Beloved by proponents of fast-fashion, Zara has spread its reach across the globe at a time when Gap has suffered from plummeting consumer spending in the US.
These days, she goes to Zara whenever she needs to buy birthday presents for friends. Most of them like clothes — especially from Zara. To better understand the business behind the fashion, she needs to consider a key business concept that helps drive success at companies like Zara: In other words, a strong business model will help a company use the resources it has to make money.
Nowadays, the chain operates a network of more than 2, retail outlets in 88 markets located in the central shopping districts of large cities. Zara has revolutionized the world of fashion by bringing out a large number of collections each season, instead of the same old two collections every year — one for spring-summer, and another for fall-winter — which has been the norm in the fashion industry.
They also probe the latest trends, which their own scouts observe in the streets and malls around the world, for inspiration when they are designing their latest creations. The advantage of that approach is that it gives Zara a lot of flexibility to adapt to the changing tastes of fashion consumers.
In reality, Zara is all about timing. Its products wind up on the shelves and clothing racks of its shops because Zara produces them by itself and only continues to manufacture those products that sell the best within its stores.
So Zara manages to save on its warehousing and inventory costs in every shop worldwide. Those sorts of savings are very important for any business, not just because of the savings themselves but because if the business knows pretty much which items it is going to sell, it manages to reduce its business risks.
To spread the word about the company, it depends on word of mouth and on its landmark retail outlets in high-end locations, such as Fifth Avenue in New York City, and Oxford Street in London. It depends a great deal on getting people to talk about its brand. When it comes to beating out the competition, Zara believes that it is vital to have your ears wide open to listen to the needs and perspectives of your consumers.
How long will that last? The crowded world of retail can be fickle. Zara will no doubt continue to assess its business model and, if needed, adjust it to meet the changing needs of its customers.
Conversation Starters What is a business model? How does Zara's business model set it apart from other retail competitors?
Zara does not use advertising to promote its brand, which is uncommon in the retail world. How, then, might it get people to "talk about its brand?
What is that company's business model? What are some aspects of the business that set it apart? Now research the actual business model for that company.
What did you learn?The new store spread over 2, sq.
m. offers the brand's autumn collection for men, women and children. Zara outlets in India are operated by Inditex Trent, the . Salary, clothing allowance in new collection, vacation and paid time off, access to growing trends weekly, new product designs delivered 2x weekly.
Cons Development and promotion process, required to make your own decisions on all aspects of store management; if you make a mistake, it isn't taken lightly. Sep 20, · Inditex, the world’s biggest clothing retailer, has said that about 40 percent of new store space for its eight brands, which include Zara, is being added in Asia.
Retail space supply will continue to considerably exceed demand. The new shopping centers, due for completion in , will lead to significant growth in average vacancy rates. Bringing attractive and responsible fashion, and improve the quality of customer service, are Zara's priorities.
Zara’s story begins with the opening of our first store in the Spanish coastal city of A Coruña in , an early milestone in our company’s long history. Retail Tech; Whats New; High Street Brand Zara Invests in Technology To Improve Customer Experience. Technology sprinkled stores is something normally associated with luxury brands, no more, as high street brand takes a leap into retail tech.