Academic department under which the project should be listed

CCOB - Marketing & Professional Sales

Faculty Sponsor Name

Dr. Mona Sinha

We do not need approval by the IRB

Abstract (300 words maximum)

Zara, one of the largest international fashion companies, was founded in Spain in 1974. It has a brand value of $18.4 billion and global revenues of $ 28.22 billion in 2018. Zara entered China in 2006 to compete in its $5.58 billion fast fashion market (Ge, 2018). China is an attractive emerging market with a GDP of $13.6 trillion, growing at 5.9% (World Bank, 2019). Zara’s fast fashion typically appeals to young college students and the middle class with income ranging from $7,250 to $62,500, representing about 39% of the population (Cyrill, 2019). In China, Zara targeted young women entering the work force who were looking for affordable yet high-quality, timeless Asian style clothing. However, the fast fashion industry has been declining in China due to several reasons: high shipping costs, high levels of competition influenced by customization, fast paced rotation of designs, e-commerce, and collectivist cultural values of the consumers. Moreover, local Chinese stores are moving upmarket by offering more affordable clothing with a higher perceived value and this has also affected Zara negatively (Jun, 2019).

This case study provides an overview of China and its fast fashion industry, consumer preferences, competitors and the cultural as well as socio-economic context in which Zara needs to compete. An analysis of Zara’s current marketing strategy in China provides insights into how it should change its marketing mix in order to succeed.

Keywords: Zara, China, fast fashion, international marketing, case study, marketing strategy, emerging market.

Note: References available on request

Project Type

Poster

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Zara: Facing Fast Fashion Challenges in China. An International Marketing Case Study

Zara, one of the largest international fashion companies, was founded in Spain in 1974. It has a brand value of $18.4 billion and global revenues of $ 28.22 billion in 2018. Zara entered China in 2006 to compete in its $5.58 billion fast fashion market (Ge, 2018). China is an attractive emerging market with a GDP of $13.6 trillion, growing at 5.9% (World Bank, 2019). Zara’s fast fashion typically appeals to young college students and the middle class with income ranging from $7,250 to $62,500, representing about 39% of the population (Cyrill, 2019). In China, Zara targeted young women entering the work force who were looking for affordable yet high-quality, timeless Asian style clothing. However, the fast fashion industry has been declining in China due to several reasons: high shipping costs, high levels of competition influenced by customization, fast paced rotation of designs, e-commerce, and collectivist cultural values of the consumers. Moreover, local Chinese stores are moving upmarket by offering more affordable clothing with a higher perceived value and this has also affected Zara negatively (Jun, 2019).

This case study provides an overview of China and its fast fashion industry, consumer preferences, competitors and the cultural as well as socio-economic context in which Zara needs to compete. An analysis of Zara’s current marketing strategy in China provides insights into how it should change its marketing mix in order to succeed.

Keywords: Zara, China, fast fashion, international marketing, case study, marketing strategy, emerging market.

Note: References available on request