Final assignment e commerce advertising strategies for fashion e business zara case

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION FINAL ASSIGNMENT E-COMMERCE Advertising Strategies for Fas

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY

FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

FINAL ASSIGNMENT

E-COMMERCE Advertising Strategies for Fashion E-Business:

ZARA case

Course: Summer 2022-2023

Group’s members:

HCMC, Thang 8 nim 2023

TABLE OF CONTENT

II {9))10 0:90) 2 225 4dđŒd aa.ă 1 1.1 Overview of the Fashion E-Business che Hoà nha Ho te 2 1.1.1 Its importance in the fashion industry cánh nh nh HH Hà Hà KH Họ HH 3

2 The Coimpanyy ánh HH nà Hà Hà Hà HH HH HH Hà HH KH HH HH HH HH TH Hà HH 3 2.1 Analysis of the Fashion E-Business Company's strategic position in the market of ZARA 3 2.2 Determination of the competitive strategy employed by ZARA eee 4

3 Market Selection cu nh HH HH nh HH HH HH H1 TH H1 HH 5 3.1 SWOT analysis to assess the potential of the chosen marÌ:e( chinh re 5

Sw Strengthen ent ere ener iene renee neta neste teeneenaeeesieeseneennneenneennaes 5 3.1.2 WealiIeSS€S nh HH HH HH HH TH tt HH HH HH HH HH He 6 3.1.3 Opportunities nhà nà Hà Hà HH Hà HH HH HH Hà HH HH Hà ĐH Tà Hà KH n 7

SN nh ốc hố ẮằẮ 8

4 Selection of Relevant Segmen(tation CTFÏf€TÏA nh nà nà Hà HH di di di HH Hi co 10 4.1 Development of appropriate market seØIm€n( ác nh nhà HH Hà HH tờ 10 4.2 Screening of segemen(s (o identify the mos( suitable countries óc cà nnnnnsehhhrre 11

5 E-Commerce Strategies for the Market ch nhàn Hà Hà Hà HH HH HH ky 12 5.1 Product/service decisions considering cultural preferences and market demands 12 5.2 Specific e-commerce strategies to effectively reach the target audience, including digital marketing channels and approaches nh nhà nh HH Ho HH LH ky 13

6 Conclusion and lecommen(latiONS ST nh HH Tnhh kh kkt 14

tr, v PP 43} 16

List of Tables and Figures

PIcture l An example Of Z⁄ara`s I€WSÌ€TẨCT cánh nh Hà HH Họ HH HH KH do Hà HH LH HH Hi 13

INTRODUCTION Advertising tactics play a critical part in establishing and leading to a brand's success and reach in the context of a thriving and rising e-business fashion industry This essay will focus in how the renowned fashion e-commerce, ZARA, uses efficient advertising methods to engage its worldwide audience and retain a competitive advantage ZARA's story offers as a fascinating study in utilizing creative techniques to gain consumer attention and develop brand loyalty as the

convergence of technology, fashion, and business advances With the available information

referenced through different source on the internet and the knowledge accquired throughout the course, the essay examines ZARA's advertising approaches to shed light on the complexities of navigating the ever-changing world of online fashion retail while providing insights into viable strategies for industry participants

1 Introduction

1.1 Overview of the Fashion E-Business

Online fashion retail, sometimes referred to as fashion e-business, has become a disruptive

force within the fashion industry, transforming how customers purchase apparel, accessories, and other fashion-related goods This online marketplace offers consumers unmatched accessibility and convenience, enabling them to research and buy the newest trends without leaving the comfort of their homes or the limitations imposed by traditional store visits Fashion e-business's worldwide reach allows brands and merchants to interact with customers from all over the world, erasing regional limitations and increasing market potential These online shops are open round- the-clock and serve various customers in various time zones, providing a wide selection of goods

to suit each customer's interests and likes

Businesses on the internet may acquire priceless insights into the tastes, behavior, and demographics of their customers by gathering and analyzing consumer data With this knowledge

at hand, they may give specialized product suggestions and focused marketing initiatives, improving the entire shopping experience and encouraging repeat business Additionally, this data-driven strategy equips fashion firms to remain flexible and sensitive to new trends, ensuring that they maintain their leadership in the always-evolving fashion industry

