1. 1.1-Executive SummaryDress 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 overthe world, Europe, America, the Middle East, Asia Pacific and among its 5000+ stores (from theINDITEX 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, offerfashion inspired in the tastes, wishes and lifestyles of todays men and women. Zara’s clothing hasidentified a significant underserved segment within it. Zara’s clothing is uniquely positioned to servethis segment of the market because of its fast paced fashion ideas, its latest technology, its efficientbusiness strategies and its affordable prices.Due to the growing of the clothing industry and the enormous unmet need in the clothing marketwe see the long-term expansion and potential of Zara throughout the world. We are visionaries whosee Zara 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 clothesretailer, Zara designs all its own clothes, makes most of them in Spain and distributes all of themitself. And many observers attribute Zaras success to this control of the business from factory toshop 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 thebiggest risk if you outsource it to people," Anne-Catherine Delaye, European fund manager atRothschilds said. And because they make and design it themselves, colour and design can be easilytweaked to what the customer wants.2.1-ZARA Culture At Zara, the employees work as a team to get the job done successfully. When they are consideringa new product, it gets designed, made and critiqued in a matter of a few hours. All the employeeshave to work together to finish this process. The article states that Zara “Requires employees whoare humble enough to accept feedback from colleagues, share credit with their team for winningideas”. Having these standards has really helped Zara grow as a company and create a strongorganizational culture. When employees go on a business trip, they fly coach. This company has a
2. built in safety net to keep group work effective. Team members are switched around to create freshideas, there is competition among the teams, and continuous feedback.Having this structure helps keep the workplace unpretentious and respectful. Zara has found theperfect recipe for success!(“Fast Fashion Lessons” by Donald Sull and Stefano Turconi)2.2-ZARA Technology Zara is careful about the way it deploys the latest information technology tools to facilitate theseinformal exchanges. Customized handheld computers support the connection between the retailstores and La Coruña. These PDAs augment regular (often weekly) phone conversations betweenthe store managers and the market specialists assigned to them. Through the PDAs and telephoneconversations, stores transmit all kinds of information to La Coruña—such hard data as orders andsales trends and such soft data as customer reactions and the "buzz" around a new style. While anycompany can use PDAs to communicate, Zaras flat organization ensures that importantconversations dont fall through the bureaucratic cracks.Once the team selects a prototype for production, the designers refine colors and textures on acomputer-aided design system. If the item is to be made in one of Zaras factories, they transmit thespecs directly to the relevant cutting machines and other systems in that factory. Bar codes track thecut pieces as they are converted into garments through the various steps involved in production(including sewing operations usually done by subcontractors), distribution, and delivery to thestores, where the communication cycle began.The constant flow of updated data mitigates the so-called bullwhip effect—the tendency of supplychains (and all open-loop information systems) to amplify small disturbances. A small change inretail orders, for example, can result in wide fluctuations in factory orders after its transmittedthrough wholesalers and distributors. In an industry that traditionally allows retailers to change amaximum of 20 percent of their orders once the season has started, Zara lets them adjust 40percent to 50 percent. In this way, Zara avoids costly overproduction and the subsequent sales anddiscounting prevalent in the industry.