zara shop report part 1 final _2010!02!10

7/27/2019 Zara Shop Report Part 1 Final _2010!02!10

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NOTTINGHAM TRENT UNIVERSITY

BA (Hons) International Fashion Business

2009/2010

Product Development & SelectionPart One

Customer Profile Board and Competitor Shop Report

Sau Wa Terri, CheungN0281179


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CONTENTPage No.

Introduction 1

Background 2 Timeline 4 Globalization of Zara 5 Inditexs business mode 6 Target customer profile 8 Market positioning 9 Style 10 Product Structure 11 Background of Competitor 12 Promotional activities 13

Product Discussion-Sweater 14 Lead in and lead out price 15 Pricing structure 17 Working drawings 18 Comparison of similar items 30 Quality level 33

Visual Merchandise discussion 35Line and composition 37Lighting 38

Type of display and display setting 39Store interiors 40Mannequin 41Fixture 42Graphic 43Ease of shopping and services

44

Strength, weakness, opportunity and threat 45Conclusion

Bibliography 49

Reference 51


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BACKGROUNG of ZARA

and her competitors

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BACKGROUND

When was it started?

Amancio Ortega opened the first Zara store opened in 1975. Overfour decades, Inditex become one the worlds biggest fashion retailer.

The group is headquartered in A Corua, Galicia, Spain. Zara is the isthe largest and most profitable brand under Inditex Group who alsoowns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqe,Stradivarius and Bershka.

.

Fig.1-Zara image A

Soruce: www.zara.com

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INDITEXS BUSINESS MODE

The five critical keys to success

Zara is a brand under Inditex

-one of the largest fashion distributiongroups in the world. They are well-known by the customer awarenessand their vertical integration of all the fashion business phases (fromdesign to distribute to market) which have new products every two

weeks.

Customer -the direct source of market information

Zara creates an active role for customer to deliver market informationdirectly. They start from customers demand and reacts it as soon aspossible. In September 2008, the product colour range offers is differentin Asia and European under my observation. In Hong Kong, theyoffered more tonal and dull colour range (including print combo) with70% or more in shop for Chinese while they offered more bright colourranges in Paris for European in Fall/Winter 2008 which showing their

consideration on customers taste.Their customer-oriented strategy was also shown by the product offers.The product offer structure changes with different lifestyles in differentcountries. The demand of party dress are much higher in Europe than

Asia whereas Zara offer less party dress and more formal wear in Asia atthe same time.

Store location -the highest accessibility

For the store location, Zara always chooses the most significant shopping area in the world biggest cities like the New York in America.

The shop is not only a place for sale, but a place for marketing research.

Fig.4- The five keys to the Inditex Business Mode,Inditex Annual Report 2008, p.24

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Fast production

Zara work the design through the managers and their regional

management teams. The fast speed of the process is work out infactories belonging to the Group and at centres close to thecorporate headquarters which can have the quickest decisiondelivery. Zara prioritises time over productions costs, with the supported by a network of 1,189suppliers worldwide, Zara attains the fast and closet interaction with customer as soon as possible.

Well developed logistics system

Constantly renew offer is thanks to the highly frequent andconstant distribution. According to Inditex, the time betweenreceiving the order in the distribution centre until delivery in thestore is on average 24 hours for European stores and a maximumof 48 hours for America or Asia, so that all the stores worldwidereceive goods twice a week.

Valuable teams

Every employee in the group was respected as the professional.With the employees from 140 countries, all of them are share the same customer orientation. They foster innovation by constantcross-company dialogue which helps their globalization internally

and externally.

Under the consideration of fundamental elements, Zaras businessbasic is secure and dependable. Therefore, they can cope with thefast changing fashion environment with the improving base.

Fig.5 -Zaras key interactions in bring product to store, Fashion Marketing, P.45

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TARGET CUSTOMER PROFILE

How Zara Woman looks like?

Gender: FemaleAge Group:

ZARA WOMAN (professional career woman): 25-40ZARA BASIC (career woman and young lady): 20-35

TRF (the daughter of ZARA WOMANs target customer-young and casual): 16-25 As a result, the general age group is 20-35

Occupation: Business, Management, AdministrationLifestyle: Zara Women focus on career, they are logic minded, highly educatedand confident . Quality is what they want with affordable price. They enjoy the lifeon relaxation like spa and body message. Skin care is a big issue for them whichhelp them to look like smart and charm. When they have a coffee, they will go toFrench caf like Nero Caf. They go to pub and club every Thursday because

Thursday is the New Friday which can fit their leaving time to home or start ashort trip with their modern classic style car like the new BMW 654Ci at Fridaynight. They love the American drama which is talking about fashionable career

women. They love to read Vogue and they are proficient on networking. They lovetailoring and high heel is their best friend. A luxury bag is a must as well. Theydont wear a lot of accessories, because they understand the importance of

balancing. They also appreciate classic and heritage branding. They are detailminded and they plan things well. They always pursuit the professional look,therefore they love mono tones which give a clean and tidy mood.

