Zara has become one of the most well-known fashion brands in the world. It began operations in 1975 and now earns 70% of the Inditex group revenues. Since increasing international operations in 1988, Zara has opened nearly 1800 stores in 45 countries worldwide.
Apart from its quick response to customer demands through speedy supply chain response, much of its brand value is created through its marketing strategy. Zara only spends 0.3 percent of sales on marketing, compared to other retailers who spend 3-4 percent. Zara markets through the appeal, location, and placement of stores. For example, Zara aims to be close to the high fashion stores such as Gucci and Prada.
I think Zara’s strategy has been very successful thus far, however, using “flashy” advertisements as competitors do may further increase their sales and brand exposure. Its major competitor, markets through using high profile designer name designs and endorsements of celebrities such as Beyonce.
In my perspective, Zara has already established a strong customer base, and there is no doubt that if they employ the same sort of marketing strategy, there is more to gain than lose. They are able to “get by” for now, but if they want to further expand, they should consider employing a more rigorous marketing strategy. The real challenge is; how will Zara amend their marketing strategy while still keeping their aura of “exclusivity?”