UNIVERSITY OF MUMBAI

PROJECT ON
STUDY ANALYSIS ON ZARA FASHION BRAND
MASTER OF COMMERCE (BUSINESS MANAGEMENT)
SUBJECT: ENTREPRENEURSHIP MANAGEMENT
SEMESTER III
2013-14
In Partial Fulfilment of the Requirement under Semester Based Credit
And Grading System for Post Graduates (PG)
Program me under Faculty of Commerce
SUBMITTED BY
RAJESHREE PATEL
ROLL NO: 41
PROJECT GUIDE
Mr. RAHUL CHOPRA
K.P.B. Hinduja Collage Of Commerce, 315 New Charni Road,
Mumbai 400004.

1|Page

M.COM (BUSINESS MANEGEMENT)

III rd SEMESTER
STUDY ANALYSIS ON ZARA FASHION BRAND

SUBMITTED BY
RAJESHREE N. PATEL
ROLL NO: 41

2|Page

CERTIFICATE
This is to certify that Ms. Rajeshree Patel of M. Com. Business Management Semester 3 rd
[2013-2014] has successfully completed the project on STUDY ANALYSIS ON ZARA
FASHION BRAND under guidance of Mr. RAHUL CHOPRA

Project Guide

________________________________
________________________________

Course Coordinator
________________________________
Internal Examiner
________________________________
External Examiner
________________________________
Principal
Date: ____________
Place: Mumbai

3|Page

DECLARATION
I Ms. Rajeshree Patel the student of M.Com (Business Management) 3 rd Semester (20132014), hereby declare that I have complete the project on STUDY ANALYSIS ON ZARA
FASHION BRAND
The information submitted is true and original to the best of my knowledge.

Rajeshree Patel
(Signature)

4|Page

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me. My deepest
thanks to Lecturer, Mr. Rahul Chopra, the Guide of the project for guiding and correcting various
documents of mine with attention and care. He has taken pain to go through the project and make
necessary correction as and when needed.

I would also like to thank my Institution and my faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to my brother
and to all my well wishers for their help and care.

5|Page

TABLE OF CONTENTS
Sr. No

Table Of Content

Pages

1.

COMPANY PROFILE

2.

ZARA AFFORDABLE EXCLUSIVITY STRATEGIES FOR

GROWTH

8-9

3.

ZARA PRODUCTS

10

4.

MISSION, VISSION, VALUES & GOLAS

11-12

5.

SWOT ANALYSIS

13-17

6.

STUDY OF ZARA FASHION BRAND IN INDIA

18-20

7.

AMANCIO ORTEGA THE FOUNDER OF THE BRAND ZARA

21-27

8.

INTERNAL ANALYSIS

28-29

9.

EXTERNAL ANALYSIS

30-34

10.

QUESTIONNAIRE

35-42

11.

CONCLUSION

43

12.

SUGGESTIONS FROM SURVEY POINT

44

13.

BIBLOGRAPHY

45

6|Page

COMPANY PROFILE
Zara is the flagship chain store of Inditex Group owned by
Spanish tycoon Amancio Ortega, who also owns brands such as
Massimo Dutti, Pull and Bear, Oysho, Uterqe, Stradivarius and
Bershka. The group is headquartered in A Corua, Spain, where
the first Zara store opened in 1975.

It is claimed that Zara needs just two weeks to develop a new product and get it to stores,
compared with a six-month industry average, and launches around 10,000 new designs each
year.

Zara has resisted the industry-wide trend towards transferring fast fashion production to lowcost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company
preferred to invest a percentage of revenues in opening new stores instead.

7|Page

ZARA AFFORDABLE EXCLUSIVITY STRATEGIES FOR GROWTH

"Zara was a fashion imitator. It focused its attention on understanding the fashion items that its
customers wanted and then delivering them, rather than on promoting predicted season's trends
via fashion shows and similar channels of influence, which the fashion industry traditionally
used."
Zara, the fashion retail chain, is a subsidiary of Inditex Group owned and managed by Spanish
tycoon Amancio Ortega. Inditex includes several major brands, namely, Zara, Massimo Dutti,
Pull and Bear, Oysho, Bershka, and Stradivarius. The group headquarters is located in La
Coruna, Spain. It was here where the first Zara store was launched in 1975. Presently, there are
about 1,500 Zara stores around the world.
Zara's claim to fame surfaces from the fact that it
needs, on an average, two (2) weeks to develop
and market a new fashion product compared to
the industry average of six (6) month cycle. In
addition to this,
Zara is committed to showcasing around 10,000 new designs annually, in a fast and scarce
manner, which gives it a constant new look and brings back customers to the stores. Owing to its
unique supply chain management, use of information technologies and innovative management
strategies, which is a must to survive the highly competitive fashion industry it has managed to
come out on top year after year. The major competitors include H&M, GAP and Benetton.

