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Zara business strategy analysis
Primary research about fast fashion
Evolution of fashion in the 20th century
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An evaluation of how marketing strategy have changed within Fast Fashion industry
—“a case study on Zara”
Chapter1 Introduction
This chapter introduces the research background of the present study. The first section is the statement of the problem containing the business environment, the developing trend and academic background of the study. Next, the specific research questions and hypothesis which are the basis of this study are presented. Last, the significance and limitations of the present research are followed.
Statement of Problem
Recent years, Fast Fashion has come into ordinary people’s daily life and connecting them with the fulfilling of the need of following the trend of fashion with a reasonable and price and approachable
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(Reinach Simona Segre (2005) Another signal of the fashion tendency is shown within one of the largest potential consumption market—China. The real thing which is actually happening in fashion culture as Segre (2005) suggested that the “Implication is of fast culture passage from a system that hinged upon prêt à porter to a system now starting to hinge upon fast fashion, based on totally different production presuppositions and rhythms and new consumption …show more content…
As consumer behaviour is relating to both short-term and long-term strategy of the market strategies as well as the future trend of its development, it is valuable to throughly research the further interaction between fashion innovation and consumer behaviour. Marketing strategy could relate to a wide range of decision making, which reflected the relation between the end of the supply chain—customer and the start point, designer or company.
Products need to be consumed to fulfil its value, therefore specific objectives guiding the study are listed as below:
To critically evaluate the relationship between consumer behaviour and choosing a marketing
Some factors that have contributed to the change of economy are through the quantity of jobs, the increase of diversity, and the increase of women in the workplace.4. Some causes of the changes in business environments over the decades have been the changes in values and technological differences.5. A company's culture has a great effect when it comes to the role of a successful business environment. Customers like to feel comfortable when shopping so a company would have to adjust to certain types of individuals that they would expect to shop around in their stores.6. Human resources hires and fires employees for the culture of the company. This process is done by screening the application of the applicant and screening the applicant itself.7. Quality Inn time play are two factors related to a customer being satisfied or dissatisfied by organizations deliverables or products.8. When organizations select the delivery method for product of services they get the best approach to take from the customers of course.9. The six key components of a customer service environment are the customer, the organizational culture, human resources, product and deliverables, delivery system, and services.10. Many organizations are changing to learning or organizations to become more observative customers and potential
The Trickle-down theory, a well-known theory in fashion industry, has significant meaning in 19th to 20th century Europe. The American economist and sociologist, Veblen, published The theory of the Leisure Class by 1899, in which he discussed the split between the leisure class and the industrial class in the US critically. He concluded that leisure class treats dress as a sign of their status and possessions, furthermore, ‘Dress must not only be conspicuously expensive and inconvenient; it must at the same time be up to date’(Veblen 1994), by saying that, he refers to upper class was tend to create new fashion trend which was the top of the trickle-down theory. In the 20th century, Simmel, the German sociologist and philosopher, developed this theory further from a more sympathetic perspective. He drew much attention to sameness and difference amongst both classes in his book Fashion (Simmel 1973). The upper class gets self-satisfied and the proof of its priority by distinguishing itself from others, and working class follows the fashion trend which led by upper class in order to feel like he or she is ‘belonging to’ higher class. These opinions which were discussed by Veblen and Simmel were coined by a journalist in the mid-20th century, as ‘Trickle- down Theory’. During mid-18th to early 20th century, the trickle-down theory described the process of how fashion flows, and explains that fashion is a cultural and sociological phenomenon which includes the discourse of identity and uniformity, agency and structuralism. This phenomenon was not limited by geography, at the same period, in the other side of the world, similar situation happened in China which is a typical East Asian country....
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Fashion in the 21st century is a big business, as its production employs millions of people and generates billions of dollars in revenue. Fashion has for the past century been, and is still today, used as an indicator of social change and progress, as it changes with the social norms of the society and the political changes of the world (Finkelstein 3). Works Cited Finkelstein, Joanne. A.S.A. & Co. Fashion: An Introduction to Fashion. New York: New York University Press, 1998.
In conclusion, although fast fashion has become a rising trend because of consumer awareness the drawbacks of fast fashion is also on the rise because of augmented realization around climate change, resource deficiency, financial circumstances, the slow-fashion crusade, and ill-fated accidents like the Rana Plaza collapse in Bangladesh that happened in October of 2013, as well as hard-hitting, visually awkward movements from organizations such as Greenpeace. The more people start to become more conscious about the disadvantages of Fast Fashion this is one trend that will soon
The fundamental business strategy of Zara is very simple which is linking customer demand to manufacturing, and liking manufacturing to distribution. Zara has been running their business in fashion industry which is susceptible to seasons and quick changing customer tastes. Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.