E-business has created opportunities for creative and sustainable fashion firms to present their products and values, in addition to giving a platform for well-known fashion names Online platforms provide a means of promoting moral behavior and supporting businesses that are devoted to sustainability as customers want more environmentally and socially responsible products The seamless adaption to customer behavior and market demands is another benefit of the fashion e-business Retailers can quickly change their stock, roll out fresh looks, and incorporate client input, increasing customer happiness and fostering long-lasting partnerships

Through a variety of advances, the fashion e-business industry, which embraces technology,

constantly works to improve the buying experience Virtual try-on, augmented reality capabilities, and interactive product displays are just a few examples of cutting-edge innovations that increase consumer engagement and happiness E-commerce promotes cost-effectiveness by maintaining lower overhead expenses compared to traditional storefronts, enabling firms to provide their customers with competitive pricing, promotions, and discounts

1.1.1 Its importance in the fashion industry

Fashion e-business has evolved into a crucial pillar of the sector, transforming how customers

purchase for apparel and accessories and offering several advantages to fashion firms and merchants Fashion e-business, which operates in the digital sphere, provides clients with

unmatched accessibility and convenience by enabling them to research the newest trends and

designs from the comfort of their homes, transcending national borders with its worldwide reach Global consumers have flexibility because of the platform's constant accessibility and data-driven personalization increases client engagement and loyalty E-business, which embraces technology, spurs innovation by providing features like augmented reality, virtual try-on, and interactive displays to improve the whole purchasing experience Due to its low cost and low overhead, manufacturers may engage in product development and sustainability initiatives, promoting

ethical and environmentally friendly fashion practices E-business is still a major influence on

how fashion retail will develop in the future, adjusting to shifting customer behavior and promoting a more diverse, open, and dynamic fashion industry

2 The Company

2.1 Analysis of the Fashion E-Business Company's strategic position in the market of ZARA

Numerous competitive elements strengthen ZARA's strategic position in the fashion e- business industry, each of which has helped it achieve amazing success The company’s expertise

in fast fashion is a crucial advantage because it enables quick answers to rapidly changing trends and the introduction of new styles at a breakneck speed ZARA's omnichannel strategy is

demonstrated by the incorporation of both physical stores and a flawlessly operating e-commerce

platform, distinguishing it from competitors by providing customers with a consistent shopping

experience across all channels H&M, Forever 21, ASOS, Boohoo, Uniqlo, and GAP are a few of

ZARA's rivals in the fashion e-commerce space ZARA's extensive global reach not only penetrates a variety of markets but also customizes its products to suit regional preferences Utilizing data-driven insights for targeted marketing and personalized recommendations says a lot about a company's dedication to retaining customers and building loyalty Notably, ZARA's focus on sustainability and moral behavior harmonizes perfectly with the expanding consumer

trend toward eco-conscious purchases, portraying the brand as an alluring option for ethical fashion ZARA's strategic positioning essentially takes advantage of consumer trends like the need for fast-fashion demand, shopping preferences online, sustainability consciousness, and personallization expectations With its target audience of tech-savvy consumers and fashion

enthusiasts, this effectively connects ZARA's business strategy, which is characterized by

ongoing collection replacement, a tactile shopping experience, and worldwide localization, strengthens its position in the market Customers view ZARA products as economical ways to

exhibit uniqueness in addition to being fashionable and stylish Additionally, the brand's

dedication to sustainability is reflected in its product positioning, drawing in a group of buyers who care about the environment The strategic alignment of ZARA successfully navigates the intricacies of the fashion e-business sector, solidifying its position as a leader and success model

