ZARA:
Zara is Spanish clothing brand, based in Galicia, Spain. Founded by
COMPETITORS ANALYSIS
Amancio Ortega in 1975 it belongs to Inditex, which is one of world's
largest fashion retailers. (Forbes 2019) Key Factors ZARA: 8 H & M: 10
The Inditex group now has eight brands: Zara, Pull&Bear, Massimo Dutti,
Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. -2 -1 0 1 2
-2 -1 0 1 2
Political/legal Zara is known for be one of the leading international fashion companies Financial strength
and a leader in -2 -1 0 1 2
-2 -1 0 1 2
• Inditex estimates that the impact to the concept of fast fashion. Staying Power
of Brexit on the group of an exit Zara is mainly focused in producing and selling clothes inspired in famous -2 -1 0 1 2
collections and designers for a for a price much more accessible for -2 -1 0 1 2
from the United Kingdom from Strong R&D
the European Union without an people.
-2 -1 0 1 2
One of their priorities are to offer an attractive and responsible fashion, Online market -2 -1 0 1 2
international agreement will not
that meet their costumers needs. This company operates and sell in
be "significant", as reflected in more than 202 markets through our online platform or through our more -2 -1 0 1 2
-2 -1 0 1 2
the report on six-monthly results International
than 7,000 stores in 96 markets (Inditex 2020).
sent to the Spanish National marketing
UNIQLO: 3 GAP:10
Securities Market Commission
-2 -1 0 1 2
(CNMV) • Environmental Financial strength -2 -1 0 1 2
• In all fashion brands, copyright
-2 -1 0 1 2
law is one of the most important Sustainability has become on one of the most important concerns Staying Power -2 -1 0 1 2
legal aspects. Due to the fact that for businesses globally and Zara was not going to be an exception,
and it has invested sustainability as well. The company has set up -2 -1 0 1 2
Zara loves to follow fashion Strong R&D -2 -1 0 1 2
trends and produce them, for an the goal of making its stores 100% eco efficient by 2020.
affordable price, surely they can Zara´s plan is focus on making their stores consume less energy -2 -1 0 1 2
Online market -2 -1 0 1 2
and water as compared to the ordinary stores, and for make that
have some problems with other
come to reality these stores will be equipped with energy efficient -2 -1 0 1 2
designers' copyrights. and better recycling features. Inditex is also part of this have also International -2 -1 0 1 2
• Zara has been accused of taking invested in sustainable wear or clothes prepared from organic marketing
designs and clothing concepts
from companies like Adidas and material using sustainable technology. (Inditex 2019)
Balenciaga.
Social Challenges Recommendations
• ZARA studies new markets and cultures before releasing any new
products or investing in new markets. It facilitates many business risks.
The culture influences the purchase decisions of people. Fast Fashion Impact Eco-Friendliness:
• Generally people tend to purchase things that are connected to their Fast fashion is often associated with Zara has to direct the company
culture. wastefulness and Zara can be towards making a fast-fashion more
• Zara researches and produces products that rhyme with the local associated or classify as one. sustainable business economically and
culture, sells fashion that is suitable for local customers. So with customers becoming every ecologically.
day more and more eco-conscious, They need to focus on more eco
Economic • Technological this could become a negative aspect friendly packing and more sustainable
for the brand. materials.
• Zara manufactures a good fraction of its Zara has introduced the use of the RDFI (Radio- COVID-19: E-commerce:
products in Spain, so this low labour frequency identification) in their stores since 2014. In the first quarter of 2020, Inditex Offer a strong online new
cost allows them to minimize costs and, The chips RFID are found in the security clothing reported a 44% drop in sales. A experienced to purchase items that
in doing so, improve profitability. The labels. These ones are taking off when an item is Inditex report shows the closure of meet the consumers needs.
low cost of labour in Spain is definitely a purchased and can be re used also. This chip (RFID) 88% of its stores because of the (Forbes 2020).
positive for this brand. allows and helps the stores to make simple and easier Coronavirus epidemic. (Inditex Continue expanding more click and
the counting in their inventory management. 2019). collect service. (Mintel 2020)
When an item has been sold, the main storage is
• Affordable pricing strategy helps fight
notified so this item can be easily replaced. As well
off some of the effects of low economic
when an item is not found they can track it through
activity. the RFID label tag and this one can be found much
easier.
REFERENCES:
Forbes. 2020.
Available at: https://www.forbes.com/sites/katehardcastle/2020/06/10/zara-resultshow-lockdown-may-have-changed-fashion-forever/?sh=20d0b0084622
(Accessed: 3th November 2020)
Emily, J. Fashion Network, 2020.
Available at: https://uk.fashionnetwork.com/news/Zara-deploys-radio-frequency-technology-for-identifying-skus,847892.html
(Accessed: 8th November 2020 )
Inditex, 2019.
Available at: https://www.inditex.com/es/quienes-somos/conocenos
(Accessed: 4th November 2020 )
Pilar, R. The global fashion Business Journal, 2019.
Available at: https://www.themds.com/companies/inditex-best-fourth-quarter-in-three-years-excluding-corona-imapct.html
(Accessed: 18th October 2020 )
Anonymous. (2020), The bussiness of Fashion , 2020.
Available at: https://www.businessoffashion.com/organisations/zara
(Accessed: 20th October 2020 )
Eva, S. Sustainable Brand Index, 2019. 3 Focus Areas According to Sustainability Experts, 2019.
Available at: https://www.sb-index.com/news/2019/9/9/focus-areas
(Accessed: 10th October 2020 )
Jess, E. Cosmopolitan. Zara is in trouble for allegedly copying artists' designs, 2016.
Available at: https://www.cosmopolitan.com/uk/fashion/style/news/a44791/zara-alleged-copying-independent-artist-designs/
(Accessed: 11th October 2020 )
REFERENCES:
Mintel, 2020.
Available at: https://reports-mintel-com.ezproxy.mdx.ac.uk/sinatra/oxygen/display/id=978272?fromSearch=%3Ffreetext%3Dzar
(Accessed: 12th November 2020)
Anonymous, 2020. Top 3 ZARA Competitors & Alternatives In 2020
Available at :https://whatcompetitors.com/zara-competitors-alternatives
(Accessed: 9th November 2020)
Vogue, 2019.
Available at: https://www.vogue.es/moda/modapedia/marcas/zara/265
(Accessed: 5th November 2020)
Luis, G. El País. “El éxito del sastre global”, 2012.
Available at: https://elpais.com/economia/2012/08/10/actualidad/1344628833_827270.html#comentarios
(Accessed: 7th November 2020)