“Harvard Business Review, Vol. 82, No.11, November 2004.2.3-ZARA Legal IssuesA group of labour rights organisations has accused leading US and European clothing retailers andbrands of failing to push for improved safety conditions in factories in Bangladesh, following thelatest in a series of fatal fires at factories in the country.Jonathan Birchall, Financial Times 15 Dec 2010Eighteen months ago, we highlighted the appalling conditions in one of *Windy Group’s+ city centrefactories, Windy Apparels…Two of *its workers+ said they were making clothes for Zara…In Businessalerted Inditex, the owner of Zara, and their Director of Corporate Social Responsibility, JavierChercoles, flew to Bangladesh. [He said] "Conditions were bad… no evacuation stairs, too many
3. people." Javier Chercoles gave the factory owner… an ultimatum: close this factory and improveconditions…if you want Inditex…to remain a customer…Neil Kearney, General Secretary of theInternational Textile, Garment and Leather Workers Federation…*said+ "Its what every factoryshould be moving towards… if the buyer makes the demand, the industry has to respond..."…*alsorefers to Elaine Garments]Caroline Bayley, BBC Radio 4 In Business Programme 20 Jan 2010British woman Samantha Morshed...represents a growing number of businesses pushing to channelBangladeshs cheap labour into ethical, fair trade labels. She now employs more than 3,500 womenin rural areas who make 30,000 items a month that are exported to developed countries andfashionable shops, including London-based retailers JoJo Maman Bebe and TopShop [part ofArcadia]. [Article also refers to Metro Group, Zara (part of Inditex)Fashion firm Zara has forced the closure of a suppliers factory after workers told the BBC they hadsuffered harsh treatment there...BBC 23 Jun 2008ZARA Economical AnalysisInditex, the fashion group that owns Zara, Bershka and Massimo Dutti, saw its sales and profits risesignificantly in the first quarter of its 2011 financial year.Sales across the group increased 11pc to €2.96bn in the three months to end-April 2011, while grossprofits rose by 9pc to €1.74bn.The group operates a mammoth 5,154 stores across 78 countries after opening 110 new stores in 29countries during the quarter. The new stores include the first Zara shop in Australia. Today, thegroup opened its second Australian store in Melbourne, while more firsts are being prepared inSouth Africa, Taiwan and Peru.Inditex plans to launch online collections from September in selected European markets. Zara alsoplans to begin e-commerce sales in the US from September 7, according to the parent firm.Inditex’s net income came in at €332m for the three-month period, about 10pc more than in the firstquarter of 2010.Its share price rose some 26%, adding to the excitement already generated by Spains biggest sharesale in 2001 and 2007. The shares sold internationally were more than 53 times oversubscribed.Many investors have been attracted by the companys growth, with the firm reportedly opening anew shop on average every three days.(news.bbc.co.uk/business)Zara links customer demand to manufacturing, and liking manufacturing to distribution. Zara hasbeen running their business in fashion industry which is susceptible to seasons and quick changingcustomer tastes. Zara has been approached to and considered their business as a perishablecommodity business just like a fresh baked cake or bread to be consumed quickly
