Principles in Fashion Marketing: Chanel and Zara.

Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These

- Number of stores: Zara has more than thousand five hundred stores. Primark has under the three hundred stores.

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

The world 's largest clothing retailer has been able to cope with the financial crisis better than most of its rivals, helped in part by the expansion of shops in fast, growing commercial centres and also by offering affordable fashion at a fraction of the cost of designer fashions. This case provides information on Zara and its major rivals in the industry to highlight the challenges and opportunities facing companies who are competing on a global basis. Zara is the biggest player in the clothing retail sector and leads the way in sales and consumer growth whilst being recognised

Sephora continues to create and release new ideas and new products with the cosmetic market on the rise.

ZARA is an understood Spanish garments brand well known for its high-speed answer, which is considered as a win variable for the organization and obtaining competitive edge over its rivals around the world. Style is about new and in vogue garments, ZARA's stock administration and distribution strategy are the key components behind its high-speed answer procedure. ZARA has outlets in 86 nations, including Europe, United States, Middle East and Asia. In 2012, Inditex the guardian organization of ZARA has asserted US$20.7

Zara’s strategy is to offer cutting edge fashion at affordable prices by following fashion and identifying which styles are “hot”, and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for sale within 30 days (whereas most retailers take 4-12 months). This is made possible by controlling almost the whole garment supply chain from design to retail.

Home of the best-selling fragrance in the world and worth an estimate of $1.5 billion, Chanel is a fashion house that begun in Paris, France by the infamous CoCo Chanel. Chanel is a brand that rose to its success with the launch of the perfume Chanel No. 5. Since the success of the fragrance, Chanel has begun to capitalize on offerings which include luxury goods, ready-to-wear clothing, handbags, perfumery, and cosmetics. Chanel is now a global fashion house that operates in The United States, United Kingdom, France, Asia, Australia, and New Zealand. With cosmetics being the youngest addition to Chanel’s long list of product lines, approximately 40% of the company 's revenue is generated from the combination of the Cosmetics and Fragrance division of the brand. The now owner, Alain Wertheimer, insists Chanel remains a private company, and focuses on the long-term investment aiming at growth and not at quick returns. Chanel staying private also drives the exclusivity of the brand, for the company cannot be burdened with any outside shareholders. Chanel’s makeup products began in the 1920’s with the creation of the first lipstick to satisfy Coco Chanel’s own needs.

Zara’s goal is to offer fashion at reasonably priced level in moderate quality products. Zara has a slightly different business model

Zara 's combination of cutting-edge fashions and culture lends itself well to a European-style, fashion-conscious consumer. While this type of consumer can be found in New York, this is not representative of the entire US market. Retailers in small towns and urban sprawls rely more on a shopping mall atmosphere. Adapting that strategy would undermine Zara 's image. It is therefore recommended that Zara target only major metropolitan areas which would likely have higher concentrations of fashion-minded individuals.

The basic strategy for fighting competition is to attract buyers at lower prices, more unique designs, high-quality design, efficient customer service and solid image brand. Thus bargaining power of buyer for apparel industry is high as the products falls under the basic needs in human lives. There is no much difference in terms of products offered by the apparel company, so if buyer is unhappy with the product or service they can easily switch to another brand. Thus, Zara are trying to strengthen its position in the market by using their unique strategy by giving priority to buyer to meet their special needs.

Zara is an apparel company and the leader brand of the Spanish retail mogul, Inditex. zara was established in 1975 in Spain by Amancio Ortega who is currently the 3rd richest man in the world, the first store was opened as an outlet but by 1979 the establishment already had six stores at different locations in Spain and by 1985 the company branched out to Portugal new york city and Paris. Today Zara has over 1900 stores worldwide which are located in 22 different countries; these stores render employment to over 125,000 employees. Zara depends on information they gather from customer and organizational feedback from all their stores on a daily basis this information is then forwarded to the supply chain, which works in synergy with the stores to keep the level of storage in stores down to a minimum. Zara owns the production, supply chain and in-house production, which lead to greater speed in output (M.A.Cano)

A company’s image can be described as the overall perception of the company. ZARA’s business idea is to in an international market offer high quality goods to a low price. ZARA’s main competitors are H&M, GAP, and Mango, in Georgia manager thinks that the main competitor is Massimo Dutti. By positioning themselves in the market, they are affecting the consumer’s perception of the company. ZARA’s main competitors have similar market positions, they target the same customers and have similar business ideas. There are some factors that make ZARA stand out as more exclusive. As the manager at ZARA in Georgia mentioned the clothes are not mass-produced and products that do not sell well are taken away from store. The collection is changed every second week. This makes the products stand out as more unique in comparison to H&M products which are mass-produced. This also makes the customer more willing to buy the product immediately instead of thinking and reflecting on whether to buy or not. In the store you can also get the feeling of exclusivity, as the manager in Georgia mentioned there is a lot of space between the clothes and the store is bright and the personnel is wearing all

Zara is one of the largest international fashion companies and has over 2000 stores located across 88 countries. It is part of the large distribution group Inditex, which also owns brands such as Pull & Bear, Stradivarius and Bershka.

The researchers need to find out the market trend, market size, market growth and market share of Zara. In addition, macro-environment and micro-environment that form up marketing environments also need to be analysed and interpreted to investigate the factors that will affect the business directly or indirectly. Based on the research, micro-environment includes competitors, H&M, Mango and Uniqlo while marketing intermediaries includes Zalora, Taobao and Tradesy. Meanwhile, macro-environment involves technological environment and economic environment. Apart from industry analysis, company analysis of Zara consists of company background and history, company operation, mission statement, SWOT analysis and competitive advantages. Based on research, the researchers realized that the founder of Zara is Amancio Ortega and Rosalia Mera. They also realized that how does Zara can operate the business successful and effective, the reason is that Zara has a good operation management within the company. Moreover, SWOT analysis is divided into internal origin and external origin, it is used to analyse strengths, weaknesses, opportunities and threats of Zara. Lastly, for competitive advantages, this part is to investigate the elements and strategies that contribute Zara become more successful and more