Fig.6-Customer Profile Board of Zara, Terri, 2009

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MARKET POSITONING

Different line have different positioning. Although Zara have different lines, the main line-ZARA WOMEN and ZARA BASIC create the overall brandidentity. Generally, Zaras market position in the Fast Fashion Mass Market which can be defined by the following classification.

NRS socio-economic classification-C1 lower middle class supervisory or clerical, junior managerial, administrative or professional

Acorn categories-C Rising6. Affluent urbanites, town & country areas7. Prosperous professional, metropolitan areas8. Better-off executives, inner city areas

Basic on their socio-economic group/social bracket, Zaras main customer is at the top of middle class. Although the competitors customer pools aresame, the younger customers tends to spend less and have less awareness of quality. The experienced customer tends to have a better quality with higherpurchasing power, therefore, Zara takes the gap with affordable price, modern design and better quality.

Fig7- Marketing positioning, Terri, 2009

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STYLE

What are their styles?

Zara is standing out form her competitor because of its modernclassic style. In the customer pool, they are sharing the similarage group from 20 to 30 year-old.

Miss Selfridge, Topshop and River Island are more chic andcasual while Zara are relatively decent.

The sophisticated coat and jacket are the best selling items of

Zara because the good quality classic coats are loved by theworking class.

Comparing to Miss Selfridge and River Island, Zara are relativelyweak at party dress. Also, the knitwear which is good at showing thegirly and avant-garde style, H &M, Topshop and River Island offermore than Zara.

Fig.8- Style positioning, Terri, 2009

Fig.9 -Topshop and Miss Selfridge in Liverpool, River Island in Nottingham, Zara and H&M in Birmingham, Terri, 2009

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PRODUCT STRUCTURE

The fashion offer

In between the competitors, they have similar product structure with largest fashion lines while they have smaller proportion in volume line and cuttingedge.Zaras has the highest proportion in fashion line which showing their strength at translating the luxury garment into high-end and affordable version andtargeting to minimize the storage of product in order to have the fastest turnover. Zara does not target on offering the huge volume line but she keeps arelatively small cutting edge line to show the trend directly.

Fig. 10- Product Structure, Terri, 2009

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Brand Zara Topshop Miss Selfridge H&M River Island

Group Inditex, Industrias deDIseo TEXtil, S.A.,

The Arcadia GroupLimited

The Arcadia GroupLimited

Hennes & Mauritz River Island (Franchise)

Founded by Amancio Ortega in 1975 Montague Burton in 1903 Montague Burton in 1903 Erling Persson in 1947 Bernard Lewi in 1948

Headquarter Spain United Kingdom United Kingdom Sweden United Kingdom

Number ofshops(2009)

Zara-1,341

Zara Kids-219

300 in UK but over 100 ininternational territories

more than 200 shops in

the UK and almost 50

stores internationally

including 16 in SaudiArabia

more than 1,800 stores Over 250 stores in UK

and 33 stores in overseas

Countrypresence

73 markets

(e.g. Spain, France, Italy,

Portugal, Germany,

United Kingdom, Mexico,

Greece, United States,

Japan)

Over 26 markets

(e.g. United

Kingdom, Ireland,Malaysia, Singapore,

Australia, Sweden, Poland,

United States, Russia, Spain)

Over 14 markets

(e.g. United Kingdom,

Saudi Arabia, Ireland,

Malaysia, Bosnia, Croatia,

Indonesia, Serbia,

Singapore)

over 35 markets (e.g.Sweden, UnitedKingdom, France,

Germany, Italy,

Netherland, Spain,United States, Norway)

Over 11 markets (e.g.United Kingdom, Ireland Singapore, Russia,

Poland, Spain, Turkey,Saudi Arabia, United

Arab Emirates, Kuwait,Jordan, Bahrain)

Online shop No online shop now www.topshop.com www.missselfridge.com www.hm.com www.riverisland.com

Manufacture By own factory (40%) andsupplier (60%)

By supplier By supplier By supplier By supplier

Place of

Origin

China, Morocco, Spain,

Indonesia, Bangladesh,Turkey, some of them

made in Europe (e.g. Italy)

China, Turkey, Indonesia ,

Taiwan, Vietnam

China, UK, Cambodia China, Cambodia,

Turkey, Bangladesh,Indonesia

China, Turkey, Romania,

Taiwan

BACKGROUNG OF COMPETITOR

Arcadia Group has the longest history but Zara has only over four decades history. The biggest difference is Zara has its own factory. However, Zara will

also put some small production in European countries like Italy.

