1.

Early History

Zara was started by amancio ortiga in 1975. His first show was in central a coruna , in Galicia, Spain –

where the company is still based. He initially called it Zorba after the classic 1964 film zorba the Greek , but

after learning there was a bar with the same name two blocks away, he rearranged the letters to read "Zara".

It is believed the extra a came from an additional set of letters that had been made for the company. It sold

low-priced lookalike products of popular, higher-end clothing fashions. He opened more shops in Spain.

During the1980s, he changed the design, manufacturing, and distribution process to reduce lead times and

react more quickly to new trends – what he called "instant fashions" – using information technology and

groups of designers rather than individuals.

Expansion

The first shop outside Spain was opened in 1985 in porto, in Portugal. In 1989, the company entered the

United States, and then France in 1990. During the 1990s, Zara expanded to Mexico (1992),Greece,Belgium

, sweeden (1993) and israel (1997). In the early 2000s, Zara opened its first stores in Brazil (2000); Japan

and Singapore (2002); Ireland, Venezuela, Russia and malaysia (2003), China,Morocco,

Estonia, Hungary and Romania (2004); the Philippines, Costa Rica] and Indonesia (2005); South Korea

(2008); India (2010); Taiwan, South Africa and Australia (2011); and peru (2012).

In September 2010, Zara launched its online boutique. The website began in Jordan. In November of that

same year, Zara Online extended its service to five more countries: Austria, Ireland, the Netherlands,

Belgium and Luxembourg. Online stores began operating in the United States in 2011, Russia and Canada in

2013, Mexico in 2014, South Korea in 2014, Romania in 2016, India in 2017, Israel and Brazil in 2019 and ,

Peru in 2020.

Zara introduced the use of RFID technology in its stores in 2014. The RFID chips are located in the security

tags which are removed from clothing when purchased and can be reused. The chip allows the company to

quickly take inventory by detecting radio signals from the RFID tags. When an item is sold, the stockroom is
immediately notified so that the item can be replaced. An item that is not on the shelf can easily be found

with the RFID tag.

In 2015, Zara was ranked #30 on Interbrand's list of best global brands.

In 2019, Zara updated their logo. It was designed by the French agency Baron & Baron.

In 2019, the global fashion business Journal MDS stated that while the textile commerce of the world had

gone down by 2.38%, Zara's had risen 2.17%.

In 2019, Chief Executive Persson said the brand is waiting for more acceptable global rent levels to continue

its expansion. In Europe, the brand planned to cut the number of retail locations beginning in 2020. As of

January 2023, the clothing retailer has nearly 3000 stores, including its kids and home stores. Spanning over

96 countries and continuing to grow

Products

Zara stores have men's and women's clothing as well as children's clothing (Zara Kids). Zara

Home designs are located in European stores. The majority of Zara customers are aged between

18 and about 35. After products are designed, they take 10 to 15 days to reach the stores. All of

the clothing is processed through the distribution center in Spain. New items are inspected, sorted,

tagged, and loaded into trucks. In most cases, the clothing is delivered within 48 hours. Zara

produces over 450 million items per year.

Zara also includes accessories, shoes, swimwear, beauty and perfumes.

In May 2021, Zara launched its first beauty line, ZARA Beauty.

Under its Zara Home line, Zara launched what is believed to be the first detergent that reduces the

abrasion of textile microfibres during washing. It is claimed the solution, jointly developed by

Inditex and BASF Home Care and I&I Solutions Europe in Spain and Germany, can reduce the

release of microfibres by up to 80 per cent, depending on fabric type and washing conditions.
Manufacturing and distribution

Reportedly, Zara needs just one week to develop a new product and get it to stores, compared to the six-

month industry average, and makes roughly 40,000 designs of which around 12,000 new designs are

carefully selected and produced each year. Zara has a policy of zero advertising; the company preferred to

invest a percentage of revenues in opening new stores instead.

Zara set up its own factory in La Coruña (a city known for its textile industry) in 1980 and upgraded to rever

milk run -type production and distribution facilities in 1990. This approach, designed by Toyota Motor

Corp., was called the just-in-time (JIT) system. It enabled the company to establish a business model that

allows self-containment throughout the stages of materials, manufacture, product completion, and

distribution to stores worldwide within just a few days.

Most of the products Zara sells are manufactured in Spain, Portugal, Turkey, Morocco, Bangladesh and

more recently -Armenia While some competitors outsource all production to Asia, Zara manufactures its

most fashionable items – half of all its merchandise – at a dozen company-owned factories in Spain

(particularly in galicia), (northern part) and turkey. Clothes with a longer shelf life, such as basic T-shirts,

are outsourced to low-cost suppliers, mainly in Asia.

The company can design a new product and have finished goods in its stores in four to five weeks; it can

modify existing items in as little as two weeks. Shortening the product life cycle means greater success in

meeting consumer preferences. If a design does not sell well within a week, it is withdrawn from shops,

further orders are canceled and a new design is pursued. Zara monitors customers' fashion changes. Zara has

a range of basic designs that are carried over from year to year, but some fashion-forward designs can stay

on the shelves less than four weeks, which encourages Zara fans to make repeat visits. An average high-

street store in Spain expects customers to visit three times a year. That goes up to 17 times for Zara.

As a result of increasing competitive pressures from the online shopping market, Zara is shifting its focus

onto online as well, and will consequently open fewer but larger stores in the future. In May 2022, a £1.95

return fee was implemented for some online orders in Britain and other core markets. This fee was

introduced in Spain as of February 2023.

In November 2022, a pre-owned platform will also be launched via its website and app in UK. Other than

posting now-unwanted Zara purchases online for sale, shoppers can book repairs and donate unwanted items

online or via a store. If successful, this service will be expanded to other key markets.

Starting November 2022, Russians will be able to order products online from a range U.S. and European

brands, including Nike, Zara and H&M

Non-toxic clothing

In 2011, Greenpeace started a dialog with Zara to ban toxics from the clothing production. Greenpeace

published its "Toxic threads: the big fashion stitch-up" report in November 2012 as part of its Detox

Campaign identifying companies that use toxic substances in their manufacturing processes. Nine days after

the report was published, Zara committed to eradicating all releases of hazardous chemicals throughout its

entire supply chain and products by 2020. Zara became the biggest retailer in the world to raise awareness

for the Detox Campaign, and switched to a fully toxic-free production.

