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Zara uncovered: Inside the brand that changed fashion
I am seeing spots. More specifically polka dots, on a white maxi dress. Three women have walked by me - all wearing the same identical dress - in the half hour I've been sitting outside this café. I know it's from Zara, I've tried it on, and now I'm seeing those spots everywhere. It is the dress of the summer, another viral Zara fashion statement, complete with a dedicated Instagram account set up by fans. Just one sign of how the Spanish clothing giant is bucking the trend of many of its struggling High Street competitors and posting record sales. Considering the success and size of the company, it might be thought of as a bit of an enigma. It doesn't advertise, it does little marketing and its boss, who was named best performing chief executive in the world by a business magazine last year, has not given any big interviews, until now. Pablo Isla recently laid out plans for Zara's future and said it was all about a digital and sustainable transformation. But is it possible for a company to be sustainable, when the entire business is about getting shoppers to buy as much fashion as possible? 'No contradiction' Speaking at their campus-like headquarters in northern Spain, Pablo Isla, the chairman of Zara and its parent company Inditex, tackled the sustainability issue. "There is no contradiction at all between sustainability and profitability of the company," he says. "In the next year, all our stores in the world will be efficient - this means their consumption of energy and water is significantly lower. If your energy consumption is 20% less, you have a return." In fact some of the key ways in which the business works helps with its sustainability goal. Mr Isla explains that Zara works with a "low level of inventory". This helps the retailer minimise waste and avoid discounting huge amounts of clothing. On my tour of the headquarters, I walk past rows of desks where staff are analysing instant data from Zara's store managers. They use this information to decide what to make each week - Zara's factories will only make what they know will sell. Most of Zara's clothes are manufactured at its sites in Spain or in nearby Portugal, Morocco and Turkey. 'Long-term relations' One of the key factories producing Zara's womenswear is just next to the head office. This way of working is all about speed, which allows Zara to get fresh trends into stores before their competitors. But it hasn't always meant being able to keep a close eye on standards. Two years ago, some Zara customers in Turkey found notes in clothes from workers saying they hadn't been paid and asking for them to back calls for better working standards. When asked about it, Mr Isla says working with these suppliers was an "evolution". He says "the most important thing is the idea of long-term relations with our suppliers" when it comes to keeping an eye on working conditions. Fashion Revolution is an independent organisation which monitors where clothes come from and how ethical they are. They say Zara needs to provide more information about where their clothes are made to be held accountable for standards. "Inditex, which owns Zara, remains one of the major fashion retailers that is dragging its feet on publishing a list of its manufacturers," says Fashion Revolution policy director Sarah Ditty. "Other brands have published a list and proved that doing so doesn't hurt them competitively. " Recycled plastics Back at headquarters, I wander through the pilot store built on-site - a perfectly-kept Zara shop where everything is in place - but there are no shoppers. This is where Zara test how everything should look and feel, from lighting to displays. They are aiming to reach zero waste in store - all packaging is made from recyclable cardboard and plastic. Recycling is a big theme for the clothes too. They have been working with the renowned US university MIT to develop ways of making fabric from recycled plastics. I take the opportunity to feel the texture of some of the latest recycled plastic clothes from their sustainable line. The cloth feels silky to the touch. Mr Isla has committed to 100% of the cotton, linen, and polyester used by Zara - and all of its sister companies - being organic, sustainable, or recycled by 2025. Sarah Ditty from Fashion Revolution says that while it is great to see Zara taking steps to incorporate more sustainable material into its ranges, it is essential action that all brands should be taking. However, she highlights that the real issue is all about the sheer volume of clothes they make. Inditex reported putting over 1.5 billion products on the market in 2017 alone. Even with more environmentally-friendly materials, producing that many items each year is unsustainable for our living planet. How much clothing we buy is a marker of just how much the industry has grown and changed in a short space of time. The UK has the highest rate of consumption in Europe, at 27.6kg per person per year. Customer decisions Indeed, Zara has an enormous turnaround, fashion influencer Jasmine Jonas tells me. "I feel confident walking into a Zara, [being] able to find something that will look good, fit well, and that I can afford. But across the board, demand for eco-conscience clothing is rising." It's not just Fashion Revolution - many campaigners say the only way to truly tackle sustainability in fashion is to make and sell less. But how can that be a solution for Zara and Inditex if they want to keep those record-breaking sales? "It's always the customers' decision of how much do they buy of each particular product," says Mr Isla. "I think our responsibility as a company is taking care of manufacturing our products in a very sustainable way. Each customer, each person, is free to decide how much would he or she like to buy at any point in time, if this person wants to spend money going to a restaurant or buying clothes... this is the freedom that each person has." "Should I, shouldn't I?" is the age-old changing room debate, but does it take on a new dimension if, as Pablo Isla says, it is ultimately in shoppers' hands to decide the crucial sustainability issue? In the meantime, Zara says it will do what it can to keep the environmental conundrum for customers to a minimum.   Source:https://www.bbc.com/news/business-49268965