8|Page

Later on, they brought in information technologies to further revolutionize the distribution
processes. These helped Zara to developed fashion lines based on market trends and also,
produce its own designs through a team of 200 in house designers. The introduction of
information technologies helped them increase the efficiency of state of the art production
system and warehousing mechanisms. The stores and warehouses were linked electronically,
which facilitated the exchange of real time information thereby allowing them to minimize risk
and capital outlays by reducing inventories.
This leaner and responsive system helped rotate the stock quickly and also, improved sales as the
customers would return to stores every two weeks to check out new designs and purchase as the
design would not be available after the time frame.
International expansion of Zara started with Portugal in 1988, and since then they have opened
more than 1,000 stores globally. This has been done through company owned showrooms, joint
ventures and franchisee models.

9|Page

ZARA'S PRODUCTS
Currently, Zara caters to men's clothing and women's clothing. Each of these sections has 5
subsections, which include lower garment, upper garment, shoes, cosmetics and complementary
products.
The 50-60% of the demand is produced at the beginning of the season and the remaining is
manufactured in season. This sometimes results in either stock outs or markdowns but compared
to the competition the number of times the service failure happens is quite low for markdowns.
Hence, if the design does not suit the customers' tastes then it is taken off the shelves and further
orders are cancelled. This leads to new designs and above all, no designs stay on the store floor
for more than four weeks, which encourages consumers to make purchases. When compared to
the competitors, average number of times a customer visits Zara is 18 times a year compared to
3-4 times for the competition.

10 | P a g e

MISSION, VISION, VALUES AND GOALS

Zara's Mission Statement is as follows,
ZARA walks at the pace of society, dressing ideas, trends and tastes that society itself has
matured.
Zara through its unique business models and stores has proved business can be successful with
little or no advertising. This business is possible only through superior customer service helped
by continued ability to restock and respond to customer needs within days. This gives Zara the
competitive edge. Hence, keeping in mind the mission, they always innovate their products to
enhance shopping experience and provide new designs at affordable costs made from quality
materials which follow latest trends.

ZARA'S STRATEGY FOR GROWTH AND POSITIONING

11 | P a g e

Zara believes in Zero advertising. It would rather spend on store expansion than to advertise.
However, the minimally advertise in fashion magazines.
The rationale behind this is the quick turnaround of store display, which is around 4 weeks,
which renders advertising an unnecessary cost. Also, Zara concentrates on efficient design to
market cycle and focus on showcasing large number of designs annually.
The workforce in Zara is essential to its success right from the production to the store level as
the feedback generated about fashion performance at store is percolated to the designer and
production and supply chain helps to put the latest styles in 2 weeks time. We need to take a look
at the factors that determine these strategies and also the shortcomings associated with these
strategies

SWOT ANALYSIS

12 | P a g e

We will discuss each of the external and internal variables in details which will give us a better
picture as to why Zara needs to act in a certain manner.

Strengths
Strong product diversity
As a group Inditex is a leading fashion distributor and has ore than 100 associate
companies across the world. In addition to this, the stores are located in more than 400
cities across the world. In case of Zara, the international fashion retailing segment, this
presents a new opportunity to foray into foreign markets.
Strong revenue growth
The group company of Zara, Inditex has registered a robust financial performance Y-o-Y.
The revenues increased at a CAGR of 18% annually.
Strong distribution network
The group, Inditex has a strong distribution network. The presence of an efficient supply
chain management in Inditex assures that the goods are delivered within 24 hours of the
receipt of the order in Europe and about 40 hours at its overseas outlets.

Zero advertising

13 | P a g e

Zara follows the policy of zero advertising to decrease expenses. Hence, in newer
markets, it can focus its capital on expansion. The strong brand name, store ambience and
product quality will compensate for the lack of advertising.

