Inditex : the developpement of a new range of products

 [pic 1]

[pic 2]

[pic 3]

[pic 4][pic 5]

Executive Summary

Inditex, the leading group in the clothing market with almost 7,000 shops worldwide, has been hit hard by the Covid-19 crisis. The group's net sales will fall from 28.29 billion euros in 2019 to 20.4 billion euros in 2020  (Inditex, 2022). The group sells its products in 215 markets through its numerous e-commerce sites or via its 6477 shops in 95 markets.

The group is heavily criticised for its fast-fashion practices, working with 8756 factories around the world, and Inditex is constantly offering low prices and new collections. Thus, the environmental stakes being far too high today, the group must renew itself.

To this end, the group will launch its Nortech range in a market with ever-increasing opportunities: Germany. The objective is to take advantage of the acceleration of this market with more than 150 shops in Germany dedicated to eco-friendly fashion. (Expansion.Eco, 2022).

In order to best prepare for the penetration of this market and to understand its ins and outs, a coherent plan for strategic marketing purposes will be put in place.

Tables of contents

Introduction        4

Brief summary        6

Sustainability vision        6

Marketing Mix        7

Product        7

Place        8

Price        8

Promotion        9

Financial Data and Projections        9

Marketing implementation plan        14

Evaluation and control        15

Conclusion and Recommendations        18

List of references        19

Introduction

Inditex is a Spanish group, world leader in the textile and clothing market with more than 7000 shops worldwide. In 1975, Amancio Ortega created the first Zara shop in A Coruña and marked the beginning of the Spanish giant. This was followed by the creation of the Inditex holding company in 1985, which launched the internationalisation of the group in 1988 with a first shop in Porto, Portugal (Inditex, 2022).

As the group's business model was successful, this internationalisation continued to intensify with shops in New York and Paris. In 1991 the group expanded with two new brands: Massimo Dutti and Pull&Bear.

Today the group is present in 95 countries and owns the brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home.

With the covid crisis, Inditex has been severely impacted and has been forced to temporarily close 3785 shops (Independent, 2020) around the world which has caused its net profit to fall by 7% in 2020 (InsideRetail, 2021).

Moreover, Inditex along with the fast fashion industry in general suffer from a very bad environmental and social responsibility image.

Fast fashion is a real global concern. Indeed, the production of clothes is very polluting. Water consumption, deforestation and the growing carbon footprint are all contributing to this. The fast fashion and the clothing market may not have a bright future.

This situation presents an opportunity for Inditex. This is to develop a new segment in which Inditex is not already present in a new country with very good development prospects, Germany.

The idea behind Nortech is that resources are going to run out, so it is important that the Inditex group renews itself and anticipates by giving a new dimension to its brand image in order to attract and engage in a long-term vision of brand development.

The objective of this project is to draw up a marketing plan for the company's management team in order to promote a new expansion of the market.

Brief summary

This study takes into account the factors previously determined in the CW1 study in which we presented a brand creation idea under the name of Nortech marketed in Norway. The objective behind this initiative was to enhance Inditex's brand image with state-of-the-art costuming made from 37.5 technology and recyclable materials to keep the body at its natural temperature regardless of the current climate.

Sustainability vision

Fast fashion has become a delicate subject today and its practice is increasingly criticised in the textile industry. Pollution, deforestation, consumption of natural resources or even the endangerment and exploitation of human beings against all moral principles are criticisms that keep coming back.

Thus, the trend today is towards slow-fashion aiming to develop sustainable and ethical fashion in order to compensate for fast-fashion and to propose a new fashion ideology.

Thus, through its vision, Nortech is fully involved in this process by using a short production circuit from eco-responsible and recycled materials (rPET yarn) with the main objective of proposing a new way of constructing the fashion of tomorrow to change the practices and vision of the Inditex group in the near future.

Marketing Mix

Product

The strategy behind our new brand Nortech is to create a new segment in the costume industry that offers innovative products. Our mission is to create thermoregulated suits offering a unique technology called 37.5 that keeps your body at its natural temperature (37.5 degrees), without sacrificing comfort. Our mission is to offer our customers the best products without losing their comfort. We want to offer our customers a unique experience with our products. Our range of products is aimed at both men and women, with suits and blazers available in different colours such as blue, black and grey in sizes ranging from S to XXL.

...