Zara’s Innovation Mantra.

Like any other teenagers, Zara is also one of my favourite brands. I like the designs of their clothes that are not too over the top but at the same time, not too boring. Zara’s marketing strategy amazed me during the class and this is the reason why I decide to blog about it.

Zara is a Spanish clothing retailer that was found in 1975 and currently having 1,671 stores around the world. Zara’s strategies in running business are very unique and interesting. One of its strategies is low-cost production. This is what all companies around the world are trying to achieve, as it will be a huge benefit towards the companies themselves. Low cost production means that the company may be able to receive higher total revenue and become more profitable. Another interesting strategy that Zara uses is to release new collections in every 2 weeks. It only takes 2 weeks for Zara to convert designs on drawing boards to store shelves. This creates high variety of the products and ‘fast-fashion’ model, which makes that the designs are appear and disappear on their shelves, which forces the customers to buy these products before they go off. It also forces the customers to come back to the stores in every 1 to 2 weeks to check out Zara’s fresh designs.

Zara runs its business by keeping the design fresh, current and not too over the top. Zara’s strategies are smart and there is no doubt of why Zara is one of the brightest stars in Europe’s retail landscape.

Zara’s fast-fashion model and strategies are not easy to do and to copy. It is no wonder a Louis Vuitton spokesperson described Zara as “possibly the most innovative and devastating retailer in the world”.

Articles:
http://www.heraldsun.com.au/ipad/zara-is-simply-smart-marketing/story-fn6bn4mv-1226099272708
http://web.ebscohost.com/ehost/detail?sid=229df07b-bb03-4260-859b-e1ceb102a679%40sessionmgr10&vid=1&hid=8&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=22161327