Comparing the origin of garments, China is still the largest importer over 50% and it was followed by the Bangladesh, Indonesia, Cambodia. The basicitems were usually manufactured in China and some of fancy item productions were placed in Taiwan.

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PROMOTAIONAL ACTIVITIES

Low profile retailer

In the competition of advertisement, Zara choose to be a less advertised retailer. Recently,Zara did not offer the discount to specific target customer like Topshop offer 10%discountto student. What she have done is a promotion on facebook (other competitor did it as well)and the Vogue night out event.

Topshop and River Island takes the lead on advertisement with celebrities like Kate Moss.

Fig. 12- Topshop Promotion Fig. 13- River Island Promotion Fig. 14- Zara promotion

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PRODUCT DISCUSSION Sweater

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Zara Topshop Miss Selfridge H&M River Island

Lead in

Price 14.9 20 25 7.99 15

Quality 80%Rayon 18%Nylon2%ElastaneMachine washable.

100% Cotton.Machine washable.

84% Nylon 15%Angora1% Elastane.Machine washable.

83%Cotton 17%Polyamide

Machine washable.

50%Cotton 50%AryclicMachine washable.

Lead out

Price 49.95 120 60 59.99 69.99

Quality 72%Arcylic 26%Wool2%Polyester

Hand wash.

100% AcrylicDry clean only.

45% Acrylic 25% Nylon15%Mohair,15% Wool.

Machine washable.

45%Arcylic 20%Wool20%Alpaca

Machine washable.

80%Wool 20%Polyamide

Dry clean only.

Majority

price

19.99, 49.9 35, 40 35 , 38 12.99, 24.99 34.99

LEAD IN AND LEAD OUT PRICE

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http://www.missselfridge.com/webapp/wcs/stores/servlet/ProductDisplay?beginIndex=0&viewAllFlag=true&catalogId=20555&storeId=12554&categoryId=138999&parent_category_rn=63756&productId=1280005&langId=-1


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Price shows the quality in mass market

Regarding the lead in and lead out price, we can see the H&M have thelowest lead in price whereas Topshop have the highest lead out price. The

cheapest garment is always with simplest design and less yarnconsumption. By comparing the lead in price, we can find out the characteristics of each brand.

Although it is only a simple jumper, Zara have a sophisticated DTMbuttoned sleeve design with plain weave, it makes the difference betweenother retailers. H&Ms pricing is relatively low but it is able to offer naturefibre. Topshop , Miss Selfridge and River Island are having a reasonable

pricing on basic item in terms of composition.

When we look at lead out price, it is not difficult to find out where thecosts go to. For example, Miss Selfridge and River Island need to payhigher cost on intarsia when Topshop and H&M have higher cost on theyarn consumption .

However, Zara is able to seek a good balancing on price, fabric quality and

style. The high quality fake fur added the value to the garment and givinga higher end style to the garment.

Comparing to other product area, Zara sweater have the middle pricingand relatively smaller range of offer in mass market. But they sells goodbecause of the quality and classic style which are suitable for their daily

wearing said by a customer in Nottingham.Furthermore, the other selling point is about the uniqueness with smallquantity in each shop which helps the customers individuality.

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Fig.16 Zara images C.


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PRICING STRUCTURE

Representing the purchasing power of consumer

The curve chart above illustrates the option availability in relation to the price, the highest point of curve means the price majority of sweater. In termsof sweater, Topshop is the strongest competitor of Zara which have the widest range of product offer and have the most variety of knitwear. Topshop

have clear Knitwear division in shop.

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Fig.15 price architecture, F/W2009, Terri 2009

Fig.16 photo in Topshop, Nottingham, F/W2009, Terri 2009


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WORKING DRAWING

Style 1

ZARA Oversized chunky wool cardigan

Division Knitwear Selling Price 39.90

Season F/W 2009 Fabrication 50%Arcylic, 40% Wool, 10% Mohair

Place of origin China Gauge Body-5g.g; Neckline Tubular -7g.g.

Size Range S, M, L Color Range Grey

Sketch: Swatch:

Trim Size Quantity Position

4 holes small rimplastic button (DTM)

42L 4+1 Centre front

Care instruction:

-Iron up to 110C /230F

-Dry clean per Chloroethylene-Hand wash up to 30C/86F

-Do not bleach-No tumble dry

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Style 1

ZARA Sample Measurement

Description M/28 Reference and description

1/2 Chest width (15cm below

H.P.S.)