Controversies

Exploitation and child labour

In 2016, BBC NEWS stated they found evidence of child labor and exploitation in factories in Turkey. Zara

replied that there were some issues in June 2016 in one single factory and, instead of solving these issues

immediately, they have given a period of six months to solve them.

In 2017, bbc news states that workers that workers from local company's which produced clothes for Zara

had left complaints on tags in of clothing. The manufacturer had went bankrupt overnight in July 2016, and

the workers had stated that they were not paid in the period up to its closing.

Allegations of Anti-Semitism

In 2007, Zara withdrew a handbag from its shelves after a customer noticed a swastika on the bag's design.

The bag came from an external supplier, and Zara claimed the symbol was not visible when the handbag
was chosen. Zara withdrew the product from stores, and spokesperson Susan Suett said the bag would not

have been sourced had the symbol been apparent.

In August 2014, Zara received criticism for selling a toddler T-shirt for closely resembling uniforms worn

by Jewish concentration camp inmates. The T-shirt was striped and featured a yellow star similar to the Star

of David. Zara said the design was inspired by "the sheriff's stars from the classic western films". Zara

removed the shirt from sale a few hours after they appeared for sale, and apologized. Zara received criticism

for selling the T-shirt in Israel because the country does not have sheriffs. Additionally, the word "Sheriff" is

outlined in transparent letters on the bright yellow star. The Anti-Defamation League responded to the shirt,

saying that it was offensive, but welcomed Zara's recognition of the potential imagery and removing the

shirt from sale.

Labour practices

In August 2011, a Brazilian television show accused the company of using sweatshops for their outsourced

production. The Regional Superintendency of Labour and Employment of São Paulo, Brazil, closed a

factory that produced Zara's clothing for its poor labour conditions. Zara's representatives said the

accusations of made against the slave labour retailer represent a breach of the code of conduct for

workshops of Inditex. The company also states factories responsible for unauthorized outsourcing have been

asked to regularize immediately the situation of the workers involved.

In September 2013, Bangladeshi garment workers for suppliers to Zara and its parent company, Inditex,

protested following the 213 dhaka garment factory , demanding a US$100 a month minimum wage. Inditex

does not publicly disclose the factories that produce their branded clothing.

In November 2017, customers shopping at Zara stores in Istanbul, Turkey, found handwritten notes

purportedly from Turkish workers in the pockets of in-store garments asking shoppers to pressure Zara into

paying them unpaid wages. The company clarified the unpaid wages were due to a third-party manufacturer

Bravo Tekstil, who had failed to pay their employees. The company said they would help to provide

compensation to employees who weren't paid. In the agreement, only factory-floor employees were

compensated, with "white-collar" employees not covered by the agreement.

In 2022, about 1,000 shop assistants who work at Zara and other fashion brands owned by Inditex went on

strike on Black Friday in the company's home town in northern Spain to demand better salaries. Prior to a

second strike, Inditex, Zara's parent company, has agreed to pay 322 euros more per month to shop

assistants from 44 stores. Workers will also get a one-off bonus of 1,000 euros to be paid in February 2023.

Copyright infringement

In July 2016, complaints were made against Zara that they had been stealing designs from multiple

independent designers for their products. One of the designers, Tuesday Bassen, who previously worked

with brands including Urban outfitters t and Nike, contacted Zara. The company responded Bassen's designs

were not distinctive enough, and they received only a handful of complaints given the large volume of traffic

they receive on their site. When the news was eventually picked up by media outlets, and Inditex, Zara's

owning company, was asked to comment on the issue, Inditex replied that the items in question have been

suspended from sale, and that they are in contact with Bassen's lawyer to clarify and address the issue.

As of April 2018, MaXhosa by Laduma is taking legal action against Zara for copying its designs. Zara

responded to complaints from the designer by removing socks that resembled his artistic style.

Melania Trump

In June 2018, a Zara jacket with "I really don't care, do U?" emblazoned on the back became controversial

after it was worn by Melania trump when she visited a detention center for migrant children separated from

their parents.

Political controversy in China

In January 2018, Shanghai's internet authority summoned representatives of Zara, chastising the company

for listing Taiwan as a "country" and ordering it to rectify the situation immediately.

In September 2019, Zara supported Hong Kong strikes; however after pressures from Chinese social media

Zara was forced to issue a statement expressing its support of the "one country, two systems" policy adopted

by China in ruling Hong Kong, and its disapproval of anti-government strikes.

Xinjiang region
In 2020, the Australian strategic policy institute accused at least 82 major brands, including Zara, of being

connected to forced Uyghur labor in Xinjiyang

Allegations of anti-Palestinian bullying

In June 2021, the company's women's head fashion designer Vanessa Perilman made comments blaming

terrorism in Gaza on Palestinians in response to Palestinian model Qaher Harhash. After receiving backlash

for her comments when they were made public by Qaher, Perilman apologized and Zara later asked Qaher to

post Perilman's apology on his social media. Because of Zara's delayed response, and decision to not fire

Perilman, calls to boycott Zara emerged through social media.

Trademark Action

In April 2022 it was reported that Zara had taken legal action against "Tara Sartoria", a small clothing

company owned by Vietnamese citizen Tara Nguyen. Ms Nguyen's company sells products made by

disadvantaged women in Indonesia and Vietnam.

Stores

There are 2003 Zara stores in 96 countries.

In early 2020 due to the COVID PANDEMIC, ZARA stores worldwide had closed temporarily due to

restrictions. However, in April 2020, ZARA's owner ramped up shipment to Asia as China ended its lockdown

after 76 days.

Fashion Music

In 2021, Kandra has already provided over 2.7 million views to Zara's fashion playlists on its YouTube channel,

representing over 20% of their current zara-style audience. Currently Kandra's channel provides playlists for

luxury stores and department stores around the world, such as H&M, Bershka, Chanel, Balenciaga and more

What is Zara?
Zara is a Spanish clothes and accessories brand, it is the flagship brand of the Inditex group. Few

clothing brands keep up with the latest fashion, are of high quality and yet, affordable. It is probably

the amalgamation of all these qualities that made Zara, the Spanish clothing brand become the go-to

fashion brand for all

It is no surprise that Zara, which started off as a small store in Spain is now the world’s largest retailer

and its founder, Amancio ortiga, the 4th richest man in the world.