4. ZARA Segmentation and targeting:Customer Profiles A typical Zara customer as identified by the company is a person who is up to date with the latestdevelopments in the fashion industry and wants fashionable, trendy and unique outfits at affordableprices. The customer can be a man, a woman, a teenager or even a child who is interested in beingup-to-date. As Zara has its origins in Spanish fashion and is primarily and European fashion brand,the customers of Zara also are also heavily influenced and moved by European fashion. Aside fromthis a typical Zara customer can belong to any social strata and demographic segment as Zara catersto a wide range of tastes.Segmentation StrategyThe segmentation strategy employed by the fashion retailer Zara is based one the typicaldemographics of the customers like gender, age and psychographics. However aside from this thecompany also targets customer is based on their sense of fashion and style e.g., contemporary,trendy, classic, grunge, Latino etc. (Safe, 2007) The ethnicity of the brand as well as its target marketis blended by Zara in its product offering which match a variety of tastes and settings.Targeting StrategyInditex with its brand Zara has targeted a wide gap in the retail market. The company targetscustomers that are interested in high fash
1. 1.1 ผู้บริหาร SummaryDress โลก ' คือซาร่า แฟชั่นเป็นเสื้อผ้า มากกว่า มันเป็นส่วนหนึ่งของชีวิตของเรา เราอยู่ใน Fashion.ZARA เป็นสมาชิกของกลุ่ม INDITEX กลุ่มภาษาสเปน ซาร่าสร้างจากร้านค้า ทั่ว โลก ยุโรป อเมริกา ตะวันออกกลาง เอเชีย และ ระหว่าง 5000 + ร้านค้า (กลุ่ม theINDITEX) Hong Kong หุ้น 8 ซาร่าเก็บจากโลกกว้างทั้งหมด ซาร่ามีแนวโน้มล่าสุดในแฟชั่นนานาชาติในสภาพแวดล้อมของการออกแบบ thought-outจากร้านค้าที่ตั้งอยู่ในย่านธุรกิจของเมืองในยุโรป อเมริกา และ เอเชีย offerfashion แรงบันดาลใจในรสนิยม ความต้องการ และวิถีชีวิตของหญิงและชายวันนี้ Hasidentified เสื้อผ้าของซาร่าสำคัญ underserved ส่วนภายในนั้น โดยเฉพาะเสื้อผ้าของซาร่าแห่งการ servethis ส่วนของตลาดความคิดแฟชั่นได้รวดเร็ว เป็นเทคโนโลยีใหม่ล่าสุด กลยุทธ์ของ efficientbusiness และราคาไม่แพงเนื่องจากการเติบโตของอุตสาหกรรมเสื้อผ้าและต้อง unmet มหาศาล marketwe เสื้อผ้าดูขยายระยะยาวและศักยภาพของซาร่าทั่วโลก เราจะ visionaries whosee ร่าเป็นการเปิดทางการเงินมาก โดยบรรลุเป้าหมายการขาย ซาร่าจะวางตำแหน่งตัวเอง forexceptional ผลกำไรและการเติบโตด้วยตนเองได้รับการสนับสนุนแผนของซาร่าเป็นเพื่อ รักษา และพัฒนาในตลาดให้ดีในเวลาตอบสนอง tochanging แนวโน้มของผู้บริโภครสนิยมผ่านการสร้างงานออกแบบใหม่ที่เหมาะสมสำหรับ customersat ทั้งหมดราคาไม่แพง"ซาร่าตลอดเวลาปรับปรุงใจ" บริษัทใช้แรงบันดาลใจจาก catwalks, targetingthe fickle แฟชั่นเด็ก ส่วน riskiest ของตลาดเสื้อผ้า ปกติ clothesretailer ซาร่าออกแบบเสื้อผ้าของตัวเองทั้งหมด ทำให้ส่วนใหญ่ของพวกเขาในสเปน และกระจายของ themitself ทั้งหมด และผู้สังเกตการณ์หลายแอตทริบิวต์ Zaras ความสำเร็จนี้ควบคุมของธุรกิจจากผลิต toshopหมายความ ว่า ใช้เวลาเพียง 3 สัปดาห์จะย้ายจากแผ่นจดบันทึกร่างแขวนเสื้อผ้าในร้านไม่พิจารณาค่าเฉลี่ยของอุตสาหกรรมได้ 9 เดือน"พวกเขาจะผลิตแฟชั่นเสื้อผ้าตัวเอง ซึ่งมีเสื้อผ้าที่คุณใช้ความเสี่ยง thebiggest หากคุณ outsource บัญชีคน แคทเธอรีแอนน์ Delaye ยุโรปกองทุนผู้จัดการ atRothschilds กล่าวว่า และเนื่องจากพวกเขาทำ และออกแบบเอง สีและการออกแบบสามารถ easilytweaked ให้อะไรกับลูกค้าวัฒนธรรม wants.2.1 ร่าที่ซาร่า พนักงานทำงานเป็นทีมจะได้รับงานที่ทำสำเร็จ เมื่อมีผลิตภัณฑ์ใหม่ consideringa มันได้รับออกแบบ ทำ และ critiqued ในเรื่องของการไม่กี่ชั่วโมง ทั้งหมด employeeshave ทำงานร่วมกันจะเสร็จสิ้นกระบวนการนี้ สถานะบทความที่ซาร่า "ต้องการพนักงาน whoare ยังไงก็พอที่จะยอมรับคำติชมจากเพื่อนร่วมงาน สินเชื่อร่วมกับทีมของพวกเขาใน winningideas" มีมาตรฐานเหล่านี้ได้จริง ๆ ช่วยซาร่าเติบโตเป็นบริษัท และสร้างวัฒนธรรม strongorganizational เมื่อพนักงานธุรกิจ พวกเขาบินรถโค้ช บริษัทนี้มีการ2. สร้างข่ายความปลอดภัยเพื่อให้กลุ่มทำงานมีประสิทธิภาพ สมาชิกในทีมจะสลับรอบ ๆ เพื่อสร้าง freshideas มีการแข่งขันระหว่างทีม และข้อเสนอแนะอย่างต่อเนื่องมีโครงสร้างจะให้สถานทำงานจริง