The Fashion Industry Group Work by Hannah

Quote

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"Businesses
cannot be
successful
when the
Society
around them
fails."

Assessment

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Week 5 Formative Assessment 19/02/2024

Each group of students will present: Group of choice, research conducted and new CRS strategy idea. 15 minutes slot allocation.

Assessment

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Week 8 Summative Assessment 11/03/2024

PDF Visual Report + Padlet submitted on Canvas

Written Visual Report

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1200 words

Module aim:

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To gain an understanding of sustainability, ethicality, EDI, technology and innovative trends.

CSR

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Corporate social responsibility-

SDGs !IMPORTANT!

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CONGLOMERATE

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CONGLOMERATE Examples

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Presentation Structure

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1. Group overview and analysis:
History/evolution, financials/Market share, SWOT, and
current CSR strategy linked to 17 SDGs and
communication strategy
2. 4 Brands within the group’s analysis. POP and POD
3. Market and Competitors’ analysis: PESTELE, P5F,
Competitors benchmarking and positioning map
4. Segmentation and Consumer Target Canva
5. SMART objective and sub-objectives
6. New CSR strategy linked to 17 SDGs
7. New Communication Strategy (online and offline)
8. KPIs
9. Conclusion
10. Reference list

KISS METHOD

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Keep it short and simple

Summarizing is a key skill

THEORIES

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SWOT
PESTELE
Porter 5 forces
POP-POD
Brand positioning map
Competitors benchmarking
Consumer target Canva
SMART objective
KPI’s

Types of Research

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PRIMARY AND SECONDARY RESEARCH

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PRIMARY:
Observation-store visits
Compshop
Survey
Interview
Focus groups

SECONDARY:
WGSN
Statista
BoF
Vogue
Statistics
Books
Similarweb.com

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Thinking points

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-Critical thinking, what do you think about the facts

RESEARCH RESEARCH RESEARCH

Focus Group Research

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Qualitative Research, allows more depth and understanding

Mixed Method

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Qualitative and Quantitative data

Market Research

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Secondary Research

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WGSN
Similarweb.com
Statista
Statistics
BoF
Vogue
McKinsey
Mintel Report
Books

Primary Research

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Observation: Stores visit
Observation: 4 Comp-shop
Survey/Interview/Focus
Group
Guest speaker/Masterclass

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PESTLE

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Chosen Brand - Inditex

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Week 2 30/01/2024

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SWOT on inditex

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STRENGTHS:
-Strong global presence

-Diverse ranges of products

-Efficient supply chain for production of new ranges

-Focus on fashion innovations

WEAKNESSES:
-Not environmentally friendly

-A few lawsuits against Zara

OPPORTUNITIES:
-Expand their online presence

THREATS:
-Wars going on meaning it will effect the production of clothing

-Competitors such as the H and M groups

-Cost of materials rising

Pestle

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POLITICAL - possible risks from brexit
ECONOMICAL - business impact of Covid 19
SOCIAL - protecting human rights as a social responsibility

SWOT

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Pestle

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Technological- Zara utilizes advanced technology, such as RFID (Radio-Frequency Identification) tagging and real-time data analysis to optimize its supply chain.

Legal- Zara is alleging copyright infringement and other claims against Thiliko LLC. Zara accuses Thiliko LLC of replacing Zara's tags with its own and then reselling the clothes under its own brand at a large markup.

Environmental- In 2022, Zara promised to use 100% renewable energy in their own operations. In 2023 they promise to eliminate single-use plastics for customers. By 2025 they plan to introduce more sustainable 100% linen and sustainable or recycled polyester. By 2040 they promise to have zero net emissions.

Investigation on our chosen conglomerate

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Moodboard

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BRAND OVERVIEW

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INDITEX

ZARA: Zara is one of the worlds largest international fashion companies.
Information found on Forbes: The clothing retailer has more nearly 3,000 stores, including its kids and home stores. It has stores in 96 countries and is the flagship brand of the Inditex Group. Zara is renowned for its ability to develop a new product and get it to stores within two weeks, while other retailers take six months.

MASSIMO DUTTI: Massimo Dutti was brought out by inditex in 1991.
Business of fashion: Massimo Dutti combines basic and contemporary styles, made with the latest generation fabrics, but always practical, pleasant and quality. Discreet textures, 100% natural fabrics and innovative mixtures that offer as a result an impeccable image with the maximum comfort.

BERSHKA:Bershka was born in 1998 as a new brand of the Inditex Group.
Info found on inditex website:
NET SALES

2,012

STORES

1,081

NET OPENINGS

MARKETS

ONLINE MARKETS

32

STRADIVARIUS:
Stradivarius is a fashion brand that brings the latest trends in clothing and accessories to the street.
Drapers states: Stradivarius may not be a household name in Britain but the Spanish women’s casualwear brand is hoping that will change following the opening of its first UK store.

BRAND POSITIONING MAP

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PORTERS 5 FORCES

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Bargaining power of suppliers - very low
- The Inditex group contains 7 global brands with the largest being Zara, this means they have a high degree of control it’s suppliers due to their established relationships as well as a secure supply chain for the needed materials.
- For example, Zara outsources it’s production in areas such as Morocco, Spain, India and Portugal. Since there is a varied list of suppliers (high concentration of suppliers), their bargaining power against suppliers is very high. This is due to how the Inditex group can simply swap and/or substitute for other suppliers at a reasonable cost.
- Another example would be how Zara has in-house production facilities which also reduces the dependency on suppliers.