2.2 Determination of the competitive strategy employed by ZARA

With its "Fast Fashion" approach, ZARA competes in a distinctive and wildly effective way Speed and reactivity are the key components of this approach, which enables the business to seize and profit from new fashion trends right away The competitive edge of ZARA is its capacity to create, produce, and distribute new apparel lines at an incredibly quick rate In contrast to

conventional fashion stores, which schedule their collections months in advance, ZARA

constantly tracks customer preferences and comments to produce small batches of cutting-edge clothing To keep its collections current and in line with the newest fashion trends, ZARA uses a

"just-in-time" production strategy that shortens lead periods and quickly introduces new designs

to the market

Additionally, ZARA's vertically integrated supply chain is a key component of its marketing plan ZARA has more control over the whole value chain since a sizable amount of its manufacturing and production processes are owned by the company ZARA can adapt swiftly to changes in customer demand and maximize cost-efficiency because of this vertical integration, which also speeds up decision-making and reduces dependency on outside suppliers

ZARA also makes use of its wide network of physical stores in conjunction with its e- commerce platform to give customers an easy and engaging shopping experience Because customers can interact with ZARA's products through numerous touchpoints, this omnichannel strategy promotes brand loyalty and customer retention ZARA caters to a wide audience and offers maximum accessibility to its fashion goods by providing both in-store and online choices

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Additionally, the price policy of ZARA is consistent with its fast-fashion business model A wider spectrum of customers can now afford current apparel thanks to the company's very low costs and generally good-quality items The brand's success and market supremacy have been greatly aided by its low prices, which are in line with industry standards, and its ability to continually supply the newest fashions

The Fast Fashion concept, which is defined by speed, agility, and reactivity, is the foundation

of ZARA's competitive approach By consistently satisfying the expectations of customers who care about fashion, the firm can stay one step ahead of the competition, solidify its position as a worldwide leader in the fashion sector, and maintain its competitive advantage ZARA has established itself as a trendsetter and market disruptor in the quick-paced world of fashion retail thanks to a successful formula that includes its quick production cycle, vertical integration, omnichannel presence, and low pricing

3 Market Selection

3.1 SWOT analysis to assess the potential of the chosen market

3.1.1 Strength

The aspect of "STRENGTH" plays a key role in the assessment of the potential of the selected market through a thorough SWOT analysis as it digs into the market's internal characteristics and capabilities that set it apart from its rivals and contribute to its competitive advantage A market's strength resides in its capacity to capitalize on its unique attributes and use them to achieve long-term success and growth The development of a strong brand reputation, fostered over years of supplying high-quality goods or services and nurturing client trust and loyalty, is one important strength that may greatly influence the market's potential A reputable brand has a competitive advantage because it draws a loyal client base that is in tune with the market's ideals and product offers

Additionally, the market's potential is increased when it establishes a distinctive position through its product or service offers The market distinguishes itself from rivals and builds a devoted following of customers seeking its unique value offer by developing a niche sector or delivering creative solutions that suit certain client demands

Another critical attribute that might increase a market's potential is operational competence Implementing effective supply chain procedures and streamlining operations guarantees prompt and dependable delivery of goods or services, enhancing client pleasure and enhancing the market's standing Additionally, motivated and talented staff is essential for promoting innovation, increasing efficiency, and providing outstanding customer experiences, all of which increase a market's competitive edge

A market may invest in development prospects, weather economic uncertainty, and keep a strong position in the industry thanks to financial stability and good financial management A market that is financially stable is better able to make strategic choices, increase the variety of products it offers, and grab new chances for market growth and diversification

The strength of a market is significantly influenced by technological prowess By embracing cutting-edge technology and digital advances, the market is better equipped to optimize processes, create seamless consumer experiences, and simplify operations A market that is technologically aware is better equipped to adjust to the quick changes in the digital environment

and satisfy the tastes of contemporary customers

A market's ability to serve a wide range of client demands and preferences, as well as increase

its customer base and income streams, is further enabled by the diversity of its product selection

Cross-selling possibilities and a comprehensive client experience may be fostered by being able

to provide a number of complementary goods and services

The strength of a market can also be increased through strategic alliances and collaborations with complementary companies The market may access more resources, knowledge, and client bases by collaborating with other organizations, therefore broadening its market and pursuing fresh development opportunities