It all began when Ortega established a dress-making factory, Inditex, in the year 1963.Ten years later,

he started off a small store that was named as Zorba in La Coruna, Spain with a budget of a meagre 30

Euros. He then changed the name as Zara with no particular intention. And that’s how the world’s

favourite fashion brand of today was born. Zara slowly expanded its empire from the town in Spain to

the rest of the country and then later to Portugal. By the 1990’s the store had expanded into the United

States, France and most of the Europe. Today, Zara has close to 6500 stores across 88 countries

around the world.

The secret to Zara’s success largely was because of the way it kept up with street fashion with the

changing times. The brand takes a look at how fashion is changing every day. It makes new designs

and puts them into stores in a week or two. Most other fashion brands would take a whole six months

to get their new designs into the market .

Head Quarters

Zara is also known to be one of the most eco-friendly companies. It uses solar panels and wind

turbines in the headquarters in La Coruna. Zara is also known to be one of the few clothing brands

that produces 100 % toxic-free clothing, but not until after the uproar that was caused on how it was

using the cancer-inducing azo dyes in its There’s one thing about Zara that is surprising. The name

has poor marketing for all the success it continues to bask in. The brand does not advertise itself in
any form at all. Amancio had never spoken to the media nor has in any way advertised Zara. Zara

needed no advertisement to become such a widely loved brand. Talk about quality doing all the work!

Locations of Stores

Zara has stores in over 88 countries, with just over 6500 outlets. Zara has flagship stores on Fifth

Avenue in New York, Oxford Street in London, Calle Serrano in Madrid, Via del Corso in

Rome, Champs-Élysées in Paris, Nevsky Prospect in Saint Petersburg, GUM in Vladivostok, Shibuya

and Ginza districts in Tokyo, Myeongdong in Seoul, amongst many others.

Zara also sells online through their own website.

Products

Zara sells both Men's and women's clothes. They also sell shoes, cosmetics and accessories. Recently

they started with children's clothes as well.

The clothing retailer has more nearly 3,000 stores, including its kids and home stores. It has stores in 96

countries and is the flagship brand of the Inditex Group. Zara is renowned for its ability to develop a new

product and get it to stores within two weeks, while other retailers take six months. Spain is the biggest

market with 547 stores (including Zara Kids and Zara Home), followed by China (229 stores), France (145),

Russia (144) and Italy (134). The U.S. has 98 stores as of January 2019. Rosalia Mera, who co-founded Zara

with her former husband Amancio Ortega, died in 2013 at the age of 69. She was the wealthiest self-made

woman in the world with a fortune estimated at $6.1 billion at the time of her death

Zara uncovered: Inside the brand that changed fashion

I am seeing spots. More specifically polka dots, on a white maxi dress. Three women have walked by

me - all wearing the same identical dress - in the half hour I've been sitting outside this café. I know

it's from Zara, I've tried it on, and now I'm seeing those spots everywhere.
It is the dress of the summer, another viral Zara fashion statement, complete with a dedicated Instagram

account set up by fans.

Just one sign of how the Spanish clothing giant is bucking the trend of many of its struggling High Street

competitors and posting record sales.

Considering the success and size of the company, it might be thought of as a bit of an enigma. It doesn't

advertise, it does little marketing and its boss, who was named best performing chief executive in the world

by a business magazine last year, has not given any big interviews, until now.

 Zara dress: What to do when everyone's wearing the same as you

 Fast fashion: Zara promises all its clothes will be sustainable by 2025

 Zara advert gets China asking: Are freckles beautiful?

Pablo Isla recently laid out plans for Zara's future and said it was all about a digital and sustainable

transformation. But is it possible for a company to be sustainable, when the entire business is about getting

shoppers to buy as much fashion as possible?

'No contradiction'

Speaking at their campus-like headquarters in northern Spain, Pablo Isla, the chairman of Zara and its parent

company Inditex, tackled the sustainability issue.

"There is no contradiction at all between sustainability and profitability of the company," he says.

"In the next year, all our stores in the world will be efficient - this means their consumption of energy and

water is significantly lower. If your energy consumption is 20% less, you have a return."

In fact some of the key ways in which the business works helps with its sustainability goal. Mr Isla explains

that Zara works with a "low level of inventory".

This helps the retailer minimise waste and avoid discounting huge amounts of clothing.

On my tour of the headquarters, I walk past rows of desks where staff are analysing instant data from Zara's

store managers.
They use this information to decide what to make each week - Zara's factories will only make what they

know will sell. Most of Zara's clothes are manufactured at its sites in Spain or in nearby Portugal, Morocco

and Turkey.

'Long-term relations'

One of the key factories producing Zara's womenswear is just next to the head office. This way of working

is all about speed, which allows Zara to get fresh trends into stores before their competitors.

Media caption,

Do companies like Zara have a responsibility to combat fast fashion?

But it hasn't always meant being able to keep a close eye on standards. Two years ago, some Zara customers

in Turkey found notes in clothes from workers saying they hadn't been paid and asking for them to back

calls for better working standards. When asked about it, Mr Isla says working with these suppliers was an

"evolution".

He says "the most important thing is the idea of long-term relations with our suppliers" when it comes to

keeping an eye on working conditions.

Fashion Revolution is an independent organisation which monitors where clothes come from and how

ethical they are. They say Zara needs to provide more information about where their clothes are made to be

held accountable for standards.

"Inditex, which owns Zara, remains one of the major fashion retailers that is dragging its feet on publishing

a list of its manufacturers," says Fashion Revolution policy director Sarah Ditty.

"Other brands have published a list and proved that doing so doesn't hurt them competitively. "

Recycled plastics
Back at headquarters, I wander through the pilot store built on-site - a perfectly-kept Zara shop where

everything is in place - but there are no shoppers. This is where Zara test how everything should look and

feel, from lighting to displays.

