From its initial store opening in A Coruña (Spain) in 1975 to now having over 2,000 stores worldwide, been one of the most recognised affordable fashion brands and maintaining its position as  the most profitable brand within the Inditex group. This success is no coincidence .

Overall, Zara through its initial idea of “democratising fashion” has managed to gain competitive advantage in an industry with a high threat of new entry by achieving to produce trendy garments at lower prices, targeting a mass market of common middle class family components that enjoy fashion but don´t want to suffer paying for it.

Zara´s short product life cycle enables the brand to adapt to the markets latest demands. This is achieved through its pioneer business model based on a vertically integrated and just in time production process that utilises high frequency information from customer’s reactions to the latest trends to produce its garments. The firm’s flexibility allows them to manufacture limited stock which results in avoiding obsolete products, creating working capital benefits for the company.

Finally, growth and profitability is achieved due to the firm’s expansion towards new markets. This is made possible as a result of: the value of the product perceived by customers, the marketing strategy of creating scarcity and opportunity sensations, thus increasing consumption attitudes from customers, in addition to the promotion strategy of allocating stores in cities best shopping areas.