Weaknesses
Overdependence on the European market
Zara has a significant market presence in Spain and other European countries. Around
50% of the stores are located in Spain and surrounding countries. However, the revenues
contributed by Spain accounts to only 40% of the group revenues whereas 60% of the
revenues comes from its international operations with 43% coming from European
operations and the rest 17% from outside Europe.
Reliance on local designers
Even though local designers are preferred for designing new range of garments for Zara,
almost all the designers are from Spain. This leads to a situation where the design might
be too localized. Considering the fact that Zara intends to have a global presence,
localization of the core designing and manufacturing processes might not be a feasible
option.

Opportunities
14 | P a g e

Expansion plans
The group has invested more than 2.8 billion to open new stores internationally, in
countries where it already has a presence and few new markets as well. The rate of
growth of stores has been as high as 640 stores per year. Zara fashion will be made
available in Korea, Ukraine, Egypt and Montenegro. A well defined expansion plan is
critical to the corporate objective of international expansion with sustained and robust
revenue growth in the future.
Growing apparel retail market in Asia (China, India, Malaysia, Taiwan and
Indonesia)
The Asian apparel market is growing at a high rate. Owing to the growing population of
affluent household, higher disposable incomes, consumers knowledge of international
brands, it presents an opportunity for Zara to enter and expand its operations in Asian
market. Accelerated development in these markets will help shift the burden of growth
and diversification from mature and intensively competitive European and American
markets to the building Asian markets.

Growing online sales

15 | P a g e

Online retailing has been growing at a scorching pace in the last decade and considering
UK market, more than 14 billion has been spent on online shopping. Zara should try to
open online retail shops to cater to the audience who need to shop for standardized
version of Zara's products.

Threats
New avenues being utilized by competitors
The competition is always on the lookout for cheaper manufacturing location such as
China, India and Eastern Europe. The benefit of lower costs of procurement can be
passed on to the customers through low prices. The main advantage of Zara's vertical
integration is the frequent replenishments of its stores and also, feedback from store staff
to design.

16 | P a g e

Counterfeit goods
The counterfeit goods in the new markets and existing ones adversely affect sales of
branded accessories. Widespread counterfeiting reduces the brand value and exclusivity,
especially in cases of high end fashion products, through customer dissatisfaction.
Rising Labor cost in European region
Since Inditex focuses most of Zara's designing and manufacturing activities in the
European region, the increasing labor costs drive down the profits as it increases the
operating expenses. This results in adverse impact on the group's margin.

STUDY OF ZARA FASHION BRAND IN INDIA

17 | P a g e

A 2002 study says Zara follows what it calls an oil stain strategy. It means Zara opens its first
few stores in a country to get an understanding of a market and then uses that knowledge as it
expands into that market.
The most important thing for us to enter a new market is the existence of potential customers:
People sensible to fashion phenomenon. And, in an operational sense, the availability of suitable
locations, says Inditexs official spokesperson via email.
Now lets look at its initial performance. The fact is that Zara has had an opening few foreign
brands have had in India. Through the opening weekend, there were long queues outside its trial
rooms as women jostled to try out clothes. According to industry sources (Zara itself is famously
reticent about sharing numbers), it had sales of close to Rs. 1.25 crore in the first weekend in
Delhi and nearly the same in its Mumbai store.
Delhis Select Citywalk mall recorded 40% more footfalls than it usually does and Mumbais
Palladium mall recorded close to 30% higher footfalls.
Any mall owner will want Zara now for free because it has an ability to bring more people of a
certain kind into the mall, says Arjun Sharma, promoter of Delhis Select Citywalk mall.

Their opening has been far beyond expectations, says Govind Shrikhande, chief executive of
department store chain, Shoppers Stop. He credits the brand with opening up the premium
womens wear market in an unexpected way. Industry executives such as him pin Zaras initial
18 | P a g e

success to the fact that it faithfully brings its famously

international brand appeal and experience without having the
higher prices that foreign brands typically have in India on
account of high duties.
At more than 16,000 sq ft, the stores look and feel exactly as they do internationally. The
merchandise is also the same as is available in international stores currently, except that these
stores have more of its Basic and casual wear collections rather than the higher end
Collection clothes and accessories.
The attention to detail was telling. Its shop windows were elegantly laid out and the shop
attendants were well groomed and sophisticated. To keep its loyal customers hooked, the stores
in Delhi and Mumbai had different merchandise every few days after it opened its doors. Store
and mall staff worked through the night to replenish stores before their early opening at 10 a.m.
To keep up this constant churn in merchandise, Zara stuck to its unique model of every store
manager communicating their store needs to the design team in Spain. Accordingly, twice a
week the design team flies down a consignment for every store.