They are aiming to reach zero waste in store - all packaging is made from recyclable cardboard and plastic.

Recycling is a big theme for the clothes too.

1.

Zara has boxes in stores encouraging customers to donate clothes they don't wear

They have been working with the renowned US university MIT to develop ways of making fabric from

recycled plastics. I take the opportunity to feel the texture of some of the latest recycled plastic clothes from

their sustainable line. The cloth feels silky to the touch.

Mr Isla has committed to 100% of the cotton, linen, and polyester used by Zara - and all of its sister

companies - being organic, sustainable, or recycled by 2025.

Sarah Ditty from Fashion Revolution says that while it is great to see Zara taking steps to incorporate more

sustainable material into its ranges, it is essential action that all brands should be taking.

However, she highlights that the real issue is all about the sheer volume of clothes they make.

Inditex reported putting over 1.5 billion products on the market in 2017 alone. Even with more

environmentally-friendly materials, producing that many items each year is unsustainable for our living

planet.

How much clothing we buy is a marker of just how much the industry has grown and changed in a short

space of time. The UK has the highest rate of consumption in Europe, at 27.6kg per person per year.

Customer decisions

Indeed, Zara has an enormous turnaround, fashion influencer Jasmine Jonas tells me.

"I feel confident walking into a Zara, [being] able to find something that will look good, fit well, and that I

can afford. But across the board, demand for eco-conscience clothing is rising."

It's not just Fashion Revolution - many campaigners say the only way to truly tackle sustainability in fashion

is to make and sell less.

But how can that be a solution for Zara and Inditex if they want to keep those record-breaking sales?

Should shoppers buy less, or are retailers the problem, when it comes to sustainability?

"It's always the customers' decision of how much do they buy of each particular product," says Mr Isla.

"I think our responsibility as a company is taking care of manufacturing our products in a very sustainable

way. Each customer, each person, is free to decide how much would he or she like to buy at any point in

time, if this person wants to spend money going to a restaurant or buying clothes... this is the freedom that

each person has."

"Should I, shouldn't I?" is the age-old changing room debate, but does it take on a new dimension if, as

Pablo Isla says, it is ultimately in shoppers' hands to decide the crucial sustainability issue?

In the meantime, Zara says it will do what it can to keep the environmental conundrum for customers to a

minimum.

Zara supply chain analysis - the secret behind Zara's retail success

It's not unusual to pass a Zara store and do a double-take - didn't you just see that on the catwalk? As a

brand, their speed and responsiveness to the latest fashion trends are key to Zara’s competitive advantage.

Owned by the distribution group Inditex, we had a look at what makes Zara so fast that the New York Times

Want to manage your supply chain as efficiently as Zara? Try QuickBooks Commerce's inventory

management system today!

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Amancio Ortega founded Zara in 1975 as an attempt to better understand world markets for his fashion

merchandise. From that first store in Spain, Zara has since expanded to more than 2,200 stores in 96

countries around the world.

In 2012, Inditex , Ortega’s parent company made up of Zara and other retail concepts and suppliers,

reported total sales of US$20.7 billion, with Zara representing a powerful 66 percent, or US$13.6 billion, of

that total.
What’s the secret to Zara’s competitive advantage? Their supply chain

Zara produces around 450 million items a year. How can it stay so efficient with the sheer volume that

passes through its supply chain? Regular, small-batch deliveries happen with clockwork precision twice a

week to all of their stores around the world.

Ensuring all this runs smoothly is what Zara does best - controlling more of its manufacturing and supply

chain than most of its competitive counterparts.

Synergy between Zara’s business strategy and operational processes

Zara’s overarching strategy is achieving growth through diversification with vertical integrations. It adapts

couture designs, manufactures, distributes, and retails clothes within two weeks of the original design first

appearing on catwalks. This is in stark contrast to the average six months it takes to produces items in the

fashion industry.

The company owns its supply chain and competes on its speed to market, literally embodying the idea of

'fast fashion'.

Just in Time production

The retail giant delivers fashionable and trendy numbers catered for different tastes through a controlled and

integrated process – just in time production

Zara’s success relies on keeping a significant amount of its production in-house and making sure that its

own factories reserve 85 percent of their capacity for in-season adjustments. In-house production allows the

organization to be flexible in the amount, frequency, and variety of new products to be launched.

The company often relies heavily on sophisticated fabric sourcing, cutting, and sewing facilities nearer to its

design headquarters in Spain.

The wages of these European workers are higher than those of their developing-world counterparts,
Zara also commits six months in advance to only 15 to 25 percent of a season’s line. And it only locks in 50

to 60 percent of its line by the start of the season, meaning that up to 50 percent of its clothes are designed

and manufactured smack in the middle of the season.

If a certain style or design becomes the new must-have on the street, Zara gets to work. Designers churn out

the new styles and they're fast-tracked to stores while the trend is still going strong.

Store managers communicate customer feedback on what shoppers like, what they dislike, and what they’re

looking for. That demand forecasting data is instantly funneled back to Zara’s designers, who begin

sketching on the spot.

Zara also has extra capacity on hand to respond to demand as it develops and changes. For example, it

operates typically 4.5 days per week around the clock on full capacity, leaving some flexibility for extra

shifts and temporary labor to be added when needed.

This then translates to frequent shipments and higher numbers of customer visits to the stores, creating an

environment of shortage and opportunity.

Zara’s business strategy allows the company to sell more items at full price because of the sense of scarcity

and exclusiveness the company exudes. Zara’s total cost is minimized because merchandise that is marked

down is reduced dramatically as compared to competitors.

Zara makes 85 percent of the full price on its clothes, while the industry average is 60 to 70 percent. Unsold

items account for less than 10 percent of its stock, compared with an industry average of 17 to 20 percent.

Most companies are riddled with penny-wise, pound-foolish decisions to reduce cost. Zara understands that

if they don’t have to discount as much, they can spend money on other things. They can see the benefit of

this certainty and rhythm in the supply chain.”

