Zara Case Study

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Pages: 4

Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Zara was founded by Amancio Ortega and Rosalia Mera in 1975 AD. It belongs to Spanish Inditex Group. Zara is the only company, which requires a week or two weeks to develop a new product and get it to stores compared to the six months industry average. It is one of the most fast growing retailer companies. Zara is among the few companies, which has both in-house production and retail shops. It mainly focuses in its in-house production. Zara is a company, which gives its customer the pleasure of owning and wearing fashionable and trendy clothes like celebrities at a very reasonable and affordable price.
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Unlike other companies Zara focuses its attention on understanding the fashion items that the customers want and delivering them in a fast speed, rather than on promoting its new collection via fashion shows and similar fashion inspired channels of influence, which is commonly used in the fashion industry. This company’s main purpose is to give great satisfaction to its customers so they launch their new products every week. Zara develops their own design instead of copying from other retailers. The designs made by Zara are according to the latest trend and if the product is not sold after a month then those clothes are discontinued to sell in their retail. It manufactures high quality product at a reasonable price. Zara’s does not have specific age group as their targeted customer but have targeted the educated young people who want to do fashion or are interested in it but can’t afford it. The company is also globally introducing regular as well as fashionable merchandises so that the people accept them. Zara was mainly set up to give to its customer’s pleasure by manufacturing high quality products in …show more content…
This fashion company has quite an unique marketing strategy. Zara spends only 0.3 % of its revenue on marketing. Zara rarely advertises any store sales or have sales unlike other retail companies. Even if the store services are weak, their innovative products and affordable pricing keep making their customers returning again and again. Their product seems to advertise itself rather than the company advertising them. Also Zara are very promising as they are able to get a new product in just one or two weeks. Zara also markets its brand by quick expansion of their retail shops. They open around 150 new stores every