know from marketing that the retailer gets almost half the price of the commodity sold. So by playing both the role of the manufacturer and the role of the retailer, Zara is definitely much more profitable than the average retailer with similar posted prices.
Zaras pricing strategy is to set price equal to cost plus a target margin. Zara prices are based on comparables within the target market, subject to covering costs plus a target margin.
Store Atmospherics
Store Atmospherics is another significant strategy for retailer. Inside and outside of stores should be attractive for consumers in order to do shopping easily.
Zara focuses on store atmospherics strategy. For instance; it provides refreshing, warm, hygineical stores.
Zaras competitors
Zaras strongest competitor is H&M.Zara has 1.02 million euros in current assets. H&M however, has 3.40 million euros in current assets. From this we can understand that Zara is less liquid, possibly because they have more fixed assets and turn their inventory over quickly.
The most interesting of Zaras competitors for comparison is Hennes and Mauritz(H&M).H&M differs from Zara becouse they outsource all of their production,spend more advertising and is price-oriented.
Key similarities for comparison between Zara and H%M are that are Europen based companies ,are fashion forward at lower price retailers and have a strong international expansion strategy
General Evaluton
Zara, which contributes around 80 per cent group sales concentrates on three winning formula to bake its fresh fashions: Short Lead Time = More fashionable clothes Lower quantities = Scarce supply More styles = More choice, and more chances of hitting it right
All of the strategies and tecniks constitute Zaras competetive advantages and makes the company different between competitors.Zara shows us their seriosness whit this slogan Cool Clothes Now, Not Later