2.4 Segmentation: Some of the important bases for segmenting consumer markets are Demographic, Geographic, benefits, Psychographic and Usage rate segmentation. Geographic segmentation is the priority of Zara. It is a global brand and its supply chain management is very much perfect. It helps Zara in getting the latest trends into stores in three weeks’ time, based on consumer preferences. It’s a Spanish brand, so it would be a better option for Zara to open more stores in European countries.
Gardner, Marilyn. "Fast Fashion Is a Problem." The Fashion Industry. Ed. Roman Espejo. Detroit: Greenhaven Press, 2010. Opposing Viewpoints. Rpt. from "Fashion Industry Gives Rise to a 'Disposable Culture, '." The Christian Science Monitor. 2007. Opposing Viewpoints in Context. Web. 22 Nov.
Fashion plays an important role in the lives of billions all over the world; people, as part of a status craving society, turn to “fashion capitals” of the world for ways in which to dress and carry themselves. New York, Milan, and Paris are leaders among this fierce industry that the world lusts after. Fashion can speak volumes about ones personality, or also about the condition the world is in at the time. In France, fashion changed rapidly and feverously as the times changed.
The Apparel or clothing industry is a very dynamic market where changes occur in a daily basis. So, rivals within this industry assist to an extreme competition. To make sure that, they stay relevant in the market scene, businesses have to develop creative, innovative and sustainable marketing strategies to attract more customers and increase their brands awareness. Because, this industry has many players, we have chosen one well known company to make our research more specific and well centered. Hennes and Mauritz AB commonly known as H&M is our best choice because, this
Fast fashion is a term used by fashion retailers to express that designs move from runway quickly in order to capture current fashion trends. Fast fashion clothing collections are based on the most recent fashion trends from both fall and spring fashion week. This fast fashion strategy is currently used by well-known brands such as H&M, Zara, Top shop and many other brands. Fast fashion allows consumers to take advantage of current clothing styles at a lower price because fast fashion trends are designed and manufactured quickly and cheaply. However convenient aspect of fast fashion has been leading to promote consumerism since clothing had become unfashionable and not wearable quickly. Also a lot of these garments are made of unsustainable fabrics, which is a huge threat to our ecosystem. Solution for problems in fast fashion is needed.
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.
The act of consumption has been the primary means through which individuals in society participate and transform culture. Culture is not something already made which we consume; culture is what society creates through practices of everyday life and consumption involves the making of culture. When attempting to understand certain acts of consumption it is necessary to observe the relations involved in production and consumption. Through technological innovation, the fashion industry has been expanded to play a prominent role in consumers’ purchasing decisions and styles are becoming less difficult to obtain. With the expansion of department stores and shopping being viewed as a leisurely activity, this has continued to transform the act of fashion consumerism. The functional interests feature a rational attachment to clothing items. Symbolic benefits involve status and prestige to fulfill the achievement for positive self-esteem. Further benefits include a provided experience for the individual consumer and the created use of imagery and desire used to enrich one’s life.
To begin with, I shall look at what fashion is; it is a currently popular style or practice involving clothing, footwear or accessories. It mostly refers to the current trends in looks and dressing style of a person (Cumming 234). In most cases, fashion is confusedly related to costumes; when a person talks of fashion they are seen to mean fashion in terms of textile. Fashion is seen to originate from the Western world and it is copied by other places. In this paper, we shall look at how fashion affects lifestyles and the group of people who are affected most. The paper further investigates how media is used to transmit fashion from one region to the other. Although it has been seen to affect people’s lives many people have different perspectives on fashion and dressing.
Following fashion styles in order to be trendy and to look different and stylish in front of others by wearing different types of clothes and accessories. Fashion can be viewed in people’s style of outlook personality with clothing and hairstyle, style of living and behaving, along with the area of personal interest. Today’s youths are totally influenced by new fashion trends. Fashion brings an interesting twist in our boring life which makes us with feeling of confidence and up to date according to this changing environment. Youth generation is totally affected by this glamorous world of fashion. Their dressing style, hair style, accessories, language and personality all shows that how much they are influenced by fashion.