E-Commerce Assignment 1.odt
E-Commerce Assignment 1.odt
E-Commerce Assignment 1.odt
COURSE: E-COMMERCE
Short written report - to describe the efficient E-commerce / M-commerce solutions for
the selected business, justify the choice by explaining the practical efficiency of each
selected solution for a particular business.
1. Executive Summary Dress the World’ is ZARA. Fashion is more than clothing; it’s a
part of our live. We live in Fashion. ZARA is a member of the INDITEX group, a
Spanish group. ZARA have established its stores all over the world, Europe, America,
the Middle East, Asia Pacific and among its 5000+ stores (from the INDITEX group),
Hong Kong shares 8 ZARA stores from the whole wide world. Zara offers the latest
trends in international fashion in an environment of thought-out design. Its stores
located in the main commercial areas of cities across the Europe, America and Asia,
offer fashion inspired in the tastes, wishes and lifestyles of today's men and women.
Zara’s clothing has identified a significant underserved segment within it. Zara’s
clothing is uniquely positioned to serve this segment of the market because of its fast
paced fashion ideas, its latest technology, its efficient business strategies and its
affordable prices.Due to the growing of the clothing industry and the enormous unmet
need in the clothing market wesee the long-term expansion and potential of Zara
throughout the world. We are visionaries who seeZara as an extreme financial launch.
By achieving its sales targets, Zara will position itself forexceptional profitability and
self-funded growth.ZARA’s Plan is to maintain and develop its position in the market
by giving well in time response tochanging trends in consumer tastes through creating
new designs that are suitable for all customersat an affordable price.“Zara constantly
updates its range”. The company takes its inspiration from the catwalks, targetingthe
fickle, fashionable young, one of the riskiest parts of the clothing market. Unusually
for a clothes retailer, Zara designs all its own clothes, makes most of them in Spain
and distributes all of them itself. And many observers attribute Zara's success to this
control of the business from factory to shop floor. It means that it takes just three
weeks to move from notepad sketch to the clothes hanger in a shop. Not bad
considering the industry average is nine months. "They are producing the fashionable
clothes themselves, which are the clothes where you take the biggest risk if you
outsource it to people," Anne-Catherine Delay, European fund manager at Roths
Childs said. And because they make and design it themselves, color and design can be
easily weaker to Zara stores have men's and women's clothing as well as children's
clothing (Zara Kids). Zara Home designs are located in European stores. Most Zara
customers are aged between 18 and about 35. After products are designed, they take
10 to 15 days to reach the stores.[46] All of the clothing is processed through the
distribution center in Spain. New items are inspected, sorted, tagged, and loaded into
trucks. In most cases, the clothing is delivered within 48 hours. Zara produces over
450 million items per year.[47]
In May 2021, Zara launched its first beauty line, ZARA Beauty.[48]
Under its Zara Home line, Zara launched what is believed to be the first detergent that
reduces the abrasion of textile micro fibres during washing. It is claimed the solution, jointly
developed by Inditex and BASF Home Care and I&I Solutions Europe in Spain and
Germany, can reduce the release of micro fibres by up to 80 per cent, depending on fabric
type and washing conditions.[49]what the customer wants. Zara shop business services
includes product design and development manufacturing, product delivery and shipping,
maintenance of headquarters, retail outlets, and online platform, advertising and marketing,
product development and design, monitoring the newest and most popular fashion trends
through the use of information technology like social media.
3. Zara is one of the leading fashion companies in the world according to the fashion
magazines in the world. The company has been able to attain its currents heights due
to its strategic management that has been because of good leadership at the company.
In this research paper, market analysis of the textile and clothing industry will be
discussed. In addition, the paper will discuss how the strategies that the company has
employed to attain its current success. The objective of the papers or rather study is to
highlight on the Zara’s SWOT analysis, and conduct the PESTEL analysis and
develop a theory that students can learn from the research that has been conducted in
the business discipline after carry out on the porter’s five forces of the textile industry
that Zara operates in. This paper will investigate details the marketing strategies that
Zara Company has employed to navigate in the textile and clothing industry. The
paper will look at an overview of the company and some of…show more content…
The papers took a deep insight of the company’s consumer analysis in relation to
porter’s five forces of marketing, marketing strategy at Zara and finally the theoretical
framework of the business discipline as it is evident in the paper.
4. Zara Business owners aren’t the only ones with higher costs on their minds. The
average person is 102% more concerned about inflation than the coronavirus, which
has dropped down the list of global worries while inflation rose to the top. Worry
about rising prices isn’t likely to go away in 2023. Although some say the recession
fear is overdone, let’s face it—even the possibility of a recession affects how
businesses spend, how venture capitalists invest, and how people shop. Expectations
of brands grow as consumer behavior changes. Consumers have more options than
ever, and in today’s economic climate, they’re ready to exercise that freedom of
choice. More than seven in 10 consumers bought from the competitor of their go-to
brand between May 2021 and May 2022. And, if spending power decreases as
expected in 2023, consumers will continue to shop around for better deals. But
shoppers aren’t just aware of the price tag. Environmental, social, and governance
concerns influence about half of global consumers. Buyers want to support more
ethical businesses with more sustainable supply chains—even though consistency in
freight, distribution, and especially fulfillment are nearly impossible for many
businesses to control. That’s why product shortages motivate nearly half of all brand
switching: 46% of consumers move to competitors who have the products they want
in stock. Discovering new brands to try is also easier for consumers—and most are
ready to buy. More than seven out of 10 like the convenience of instantly purchasing
products where they're browsing. And they’re browsing on social media: 60% of the
globe is already on social media, so they need only go to the platforms they're already
on to find new brands and products.