Kasra Ferdows, professor at Georgetown University’s McDonough School of Business in this article on

Bloomberg.
This is also the reason why Zara can afford the extra labor and shipping costs needed to accommodate and

satisfy changes in customer demand

Lean inventory management

You'll be hard pressed to find any excess inventory or deadstock in a Zara warehouse. Throughout the

supply chain, lean is the word, all the way from raw materials to the finished garments on the shelves.

Inventory optimization orders are put in place to help the company to determine the quantity that should be

delivered to every single one of its retail stores via shipments that go out twice every week. The stock

delivered is strictly limited, ensuring that each store only receives just want they need. This goes towards the

brand image of being exclusive while avoiding the build up of unpopular stock.

This quick in-season turnaround, from production facilities located close to Zara’s distribution headquarters

in Spain, allows Zara to ship more often and in smaller batches. If the design Zara hastily creates in an

attempt to chase the latest trend does not sell well, little harm is done.

The batch is small, so there’s not a ton of unsold inventory to get rid of. And because the failed experiment

is over quickly, there’s still time to try a different style, and then a different one after that.

Centralized order fulfillment

The secret to Zara’s success has been centralization. They can make decisions in a very coordinated

manner.”

2. Felipe Caro, associate professor at the University of California at Los Angeles’s Anderson School of

Management and a business adviser to the company.

Zara sticks to a deep, predictable and fast rhythm, based around rapid

deliveries to stores.

Each Zara outlet sends in two orders per week on specific days. Trucks leave

at specific times and shipments arrive in stores at specific times. Garments

are already labeled and priced upon arriving at their destination, meaning

they’re immediately ready to be sold.

As a result of this clearly defined rhythm, every staff member involved in the

supply chain – from design to procurement, production, distribution, and retail –

knows the timeline and how their activities impact other functions. That

certainly also extends to Zara customers, who know when to visit stores for

fresh new garments.

Zara’s reliance on centralized order fullfilement is what enables the company to

maintain incredibly efficient workflows – from initial design right through to

delivery to stores and customers. The company’s approach is just another

example of why streamlined operations and supply chain management are

critical to profitability and achieving scale.

 Automation is a game-changer in supply chain management.

Download free Supply Chain eBook

Solid distribution network

Zara’s strong distribution network enables the company to deliver goods to its European stores within 24

hours, and to its American and Asian outlets in less than 40 hours.

Fast fashion success

Zara’s success story shows the strength of its operations. Its cross-functional operations strategy, coupled

with its vertically integrated supply chain, enables mass production under push control, leading to well

managed inventories , lower markdowns, higher profitability, and value creation for shareholders in the

short and long term.

Zara is all about staying on top of the hottest trends, and exuding an exclusive feel, but its supply chain is

the real star of the show. These rockstar-level logistics take it from being just another fashion retailer to an

industry example of fast fashion done right.

Marketing strategy refers to a comprehensive plan of action that outlines the approach a business or

organization takes to promote and sell its products or services to its target market. It involves analyzing

market conditions, identifying target audiences, setting marketing objectives, and developing tactics to

achieve those objectives.

A well-defined marketing strategy helps businesses effectively allocate resources, maximize customer reach,

and achieve their overall business goals. Here are some key components typically included in a marketing

strategy:

1.Market Analysis: Understanding the target market, including demographics, needs, preferences, and

buying behavior. This analysis helps identify opportunities and challenges.

2.Target Market Segmentation: Dividing the market into distinct groups based on similar characteristics or

behaviors. This allows for more tailored marketing efforts and messaging.

3.Competitive Analysis: Assessing competitors' strengths, weaknesses, strategies, and market positioning to

identify areas where the business can differentiate itself.

4.Unique Selling Proposition (USP): Identifying and highlighting the unique features, benefits, or value

proposition that sets the business apart from its competitors.

5.Marketing Objectives: Defining specific, measurable, achievable, relevant, and time-bound (SMART)

goals that align with the overall business objectives. Examples include increasing market share, boosting

sales, or improving brand awareness.

6.Targeting and Positioning: Determining the target audience and crafting a compelling positioning strategy

to effectively communicate the value of the product or service to that audience.

7.Marketing Mix: Developing a mix of marketing tactics, often referred to as the "4 Ps": Product (or

service), Price, Place (distribution), and Promotion. These elements are optimized to meet customer needs,

create value, and achieve the desired objectives.

8.Marketing Channels: Selecting the appropriate channels to reach and engage the target audience, such as

advertising, public relations, social media, content marketing, email marketing, or influencer partnerships.

9.Budgeting: Allocating financial resources for marketing activities while considering the expected return on

investment (ROI) and the overall marketing objectives.

10.Monitoring and Evaluation: Establishing metrics and systems to track the performance of marketing

campaigns and initiatives, allowing for ongoing optimization and adjustments based on results.

Marketing strategies can vary widely depending on factors like industry, target market, competition, and

available resources. The key is to develop a strategy that aligns with the business's goals, effectively reaches

the target audience, and creates a competitive advantage in the market

What is marketing

Marketing refers to the activities, processes, and strategies used by businesses and organizations to promote,
advertise, and sell their products or services. It involves understanding customer needs and preferences, creating
value for customers, and building relationships to generate sales and achieve business objectives.

Marketing encompasses a range of activities aimed at reaching and engaging target audiences. These activities can
include market research, product development, pricing, distribution, advertising, branding, public relations, and
customer relationship management. The goal of marketing is to attract and retain customers, increase sales and
revenue, and build a strong brand image.

Here are some key elements and concepts commonly associated with marketing:

Customer Orientation: Placing the customer at the center of marketing efforts and tailoring products, services, and
messages to meet their needs and preferences.

Market Research: Gathering and analyzing data about the market, customers, competitors, and industry trends to
make informed decisions and develop effective marketing strategies.

Target Market: Identifying specific groups of customers who are most likely to be interested in and purchase the
products or services being offered.

Marketing Mix: Also known as the "4 Ps," it refers to the strategic combination of Product (or service), Price, Place
(distribution), and Promotion to meet customer needs and achieve marketing objectives.

Branding: Establishing and maintaining a unique identity, image, and reputation for a product, service, or company
through consistent messaging, design, and customer experiences.

Advertising and Promotion: Using various channels and tactics such as advertising campaigns, digital marketing,
social media, public relations, and sales promotions to raise awareness, generate interest, and drive customer
engagement.

