Thursday, November 28, 2019
Zara the Technology Giant of the Fashion World free essay sample
ZARA: The technology giant of the Fashion World ZARA. Zara is the first word hitting your mind when you are thinking about fast fashion. But who is Zara? Zara is the flagship brand of the Spanish retail group Inditex SA, one of the super-heated performers in soft retail market in the recent years. Inditex welcomes shoppers at its eight store formats Ã¢â¬â Zara, Pull Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara home and Uterque. However, Zara is its main concept. The companyÃ¢â¬â¢s history began with a small shop in La Coruna, back in 1975, and turned into a global retailer today expanding at a dizzying pace. Nowadays, Zara has about 1557 stores in 78 countries. But what led Inditex, and especially Zara to the domination of its industry? The answer is not that simple. ZaraÃ¢â¬â¢s success is as much a result of its history and location, as its counter-intuitive business strategies. While it may not be possible for another company to exactly duplicate the conditions under which Zara grew and flourished we can certainly try and learn from its experiences, its processes and its business structure. We will write a custom essay sample on Zara the Technology Giant of the Fashion World or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What sets Zara apart from many of its competitors in terms of profits and sales, is a combination of both excellent management and marketing strategies. We can say there are three key success factors that differentiate Zara from its competition. First of all, the main advantage of Zara is the fact that it offers the latest trends of fashion in moderate prices. Everyone can buy stylish designs that resemble those of the biggest fashion houses without spending a fortune. ZaraÃ¢â¬â¢s philosophy is to respond to new trends really quickly than setting a new trend Another advantage is that, the company has the ability to identify and catch the latest fashion trends and create products that clients want at that time ,due to its high-tech information system. Moreover, Zara can get those products onto shelves much faster and more frequently than the industry norm. For example, Zara can take a product from concept through design, manufacturing and store shelf placement in two weeks. In comparison, most retailers of comparable size or even smaller, work on timelines that stretch into 4-12 months. The third success factor is exclusivity. Zara produces smaller batches of items because of the frequency it introduces new products. This means customers can find new products in limited supplies, which means exclusivity. This is a unique benefit from a mass-market retailer and as a result it draws young fashionistas, who want to feel special, as a magnet. In combination these three factors keep the store looking fresh and desirable. This is what makes Zara so different. It is important to report that Zara has dominated the fast fashion industry by having no advertising policy. The companyÃ¢â¬â¢s advertising accounts just 0-0. 3% of its sales while its competitors spend about 3. 5%. Zara just prefers to invest in new shops around the world and get advertised through its brand by doing no more than meeting a market need. It has achieved this without any advertising or promotion and without outsourcing its manufacturing to countries where labour is cheap. ZaraÃ¢â¬â¢s growth is not only a combination of all the aboveÃ¢â¬ ¦ZaraÃ¢â¬â¢s success is rather a matter of innovation on their business model. In order to understand that we have to take a closer look at the internal processes and management procedures, starting aou with its information system.