58 Reference photo:

Description/details:-2X2 rib on cuff and hem-1x1 on tubular-2x1 rib on body (topstitch throw out and make it bulky)-batwing sleeve style-horizontal tube at 36cm from centre back neck- fully fashioned

C.F. Length (H.S.P. to bottom) 83

C.B Length ( from neckline tobottom)

88

Neckline Tubular Width (C.F. Hem) 10

Collar height (C.B) 10.5

Back Neck Width 22

Sleeve Length (Neck Seam to edge,incl. cuff)

37.5

1/2 Cuff width 19

Cuff Height 2.5

Waist Width (39cm from H.P.S) 73

Bottom width (relaxed) 48

Hem height 7

19

Button Style:


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WORKING DRAWING

Style 2

ZARA Draped dressy Cardigan


Season F/W 2009 Fabrication 50%Cotton 25%Viscose 20%Polyamide 5%Angora

Place of origin China Gauge Basic Body-10g.g., fully fashioned

Size Range S, M, L Color Range Beige

Sketch: Swatch:


Nil

Care instruction:


-Dry clean per Chloroethylene-Hand wash up to 30C/86F-Do not bleach-No tumble dry

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Style 2



1/2 Chest width (15cm below H.P.S.) 48 Reference photo:

Description/details:

-2X2 rib on cuff and hem-1x1 rib on body-fully-fashioned-gathers at the low waist

C.F. Length (HSP to bottom) 81

C.B Length ( from neckline to bottom) 78

Neckline Tubular Width (C.F. Hem) 15

Collar height (C.B) 18

Back Neck Width 21.5

Shoulder seam 7

Sleeve Length (H.P.S to edge, incl. cuff) 64.5

1/2 Cuff width 8

Cuff Height 7

Straight armhole 21


Low waist width ( 53cm below C.B.neckline)

60

Bottom height 24

Back Bottom width (relaxed) 100

Hem height 1

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WORKING DRAWING

Style 3

rib

ZARA Ruffle collar fine gauge Cardigan


Season F/W 2009 Fabrication 50%Cotton 25%Viscose 20%Polyamide 5%Angora

Place of origin China Gauge Basic Body-12g.g (Fully fashioned)

Size Range S, M, L Color Range Grey, white, black

Sketch: Swatch:


Black hook and eye 5mm 2 C.F.

Care instruction:

-Iron up to 110C /230F-Dry clean per Chloroethylene-Hand wash up to 36C/86F-Do not bleach-No tumble dry

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Style 3



1/2 Chest width (15cm below H.P.S.) 36.5 Reference photo:


-0.6 high 1x1 double tube at cuff and hem, stop its curly look and make it as a decorative detail-1x1 rib on body-fully-fashioned-ruffle collar a-hairy hand feel-invisible gathers at the neckline seam





Shoulder width 40

Shoulder seam 11

Armhole straight 20

Bust width (2.5cm under armhole) 45

Sleeve Length (H.P.S to edge, incl. cuff) 61

1/2 Cuff width 9Cuff rib position (from the opening) 1

Straight armhole 19

Waist Width (39cm from H.P.S) 44.5

Back Bottom width (straight relaxed) 50

Neckline ruffle edge length 210

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WORKING DRAWING

Style 4

rib

ZARA Fully fashioned long cashmere silk cardigan


Season F/W 2009 Fabrication 55%Silk 45%Cashmere

Place of origin China Gauge Basic Body:7g.g. (Fully fashioned)

Size Range S, M, L Color Range Grey, brown

Swatch:


4 hole plastic thick rimbutton

40L 7 C.F.

Care instruction:


-Do not dry clean-Hand wash up to 30C/86F-Do not bleach-No tumble dry

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Style 4



1/2 Chest width (15cm below H.P.S.) 39.5 Reference photo:


- 1x1 rib-2x2 rib on pocket welt, cuff, neckline and hem-fully-fashioned-hairy hand feel



Bust width (2.5 cm below armhole) 50.5

Neckline rib height 3


Back Neck Width 26

Shoulder seam 6

Shoulder Width 37

Sleeve Length (H.P.S to edge, incl.cuff)

65

1/2 Cuff width 10

Cuff Height 11.5

Armhole (Straight) 22



Hem height 4.5

Pocket opening position (frombottom)

34

Pocket rib height 2

Pocket width 13

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WORKING DRAWING


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WORKING DRAWING

Style 5

rib

ZARA Fully Fashioned Rack stitch Cardigan


Season F/W 2009 Fabrication 100% Acrylic

Place of origin Bangladesh Gauge Basic Body-3g.g.; cuff, hem -3 1/2g.g.


Sketch: Swatch:


Tin Metal snap 17mm 6 C.F.