Bargaining power of customers - moderate
- Customers have what’s called indirect bargaining power that forces brands within the Inditex group such as Zara to be innovative and differentiate themselves in order to retain and attract new customers.
- Since the Inditex group is made up of varying brands with different price points, the concentration of buyers aren’t all in one specific market, therefore meaning that there are varying levels of bargaining power.

Threat of new entrants + Threat of substitute products + Competitive rivalry - moderate to high
- Here I have grouped these 3 headings under one as they all link together.
- To start, the Inditex group face lots of competition with retailing brands such as the H&M Group and GAP.
- The fast fashion market is extremely competitive and is continually expanding.
- The fast fashion market was worth $122.98 bn in 2023
HOWEVER
- Zara’s estimated revenue for 2024 is predicted to be €32.6 bn compared to H&M’s predicted revenue of €20.28 bn.

- Customer and brand loyalty also comes into play, for example, Zara is implementing a vertical integration approach into the supply chain model to consistently roll out new and trendy a fashion customers, this will increase customer satisfaction.
- Finally, competition within the fast fashion industry is ‘cut-throat’ and rival are committed with their differentiated offerings and unique value proposition.

Introduction

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The biggest fast fashion group in the world, operates over 7,200 stores in 93 markets worldwide. The company's flagship brand is Zara, but it also owns a number of other brands such as Zara Home, Bershka, Massimo Dutti, Oysho, Pull&Bear, Stradivarius and Lefties. They started in 1963 by amancico ortega and then in 1975 Zara was opned in Spain which then led to Zara going global and expanding Inditex to pull & bear, BERSHKA etc.

INDITEX BRANDS:

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COMP-SHOP — comparing Massimo Dutti and Bershka

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Location and Accessibility

MASSIMO DUTTI
- 4 locations across London
- Chosen store- Regent Street, London
- MD’s target audience consists of individuals from the upper middle class of society, specifically targeting consumers aged 25-45.
- Having stores across London and being widely available means that Massimo Dutti is very accessible to their target customers.
- The store location at Regent St. is extremely accessible to the general public as its close to Oxford Circus tube station.

BERSHKA
- 3 locations across London
- Chosen Location- Oxford St. London
- Very easy for customers to access due to being location closely to both Bond St. station and Tottenham Court Road station.
- Bershka has a target audience of young people aged 15-25 that have an interest in trendy fashion garments.

Overview
- Massimo Dutti and Bershka are targeting 2 completely different markets which allows the Inditex group to secure customers ranging from ages 15-45.

Zaras current CSR strategy

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Promoting gender equality, empowering women and senior citizens, and undertaking measures for reducing inequalities faced by socially and economically backward groups. e. Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water.

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This is a survey to collect data for our group report relating to our chosen conglomerate, INDITEX.

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https://docs.google.com/forms/d/e/1FAIpQLSej05NmtCJO01uRhUWNKSplWjKWDz63_r9LsaVWvpLwmkVJuQ/viewform?usp=sf_link

Survey results:

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Secondary research

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CSR or Corporate Social Responsibility is by definition responsible for ensuring sustainable development by delivering economic, environmental, and social parity for all stakeholders.

CSR in the fashion industry has never been more active than today. Compared to any time in the past, consumers now want their brands to be more socially responsible. A 2015 Global CSR study found that around 90% of consumers are likely to boycott a company if poor business practices are used. The study also reported that more than 90% of consumers want their brands to operate more responsibly towards the environment to ensure sustainability. This has brought about newer heights in CSR campaigns by big brands.

Not long ago, CSR in the fashion industry used to be confined to workers' rights and work environment-related activities at best. The term has taken a broader shape today, Consumer demand has replaced the mere activities that were meant to comply with the policy only. Today, CSR does more than policy compliance, involving actions like - waste reduction, environmental awareness campaigns, and focusing on organic product materials – all in all, keeping sustainability ahead of anything.

One of the core responsibilities of CSR is reaching proper information to the consumers regarding their product, production, and brand activities. As essential as it is for a company, strategic communication can have a profound influence on a brand’s growth, both by revenue and public perception. Digital tools have enabled the brands to showcase precisely what they are doing, and how their actions are bringing a positive change, in the most transparent possible way. And transparency is something consumers always seek from a company. Social media being one of the most powerful tools of the digital age, spreading CSR activities and news on social media can be efficient. PR practitioners are now much more empowered to spread their message to a much broader audience with these tools.

https://www.linkedin.com/pulse/csr-crucial-fashion-industry-j-adoube86#:~:text=One%20of%20the%20core%20responsibilities,by%20revenue%20and%20public%20perception.

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Ralph Lauren’s take on CSR (example)

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Ralph Lauren is getting serious about circularity. To get there, the American brand plans to build better products that last longer and pilot new “recirculation” programmes to keep them living on, from resale and repair to recycling and rental.

First, Ralph Lauren is committing to designing products according to self-defined circular principles, which include improving five iconic products to become Cradle to Cradle certified; amping up its use of recycled cotton; and investing in scaling regenerative practices, including the US Regenerative Cotton Fund and natural fibre recycling startup Natural Fiber Welding. The fresh commitments have a 2030 deadline, with significant progress to be made by 2025.

On this front, the brand has chosen five iconic styles to rework so they can be certified by Cradle to Cradle. The first is its purple label cashmere sweater, whose label is now an organic cream cotton instead of its signature purple polyester — just one of the changes necessary to achieve certification. It will be available to purchase later this year, and customers will have the option of “recirculating” it through Ralph Lauren’s new cashmere recycling programme.

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