That same expectation for seamless immediacy is seeping into physical retail too.
"While we see customers really interested in coming back into the store space and
having a personal approach, they've also gotten used to having everything
immediately,” says Shaza Mahmoud, head of retail at Daily Paper. “They want it
now. This is just the era we're living in. Everything available at the click of a button."
Consumers want their shopping to be personal, instant, and responsive—and they want that
high-value experience anywhere.
5. to get a better understanding of Zara’s marketing strategy, we need to see all the
important sides of marketing. This leads us to a traditional marketing research
method, which is called the 4p’s strategy, which includes products, place, price, and
promotion. Let’s see how Zara strategizes in these four sections.
Products
Zara is an “instant fashion” brand, which means it identifies the latest fashion trends and
brings the design to its stores quickly at reasonable prices. This is the source of the brand’s
quick growth and reputation. The brand’s products look somewhat similar to the hottest items
in the market, but they have different traits depending on specific markets. Zara does its
research before releasing anything to suit the local culture and people’s tastes.
In short, Zara products have the latest styles, trending designs, affordable prices, and
local-adapted tastes.
Place
Zara has nearly 3000 stores worldwide, but the even more incredible fact is that it is a
vertically integrated retailer. This means Zara does all of the designs, manufacturing, and
distribution itself without third-party suppliers. This brings the same environment and
experience for customers everywhere. Its store’s design is modern, luxurious, and
predominantly white.
Online selling has been carefully planned and limited to specific countries as well. This
creates a throughout strategy for the company’s growth, and it seems to work because
Zara has managed to establish itself as one leading fashion retailer globally.
Price
Zara’s pricing strategy focuses on the average shopper that wants the latest fashion items
at affordable prices. So its prices have to be catered to the price-sensitive buyers as well.
The pricing strategy that Zara applied helped its products meet the needs of a very large
consumer segment. But Zara doesn’t compromise the product’s quality, so it will be
lower when compared to other brands such as Hugo Boss or Uniqlo.
Some Zara stores have very premium pricing, whereas others have much more
affordable prices, based on the locations and targeted customers. Zara is able to
maintain a good pricing strategy by optimizing development and distribution costs.
This creates a unique brand image and grows the brand’s market share faster,
especially among millennials.
Promotion
One thing to note is that Zara spends very little on promotion campaigns compared to average
fashion retailers. It just simply doesn’t market itself as aggressively as other companies. But
this doesn’t mean it has no focus on marketing. Zara mainly focuses on opening new stores
and word of mouth. The key promotion strategy of Zara is based on experience, exclusivity,
affordability, and differentiation.
This strategy is visible through the attention to each detail of its showrooms.
Everything is precise, professional, and elegant. Every store manager can talk directly
to its counterparts in Spain regarding the situation. By focusing on the brand’s core
qualities towards buyers, Zara can build its popularity with an effective brand image.
When it comes to promotion, Zara has also used the power of social media
channels effectively.
6. Speed: Speed and responsiveness to Market, Zara has changed the way clothing
industry works where deigning, production and delivery to the retailers requires
period of six months. The design and distribution cycle of the company takes just 10-
15days in the whole process. Zara’s speed to market in product development exceeds
the capabilities of its competitors. This in itself provides additional value to
stakeholders, customers, and stores in producing quality clothing at affordable prices.
The proximity of their manufacturing and operational processes allows Zara to
maintain the flexibility necessary to design and produce over 12000 new items
annually. This capability allows Zara to achieve their strategy of expedited response
to consumer demand. The process of obtaining market information and relaying it to
design and production teams expedites product development by shortening the
throughput time of their products from design to store.
Dependability: Due to Zara’s ownership and control of production, they ensure timely
delivery and service. Although most of their stores run out of stock, signifying that they have
low dependability in terms of product availability, another perspective of dependability in
terms of keeping to date with fashion is achieved.
Quality: Zara brand is synonymous with the cutting edge of fashion at affordable prices.
Another Quality advantage is the added sense of quality to the product as the tags would be
labelled with “made in Europe” rather than “made in China” due to Zara’s trade-off between
Low labour costs in Asia and operational efficiency.
Flexibility: Designers (of average age 26) draw the design sketches then discuss it with
market specials and planning & procurement staff illustrating a flexibility of ideas generation
and on the other hand the huge number of designs reflects the ability to meet almost all the
fashion requirements by customers of all ages (up to 55). This adaptive model rather than
traditional merchandising is very different from its competitors. Many competitors rely on a
small elite design team that plans both design and production needs well in advance. Stores
have little autonomy in deciding which products to display or put on sale because
Headquarters plans accordingly and ships quantities as forecasted.
Zara owned many of the fabric dying, processing and cutting equipment that provided
Zara added control and flexibility to adopt new trends on demand. The added
flexibility helped Zara on two fronts: shorter lead times and fewer inventories.
(OPPapers.com, 2010)
Cost: Zara produces most of its products in Europe. Compared to their competitors, they
outsource very little to Asia. Though the cost of production in Spain is 17-20% more
expensive than Asia, Zara does have a competitive advantage over its competitors in regards
to operations. Though there is a cost advantage in their approach in regards to labour, the lack
of flexibility in changing orders based on current trends hinders their operational efficiencies.
Inventory costs are higher for competitors because orders are placed
To achieve total success with your headless platform, you must find the best order systems,
PIM systems, etc. It requires you to set aside time and resources both internally and
externally to research which systems would be a good fit regarding which digital plans lie for
your business in the short and long term. The most significant advantage of a headless setup
is that you are not limited to one provider but have the opportunity to put together the most
robust solution that suits your business or go for the technologies that best suit
your digital journey
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