Sales and Distribution: Determining the most effective channels and methods for distributing products or services to
customers and optimizing the sales process.

Customer Relationship Management (CRM): Managing and nurturing customer relationships to enhance customer
satisfaction, loyalty, and advocacy.

Marketing Metrics and Analytics: Measuring and analyzing marketing performance using key performance indicators
(KPIs) and data-driven insights to evaluate the effectiveness of marketing efforts and make data-informed decisions.

Continuous Improvement: Engaging in ongoing monitoring, evaluation, and refinement of marketing strategies and
tactics to adapt to market changes, customer preferences, and emerging trends.

Marketing is crucial for businesses to connect with their target audience, differentiate themselves from
competitors, and ultimately drive sales and growth. It involves understanding the market, creating value for
customers, and effectively communicating and delivering that value to achieve business objectives.
Regenerate response
 Zara Marketing Strategy - To Be The World's Top Fashion Retailer

Dramatic introduction of "fast fashion" - which are affordable and stylish clothes, Zara was able to create a In a very
short time, Zara has become one of the most successful fashion retail brands in the world. With the passion for
fashion amongst a broad spectrum of customers. Kids, women, men, elders, all age groups, and cultures can try out
Zara's items just to love them. The result is the brand's sales keep getting higher, and the market share keeps
increasing.

To achieve such spectacular results, Zara doesn't market itself the way other fashion brands do. It has a clever
marketing strategy that can differentiate itself and find higher visibility as well as loyalty.

There are many factors that contribute to the success of Zara, but one key strength is definitely Zara's marketing
method that focuses on the customers.

So, what is so special about Zara's marketing strategy that can turn it into a global fashion powerhouse as today?
That is what I'm going to show you in this article. Read on to find out more about Zara's secrets and try applying
them to your own brand.

Zara was founded in 1975 by two founders Amancio Ortega and Rosalía Mera, as a family business in Galicia, a city of
Spain. Its first store already featured low-priced lookalike products of high-end brands. In the next decades, Zara's
business model gradually earned a reputation among Spanish consumers, with nine more stores in Spain's most
prominent cities.

In 1985, Zara was incorporated into Inditex as a holding company and started expanding worldwide with a better
distribution system that quickly reacted to the fashion industry's shifting market trends. Ortega created a new
working process that is called "instant fashion," - which could reduce lead times and adapt to new trends in shorter
periods. This was driven by investments in information technology and utilizing designer groups.

The following decade saw the rapid expansion of Zara into global markets, including the US, France, Portugal,
Mexico, Greece, Sweden, Belgium, Cyprus, Malta, Norway, and Israel. Now, there is hardly a developed country that
doesn't have a Zara store. Across 96 countries, Zara's fashion empire has over 200+ stores and is the world's largest
fashion retailer. The founder Amancio Ortega is currently the sixth richest man in the world.

In 2019, the Zara brand's value was approximately calculated at 16.5 billion euros. The parent company Inditex also
has other fashion brands in its portfolio, such as Zara Home, Pull & Bear, Massimo Dutti, Bershka, Oysho, Bershaka,
and Uterqüe. The total revenue of Inditex in 2019 is estimated to be 23.31 billion euros.

Zara's positioning on the market

With a modern approach towards fashion, Zara highly targets young customers as its main

customer group, especially the millennials. Understanding that they want trendy but affordable

fashion items, Zara sharply provides the latest styles at low prices. But the quality is not
compromised, the fabric used is still of sufficiently good quality but meant to be used for just one

season.

Compared to average retailers, Zara provides a significantly larger assortment of styles and designs

with over 450 million products per year. The items have their own fashion seasons that come and

go even faster than the rest of the fashion world. Women typically love the ideas by being more

than half of Zara's target market, mainly because they prefer to change their styles once in a while

more. The highly responsive supply chain of Zara ships new products to stores twice a week, giving

buyers constant new options.

By understanding the target customers and providing a new way for fashion, Zara has successfully

positioned itself as a stylish, affordable, and quick-changing fashion brand for the younger

generation.

Marketing strategy of brand zara

Zara 4p's marketing strategy

To get a better understanding of Zara's marketing strategy, we need to see all the important sides of

marketing. This leads us to a traditional marketing research method, which is called the 4p's strategy, which

includes products, place, price, and promotion. Let's see how Zara strategizes in these four sections.

Products
Zara is an "instant fashion" brand, which means it identifies the latest fashion trends and brings the design to

its stores quickly at reasonable prices. This is the source of the brand's quick growth and reputation. The

brand's products look somewhat similar to the hottest items in the market, but they have different traits
depending on specific markets. Zara does its research before releasing anything to suit the local culture and

people's tastes.

In short, Zara products have the latest styles, trending designs, affordable prices, and local-adapted tastes.

Place
Zara has nearly 3000 stores worldwide, but the even more incredible fact is that it is a vertically integrated

retailer. This means Zara does all of the designs, manufacturing, and distribution itself without third-party

suppliers. This brings the same environment and experience for customers everywhere. Its store's design is

modern, luxurious, and predominantly white.

Online selling has been carefully planned and limited to specific countries as well. This creates a throughout

strategy for the company's growth, and it seems to work because Zara has managed to establish itself as one

leading fashion retailer globally.

Price
Zara's pricing strategy focuses on the average shopper that wants the latest fashion items at affordable

prices. So its prices have to be catered to the price-sensitive buyers as well. The pricing strategy that Zara

applied helped its products meet the needs of a very large consumer segment. But Zara doesn't compromise

the product's quality, so it will be lower when compared to other brands such as Hugo Boss or Uniqlo.

Some Zara stores have very premium pricing, whereas others have much more affordable prices, based on

the locations and targeted customers. Zara is able to maintain a good pricing strategy by optimizing

development and distribution costs. This creates a unique brand image and grows the brand's market share

faster, especially among millennials.

Promotion
One thing to note is that Zara spends very little on promotion campaigns compared to average fashion

retailers. It just simply doesn't market itself as aggressively as other companies. But this doesn't mean it has

no focus on marketing. Zara mainly focuses on opening new stores and word of mouth. The key promotion

strategy of Zara is based on experience, exclusivity, affordability, and differentiation.

