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ZARA
SPA
(Fast Fashion Market)
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Contents
1. Overview of Previous Korean Fashion Market
2. Definition of Fast Fashion/SPA market
3. ZARA
4. Strategy Analysis
5. ZARA’s strategy- Evaluation
Positioning STP
4P SWOT
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Korean Fast Fashion Market
? General Situation of Korean Clothing Industry
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What is SPA/Fast Fashion Market?
What is Fast Fashion ?
Definition of a SPA
Characteristics of
this market
Major brands
in this market
Specific branch of the apparel industry,
based on the latest fashion trends on the
cat-walk.
SPA : Specialty retailer of
private-label apparel.
Customers, products, price, facts and figures.
Zara, GAP, Mango, Uniqlo, Forever 21, H&M…
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About ZARA …
ZARA Retail Korea (Since 2007.10 )
Store : LOTTE Young plaza
Revenue : $2,170,000
(2007.7)
StoreSize : (650㎡)
Store : Myung-Dong
Revenu…(생략)
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lassifying customers)
Teenagers to young adults(20’s~early 30’s) who put
more value on latest fashion, rather than its quality
Segmentation
Targeting
Positioning
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Strategy Analysis - 4P Mix of Zara
4PS
Product
Price
Place
Promotion
?Short Manufacturing time
? Sensitive to customers’ needs
? Product variation with limited quantity
( 12,000 styles/year, 130,000- 150,000 amounts for each item without reorder )
? low level inventory
Product
Price
? Product variation with limited quantity ?scarcity
? No advertising
? Store design/concept
Promotion
? High Merchandise Turnover rate
? 70% of the products change every two weeks
? Efficient distribution system
? its own retail stores/distribution center
Place
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Strategy Analysis - SWOT analysis of Zara in Korea
? Relatively good quality
? Strong vertical integration
? E
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