Zara Business Plan (Haley Burton, Neil Colombini and Brendan Morley)

1837 Words Mar 8th, 2009 8 Pages
Zara Business Plan
Haley Burton
Neil Colombini
Brendan Morley

A few broad questions related to the finance sector of the franchise are: Do you have the financial resources or means to get the resources required to buy a franchise?, will your capital provide you with a cushion for at least one year after you have paid for the franchise, allowing a one-year period of time to break even?, what is a high estimate of your fixed expenses such as rent and your variable and operating expenses such as wages and stock?. When buying the Zara franchise rights, the franchise fee typically varies between 5% and 10% of the franchise store’s sales. Included in that fee, Zara offers franchisees full access to corporate services, such as
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We also hope to attract more of a male market as well. We are finding that men now days are becoming more and more fashionable than before and also want to wear designer clothing. This would be a good secondary market. Zara aims to provide current European fashions at reasonable prices. It is a huge success in Europe and Asia, with over 400 stores worldwide, and 32,000 employees, becoming an international enterprise. Zara has grown 25% over the past 5 years to become one of the world’s fastest growing retailers. Zara will communicate directly with its stores of what they sell and do not sell, and replace them in a matter of weeks, versus the nine-month average for most of the fashion industry. We will be geared around speed and responsiveness and use daily sales data to replenish the small inventory, and customer needs. The lower inventory levels and frequent line changes give the customer a sense of luxury and exclusivity. Zara will compete with quality brands such as Gucci, Dolce and Gabanna, and Louis Vuitton, at affordable prices. The customer market may not be the same, but clothing ideas and exclusivity will be. Since inventory is altered and changed frequently, it is

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