More stores have opened since, but merchandise comes in from Spain. So, for instance, there are
clothes in the Indian store that are made in India, Bangladesh and Sri Lanka, presumably shipped
to Spain and then sent back to the store here.

19 | P a g e

If they are to make a serious play in the Asian

market they will need a second hub there, he says.
But given that the Spanish design team works with
each store manager to localize the merchandise,
moving the business model away from this will not
be easy, he says. Although Inditex runs several
labels, Zara contributed 63.8% of its Euro 11 billion revenues for the fiscal year 2009.

AMANCIO ORTEGA THE FOUNDER OF THE BRAND ZARA

20 | P a g e

Amancio Ortega Gaona born 28 March 1936 is a Spanish fashion executive and founding
chairman of the Inditex fashion group, best known for its chain of Zara clothing and accessories
retail shops. In early 2013, he was ranked as the third richest person in the world by Forbes [2]
with a net worth of USD $57 billion. The Bloomberg Billionaires Index on September 25, 2013
listed Amancio Ortega Gaona as the world's third richest person with reported combined assets
of USD $61.6 billion
Amancio Ortega Gaona, Inditexs founder, was still its president and principal
shareholder in early 2002 and still came in to work every day, where he could often be
seen lunching in the company cafeteria with employees. Ortega was otherwise extremely
reclusive, but reports indicated that he had been born in 1936 to a railroad worker and a
housemaid and that his first job had been as an errand boy for a La Corua shirtmaker in 1949.
Ortegas quest to improve the manufacturing/retailing interface led him to integrate forward into
retailing: the first Zara store was opened on an upmarket shopping street in La Corua, in 1975.

From the beginning, Zara positioned itself as a store selling medium quality fashion clothing at
affordable prices. By the end of the 1970s, there were half a dozen Zara stores in Galician cities.

21 | P a g e

Under Ortega, Zara continued to roll out nationally through the 1980s by expanding into
adjoining markets. It reached the Spanish capital, Madrid, in 1985 and, by the end of the decade,
operated stores in all Spanish cities with more than 100,000 inhabitants. Zara then began to open
stores outside Spain and to make quantum investments in manufacturing logistics and IT.
The early 1990s was also when Inditex started to add other retail chains to its network through
acquisition as well as internal development.

Amancio Ortega is the richest man in Europe, with a net worth estimated at $57.5 billion.

22 | P a g e

This is his second wife, Flora. The couple has been married since 2001.

This is his daughter, Marta. The 28-year-old socialite married top

Spanish equestrian Sergio lvarez Moya earlier this year and wore a
gown by Narciso Rodrguez.

Ortega and his wife live in a discreet apartment building in La Corua, Spain, near a
major port of the Atlantic Ocean.
23 | P a g e

Kate Middleton is a huge fan of Zara's designs and is often photographed in its clothing.

Ortega is known for being fiercely private. He has only granted interviews to three
journalists ever.

He also dresses modestly. He wears a simple uniform of a blue blazer, white shirt and gray
pants, none of which are Zara products.
24 | P a g e

He goes to the same coffee shop everyday and eats lunch with his employees in the company
cafeteria. Here's a picture of Zara's headquarters:

In his free time, Ortega enjoys horseback riding and owns an equestrian center in
Finisterre, Galicia, Spain.

He also bought the tallest skyscraper in Spain, the Torre Picasso in Madrid. The building
stands 515 feet high and cost $536 million.

25 | P a g e

He owns The Epic Residences & Hotel in Miami, FL, which is considered to be one of the
best luxury hotels in the U.S.

Ortega drives an Audi A8 luxury sedan that is said to be more about comfort than luxury

He also owns The Global Express BD-700, a private jet designed by Bombardier, one of the
leading manufacturers of luxury private jets. The plane carries price tag of $45 million

26 | P a g e

But he rarely jets off on vacation. He says he loves working too much to take time off.

INTERNAL ANALYSIS

27 | P a g e

We undertake the resource based view and study the internal analysis. Zara's main assets are the
designers, the logistics process, in store sales people and the store ambience.
The designers are in charge of churning out new designs in a short span of time. After receiving
the feedback, they have approximately 2 weeks to deliver the garment to the store. Each of the
designers is a valuable and costly resource and this quick turnaround time is not imitable and
therefore exploited by Zara to the fullest.
The competitors have not been able to turn around designs as quickly as Zara. Hence, they give
Zara a competitive advantage. Since Zara follows zero advertising policy, the word of mouth
medium is heavily dependent on how much a customer is satisfied. New designs which satisfy
customers go a long way in making Zara an important brand.