This strategy is visible through the attention to each detail of its showrooms. Everything is precise,

professional, and elegant. Every store manager can talk directly to its counterparts in Spain regarding the

situation. By focusing on the brand's core qualities towards buyers, Zara can build its popularity with an

effective brand image. When it comes to promotion, Zara has also used the power of social media channels

effectively.

Zara's marketing tactics

For Zara, it is not about how much it spends on advertising, but it is all about the customer. How Zara can

provide an experience for the customer in every place of existence is what the brand has focused on since

day one. Here are five marketing tactics that Zara has implemented to achieve that goal .

Focus on customer's experience

Product used to be the focal point of every business, but not anymore. In the new economy, the customer's

experience matters more than the product itself in the mind of the shopper. And Zara fully understands this.

It tries to capitalize on the store experience by always offering reasons for the buyers to revisit the stores. A

Zara's loyal customer can visit the store about six times per year.

Zara's fast-fashion formula provides frictionless shopping experience in a highly curated environment that

offers limited supply and new styles that rotate continuously. Shoppers feel like if they buy items from Zara,

other people won't have the same outfit. So not only buyers are trendy, but they are also unique, which

sounds pretty cool like being in a cool kids' club.

Value for the price

Many fashion brands try to be innovators and the leaders of a new movement, but Zara takes a completely

different approach. It doesn't want to be a trendsetter; it just wants to be a fashion company that customers

need. Buyers now want an item's value to be beyond price, with more time-saving and convenience.
Zara has a deep understanding of these values and delivers affordable high fashion items in just two weeks.

That translates into a great brand with high values for customers. Through this approach, Zara can earn

many loyal buyers that are less price-sensitive and return a higher profit margin.

Zara is not the cheapest in the fast-fashion industry, but it delivers trend-right products at appealing prices

consistently, which makes it have the best-branded value.

The power of brand loyalty

Speaking of loyal customers, Zara's meaningful experience and values tap the potential of frequent buyers to

promote the brand. Rather than spending more on pushing marketing out (it only spends about 0.3% of sales

on advertising), Zara pulls customers in and turns them into brand evangelists to spread word of mouth

about the brand.

 review of literature

Marketing is a vast field with a rich body of literature covering various aspects of consumer
behavior, advertising, branding, market research, digital marketing, and more. Here is a brief
review of some key areas within marketing literature:

Consumer Behavior: Numerous studies have examined consumer decision-making processes,

motivations, and preferences. Topics include perception, attitude formation, purchase intentions,
and the impact of culture and social factors on consumer behavior.

Advertising and Promotion: Research in this area explores the effectiveness of different
advertising strategies, such as emotional appeals, humor, celebrity endorsements, and digital
advertising. It also investigates the role of advertising in shaping consumer perceptions and
brand image.

Branding and Brand Management: Branding literature delves into the creation, development, and
management of brands. It explores brand equity, brand loyalty, brand personality, brand
positioning, and the impact of brand extensions and co-branding on consumer behavior.

Market Research and Segmentation: This area focuses on research methodologies, techniques,
and tools used to gather and analyze consumer insights. It covers market segmentation,
targeting, and positioning strategies, as well as the utilization of customer data for effective
marketing decision-making.

Digital Marketing and Social Media: With the rise of digital technologies, research in this domain
investigates online consumer behavior, social media marketing strategies, content marketing,
search engine optimization, and the impact of digital platforms on customer engagement and
brand awareness.

Relationship Marketing: Relationship marketing emphasizes the importance of building long-

term customer relationships. It examines customer retention, customer satisfaction, loyalty
programs, and customer relationship management (CRM) strategies to enhance customer
lifetime value.

International Marketing: This literature explores the challenges and opportunities of marketing in
global contexts. It covers cross-cultural marketing, international market entry strategies,
standardization versus adaptation, and the impact of globalization on consumer behavior.

Marketing Ethics and Corporate Social Responsibility: Studies in this area address the ethical
dimensions of marketing practices, including deceptive advertising, consumer privacy, and
sustainability. It explores the role of companies in addressing social and environmental issues and
the impact of ethical marketing on brand reputation.

These are just a few of the many areas covered in marketing literature. The field is continually
evolving with new research focusing on emerging trends, technologies, and consumer behaviors.
research methodology

research design

A research design is a detailed blue print used to guide a research study towards to objective .

the process of designing a research study involves many interrelated decisions . A research

design is the arrangement of condition for collecting and analyzing of data in manner that

aims to combine return to the research propose with economy in procedure

The research design adopted for this study is Descriptive research

Descriptive method was adopted because it deals with description of the state of affairs as

it exist at present . determine the frequency with which something acquire or its associations

with something else . it is to formulate based on the objective of the study .

Sample design

Simple random sampling technique is used for collection data I have collected it from 90

respondents of Kanpur city for the purpose of my study

Population

Respondents of Kanpur city is taken as population for the purpose of my study

Sampling unit

The sampling unit has tbeen taken for research is from people working at marketing and

marketing students

Sample size

90 respondents have been chosen from Kanpur city to find the objective of the study
Sampling procedure

Non probability random convenience sampling technique used

Simple random sampinh

Simple random sampling is a type of probability sampling in which the researcher randomly

selects a subset of participants from a population. Each member of the population has an

equal chance of being selected.

Objectives of the study

1. To understand what position zara holds in the market ,and the market strategies they

apply

2. to understand the tactics and methods used by the brand zara to grab the interest of

customers

3. to know what are the views of the costumers using the brand or not using the brand

4. to understand the work flow of zara brand in comparison to other brands like h&m

and forever

5. to know about the new demands of customers and the problems the face while

shopping with the particular brand

6. to analyze the objectives

7. to know the preference for zara

8. to understand what all the brand zara has faced in building up a position which it has

now in the market

9. to find out what are the future plans brand zara has for it’s success
 10. to know how strong bond zara has with its customers

hypothesis of the study

the null HO and alternative hypothesis can be stated as follows ;

group A = Independent variable

group B = dependent variable

hypothesis 1

Null hypothesis (HO) : there is no difference in the effect that working at start up or

established company .