Franchise Industry
Spain, Carrefour replaces the plastic with a cotton mesh for fruits
Cotton meshes will replace plastic bags for the purchase of fruit in the Carrefour food distribution chain from Monday, with the aim of avoiding and reducing the use of containers and packaging, especially plastic. Customers can purchase 100% reusable cotton meshes from the greengrocers section of their stores, the company said in a statement. Carrefour thus becomes the first company to adopt this type of initiative in Spain, after being the first to enable its buyers to use their own containers or bags for their purchases of fruits and vegetables, delicatessens, fishmongers, butchers and prepared dishes. According to the note, this Carrefour initiative complements the plan of measures that it is progressively carrying out for the reduction and elimination of plastic from its establishments and as a direct suggestion of its customers. Among other measures, the company has eliminated the plastic in the fruit and vegetable section of its BIO stores or has replaced this material and the alveoli in fruits such as apples, pears and oranges with sustainable materials. Likewise, they have replaced the plastic containers in olives and pickles with glass jars, in the cucumber and the papayón or the Canary Islands banana has been stopped packaging in plastic bags, a product that now only has a small grouping tape.     Source:https://www.internationalsupermarketnews.com/spain-carrefour-replaces-the-plastic-with-a-cotton-mesh-for-fruits/
Franchise Industry
Taiwanese Chain Brands successfully expanding the Southbound market
Under the support of the Department of Commerce, Ministry of Economic Affairs, TAITRA and China Productivity Center led 8 Taiwanese companies to participate in the “Thailand Franchise & Business Opportunities(TFBO) from July 11 to 14, 2019. The "Taiwan Franchise Brand Pavilion" aimed to promote the gourmet food and variety service of Taiwan to the whole ASEAN market. The event went well with fruitful results. The exhibitors of the "Taiwan Franchise Brand Pavilion" included tea shops, breakfast shops, Taiwanese specialty snacks, elderly welfare service, and beauty spa services, which provided a wide range of franchise options. It also showed that in addition to bubble tea, Taiwanese food and beverage brands are increasingly accepted and loved by overseas markets.  “Meet Fresh” has been engaged with potential buyers in Thailand over the past few years, but has never gone beyond the stage of mutual understanding. Through this Expo, after face-to-face negotiations with buyers, they have successfully found a partner who will sign a contract shortly. “Tea Melody” participated in the “Taiwan Franchise Brand Pavilion” for the first time and also achieved very good results. With the global whirlwind over bubble tea, its mission is to surprise consumer palates and enjoy the ambiance of drinking tea. Several Thai companies have follow-up business meetings to further cooperation with “Tea Melody”.  To comply with the Southbound policy of the Taiwanese government, TAITRA actively assists companies to explore the new southbound market. Taiwanese franchise brands gradually have built a layout in the ASEAN market by utilizing Thailand as the base.
Franchise Industry
Sanborns Group purchases 33% of Miniso in Mexico
Carlos Slim, through Grupo Sanborns, will increase his participation in the social capital of the company Miniso, according to the communication of the Mexican firm in a release sent to the Mexican Stock Exchange (BMV). “Sanborns informs the investor public that it has reached a definitive agreement to subscribe in this same date an increase of capital in Miniso BF Holding, representative of the 18,272% of the social capital of the latter,” pointed the enterprise. The company added that subject the conclusion of the respective contracts, the participation of Grupo Sanborns in Miniso will increase in the coming days through the purchase of shares. Sanborns will reach a total participation percentage of 33.27% of Miniso´s social capital, pointed out the company.   Source:https://www.eluniversal.com.mx/
Franchise Industry
Canada’s Largest Quick Service Restaurant is Following Market Trend in Upscaling and Targeting Millennials
Tim Hortons, Canada’s largest quick service restaurant chain specializing in coffee and donut items, just opened a much-touted “innovation café” which has a clean design and offers Instagram-ready treats and food items that are more typically seen at higher-end eateries. Tim’s global marketing chief acknowledges that the new store is tailored to young, urban professionals, a segment of customers that this Boomers-beloved “parent’s brand” is trying to attract. Upscaling and targeting millennials are definitely two trends that quick service restaurants should pay attention to.  Like McDonald’s, Boston Pizza, Panera Bread and many other well-known quick service restaurants, Tim Horton is rethinking how to reach millennial and Gen Z diners. As explained by Susan Weaver, managing director of Pearl Strategy & Innovation Design Inc., millennials are an especially sought-after market because of their size, their larger disposable income, tendency to eat out more and desire for convenience. Vince Sgabellone of NPD Group, a food industry expert, also notes that people are willing to spend a little more in quick service as long as they get the quality and the service that they expect with the premium pricing. These are the reasons that quick-service market in general has been shifting upscale for a while now and examples include Starbucks’s “reserve” brand and McDonald’s McCafe. This segment of the market is growing at about 8%, whereas quick-service restaurants as a whole are only growing at about 2-3%. It is a good time for Tim Hortons to test how far they can stretch their brand and edge towards the “fast casual” tier and how much more they can charge for their items. Possibility also exists for Tim Hortons to expand the concept of innovation café as a separate offering for millennials in every big urban city.   Source:https://www.ctvnews.ca/business/upscale-tim-hortons-shows-how-far-restaurants-will-go-to-lure-young-diners-1.4526797

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