The clothing industry represents a steady 6%- 7% of household incomes. The sector is inevitable, and everyone from the most affluent to less affluent, spend the same share. However, the textile market is primarily a volatile sector, subject to seasonality and fluctuations of fashion. Furthermore, it is a highly competitive and fragmented environment, governed by many regulations and characterized by a strong trend towards outsourcing.
The textile sector is also experiencing a crisis in recent years with the arrival of China on the market. This only exacerbates the social climate by strengthening the policy of relocation of industry and tried to cut costs to cope with the competition. The market is dominated by several large groups such as Inditex, a Spanish company which owns the Zara brand.
Zara has come off with verve and the originality of its competitors. The group is third on the world market and first in Europe. The market potential of Zara, France for the textile market extends to the entire French population, because the company offers a wide range of clothing, for children, women and men.
The collection for women consists of three categories: basic products (aimed at customers who want quality at low cost), product types (produced in Spain, in small quantities at a higher price and target customers of "fashion ") and products for woman (for young women). Since 2003, Zara had diversified its offerings and opened a chain of stores for decoration and linens and is called Zara Home.
The brand Zara follows the concept of "Design on demand." They adapt the offer to those customers who want their order delivered in record time and this creates a perfect distribution system. From the time of the conception of the idea until it is delivered or printed in an article in the magazine the garment, takes a little over twenty days to produce.
It is interesting to know how the brand responds quickly to the request of the product required by the customer at the store. The obsession of the last four years: to improve each time increasing the quality. Inditex has 36 designers who are responsible for designing the adequate supply of clothing and novelty of the landscapes of each store.
The turnover of the Spanish group (brands Zara, Massimo Dutti) was established in 2008 to 10.4 billion euros, up 10% compared to the previous year ended in late January. Profit remained stable at 1.25 billion euros. The global work force of the company has 89,000 employees.
In France since 1990, Zara now has 94 stores. It is seven more than in 2005. In 2007, the French turnover was 400 million euros. France is the second largest market for the Spanish brand.
The apparel market is highly competitive, first competition of the basic products from areas of low production costs and other global companies compete on the higher ranges of products such as H & M (Sweden) and GAP (USA).
Internationally the brand is distributed in Europe with a strong presence in France, for example about 100 stores, 22 in Italy, etc. in the area of the Asia Pacific, Japan12 stores, in North America, United States, 39 stores located in the centers of major cities like New York, Washington, Florida, etc.
Tags: Zara, marketing, distribution, strategy analysis
[...] They will therefore strongly influence the purchase of parents fun and realize their dreams. In this age group, individuals can make their purchases only giving them a pleasure more important in relation to the purchase Rational They represent a class of consumers with low purchasing power who research deals Self-expression In today's society the clothes and accessories have a vital role in self expression. Enhance the image of individuals to have fun even if the evolution of our society that motivation is growing among men. [...]
[...] Diagnostic summary Key success factors To avoid risks • Focusing on four areas of • Avoid too much activity diversification Elements motor mix: product policy Elements motor mix: product policy Refocusing strategy. Innovation Strategy • Production J-15, renewal • Not relocating production of collections Elements motor mix: product policy Elements motor mix: distribution Market development strategy. policy. • The increase in prices of Market development strategy finished products • Intensification of R & D Elements motor mix: pricing. to stay on the market dynamics Strategy of competitive struggle Elements motor mix: product policy • Avoid redeeming after the Innovation Strategy economic crisis. [...]
[...] For example, more people will look to the origin of the product. Now people pay more and more attention to the protection of the environment (creation of products . ) B. External stimuli Products The brand is a guarantee of quality, as it is recognized of the products are manufactured in Europe to in Spain. The products are designed by experienced designers which gives an image of luxury clothing. The clothes are designed with 400 workshops with which Zara has signed agreements so that they become exclusive suppliers. [...]
[...] - Analysis of the textile market in the world French consumption of the textile market by sector (2006 data in millions of euros) Transportation 1,735 Industry 594 Medical 316 Home furnishings 295 Personal Protection 278 Construction 262 Agriculture 159 Sports and Recreation 151 Clothing 144 Packaging: 127 Environment 67 Geotextiles 58 Amount Real market The turnover of the Spanish group (brands Zara, Massimo Dutti) was established in 2008 at 10.4 billion Euros, up 10% compared to the previous year which ended in late January. Profit remained stable at 1.25 billion Euros. The global workforce of the company was 89,000 employees. In France in 1990, Zara had 94 stores. This is seven more than in 2005. In 2007, the French turnover was 400 million Euros. France is the second largest of the Spanish brand. Key figures of the group Inditex, Zara more precisely: Sign Number of % Of Group stores turnover Zara is the leading brand of Inditex achieving of the Group turnover. [...]
[...] South Africa is waiting to open shops. • The main competitor: H & M - Is positioned on the same concept: a unique place where everyone can dress cheap. - Areas: men, women, children, lingerie and accessories; you can find everything from H & which puts the company in a situation of constant, and especially multiple competition. - With its 90 French stores, its presence in 22 countries and 7 billion turnover. Zara and H & M both have a significant weight on the French textile market (children, women and men). [...]
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