และเคารพ ซาร่าได้พบสูตร theperfect ความสำเร็จ("เร็วเรียนแฟชั่น" โดยโดนัลด์ Sull และสเตฟาโน Turconi) ซาร่า 2.2 เทคโนโลยีร่าจะระมัดระวังเกี่ยวกับวิธีจะจัดวางข้อมูลเทคโนโลยีเครื่องมือเพื่อแลกเปลี่ยน theseinformal คอมพิวเตอร์มือถือแบบกำหนดเองสนับสนุนการเชื่อมต่อระหว่าง retailstores และ La Coruña Pda เหล่านี้เพิ่มปกติ (มักจะเป็นแบบรายสัปดาห์) โทรศัพท์สนทนา betweenthe ร้านค้าผู้จัดการและผู้เชี่ยวชาญตลาดที่กำหนดไว้ ผ่าน Pda และ telephoneconversations ร้านค้าส่งชนิดทั้งหมดของข้อมูล La Coruña — ข้อมูลยากดังกล่าวเป็นแนวโน้ม andsales ใบสั่งและข้อมูลดังกล่าวนุ่มเป็นปฏิกิริยาลูกค้าและ "buzz" สถานแบบใหม่ ในขณะที่ anycompany สามารถใช้ Pda ในการสื่อสาร Zaras แบนองค์กรให้แน่ใจว่า importantconversations ไม่ตกผ่านรอยแตกราชการเมื่อทีมงานเลือกต้นแบบการผลิต นักออกแบบกำหนดสีและพื้นผิวบน acomputer-ออกแบบระบบ . ถ้าสินค้าจะทำในโรงงาน Zaras พวกเขาส่ง thespecs กับเครื่องตัดที่เกี่ยวข้องและระบบอื่น ๆ ในโรงงานนั้นโดยตรง บาร์โค้ดติดตาม thecut ชิ้นพวกเขาจะถูกแปลงเป็นเสื้อผ้าผ่านขั้นตอนต่าง ๆ ที่เกี่ยวข้องกับการผลิต (รวมถึงการดำเนินการเย็บปกติกระทำ โดยผู้รับเหมา), การกระจาย และจัดส่งไปยัง thestores ซึ่งการเริ่มต้นของวงจรการสื่อสารการไหลคงที่ของข้อมูลที่ปรับปรุง mitigates ผลเรียกว่า bullwhip — แนวโน้ม supplychains (และระบบเปิดวนข้อมูลทั้งหมด) ขยายแหล่งขนาดเล็ก สั่งการ inretail เปลี่ยนแปลงเล็กน้อย เช่น อาจทำความผันผวนทั้งในโรงงานสั่งหลังของ transmittedthrough wholesalers และผู้จัดจำหน่าย ในอุตสาหกรรมที่ช่วยให้ร้านค้าปลีกการเปลี่ยน amaximum ร้อยละ 20 ของใบสั่งซื้อเมื่อมีการเริ่มต้นฤดูกาลประเพณี ซาร่าช่วยให้พวกเขาปรับปรุง 40percent 50 เปอร์เซ็นต์ ด้วยวิธีนี้ ซาร่าหลีกเลี่ยงค่าใช้จ่าย overproduction และ anddiscounting ขายต่อมาแพร่หลายในอุตสาหกรรม"ตรวจสอบธุรกิจฮาร์วาร์ด ปี 82, No.11 พฤศจิกายน 2004.2.3-ZARA IssuesA กฎหมายกลุ่มองค์กรสิทธิแรงงานได้ถูกกล่าวหาว่านำเรา และ andbrands ค้าปลีกเสื้อผ้ายุโรปของการผลักดันการปรับปรุงสภาพความปลอดภัยในโรงงานในประเทศบังกลาเทศ thelatest ต่อไปนี้ในชุดของไฟที่ร้ายแรงที่โรงงานในประเทศJonathan Birchall เงินเวลา 15 ธ.ค. 2010Eighteen เดือน เราเน้นเงื่อนไขไฮใน * กลุ่มวินดี้ ' s + centrefactories เมือง เครื่องแต่งกายวินดี้...2 * ผู้ปฏิบัติงานของ + กล่าวว่า พวกเขามีการทำเสื้อผ้าสำหรับซาร่า...ใน Businessalerted Inditex เจ้าของ ซาร่าและของกรรมการของสังคม JavierChercoles บินไปบังกลาเทศ [พูด] "เงื่อนไขเลว...บันไดไม่อพยพ มากเกินไป3. people." Javier Chercoles gave the factory owner… an ultimatum: close this factory and improveconditions…if you want Inditex…to remain a customer…Neil Kearney, General Secretary of theInternational Textile, Garment and Leather Workers Federation…*said+ "Its what every factoryshould be moving towards… if the buyer makes the demand, the industry has to respond..."…*alsorefers to Elaine Garments]Caroline Bayley, BBC Radio 4 In Business Programme 20 Jan 2010British woman Samantha Morshed...represents a growing number of businesses pushing to channelBangladeshs cheap labour into ethical, fair trade labels. She now employs more than 3,500 womenin rural areas who make 30,000 items a month that are exported to developed countries andfashionable shops, including London-based retailers JoJo Maman Bebe and TopShop [part ofArcadia]. [Article also refers to Metro Group, Zara (part of Inditex)Fashion firm Zara has forced the closure of a suppliers factory after workers told the BBC they hadsuffered harsh treatment there...BBC 23 Jun 2008ZARA Economical AnalysisInditex, the fashion group that owns Zara, Bershka and Massimo Dutti, saw its sales and profits risesignificantly in the first quarter of its 2011 financial year.Sales across the group increased 11pc to €2.96bn in the three months to end-April 2011, while grossprofits rose by 9pc to €1.74bn.The group operates a mammoth 5,154 stores across 78 countries after opening 110 new stores in 29countries during the quarter. The new stores include the first Zara shop in Australia. Today, thegroup