Competitive Analysis

Overview of Fashion Industry
The fashion industry is a product of the modern age. Prior to the mid-19th century, virtually all clothing was handmade specifically for individuals, either at home or commissioned from dressmakers and tailors. By the beginning of the 20th century – with the rise of new technologies such as the sewing machine, the rise of global capitalism, the development of the factory production line, and the proliferation of retail outlets such as department stores – clothing had progressively come to be mass-produced in standard sizes and sold at fixed prices.
Although the fashion industry developed first in Europe and America, today it is highly globalized, with garments often designed in one country, manufactured in another, and sold in a third. For example, an American fashion house might source fabric in China and have the clothes manufactured in Taiwan, finished in France, and shipped to a warehouse in the United States for distribution to retail outlets around the world. The industry inarguably accounts for a significant share of world economic output.

Marketing Strategy – Zara
Product Strategy
• Zara is known as the Coca-Cola of fashion.
• One of the major strength of the company is that it is able to respond very quickly to the changing needs of the customers.
• Zara does not source its manufacturing process, making it fully in control of the products.
• In most cases, new styles are normally available in the stores