And yet Zara, with more than 6, stores and a growing presence online has managed to thrive without going this traditional route. How does Zara maintain such financial success and popularity without spending big on marketing and advertising? Zara Many retailers use the strategy of trying to be fashion innovators, to be trendsetters and capture early adopters.
It is flagship chain store of the Inditex group, which is known as the world largest apparel retailer. The first store featured of low-price lookalike products of popular, higher-end fashioning. Zara offers the latest trends in fashion for women, men and kids.
The success of its collections lies in the ability to spot and take on board constantly changing trends. Zara was able to originate a design and have finished goods in stores in weeks for entirely new designs. The industry model was 6 months for design and 3 months for manufacturing.
Zara produces 11, items a year as compared to 2, by competitors. Zara shoppers visited the chain 17 times a year, compared with an average figure of times a year for competing chains and their customers Weaknesses: Inditex is heavily dependent upon Zara.
E-Commerce or selling more clothes through a website. Zara is an international clothing brand, so whenever it enters into new government regulation it does have to take the government account seriously.
Although the heavy fall in sale of Zara in its mother country, the company is aiming their target appropriately around the world.
The price differentiation was an opportunity when the Zara was establishing the stores in other countries. Socio- cultural factors are the key issue when the company enters into new market or new country.
After the development in mobility handsets such as smart phone people are more able to look the upcoming trend by downloading the Zara application in their phone.
Zara is planning to open stores which are eco-friendly in nature. This eco-friendly nature of company may approach some customers. But sometime its concern for Plagiarism. In the year Zara was sued by Louboutin for selling an open-toed red-soled shoe which was similar to its Yo Yo Model Retail Week, In August, Zara was accused to employee the underage worker, which may cause the negative impact on brand image.
When will Zara hit its limits? Comparison of two business models [Online], Available:Zara refrains from advertising and instead focuses its capital on the creation of new stores.
This in turn is almost the best advertising as it places the brand in not just any ordinary mainstream context. ZARA. 26M likes. Welcome to ZARA’s official Facebook page for USA.
Nov 11, · Zara’s prices are similar to those of the Gap: coats for $, sweaters for $70, T-shirts for $ Inditex owes none of its success to advertising.
That’s because Inditex doesn’t advertise. 2/21/ Spanish retailer Zara has hit on a formula for supply chain success that works. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days.
From Harvard Business Review. by Kasra Ferdows, Michael A.
. plombier-nemours.com brings the latest Zara social analytics, trends and key statistics from Facebook & Twitter in Retail industry. Zara’s total production is pre-made while % is produced according to the market reaction.
This is perhaps the reason why Zara is the most responsive to fashion trend among the Big 3.