Retailing and Zara

Topics: Retailing, Marketing, United States Pages: 2 (568 words) Published: March 11, 2007
The best way for Zara to maintain their sustainable growth is to seek new opportunities in the apparel market. With changing consumer behaviors as a result of globalization, and U.S. department stores suffering, there are growth options available for specialty retailers like Zara. Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen recently. Zara should most likely develop a second central distribution center in the Americas to decrease logistics in order to deliver fashionable goods in a faster manner. Their second central distribution facility should be an expansion of one of their smaller distribution centers located in Argentina, Brazil or Mexico. The close proximity of the distribution center to the American market will allow them to effectively interpret the particular American fashion. The distribution center will also allow them to have additional funds to spend in other areas of business such as advertisements: a necessary feature to penetrate the American market. Another market opportunity for Zara is to invest in Internet retailing especially directed toward the U.S. market. Though Zara is wary of overexposure, Americans like to be able to purchase all goods including apparel from the comfort of their own homes at any time they chose. Therefore, since Zara is looking to expand in the U.S. market they could realize the potential for a direct Internet selling strategy. That form of direct marketing will reach more consumers faster and easier. Though it may be difficult to display all of Zara's ever-changing fashions online, it may prove profitable for shoppers to purchase a moderate selection of trendy Zara pieces along with some of their staple basics.

A final recommendation for Zara is to offer specialized products for different geographic locations within the same city. Zara already does this to an extent for different international preferences but more specialization will...
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