Competitor Analysis
The main competitors are H&M, a Swedish brand and GAP Inc., an American brands. Now,
GAP Inc. boasts of large network of stores and has a strong financial leverage as it aims to tap
into growing online retail segment and into franchising to expand into new market. with
designers and have much wider presence as compared to Zara.

They are at present looking to target new niche. However, they are also plagued by issues of
customer loyalty and product recall. Currently, all of them are focusing the same segment and
added to it the high entry barriers and high profit potential makes it an attractive industry.

28 | P a g e

From the above graphs and the financial data available (refer to Appendix), we can see that
although sales revenues of H&M are better than Inditex, operating expenses as a percentage of
sales are lower for Inditex mostly due to their operational and marketing strategies which lowers
the inventory and due to instant fashion generates more sales.

EXTERNAL ANALYSIS
Demographic segment:

29 | P a g e

Zara is targeting young consumers with disposable income. This will be primarily in
developing countries and developed countries. This presents them with a sizeable
population.

Economic segment

Due to weak currencies, low labor costs and opportunity to be closer to customers, Zara
need to think about strategies to take benefits from other location..

Legal segment

Owing to increasing labor costs and stringent labor laws, the production processes in the
present countries do not seem favorable as they will increase the production costs.

Technological Segment

Zara presently uses IT efficiently in managing their supply chain which leads to lower
operating costs. However, the use of IT can be extended to expand their procurement and
manufacturing activities outside Spain.

Global Segment

Owing to globalization and rapid advancement in technologies, several low cost

production centers have come up.

The environmental characteristics changes very fast in fashion, especially in terms of

demographic and global segments. Zara being in core fashion industry with fast cycles

30 | P a g e

have a unique strategy where in it caters only on the leading edge of the product cycle
which enables it to deliver the promise of Instant Fashion.
Functional Level Strategies:

The designs at Zara change every week and this result in manufacturing systems that
have to be flexible to cope up with these changes. Thus Zara uses Flexible Manufacturing
Technology or Lean Production which reduces setup time for equipments, increases
utilization of machines through better scheduling and improves quality control at all
stages of manufacturing. The various functional strategies for Zara have been laid down
below.

Marketing Strategy

Only one item of each size in each color option was placed on the stock floor requiring
stores to maintain a considerable restocking policy.

Customer feedback was taken by all the sales personnel at the stores to gauge the needs
of the customers.

New product introductions were planned twice a week to maintain fashion freshness.

Zara stores were located in prime retail locations, thus avoiding the need for advertising
to attract customers. Marketing expenses were0.3% on sales as compared to 3.5% of
competitors.

Materials Management Strategy

31 | P a g e

The raw material was stocked in advance according to forecasts. They were sourced from
countries like Spain, the far east, India and Morocco.

Due to low lead times, very less inventory needed to be maintained.

Inventory turnover is high leading to lesser capital needs.

Zara outsources its sewing activities to contractors, thus lowering cost.

R&D Strategy

Design team consisting of young individuals in their 20's who are more conversant with
latest fashion.

Around 40000 designs were done throughout the year out of which around 11000 were
selected for manufacture.

Human Resource Strategy

Zara emphasized learning from mistakes and accepting criticism.

Everyone was encouraged to express their opinion.

No performance appraisal system in place but a system of immediate feedback from

colleagues at all levels.

Personal empathy given more importance than formal qualifications in recruitment.

A significant portion of salaries varied according to performance.

Information Systems Strategy

32 | P a g e

IT was used to integrate the chain vertically and horizontally, for smooth flow of
information up the chain and across the various functions, respectively.

Infrastructure

Zara had a relatively flat structure in comparison to other firms in the same industry.

Cross-Functional Integration existed between the various functions to ensure that:

New designs are developed according to customer needs.

Information flow is quick.

Time to manufacture the new designs and their presentation to the customers reduces.

The costs of development are low.

Global Level Strategy

Zara had opened up around 1500 stores in around 78 countries in December 2008, and it
is still expanding by looking for opportunities. The main factors that helped Zara achieve
Global competitiveness are:

Fast growth in the Spanish market

High demand for exports from Spain Rivalry with other firms like H&M and Gap.

