ZARA

(CLOTHING INDUSTRY)

Members:
Torreda, Karen Kris
Prudenciado, Christian Jade
Elayda, Ken Randwin
Ramirez, John Melvin
Baldonado, Manny
Dolor, Gabriel
Geminiano, Learsi
 INTRODUCTION

The last decade had been quite eventful for Zara, a fashion retail brand born in Galicia, Spain.
The company began as a small clothing shop in Arteixo, Spain. It was started by Amancio Ortega
and Rosalia Mera and became a subsidiary of INDITEX, the biggest fashion retailer in the world
that was also owned by the Ortega family. Zara has been in existence since 1975, but it was
only in the last ten years that it ventured out into the international world of fashion retail.
Its global expansion happened quite fast, with new outlets launched practically every day.
Today, Zara operates 2000+ stores in 88 countries. Many marketers want to know how Zara
becomes successful

MISSION

In brief, Zara's mission statement is "to give customers what they want, and get it to them
faster than anyone else."

VISION

The Zara vision statement is "to contribute to the sustainable development of society and that
of the environment with which we interact."

SWOT ANALYSIS

Strengths
• Unique designs
• Global Presence
• Quality Products
• Loyalty brand name

Weaknesses
• Changing Fashion Trends
• Limited Advertising
• Entering New Markets
• Issues with offline sales

Opportunities
• Influencer Marketing
• Production of Sustainable Clothing
• Rapid Growth of E-Commerce
• Spending on fashion products
Threats
• Imitations
• High competition
• Government initiatives for local products
• Online sellers of Philippine Reproduction
• Small business that sells branded overruns at lowest price

PEST ANALYSIS

Political

Government regulations and policies can affect Zara's operations, such as trade policies,
taxation, and labor laws. The Zara brand benefits from the free trade policies in the EU which
makes them import and export products at such a low cost

Economic

This brand is relatively affordable than the other brands in the competitive market which makes
them more popular is that it can to the majority of shoppers with the rest of its clothing
choices. Changes in consumer spending patterns and purchasing power may affect Zara's sales

Sociocultural

Here are the Socio-cultural factors impacting Zara:

Fashionable Brand.
Despite its affordability, Zara is a fashionable name for most shoppers. This is where you can
only praise the company for its hard work. Zara delivers a good-quality product for not a lot of
money. And thanks to the brand’s clever marketing efforts, it feels rather exclusive for buyers.
Overall, this strong, positive brand presence allows Zara to collect healthy profit margins for its
shareholders, while buyers still feel like they’re getting a great deal.

Online Shopping Trend

There’s no doubt that online shopping is a major trend in the 21st century. Although clothes
shopping might not be the best fit for the web, consumers now want to order their garments
with the tap of a button, and from the comfort of their own homes. This isn’t necessarily a bad
thing for Zara, since they already have a popular webshop. However, Zara will have to pay close
attention to the performance of its online store, since consumer’s preferred channels are
definitely changing.

Technological
One of many companies attempting to reach a wider audience through technology is Zara. The
company has the resources and customer base necessary to make the most of the data because
it is one of the most well-known fashion stores in the world. In order to improve its ability to
connect with and appeal to customers, Zara is turning to big data, the science of analyzing
enormous data sets. This is not an easy process given the number of client touchpoints, both
online and offline. But if Zara can successfully analyze some data, you can bet they'll be able to
grow their already successful company even more.

STEER ANALYSIS

Socio-cultural

Zara takes its corporate social responsibility very seriously. It is constantly involved in
campaigns for the improvement of people's lives and actively supports programs that give back
to the community. In the light of recent criticisms received by the fashion industry regarding
the use of inappropriate labor practices in its third-world country facilities, brands like Zara are
taking the extra effort to declare their support for societal development and sustainability.

Technology

For many people, online shopping is the ultimate luxury. You may browse an online category,
select the size you want, and have it delivered in days rather than going to crowded stores and
manually browsing for things you might like. The internet has also made it possible to start your
own store and sell your own clothing.

Economic

It's interesting to note that one sign of a person's financial standing in his culture and the state
of the global economy is fashion. The availability of raw resources, the state of the
infrastructure, and the level of technological development in a given nation are all reflected in
fashion. So, if a nation is wealthy and advanced, its fashion will be high-end. The level of
fashion, on the other hand, is quite low in emerging or poor nations.

ECOLOGICAL
 ZARA's fast fashion model encourages consumers to purchase and dispose of clothing quickly,
which leads to significant amounts of textile waste in landfills. The production of synthetic
fabrics and dyes used in clothing production also generates pollution and contributes to
greenhouse gas emissions.

Labor Conditions: ZARA's supply chain has faced criticism for labor violations and poor working
conditions in factories, including low wages and long working hours. The company has made
commitments to improve these conditions, but there is still room for improvement.
Chemicals: The use of chemicals in clothing production can have negative impacts on the
environment, such as polluting water sources and harming wildlife. ZARA has been criticized for
using hazardous chemicals in its production process.

REGULATORY

Regulations: ZARA and other fast fashion brands have been subject to increased regulatory
scrutiny in recent years, including regulations around labor practices and environmental
impacts. These regulations aim to hold companies accountable for their actions and encourage
them to adopt more sustainable and ethical practices.

Overall, the ecological and regulatory impact of ZARA clothing is significant, and there is a need
for more sustainable and ethical practices in the fashion industry. Consumers can play a role in
promoting change by supporting brands that prioritize sustainability and transparency in their
production processes.