RETAIL STRATEGY OF ZARA AND REISS

Retail strategy of Zara and Reiss



Table of Contents

Contents

RETAIL STRATEGY OF ZARA AND REISS1

Retail strategy of Zara and Reiss1

Table of Contents2

Retail strategy of Zara and Reiss3

INTRODUCTION3

COMPANY SITUATION3

PROBLEMS: Issues the business is encountering4

SYMPTOMS11

CONTRIBUTING FACTORS11

Factors that assisted to the origin determinants of the problems11

MARKETPLACE12

TRENDS13

Changes occurrence in the general marketplace13

COMPETITORS13

The diverse kinds and leaders13

CO -CAPABILITIES16

ZARA'S BUSINESS MODEL17

Marketing Mix17

Competitive Advantages18

Financials connected with Zara's Business Model19

EXPANSION PLANS19

Advantages when going into new markets19

Disadvantages When Entering New Markets19

Analysis Of Geographical Expansion AlternativeS20

Expansion in Europe:20

Advantages:20

Disadvantages20

Expansion in Middle East:21

Advantages:21

Disadvantages21

Expansion in North America:21

Advantages:21

Disadvantages:21

Expansion in Asia:22

Advantages:22

Disadvantages:22

RECOMMENDATIONS22

References24

Retail strategy of Zara and Reiss

INTRODUCTION

The global apparel string of links was a usual buyer-driven string of links in which upstream structure was fragmented, in the local area belongs to, dispersed, and often tiered production while downstream structure was somewhat intensified intermediaries. The commerce was coordinated and overridden by downstream intermediaries like retailers and labelled marketers. Ashort abstract of the apparel commerce characteristics was as follows:

Production: Very fragmented apparel production. Developing nations had an oddly large share, about one half in total trade goods due to cheaper work and inputs. Proximity was significant since it reduced shipping charges and lags. Despite China's reality as an trade goods powerhouse, regionalization was the superior motif of alterations in apparel trade in the 1990s.

Retailing: The expanding engrossment of apparel retailing in major markets was considered to be one of the key drivers of expanded trade. In alignment to improve hasten and flexibility, large apparel retailers played the premier role in promoting fast answer (QR). Retailing undertakings stayed quite localized with respect to other industries.

Customers: Per capita expending on apparel tended to augment less proportionately with rises in per capita earnings, so that its share of expenditures normally decreased as earnings increased. Significant local variation in customers' attributes and preferences was an issue not only between regions but also within regions.

Zara and Reiss's Business Model

We mainly analyzed Zara and Reiss to recommend on Inditex's strategy since it was the flagship of Inditex and the generator of a huge percentage of financial results by itself. Zara and Reiss used needs-based positioning, targeting a specific segment of customers and providing a tailored set of activities that can serve those needs best, in developing its business model. Its trading concepts was giving middle class customers an exclusivity feeling in its stores with trendy goods, service, store design, and store locations.

Zara and Reiss's well-designed marketing mix was in consistency with its "medium quality fashion clothing at affordable price" positioning and its selling idea

Target clientele: It aimed at fashion-conscious customers who were at the identical time price-sensitive and have frequent buying behavior.

Product: Zara and Reiss offered designer-style garments and accessories with broad, rapidly changing product lines; relatively high fashion content; and reasonable but not excessive physical quality.

Place: It bought into heavily on shop locations. They were normally established in highly evident positions, often including the premier buying streets and upscale buying centers.

Price: The charges of goods were affordable.

Promotion: Zara and Reiss spent only ...