33 | P a g e

Global Strategy
Zara did not follow any localization in the countries where it was present and provided only
standardized products. Also it believed in providing the latest fashion at the low costs. Thus from
the Global Strategy Grid it can be seen that Zara Followed a Global Standardization Strategy. By
doing so it hoped to increase its profitability by reducing costs and achieving economies of scale.
Choice of Entry Mode
Zara chose to enter the different markets using various entry strategies. The strategies are
outlined below.

Exporting: Zara exported its products to a few markets where opening up a

manufacturing facility would not have been profitable like Monaco, Oman, etc.

Franchising: Zara also opens up stores in various locations through franchised deals
avoiding development costs and risks of opening up a foreign market on its own.
Examples of such locations are Cyprus, Venezuela, etc.

Joint Ventures: Over a period of time Zara entered various markets by forming Joint
Ventures to take advantage of the partner's knowledge of the foreign country. It entered
the Italian Market in 1996 by forming a JV with Benetton.
34 | P a g e

Wholly Owned Subsidiaries: Zara entered most of the markets by opening up wholly
owned subsidiaries, to take advantage of the controls that it could exercise in those
countries. Examples of such locations are US, UK, etc.

QUESTIONNAIRE

Q.1 WHAT IS YOUR GENDER?

OPTIONS
MALE
FEMALE

ANSWER IN NUMBERS
4
11

Q.2 HOW OLD ARE YOU?

1
.
2
.
3
.
4
.
5
.

OPTIONS
UNDER 16

ANSWER IN NUMBERS
0

16-25 YEAR OLD

26-35 YEAR OLD

36-45 YEAR OLD

OLDER THAN 45
YEARS

35 | P a g e

Q.3 WHAT IS YOUR WORK STATUS?

1.
2.
3.
4.
5.

OPTIONS
WORKING
SELF EMPLOYED
RETIRED
STUDENT
OTHER
PROFESSION

ANSWER IN NUMBERS
15
0
0
0
0

Q.4 WHAT IS YOUR ANNUAL GROSS INCOME (BEFORE TAX)

OPTIONS
1.

BELOW 40,000/-

2.
ABOVE 50,000/3. LESSTHAN 1,00,000/4.
MORE THAN
2,00,000/-

ANSWER IN
NUMBERS
1
2
2
10

36 | P a g e

Q.5 HOW OFTEN YOU SHOP FOR YOURSELF?

1.
2.
3.

OPTIONS
ONCE A MONTH OR
LESS
2-3 TIMES A MONTH
MORE THAN 3TIMES A
MONTH

ANSWER IN NUMBERS
12
3
0

Q.6 HOW RELEVANT ARE THE FOLLOWING FACTORS TO YOU WHEN CHOSSING A
CLOTHING BRAND?
1.
2.
3.

OPTIONS
ADVERTISING

ANSWER IN NUMBERS
5

STYLES
ONLINE
SHOPPING
EXCHANGE RATE

4
6

37 | P a g e

Q.7 DO YOU KNOW ZARA THE FASHION BRAND? IF YES, THAN HOW YOU HEAR
ABOUT ZARA
1.

OPTIONS
TV OR RADIO

ANSWER IN NUMBERS
0

2.
3.
4.
5.

ONLINE MEDIA
PRINT MEDIA
WORD OF MOUTH
OTHER SOURCE

0
4
6
5

Q.8 WHAT CATEGORIES OF CLOTHING WOULD YOU BE MOST LIKELY TO PURCHASE

FROM ZARA?
1.
2.
3.

OPTIONS
CASUAL
WORK/CORPORATE
ACCESSORIES

ANSWER IN NUMBERS
11
4
0
38 | P a g e

Q.9 HOW OFTEN DO YOU VISIT & BUY FROM ZARA?

1.

OPTIONS
ONCE A YEAR

ANSWER IN NUMBERS
9

2.
3.
4.

MORE THAN A YEAR

ONCE A MONTH
MORE THAN A MONTH

2
3
1

5.

ONCE A WEEK

Q.10 PLEASE INDICATE HOW ATTRACTIVE THE FOLLOWING FEATURES OF ZARA ARE
TO YOU
1.
2.
3.

OPTIONS
LATEST- FASHION
TREND
QUALITY
CUSTOMER SERVICE

ANSWER IN NUMBERS
5
9
1

39 | P a g e

Q.11 PLEASE SPECIFY THE FASHION RETAILER THAT YOU SHOP THE MOST OTHER
THAN ZARA?
1.

