Zara, the big clothing chain based in Spain, Coruna, created a novel formula in apparel retailing by shipping new products to its 600 or so stores around the world every few days, not once a season, and by manufacturing more than 11,000 products a year. Zara is known as innovative designs around the world, each clothing line consists of the following divisions: Lower Garment, Upper Garment, Shoes, Cosmetique and Complements. Zara’s main strategy is the ability to respond very quickly to the demands of target customers which called for identifying trends of the customer in advance. The company has been able to identify the trends and meet the demand with the help of its autonomously organized structure and its effective value chain systems. The present system followed by Zara has been very effective and very easy to maintain, which as a result has persuaded the company to continue without any change in the present system so far. Zara's business model
There are 3 basic components:
Zara's fundamental concept is to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands. José María Castellano, CEO of Inditex stated that "the fashion world is in constant flux and is driven not by supply but by customer demand. We need to give consumers what they want, and if I go to South America or Asia to make clothes, I simply can't move fast enough." This highlights the importance of this quick response time to Zara's operations.
Zara’s target market
By targeting a broad market Zara has an international advantage over its competitors. Zara’s target market is very broad because they do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara’s target market is a young, educated one that likes fashion and is sensitive to fashion. Today, people around the world through various communication devices have more access to...
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