Monday, May 9, 2011

Week 6 EOC: Excercise-Zara






I decided to do my research exercise on the company Zara. Many people don’t know this, but Zara is the largest fashion retailer in the world! When you step inside their store you are greeted with great customer service. The store has a very modern high fashion feel to it. Zara carries trendy men’s and women’s’ clothing. They are always up-to-date on current trends.


Wherever you go shopping in the world— Paris, New York, London, or Tokyo you will always come across a Zara store. The retailer’s CEO Pablo Isla Álvarez de Tejera feels the stores themselves are the best way to communicate Zara’s brand image. www.zara.com Zara has chosen to locate the stores in the most luxurious spots of the biggest capitals in the world and to invest less money on advertising. Zara believes its shop windows are all the advertising it needs.


The Zara clothing chain is developing rapidly, with double-digit growth even at a time of financial crisis. Zara has officially overtaken the US giant Gap! www.labrand.com In the competitive clothing industry, Zara has successfully built a worldwide famous brand thanks to their premium locations as well as a unique management system of design, production and supply chains. Unlike other fashion brands, it takes Zara only 10 to 14 days from the time they design new clothing until it arrives in stores. www.edition.cnn.com This “fast fashion” concept and operation allow Zara to always provide the most fashionable clothes to their customers, and the ever-renewed collections definitely help build brand loyalty.


Although many international fashion companies are perfectly aware of Zara’s effective branding methods, no one has been able to catch up. Zara has built a powerful clothing brand which should continue to thrive in years to come. They are this successful with very minimal advertising. “Fashion retailers spend on average 3.5% of revenue on advertising their products, while Zara's parent company Inditex spends just 0.3%.” www.edition.cnn.com They have been able to establish a firm market share to gain the customers they need to be the number one retailer. I believe that Zara is successful because they are unique in this way.

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