Zara Case Study Solution
A lot of people like Zara clothes, regardless of sex and well-being. Such brands as Zara, Bershka, Stradivarius, and Pull & Bear are part of the Inditex group, which today is one of the largest and most widely distributed clothing companies in the world. Brands provide an opportunity to purchase fashionable, but rather cheap clothes to hundreds of thousands of consumers.
The creator of all this, businessman Amancio Ortega, made a world corporation from a small family atelier. A case study of Zara can show that the history of the world brand began, as it often happens, from the desire of one poor person, gifted with will power, patience, organizational skills, to get ahead and offer the world something new.
Innovative Business Approach
Zara revolutionized the fashion world and the textile industry, giving birth to the very notion of “instant fashion.” Zara case study solution allows analyzing the uniqueness of this business-scheme.In most textile companies, the cycle of dressing takes about 8 months. This term includes the development of design, the search for fabric, painting fabrics, sewing models, and the collection of goods to the store.
In Zara, this process takes place in just 2 weeks. Inditex has its own team of designers, numbering about 400 professionals. They in a very short time create a design of inexpensive clothing based on the latest trends of high fashion. Such a system allows the company to quickly update the entire range of stores, quickly remove unpopular models from production and refine the design in conformity with consumers’ requests.Thus, Zara always keeps an eye on the pulse of fashion, one of the first reacting to new trends and customer wishes. Buyers are looking forward to the days of new supplies to stores.
It happens that the clothes from the shelves are swept away in a few hours, and the updated collection is sold completely.
Zara’s target audience, accounting for 78% of the total earnings, was middle-class women. The founder understood that this was not enough to meet the needs of all consumers. In 1991 he decided to create a brand of youth clothing for every day – Pull ; Bear. Five years after the acquisition of part of the brand Massimo Dutti, he became its owner. This brand was designed for people with higher incomes, regardless of gender.
After it became clear that it is also necessary to capture the audience of the teenage subculture of party people and party lovers, in 1998 the brand Bershka was registered, designed for young girls who like fashion. In order to gain full power in the clothing market for adolescents, Zara purchases Stradivarius after a year, and the two major teenage brands became a part of this corporation. A case study Zara can be researched from the perspective of searching for the target audience, determining the necessities of the customers and following trends.
The entire world’s retailers dream of such an annual attendance, as in Zara. For example, the average store in Spain, located on one of the central streets of the city, expects to see one customer 3 times a year, and for Zara, this figure is 17 times a year.
Inditex is one of the few companies that have resisted the temptation to withdraw all clothing production to countries with cheap labor. Less than a quarter of products are produced in China, Morocco, Bangladesh, and Turkey. The rest of the products are produced in the north of Spain and Portugal. But, wherever a thing is produced, each position of the Inditex product range passes through Spain. Designers and experts in the company’s main studio in the city of Arteixo (Galicia) first check the quality of the products, and only then send goods throughout the retail network, including China. The supply chain Zara case study can be researched on this basis.
The secret of the success of Inditex is in quick response and smooth communication between designers, factories, and store managers. A store manager sends reports to the main office of Inditex twice a week, based on sales and customer surveys, and he is a key figure in a successful business scheme. That is why Inditex managers receive a much higher salary than competitors, as well as large bonuses at the end of the month. Thus, a case study on Zara can also be made from the perspective of the unique system of interaction between all participants of the business process, as well as motivation and encouragement of staff.
Zara stores have not needed advertising for a long time, so money saved on promotion is invested in opening new outlets and in developing projects and brands. While the main competitor H;M conducts expensive advertising campaigns, Zara prefers to invest in high-quality and expensive showcases of shops that can be compared even with showcases of such luxury brands as Dior and Prada.
This approach can form the basis of Zara marketing case study.