opened its second Australian store in Melbourne, while more firsts are being prepared inSouth Africa, Taiwan and Peru.Inditex plans to launch online collections from September in selected European markets. Zara alsoplans to begin e-commerce sales in the US from September 7, according to the parent firm.Inditex’s net income came in at €332m for the three-month period, about 10pc more than in the firstquarter of 2010.Its share price rose some 26%, adding to the excitement already generated by Spains biggest sharesale in 2001 and 2007. The shares sold internationally were more than 53 times oversubscribed.Many investors have been attracted by the companys growth, with the firm reportedly opening anew shop on average every three days.(news.bbc.co.uk/business)Zara links customer demand to manufacturing, and liking manufacturing to distribution. Zara hasbeen running their business in fashion industry which is susceptible to seasons and quick changingcustomer tastes. Zara has been approached to and considered their business as a perishablecommodity business just like a fresh baked cake or bread to be consumed quickly4. ZARA Segmentation and targeting:Customer Profiles A typical Zara customer as identified by the company is a person who is up to date with the latestdevelopments in the fashion industry and wants fashionable, trendy and unique outfits at affordableprices. The customer can be a man, a woman, a teenager or even a child who is interested in beingup-to-date. As Zara has its origins in Spanish fashion and is primarily and European fashion brand,the customers of Zara also are also heavily influenced and moved by European fashion. Aside fromthis a typical Zara customer can belong to any social strata and demographic segment as Zara catersto a wide range of tastes.Segmentation StrategyThe segmentation strategy employed by the fashion retailer Zara is based one the typicaldemographics of the customers like gender, age and psychographics. However aside from this thecompany also targets customer is based on their sense of fashion and style e.g., contemporary,trendy, classic, grunge, Latino etc. (Safe, 2007) The ethnicity of the brand as well as its target marketis blended by Zara in its product offering which match a variety of tastes and settings.Targeting StrategyInditex with its brand Zara has targeted a wide gap in the retail market. The company targetscustomers that are interested in high fash
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1. 1.1-Executive SummaryDress 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 overthe world, Europe, America, the Middle East, Asia Pacific and among its 5000+ stores (from theINDITEX 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, offerfashion inspired in the tastes, wishes and lifestyles of todays men and women. Zara’s clothing hasidentified a significant underserved segment within it. Zara’s clothing is uniquely positioned to servethis segment of the market because of its fast paced fashion ideas, its latest technology, its efficientbusiness strategies and its affordable prices.Due to the growing of the clothing industry and the enormous unmet need in the clothing marketwe see the long-term expansion and potential of Zara throughout the world. We are visionaries whosee Zara 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 clothesretailer, Zara designs all its own clothes, makes most of them in Spain and distributes all of themitself. And many observers attribute Zaras success to this control of the business from factory toshop 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 thebiggest risk if you outsource it to people," Anne-Catherine Delaye, European fund manager atRothschilds said. And because they make and design it themselves, colour and design can be easilytweaked to what the