Alternative hypothesis (HI) : there is adifference in the effect that working at start up or

established company

In this research project that includes several variables , beyond knowing the means and

standard deviation of the dependent variables , reserachers often would like to know how one

dimensions is related to another

That is , it would like to see the nature , direction , and significances . the hypotheses 2 is

proposed so as to explore the marketing strategies of the zara and the other companies in

competition

Null hypothesis (HO) : null hypothesis there is no corelation among different dimensions

of strt up and established companies .

Alternative hypothesis (HI) : there is a corelation among different companies either start up

or established company .

Data collection

“questionnaire method of data collection is the most common instruments of data collection it

contains a set of questions logically related to problem of study .

In this research primary as well as secondary data is used

Source of data collection

Primary data

Primary data is the data that is collected by researchers directly from main sources for the specific

purpose of answering a question or investigating a problem . Primary data is a real-time data.

Primary data can be generated by surveys, interviews, experiments, etc.

Secondary data

Secondary data

is the data that has already been collected by someone else for another purpose and made readily

available for researchers to use. secondary data is one which relates to the past . secondary data can

be extracted from large government institutions, healthcare facilities, etc.

Statistical tool

Percentage method and pie chart are used for my study

Analysis and interpretation

Any other recommendations?

74 responses

No
no
No
NA
Nothing
..
Simplicity is the key...your competition is H&M ...they have more stylish and much affordable
articles ...when it comes to shopping i look for quality, and so does other customers.
Good and effective
I rarely buy clothes at Zara as they have clothes that fit me well. I avoid to shop at fast fashion retailers
for the same reason. Also, Zara is not a pocket friendly option for me.
Findings

1. 93.3% of the population knows the brand zara

2. 63.3% of the overall population recongnises the brand zara through online

platforms

3. 37.8% of the population is highlhly influenced by brand “zara”

4. “zara” is recognised by 81.1% of the population

5. 60% of the respondents are in love with the quality of the products the brand

introduces 20% of the respondents loves the fashion sense of brand zara and

11.1% of them are impressed with the price factors

6. 53.3% of people shop yearly from zara 7.8% of them shop every weak from zara

and 34.4% of them prefer visting zara monthly

7. 40% of the population agrees with the fact that zara has a good catch on the

market and always keeps up with treands ahead of other brands like madame

and H&M

8. 64.4% of the respondents get attracted towards the social media posts of the

brand zara

9. 78.9% respondents like to recommend zara brand to others

10. 87.8% repondents wants zara to launch new products soon and they are eagerly

waiting for the new collections launched by the brand zara

11. 35.6% of the respondents believe that the brand zara is a bit expensive 43.3%

believes the rates are affordable

12. 32.2% of the respondents says that zara woukd be there first choice forever no

matter other brands have a cheap price in comparison to zara

13. From the above findings I can state that zara has a good control over market and

it has great marketing strategies also . the brand zara has a good and a powerfull

impact on the youth

14. From the survey we came to know the age factor which mostly chooses brand

zara is 18-25 years that means the younger generation is much influenced by the

brand zara

15. Zara holds a very respectable position in the market

16. Zara also has good influence on people via internet

suggestions

This study is aimed at realising the market strategy of brand zara with the help of the

survey being conducted . the survey was of 9 people in total the survey helped me to

know why zara has such a good influence on the people through the survey I also

came across on the marketing tactics which are used by the rand zara which is the

reason behind its ultimate success in the market. It was very evident from the survey

that the people are so much satisfied with the produt quality of zara that most of them

would not switch to a another brand no matter if it is cheaper . zara has gained its

customers faith in every possible way

Zara holds a quite good position in the competitive market. There are also many

people according to my survey that do not find the pricimg policies of zara .many of

them go for H&M and the other clothing brands like forever new or kazo

The main reason behind people not willing to shop with zaraa accprding to the survey

Is that they find zara over expensive

conclusion

the project report considers of all the marketing tactics or strategies which are

been used by the brands zara to have a closer look upon the influence of the

brand on the customers a survery has been conducted . the survey was really

very helpfull to understand what position does brand zara holds in the market .

through the survey I came to the conclusion that brand zzara always keeps up

with the trend and this is the main reason why it has a great impact on its

customers .

through the survey it is very evident that zara has a good control on the running

competitive market zara gives a good competition to the other brands like H&M

, kazo , forever new ,levis etc etc

zara has control on the whole world not only foreign countries but the people of

india are also hihghly influenced by the brand zara and its connections are

getting
Your name

Your age

18-25

26-30

31-40

41-50

Choose one brand other than zara , you prefer the most?

Kazo

Only

Madame

H&M

Occupation

A businessman

Student

Do you know the brand zara ?

Yes

No

Other:
How do you know zara brand ?

A TV

Print media

Word of mouth

Online

Brand has a big influence on your buying decision?

High

Neutral

Low

Do you think zara is strong recognised in your mind

Yes

No

What is your first factor considering when you make buying decision.

Quality

Fashion

Price

Brand image

Advertising

How often do you shop at zara

Weekly

Every few weeks

Monthly

Yearly

Would you say zara keep up with trends ahead of other retailers such as madame and

H&M

Very well, always on trend first

Well, usually on trend first

Average, sometimes on trend first

Never on trend first

Do you follow zara on social media(Instagram/Twitter/ Facebook)

Yes

No

Do zara's social media post's incline you to buy featured products?

Yes

No

Do you like to recommend zara brand to others

Yes

No

If zara launches other new product , would you like to try?

Yes

No

What do you think about zara clothing price?

Cheap

Medium

More expensive

Luxury

Why you choose to buy zara clothing ?

The price is reasonable

The product quality

Product has fast up to data speed

Fashion

If a similar brand has cheap price! Would zara still be your first choice.

Yes

No

Maybe

Any other recommendations?

Bibliography

The Majority of the project has been secondary wherever the support of the books and

internet links

Books

The Blue Ocean Strategy by W.Chankim and renee

The 22 Immutable laws of marketing by Airies and Jacktrout

Links

1. www.wikipedia.com

2. www.Google.com

3. www.scribed.com

4. www.slideshare.net