If all the clothing giants as the likes of Polo Ralph Lauren,Tommy Hilfiger are among the contestants in a fashion show than Zara would be the showstopper. Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia and is the main subsidiary of the Inditex group. Zara was created on the basis of creating high end looks for affordable prices and made way for what we call fast fashion.
Fast fashion was once called disposable fashion due to low price it was offering.
Zara resembles more to a tech company than to a clothing giant. It It has more than 200 designer working on new designs.Many people perceive Zara as trendy modern day brand, which it is, but it is actually active for more than 40 years old founded in 1975. It is the world largest apparel retailer producing about 450 million items a year.
Practise which has lead to the success of retailing giant Zara as we know today
1. Zara tries to provide costumer with wide variety
Zara launches 12,000 new designs every year. Most apparel retailers as of today function of a seasonal model where they sell the products at a discount which they didn’t manage to sell. Zara has a policy to produce new designs all the year around and only produce them for a brief period thus eliminating the need for discount sale. This made Zara costumer to have unique design unlike the case of other mass producing seasonal retailers.
2. It usually takes 2 weeks to make design flow from sketch board to retail stores
With the industry average of 3 months, it usually takes 15 days for product to reach from design to store shelf. It has been made only possible because of Amancio Ortega approach to design, production process. It also produces all the products in the poorer country of Europe, half of it’s production is in home country of Spain which is reduces it’s time to reaches the store.
3. They know their costumers
Zara keep an eye on their costumers buying behaviour. Twice a week the store manager are required to report to the HQ for new orders and they are requested to provide them with the consumer data. This help them to know their costumer, their choice and helps them to design their products accordingly. The new order reaches the store in two days.
4. Zara don’t spend on advertisement
Zara has a advertisement budget of 0.3% of their revenue which is 10 times less than average clothing retailer. Zara has a philosophy to spend more on things which can add value to their product. As the company produces limited number of stock this creates shortage in the market. This has made Zara costumers to develop an appetite to check their store regularly so that their designs are not sold out.
5. Zara don’t hesitate to spend on store
Zara gives the priory to user great user experience to the costumer. The time costumer steps inside the store to the time when he leaves out should be his most comforting hours. When it comes to buying flagship store spaces Zara doesn’t mind spending. Zara has spend $324 million on a store space in the 5th avenue in the New York city. Zara has a average rate of adding 1 store every single second. It has taken the task of replacing all the small store with flagship store to boost it’s presence.
6. They take technology seriously
They don’t want to miss any medium to reach it’s costumer. They have their own e commerce portal so that who don’t live near a Zara store don’t miss out. They provide hassle free return. They offer free delivery on orders over £50 to either your address or Zara store of your choice. To maintain their stance as a high end retailer they make sure that your items arrive neatly wrapped in tissue paper.
7. Zara controls everything
Zara is vertically integrated and has control of every element of production from design to distribution.This gives Zara shortest time to reach the store which helps them to manufacture according to the requirement, as clothes are manufacturing alongside. It also helps them to respond according to fashion changes.
8. Zara believes in giving power
At Zara it’s the designer who is in charge of their product not the manager. Designer are given the power to produce the product and campaign for their products. These tactics have helped them to be so much successful where other major clothing retailers are filing for bankruptcy.
You know what’s the best part of our favourite retailer. It has committed to get rid of the toxic chemical from it’s supply chain and product by 2020.