Care instruction:


-Dry cleaning-Hand wash up to 30C/86F-Do not bleach-No tumble dry

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St l 5


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Style 5





-hood cardigan-bodice: rack stitch-turn-up cuff and hem: half gauge rib-fully-fashioned-neckline cable:2cords 8 needles-invisible snap in the front placket-join hook by overlocking and covered by strapping all around the back neckline



Bust width (2.5 cm below armhole) 47

Front placket width 5

Hood Height 37

Hood width 27


Shoulder seam 14

Shoulder Width 41

Sleeve Length (H.P.S to edge, incl. cuff) 64

1/2 Cuff width 11.5

Cuff Height 9




Hem height 12

Pocket opening position (from bottom) 15

Pocket rib height 4

Pocket width 13

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WORKING DRAWING


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WORKING DRAWING

Style 6

rib

ZARA Light weight Cardigan


Season F/W 2009 Fabrication 47%Arcylic 25%Wool 18%Alpaca 10%Nylon

Place of origin Italy Gauge Basic Body-12g.g.


Sketch: Swatch:


Nil

Care instruction:


-Do not dry clean-Hand wash up to 30C/86F-Do not bleach-No tumble dry

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Style 6


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Style 6





-draped front neck-back neckline binding: self fabric-shoulder seam has 2 pleats (1.3cm width) fold toward C.F.-sleeve: 1mm elastic band sew up the gathers-2 straps at each side, end with knot



Bust width (2.5 cm below armhole) 40

Back Neck Width 19

Shoulder seam 8.5

Shoulder Width 34

Sleeve Length (relaxed ) 17

1/2 sleeve opening 11



Side stripe length 44

Side strap position (inside the tube) 28

Back bottom width (relaxed straight) 44

Black collar binding 1.5

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COMPARSION OF SIMILAR ITEMS


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Style Oversize Cocoon Cardigan

Price 39.90 90.00 45.00 24.99 49.99

Quality 50%Arcylic 40% Wool 10%Mohair.Hand wash.

57% Acrylic 29% Nylon 14%Mohair.

Machine washable.

100% Acrylic.

Machine washable.

56%Arcylic 23%Polyester14% Mohair 7%Lurex

Machine wash.

80%Acrylic 20%Wool.

Hand wash only

Style Waterfall Long Cardigan

Price 25.90 35.00 30.00 24.99 34.99

Quality 50%Cotton 25%Viscose20%Polyamide 5%Angora.Hand wash.

100% Cotton.

Machine washable.

58% Viscose 42% Cotton.

Machine washable.

82%Cotton 18%Wool

Machine washable.

55%Polyamide 35%Acrylic10%AngoraHand wash only.

COMPARSION OF SIMILAR ITEMS

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Style Short Cardigan

Price 25.99 52 32.00 19.99 34.99

Quality 50%Cotton 25%Viscose20%Polyamide 5%Angora.Hand wash.

100% Wool.

Hand wash.

50% Acrylic 50% Cotton.Machine washable.

50%Aryclic 50%WoolMachine washable.

45%Viscose 40%Polyamide15%Wool

Hand wash only.

Style Classic Long Cardigan

Price 49.99 35.00 32.00 24.99 34.99

Quality 55%Silk 45%Cashmere.

Hand wash.

45% Viscose 40% Nylon 15%

Angora.Hand Wash.

45% Viscose,30% Nylon 20%

Cotton 5% Wool.Machine washable.

50%Aryclic 50%Wool

Machine washable.

90%Cotton 10%Wool

Hand wash only.

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Style Chunky Knitted Cardigan

Price 19.99 40.00 40.00 24.99 39.99

Quality 100% Acrylic.Hand wash.

71% Acrylic 29% Alpaca.Machine washable.

80% Acrylic 20% Alpaca.Machine washable.

80% Acrylic 10% Mohair10%Wool

Machine washable.

70%Acrylic 30%Wool

Hand wash.

Style Jumper

Price 25.99 35.00 30.00 29.99 29.99

Quality 47%Arcylic 25%Wool18%Alpaca 10%NylonHand wash.

65% Acrylic 20% Nylon15%Wool.

Machine washable.

80% Nylon 20% Angora.Machine washable.

89%Viscose 10%Polyamide1%Elastane

Machine washable.

40%Acrylic 30%Wool30%Nylon

Hand wash only.

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QUALITY LEVEL


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Size available

Zara have the smaller size range while River Island offering the greatest number of size break down. In terms of target customer, it is reasonable forZara because Zara woman cares about their health and body. As a result, Zaras standard range of woman body shape is relative narrow. The retailers

who focus on volume selling is always with larger size break down.