3.1.2 Weaknesses

The word "WEAKNESSES" is a significant aspect that needs careful evaluation in a SWOT analysis to evaluate the potential of the selected market This element explores the internal issues preventing the market from expanding, being viable, and remaining competitive Making progress and improving the performance of the market as a whole require identifying and correcting flaws

Lack of brand awareness or a reputation for having a poor brand are two frequent flaws that might limit a market's potential A market with a worse reputation or a less favorable brand image

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may find it more difficult to draw in and keep clients in a cutthroat business environment than less well-known rivals

An important flaw might also be operational inefficiency This might be due to time- consuming procedures, antiquated technology, or ineffective supply chains, which would delay the delivery of the goods or raise the price Enhancing these areas of weakness can increase customer happiness and profitability

A restricted selection of goods or services might be another area of vulnerability A market may miss out on possible income streams and growth prospects if it does not diversify its offers

or respond to changing client wants and preferences

A market's potential might also be harmed by insufficient financial resources or inadequate financial management The market's capacity to invest in new projects, grow its business, or

weather economic downturns may be hampered by limited access to finance

The potential of a market can also be impacted by human resource deficiencies The market's capacity for innovation and competitiveness might be hampered by a lack of competent or motivated workers, which can also result in poorer productivity and lower service quality Ineffective marketing tactics and client interaction initiatives can also be a serious flaw

Missed growth prospects and decreased customer loyalty may stem from an inability to properly

reach the target audience or communicate with consumers

A market's competitiveness may be hampered by a lack of technology developments or a resistance to digital change Markets that do not take use of technology run the danger of slipping behind rivals and losing touch with contemporary customers in a world that is rapidly digitizing Finally, having a little market presence or a small geographic reach might be a limitation, especially in industries where physical locations are quite important Without a significant market presence, the market could find it difficult to reach a larger audience and take advantage of growth prospects

3.1.3 Opportunities

Emerging market trends are one of the major chances that a market might exploit The market can launch new goods or services that meet the market's needs, obtaining a competitive edge and

a larger clientele, by recognizing and responding to shifting consumer preferences

Another important possibility for a market is the advancement of technology Leveraging technology and embracing digital innovations may expedite processes, improve consumer experiences, and spark the creation of new goods or services

A market may also benefit from shifting demographics, which might provide intriguing prospects New target markets may develop as a result of changing population demographics, and markets can adjust their product offers to appeal to these changing customer categories A tempting possibility for expansion is entering new geographic markets The market may reach new clients, diversify its income sources, and perhaps obtain a first-mover advantage in certain areas by foraying into undeveloped regions

Additionally, collaboration and strategic alliances with other companies might offer rewarding prospects Combining forces with like-minded businesses may lead to synergies,

access to new markets, the sharing of resources, and a wider consumer base

Policies and rules set by the government can also generate possibilities Favorable regulations that support the market's sector of the economy or advance sustainability might create development opportunities and encourage the adoption of best practices

Economic actions such as expansionary times or shifts in consumer purchasing patterns, can also present market possibilities The market may improve its strategy to fit with the current market circumstances by recognizing and utilizing these trends Additionally, societal and cultural changes may offer special opportunities Marketers may increase the relevance of their brands and appeal to certain target populations by coordinating their marketing strategies with the societal ideals and cultural fads that are now in vogue

Finally, changes in international commerce and marketplaces might present chances for growth and diversification A market that is prepared to compete in international marketplaces can reach a larger consumer base and possibly benefit from cost benefits

3.1.4 Threats

Violent competition is one of the main dangers that a market may encounter Rival businesses contending for the same target market can exert pressure on price, client loyalty, and market share

in a competitive business environment Ineffective competition response might result in diminished profitability and market relevance

Markets are more vulnerable to risks from the economy's ups and downs if they are relying on

it heavily Consumer confidence and purchasing patterns are directly impacted by economic

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