The value of a strong brand identity - Zara Case study



The term brand portfolio refers to an umbrella under which all the brands or brand lines of a particular firm function to serve the needs of different market segments.

If we take the case of the Inditex group there is enough to dress an entire family. The young stylish man will buy the latest trendy sweatshirt at Bershka or Pull&Bear. His sister will get a small leather jacket at Zara and a fashion bra at Oysho. Their father will crack for a chic Jacket from Massimo Dutti while their mother for a Uterque bag or a Stradivarius cocktail dress; even the young couple will find everything to decorate their apartment with Zara home.

But do all these people know that all these stores belong to one and to the same group? Not necessarily as Inditex differentiates and manage quite well all theirs brands by giving them a unique brand identity and market segment.

Inditex forms the world’s leading ready-to-wear brand ahead of H&M. Their power brand is Zara, which represents 65% of the activity of inditex.

The group was founded by Armancio Ortega, He is today the fifth richest man in the world and the richest in Europe.


The group inditex got the perception and reputation from customers to be a medium to high range , ready-to-wear quality brand. Which makes fashion accessible to all, by proposing quality clothes at an affordable price and by always being ahead of its competitors by following fashion in real time.(pioneer in fast fashion.)

Indeed “ When an item sells badly, the reaction is immediate, its production stopped”, Our designer must be humble because their creation can be cancelled in a few days” Explain Jesus Echevarria ( director of inditex group).

In fact customers often return to zara, seventeen times a year in average, compared to the three times average for the sector. The fear of not finding on the second visit, the model that pleased them, force the customer to buy it straight away. A justified concern because 45% of the items are sold in seven days, against 25% by the rivals. They organize the shortage to spark a frenzy of purchase” Decrypt Jean-Daniel Pick, the partner at OC&C.

The brand is distinguished by the speed with which new products are put into stores. For this, it favors a local industrial strategy, where its competitors have preferred relocation. Zara and Inditex can thus be responsive and flexible. Half of the products are manufactured in Europe. And the others Half in Asia and South America. The strength of zara is the speed of production and all the other brands of the group duplicate this same principle. These production systems allow Inditex to stay leader of the market in front of H&M, Gap,Uniqlo etc…





Additionally Inditex sustainability is quite important in their decision making. Their commitment is to sell ethical, safe, and environmentally friendly products. The group calls this philosophy and culture. “ We do, right to Wear” and apply this philosophy in a few points.

  • Clear and safe to Wear: These standards guarantee that all the products they sell comply with health and safety standards.

  • Team to wear: Promotion of diversity, transparency, Honesty and professionalism

  • Tested to wear : A production process audit and monitoring in process designed to ensure that all our products are made matching ethical criteria and human labor and environmental rights.

  • Social to wear: Social investing initiatives with the partnership of their community

  • Green to Wear: The strategy designed to ensure that they sell environment friendly products.


Mayana

For Elemntz