Style and quality comparison

Undertaking the similar item research, we can see there are have some differences.Oversized Cardigan -As the retailer buy the material in terms of weight, the looser gauge of an oversized style can save the cost. Zara has the

middle price with greatest content of higher price nature fibre wool, the gauge is tighter than Topshop and Miss Selfridge with the doublebreasted design, the look is more high-end than others.

Waterfall Long Cardigan -Compare to River Island, Zara offer a reasonable price with delicate design. The hand feel is the best with theCotton Viscose composition. However, H&M offer the better price with better quality because H&M have a better bargaining power with largequantity.

Short Cardigan -Topshop choose 100%wool in that essential cardigan which is most expensive. However, it seems H&M is a better chosewhich is just 40%price of Topshop. But Zara have a unique design which is difficult to find the similar one form competitors. Zara is detailminded to use a thin rib to stop the edge rolling and it is more decent with invisible hook and eye.

Chunky Knitted Cardigan -Zara offers the lowest price with cheapest quality in that craft knitted garment. In that kind of garment, more costwas spent on the fully-fashioned pattern processing. Each retailer has its own style but we can see Zaras offering a casual look (hood, turn overcuff) with cheaper quality.

Jumpers - Retailers have similar pricing on jumpers. Comparing the design details, H&M are more innovative with bubbled upper arm andZaras sleeve detail is similar to Prada F/W08 design. Also, Zara offers the good quality with wool and Alpaca.


Size XS, S, M, L 6, 8, 10, 12, 14,16 6, 8, 10, 12, 14,16 XS, S, M, L 6, 8, 10, 12, 14,16,18

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Experience creates Quality and Value

Zara offers the most innovative and interest fabrication in sweater. According the combination of the quality, we can see the components aremaking the balance with price and quality. The waterfall long cardigan (50%Cotton 25%Viscose 20%Polyamide 5%Angora) is a good example.

Angora is expensive as a genuine rabbit fur, cotton is used to lower the cost of nature fiber content and Viscose give the drapery and shine lookwith light-weighed polyamide.

Although H&M offering higher proportion of good nature fibre like wool with best price in terms of fabrication, the workmanship is not stable

and well standardized.

Sweaters demand is more because of the global warming. Sweater can be matched with different styles which are need no matter in the office in

summer of at the street in winter. As a result, the heavy gauge cardigan design is dominant as the daily outerwear.

Under the limited source of natural fibre and fuel, fabrication design is a significant key to balance the cost. It seems that Zara have their clever

way to be innovative with better quality.

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VISUAL MERCHANDISING 35

VISUAL MERCHANDISING


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Fig.16 -Nottingham and Birmingham, Terri, 2009

First impression of Brand Identity

Zaras displays are always matching the historicbuildings in emblematic areas or spaces witha singular architectural appearance. In the left rightcorner, we can see that Zara have a modern design inBirmingham and with a classic design in Nottingham.

The stores sign makes the first impression of Zara with

the classic and clean. A small sign are always placed atthe entrance while a bigger sign are placed above the

window display.

According to the original design of the building, Zaraplace different colour scheme in different places whileearth brown and cream white are always the main

colour of the exterior. These two colours are giving thewarm mood from the off-white to the earth brown, it isrelaxed and conformable.

As Zara thinks the location is an important channel tocommunicate with customers, is designed with the mixof modern and classic which showing the individuality

of Zara.

On the other hand, H&M is using red sign to simulate

the customer. Red colour is always used in sales orclearance, so it gives the idea of H&Ms low pricing.

We can see the mass market retailers are always usingblack and white as their brand label which is chic andintrigue. That combination are always welcomed by theyouth.

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LINE AND COMPOSITON


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Rhythm

In Zaras display there is a rhythm that brings the viewers eye form background to foreground. The radial square metal decoration pointed out themannequins with the corresponding lighting which is standing closest to the customer. This asymmetric balance is more interesting and more close toour real lifestyle. There are two mannequins with relax gestures and a Christmas trees at right side which is balancing with the left lady with the tougherlook.

Fig. 17 -Liverpool, Terri, 2009

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LIGHTING


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Makes thing visible

The lighting in Zara is the weakest but softest. The combination of hidden fluorescent tubes and incandescent bulbs of the ceiling accentuate themodern design of Zaras fixture. In Zara, the fluorescent light up the aisle and wall, indicate the shop merchandising but the incandescent help themention of garments. In the Birmingham shop, Zara use the incandescent spotlights to emphasise the poster and the laying garment.

Fig. 18Birmingham and Nottingham, Terri, 2009 Fig. 19 -Paris Zara Store, www.zara.com, 2009

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TYPES OF DISPLAY AND DISPLAY SETTING


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By Coordination

Zara shows the related merchandise display, separates accessories arego together and then reinforce each other to suggest the matching bysame colour tone and sharing the same theme. This kind of display

makes Zara to stand out with competitors by colour and texture.