customer wants.2.1-ZARA Culture At Zara, the employees work as a team to get the job done successfully. When they are consideringa new product, it gets designed, made and critiqued in a matter of a few hours. All the employeeshave to work together to finish this process. The article states that Zara “Requires employees whoare humble enough to accept feedback from colleagues, share credit with their team for winningideas”. Having these standards has really helped Zara grow as a company and create a strongorganizational culture. When employees go on a business trip, they fly coach. This company has a
2. built in safety net to keep group work effective. Team members are switched around to create freshideas, there is competition among the teams, and continuous feedback.Having this structure helps keep the workplace unpretentious and respectful. Zara has found theperfect recipe for success!(“Fast Fashion Lessons” by Donald Sull and Stefano Turconi)2.2-ZARA Technology Zara is careful about the way it deploys the latest information technology tools to facilitate theseinformal exchanges. Customized handheld computers support the connection between the retailstores and La Coruña. These PDAs augment regular (often weekly) phone conversations betweenthe store managers and the market specialists assigned to them. Through the PDAs and telephoneconversations, stores transmit all kinds of information to La Coruña—such hard data as orders andsales trends and such soft data as customer reactions and the "buzz" around a new style. While anycompany can use PDAs to communicate, Zaras flat organization ensures that importantconversations dont fall through the bureaucratic cracks.Once the team selects a prototype for production, the designers refine colors and textures on acomputer-aided design system. If the item is to be made in one of Zaras factories, they transmit thespecs directly to the relevant cutting machines and other systems in that factory. Bar codes track thecut pieces as they are converted into garments through the various steps involved in production(including sewing operations usually done by subcontractors), distribution, and delivery to thestores, where the communication cycle began.The constant flow of updated data mitigates the so-called bullwhip effect—the tendency of supplychains (and all open-loop information systems) to amplify small disturbances. A small change inretail orders, for example, can result in wide fluctuations in factory orders after its transmittedthrough wholesalers and distributors. In an industry that traditionally allows retailers to change amaximum of 20 percent of their orders once the season has started, Zara lets them adjust 40percent to 50 percent. In this way, Zara avoids costly overproduction and the subsequent sales anddiscounting prevalent in the industry.“Harvard Business Review, Vol. 82, No.11, November 2004.2.3-ZARA Legal IssuesA group of labour rights organisations has accused leading US and European clothing retailers andbrands of failing to push for improved safety conditions in factories in Bangladesh, following thelatest in a series of fatal fires at factories in the country.Jonathan Birchall, Financial Times 15 Dec 2010Eighteen months ago, we highlighted the appalling conditions in one of *Windy Group’s+ city centrefactories, Windy Apparels…Two of *its workers+ said they were making clothes for Zara…In Businessalerted Inditex, the owner of Zara, and their Director of Corporate Social Responsibility, JavierChercoles, flew to Bangladesh. [He said] "Conditions were bad… no evacuation stairs, too many
