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16 Zara

Zara Japan Corporation has successfully established itself in the Japanese market by combining a fast marketing response with strategically placed stores. Zara operates stores, supplies products, and trains employees in Japan through a joint venture with the Bigi Group, while Bigi gathers market information and proposes new store locations. Zara has steadily expanded its network of stores across Japan since opening its first location in Tokyo in 1998, with further planned openings in Tokyo and Kyoto. Zara's parent company Inditex is Europe's largest apparel corporation and Zara's unique business model of handling all processes in-house from design to distribution enables it to produce thousands of new designs each year and supply stores within two to five weeks.
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100% found this document useful (1 vote)
385 views2 pages

16 Zara

Zara Japan Corporation has successfully established itself in the Japanese market by combining a fast marketing response with strategically placed stores. Zara operates stores, supplies products, and trains employees in Japan through a joint venture with the Bigi Group, while Bigi gathers market information and proposes new store locations. Zara has steadily expanded its network of stores across Japan since opening its first location in Tokyo in 1998, with further planned openings in Tokyo and Kyoto. Zara's parent company Inditex is Europe's largest apparel corporation and Zara's unique business model of handling all processes in-house from design to distribution enables it to produce thousands of new designs each year and supply stores within two to five weeks.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Success Stories: Ideas for Potential Players

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Sales / Services

Wholesale / Retail

ZARA JAPAN CORPORATION


Combining a fast marketing response with strategically placed stores to develop the Japanese market
INDITEX has joint ventures in Germany, Italy and Japan. In partnership with Japans BIGI GROUP, INDITEX operates stores, supplies products and trains employees, while BIGI gathers market information, proposes new store locations and generally oversees the business. Store construction costs are shared equally, but operational risks are born by INDITEX. ZARAs basic policies are the same the world over. Stores are located in presStores such as this one in Tokyos trendy Shibuya district do all the talking for ZARA. The companys limited use of advertising makes it a rarity in the fashion industry.

tigious areas of a city, the interiors and exteriors are harmonious with their surroundings and a high priority is given to maintaining a high-quality appearance.

The Spanish INDITEX GROUP is Europes largest apparel corporation, boasting 1,500 stores in 45 countries and consolidated sales of more than 500 billion yen. The group has six brands, of which ZARA is the star with more than 500 retail outlets worldwide, accounting for the bulk of the groups sales. The first Japanese store opened in Shibuya in 1998. Rarely using advertising, a novelty in the fashion industry, ZARA steadily established a network of stores stretching from Fukuoka in western Japan to Funabashi, Chiba Prefecture, east of Tokyo. In between, it also has retail locations in Yokohama and four additional stores in Tokyo: Tachikawa, Harajuku, Ginza and Roppongi.
1997 ZARA JAPAN Corp. established as a joint venture between Spains INDITEX GROUP, the largest apparel company in Europe, and the BIGI GROUP of Japans apparel company. 1998 Opened first store in Shibuya. 2000 Opened stores in Fukuoka, Funabashi (Lalaport) and Yokohama (Queens East). 2001 Opened store in Tachikawa (Isetan). 2002 Opened store in Harajuku. 2003 Opened stores in prestigious Ginza and Roppongi Hills.

Further openings are planned in Tokyos Ikebukuro area and Kyoto in central Japan. ZARA JAPANs Managing Director Tsuyoshi Monden explains how serious ZARA JAPAN is about increasing its store network: Amancio Ortega Gaona, the leader of the INDITEX GROUP and godfather of ZARA, has indicated that he would have no qualms about investing all of his worldwide profits in the Japanese operation.

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Mr. Ortega is leading something of a revolution in the apparel industry through the INDITEX GROUPs unique policy of handling all basic processes in-house, including design, production, supply, distribution and retail sale. The groups competitiveness stems from its broad variety The group produces tens of from design and sewing to distribution. Yet it still

Wholesale / Retail

Sales / Services

manages to limit the entire process to between two and five weeks, compared to six to eight months for certain major apparel companies in the U.S. and Japan.

thousands of new designs a year, dwarfing the mere thousands of designs released by some Asiabased rivals. It only takes four days for products to be sent from the logistics center in suburban La Corua to stores in Tokyo. Shipments are made twice a week, meaning that stores can receive merchandise as soon as required. Japanese consumers are said to be fickle, says Monden, but they easily account for the highest rate of repeat business among all ZARA clientele. ZARA is a testament to the fact that speedy and flexible manufacturing can contribute more to profitability than cost cutting. The companys success in Japan further illustrates that this principle can apply not only to labor costs, but sales costs as well.
Like other ZARA locations, the Ginza store is situated in the heart of its host city. Distinctive architecture also sets the stores apart from the competition.

of products and the speed with which it is able to supply them. Virtually all of the groups products are designed by a group of some 200 designers in La Corua, Spain and manufactured with the very latest in technology at company factories in Spains La Corua area, as well as nearby countries. The group has a massive logistics centers to supply outlets around the world. In a world in which most apparel is made in Asia, ZARA bucks the trend by performing everything in Europe,

Japanese Operation Established : Capital : Employees : Business : Location : URL : August 1997 1 billion yen 105 (full-time staff only) Import and sale of products of ZARA 5th floor, Bigi Bldg, 1-4-10 Takanawa, Minato-ku, Tokyo http://www.zara.com

Parent company : INDITEX Group (Spain; 32,535 employees) and BIGI GROUP (Japan; 2,279 employees)

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