Abstract setting

Zaras setting is obviously an arrangement of lines and shapes. Thedisplay design does not show the theme directly, but it simulates the

visual. Here is a good example that the abnormal shape of

mirrors/metal boards gives a graphic message to welcome the winter.

Fig. 20 -Nottingham and London Oxford Street Zara Store, Terri, 2009

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STORE INTERIORS


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Lacking of focal point

River Island and Topshop have a clear focal point- usually have two to three mannequins ona platform with props and spotted with lights. However, Zara usually use the poster as afocal point and the poster are not be placed nearest to the entrance.

Fig. 21-River Island in Nottingham, Topshop in Liverpool, Terri, 2009 Fig.22 -Zara in Birmingham, Terri, 2009

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MANNEQUINS


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The portrait of customer

The window display is the main place for Zara to set up the mannequins. Zara uses realistic mannequins with wigs in the window display, but the black

abstract mannequins with simple and egg shaped head in shop. The size of Zaras mannequins are so thin that similar to size 4. Both of Zara andTopshop are using the realistic mannequins while Miss Selfridge is always using dress form . In H&M and Topshop, they will use different kinds ofmannequins in one store.

Fig. 23 -Miss Selfridge in Nottingham and Liverpool, Terri, 2009 Fig.24 -Zara in Birmingham and Nottingham, Terri,

2009

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FIXTURES


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The method to arrange garment

In Zara shop, it is more space for people withless crowded items on racks. We can see thesilver regular single rack, C rack, etageres areplaced in the middle of shop and the shoulder- out hanging, face-out hanging and single-rodhanding were placed on the wall.Most of sweaters are placed on the table and

coats are hanged on rack.

Fig.25 -Zara in Nottingham, Terri, 2009

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GRAPHIC


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Less is more

Zare has the less graphic demonstrations while River Island is full of them.

Fig.26 -River Island in Birmingham and Nottingham, Terri, 2009

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EASE OF SHOPPING


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Shopping can be leisure

Zara is always have bigger space to shop, the clean and tidy look gives

a better environment. Therefore, other competitors are relativelycrowded with too much fixture and clothes.

SERVICE OR SELF SERVICE

Zaras customer has its individuality

Zaras services are the most quite one and the sales are not talk veryloud. They tend to give the space for customer to find out what theyneed and giving less advise. Once you need help, they are very politeand clam.

Fig. 28-Topshop in Nottingham, Terri, 2009 Fig.29 -Miss Selfridge in Nottingham, Terri, 2009

Fig. 27 -Zara in Liverpool, Terri, 2009

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STRENGTH, WEAKNESS, OPPORTUNITY, THREAT


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Strength internal

The well developed foundation-logistic system, factoriesLow cost input-less time consuming

Low stock-thanks to the small quantity of each designShort supply chain-good relation with the supplierLarge style variety with in the seasonHigh flexibility

Weakness -Is it easy to maintain the quality with a Short supply chain?

No advertisingShort Product life cycle will bring the unstable fitting because of theminimized number of sampling and revising.No strong brand identity-translate the directional luxury brand designinto cheaper version

No online shopping until F/W 2010-Recent research by Mintel showsthat Internet fashion expenditure has raised by 461% over the past fiveyears because of wider internet access and a rise in clothes-based

websites. The sales record in 2006 came after more retailers made theirentire range available to buy remotely. The survey, which looked at thebuying habits of more than 2,000 people, showed that 1.2bn was spenton clothes and footwear through the internet in 2006.(Screen Pages

Limited, 2007) After two years, it is easily to predict the trend with highspeed development of technology like wi-fi, i-phone. People can makeorder at anytime through internet. Therefore, these kinds of shoppingexperience must be the dominance in the future.

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Fig.30 Zara sewater,2009

Opportunity -Globalization is essential

Q i k ill k h A di J H ll di f h Mi l id "P l d h ld f li i d


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Quick response still makes the way- According to Joan Holleran, director of research at Mintel, said, "People around the world are feeling insecure andare already looking to re-establish a sense of stability in their lives. In the coming year, it will be more important than ever for businesses to respondquickly and creatively to changing consumer needs and desires, as we all become more selective in how we spend our money." (UTalkMarketing, 2009),

Zaras market strategy can be developed in the coming decades.

The rise of middle class Zara targets on the middle class economic group, with the market expansion to Asia hub, Zara can make more business withthe rising developing countries.