OPTIONS
PETER ENGLAND

ANSWER IN NUMBERS
2

1.

OPTIONS
PETER ENGLAND

ANSWER IN NUMBERS
2

2.

LEE, DENIM

3.
4.
5.
6.
7.

BIBA
FBB
COOLEX/ CHILLON
DLLEN SOLLY
PANTALOON

1
1
2
1
2

40 | P a g e

Q.12 PLEASE INDICATE YOUR LEVEL OF AGREEMENT WITH THE FOLLOWING

STATEMENT:
OPTIONS
1.
2.
3.
4.
5.

ZARA HAS LOW PRICE

ZARA HAS A WELL KNOWN BRAND
IMAGE
ZARA IS A TRENDSETTER
ZARA HAS A CONVENIENT LOCATION
ZARA PRODUCES HIGH QUALITY
PRODUCTS

ANSWER IN
NUMBERS
2
3
3
1
6

41 | P a g e

Q.13 DO YOU KNOW AMANCIO ORTEGA & ROSALIA MERA? THE FOUNDER OF ZARA
BRAND
OPTIONS

ANSWER IN NUMBERS

1.

YES

2.

NO

14

ANSWER IN
PERCENTAGE

42 | P a g e

Q.14 ANY ONE SUGESSIONS FOR THE BRAND ZARA THAT YOU WOULD LIKE TO GIVE.
OPTIONS
1
.
2
.
3
.

ADVERTISE MORE
OFFER PRODUCT AT
DISCOUNT RATE ATLEAST
TWICE A YEAR
GET IN CONTACT WITH
CHILLON

ANSWER IN
NUMBERS
2

ANSWER IN PERCENTAGE

2
1

CONCLUSION
Zara continues to replicate the same model that has worked for it globally -- creating affordable,
copied versions of the latest in trend or designer-wear and making them available to shoppers at
a fast pace.
43 | P a g e

Amancio Ortega Gaona, who was last year named the third-richest man in the world, founded
Zara as a maker of lingerie in the northern Spanish town of La Coruna in 1963.
Today, there are 1,600 Zara stores in 85 countries. In India, Inditex Trent plans to open over 18
stores in the next three years in Tier II cities Inditex Trent plans to open over 18 stores in the
next three years in cities such as Mangalore, Surat and Indore, said a person aware of the plans.
The pitfall could be that shoppers in these cities may not have the same attraction for Zara
despite having the propensity to spend on international brands. Several mall owners are also
getting wary about renting stores to Zara.
According to the survey done on Zara Fashion brand in India it was noticed that mostly people
working in Corporate Level have buy products from zara stores rest all have visited just for fun

SUGGESTIONS FROM SURVEY POINT.

Zara is famous among the young people mostly of higher level group who can afford to
spend on clothing and accessories.

Zara is a trend setter in India.

44 | P a g e

There must be advertisement made to increase the sales, Advertisements on TV,

NEWSPAPER can be a effective one.

But people visit Zara stores because it is situated in famous malls where people usualy
go for shopping.

They must come up with new offers to attract the customers or at least a discount card
for regular customer or a gift can help to increase their level of sales in India.

Zara should increase the number of stores so it will be convenient for the buyer.

Zara must also attract the Middle Income group of people by coming up with new range
of clothing with good quality.

They must tie up with some other brand to reach the customer easily.

BIBLOGRAPHY
1. Zara, Harvard Business Review, D'Andrea, Arnold, 12th March 2003
2. Zara Case: Fast Fashion from Savvy Systems, Prof. John Gallaugher, MIT,
13th September 2008
45 | P a g e

3. "Rapid-Fire Fulfillment," Harvard Business Review, 11th November 2004

4. Zara: Fast Fashion, Harvard Business Review, Ghemawat, Nueno, 1 st April
2003
5. Zara: Spanish Season, Business World Nirmalaya Kumar, LSE
6. INDUSTRIA DE DISENO TEXTIL S.A. (Inditex), MarketLineInfo.Com
7. INDUSTRIA DE DISENO TEXTIL S.A. (Inditex), Annual Financial
Reports, 2008

8. http://www.ukessays.com/essays/business/z-a-r-a-affordableexclusivity-strategies-for-growth.php#ixzz2g7FyjluR.

46 | P a g e