3. people." Javier Chercoles gave the factory owner… an ultimatum: close this factory and improveconditions…if you want Inditex…to remain a customer…Neil Kearney, General Secretary of theInternational Textile, Garment and Leather Workers Federation…*said+ "Its what every factoryshould be moving towards… if the buyer makes the demand, the industry has to respond..."…*alsorefers to Elaine Garments]Caroline Bayley, BBC Radio 4 In Business Programme 20 Jan 2010British woman Samantha Morshed...represents a growing number of businesses pushing to channelBangladeshs cheap labour into ethical, fair trade labels. She now employs more than 3,500 womenin rural areas who make 30,000 items a month that are exported to developed countries andfashionable shops, including London-based retailers JoJo Maman Bebe and TopShop [part ofArcadia]. [Article also refers to Metro Group, Zara (part of Inditex)Fashion firm Zara has forced the closure of a suppliers factory after workers told the BBC they hadsuffered harsh treatment there...BBC 23 Jun 2008ZARA Economical AnalysisInditex, the fashion group that owns Zara, Bershka and Massimo Dutti, saw its sales and profits risesignificantly in the first quarter of its 2011 financial year.Sales across the group increased 11pc to €2.96bn in the three months to end-April 2011, while grossprofits rose by 9pc to €1.74bn.The group operates a mammoth 5,154 stores across 78 countries after opening 110 new stores in 29countries during the quarter. The new stores include the first Zara shop in Australia. Today, thegroup opened its second Australian store in Melbourne, while more firsts are being prepared inSouth Africa, Taiwan and Peru.Inditex plans to launch online collections from September in selected European markets. Zara alsoplans to begin e-commerce sales in the US from September 7, according to the parent firm.Inditex’s net income came in at €332m for the three-month period, about 10pc more than in the firstquarter of 2010.Its share price rose some 26%, adding to the excitement already generated by Spains biggest sharesale in 2001 and 2007. The shares sold internationally were more than 53 times oversubscribed.Many investors have been attracted by the companys growth, with the firm reportedly opening anew shop on average every three days.(news.bbc.co.uk/business)Zara links customer demand to manufacturing, and liking manufacturing to distribution. Zara hasbeen running their business in fashion industry which is susceptible to seasons and quick changingcustomer tastes. Zara has been approached to and considered their business as a perishablecommodity business just like a fresh baked cake or bread to be consumed quickly
4. ZARA Segmentation and targeting:Customer Profiles A typical Zara customer as identified by the company is a person who is up to date with the latestdevelopments in the fashion industry and wants fashionable, trendy and unique outfits at affordableprices. The customer can be a man, a woman, a teenager or even a child who is interested in beingup-to-date. As Zara has its origins in Spanish fashion and is primarily and European fashion brand,the customers of Zara also are also heavily influenced and moved by European fashion. Aside fromthis a typical Zara customer can belong to any social strata and demographic segment as Zara catersto a wide range of tastes.Segmentation StrategyThe segmentation strategy employed by the fashion retailer Zara is based one the typicaldemographics of the customers like gender, age and psychographics. However aside from this thecompany also targets customer is based on their sense of fashion and style e.g., contemporary,trendy, classic, grunge, Latino etc. (Safe, 2007) The ethnicity of the brand as well as its target marketis blended by Zara in its product offering which match a variety of tastes and settings.Targeting StrategyInditex with its brand Zara has targeted a wide gap in the retail market. The company targetscustomers that are interested in high fash
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