Threat -the development of competitors

H&Ms production is faster than before, it also put designs in shop within three weeks. Its product assortment is cheap and small yet frequent, offeringconsumers huge selection that results repeated visits to their stores to find Whats New.Offering similar item in market

The changing method of shopping- people tends to shop online which means the less connection with customer directly. The shop manager is moredifficult to understand the regional need.the rise of competitors -Sir Philip Green, who is the owner of Arcadia Group (Topshop and Miss Selfridge ), -is to take his popular Topshop chain toFrance, Italy and China, after a successful launch in New York and the company posted a 13% increase in full-year pre-tax profit.( Joe Ayling, 2009)

which is similar to Zara.

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CONCLUSION

Sum up th succ ss


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Sum up the success

To large extend, Zara is the advance retailer who are taking the lead in many different aspects, such as innovative fabrication, supply chain, timemanagement and the market strategy. However, the main market is changing, capital flow from Europe to Asia become more often and the recession arevery serious in Europe as well. The market strategy comes the key point to consider. Should we lower the margin to keep the loyal customer or we needto up-grade our branding to attract the customer with higher purchasing power? It is a difficult decision making as a well developed chain store.

But I can confirm that Zaras unique business system is becoming a basic knowledge of fashion business and it is ironic in 20th and 21st century.

As a Hong Kong citizen, shopping is our main leisure activities. In these years, Zara does provide a conformable place to shop and help the middle classto develop their individuality. Although there are many idea translation form luxury brand and Zara doesnt have a clear brand identity, it helps the lowmiddle class girls to be more confident under their super translation skill.

Furthermore, Zara is putting many method to develop an sustainable and environmental friendly shopping area, I hope it can be the leader to saving thesource of the world.

As a result, Zara is representing 21st fashion retailing with customer oriented skill.

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.BIBLIOGRAPHY

Electronic Dictionary


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Electronic Dictionary

Cambridge Advanced Learners Dictionary, 2008 Version 3.0

Books

Websites Journal

Eve Oxberry, 2009. Over-40s seek new lease of life [online]. United Kingdom: Emap Ltd. Available at:http://www.drapersonline.com/news/womenswear/analysis/over-40s-seek-new-lease-of-life/5005582.article [26/10/2009 ].

Eve Oxberry, 2009. French Connection posts 12.8m first-half loss and closes Northern European retail division [online]. United Kingdom: Emap Ltd.Available at: http://www.drapersonline.com/news/multiples/news/french-connection-posts-128m-first-half-loss-and-closes-northern-european-retail- division/5006304.article [26/10/2009 ].

Hines 2001. From analogue to digital supply chains:implications for fashion marketing. In Hines, T. and Bruce,M(Eds), Fashion Marketing Contemporyissues. Oxford:Butterworth Heinemann,pp.26-47

Plunkett, 2009. Google bucks recession to soar in value by 25% in a year United Kingdom: Guardian News and Media Limited 2009[online].( 18September 2009)Available at: http://www.guardian.co.uk/business/2009/sep/18/google-tops-global-brands-value [Accessed:12 November 2009].Marcus Leroux, 2009. Changing face of the market: Times Newspapers Ltd. 2009[online]. (11 November 2009)Available at:http://business.timesonline.co.uk/tol/business/related_reports/mapping_british_business/article6911499.ece [Accessed:19 November 2009].

Keeley and Clark, 2009. Zara overtakes Gap to become world's largest clothing retailer: Guardian News and Media Limited 2009[online].(11 August2008) Available at: http://www.guardian.co.uk/business/2008/aug/11/zara.gap.fashion [Accessed:12 November 2009].Screen Pages Limited, 2007. Online clothing sales top 1bn: Screen Pages Limited 2007-2009. [online]. (February 01, 2007 ) Available at: http://www.guardian.co.uk/business/2008/aug/11/zara.gap.fashion [Accessed:12 November 2009].

UTalkMarketing , 2009. Consumers look to brands they can trust: UTalkMarketing 2009. Available at:http://www.screenpages.com/ecommerce/archives/000317.html

[Accessed:24

November 2009].

Joe Ayling, 2009. UK: Sir Philip eyes three new markets for Topshop:just-style.com 2009. [online]. (23 October 2009) Available at: http://www.just- style.com/article.aspx?id=105697&lk=fs [Accessed:20 November 2009].

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.REFERENCE

www.zara.com


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www.hm.comwww.riverisland.com

www.missselfridge.comwww.topshop.comhttp://business.timesonline.co.uk/tol/business/related_reports/mapping_british_business/

www.retailweek.comhttp://oxygen.mintel.com/http://www.guardian.co.uk/business/2009/sep/18/google-tops-global-brands-value

www.drapersonline.com

www.cnn.comhttp://forbes.com/http://www.businessoffashion.com

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zara shop report part 1 final _2010!02!10

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