To What Extent You Feel the Business Model of Zara Is Sustainable? Critically Evaluate the Impact Zara Has Had on the Fashion Industry. Essay Example
To what extent you feel the business model of Zara is sustainable? Critically evaluate the impact Zara has had on the fashion industry.
The Fashion Imitator
Established in 1975, Zara is one of the most successful retailers of today’s world. Their clear focus and vision has made them to tap the power of the fashion. Operating in 62 different countries it has nearly around 2500 stores all over the world. Zara under the flagship of Inditex, (a holding company located in Northwest Spain) is a fashion imitator, it comprehends what its customer’s desire and then designs and manufactures according to their expectations. Zara’s business working model is quite diverse from the other retailers; this makes them set out in the market. It has promoted the message of high fashion at a lesser cost across all countries through its unique and different selling techniques.
The Sustainability of Zara
Understanding and comparing the Business strategy and the financial differences of Inditex and its major competitor will help in understanding the sustainability of Zara in the international apparel market. Gap which is one of Zara’s major competitors sells the same range of merchandise with a less trendy style. H&M (Hennes and Mauritz) a threatening competitor too has been quick to “internationalize”, which allows them to gain sales in countries outside their native Sweden.
H&M also is more attentive when entering new markets and tends to enter one country at a time, as opposed to Zara who multitasks globally.
[pic]
The above image shows the suppliers chain of Zara and it’s major competitors.
It’s been known that H&M has 85% current assets in its business where as Zara has only 50% of current assets. This shows that Zara has more of fixed assets and its current assets are quite fast moving as seen in its business model.
[pic]
Zara and its major competitor H&M
Spain’s well-liked brand Zara, aims to offer the latest catwalk style at the most affordable price. With a unique
The Fashion Imitator
Established in 1975, Zara is one of the most successful retailers of today’s world. Their clear focus and vision has made them to tap the power of the fashion. Operating in 62 different countries it has nearly around 2500 stores all over the world. Zara under the flagship of Inditex, (a holding company located in Northwest Spain) is a fashion imitator, it comprehends what its customer’s desire and then designs and manufactures according to their expectations. Zara’s business working model is quite diverse from the other retailers; this makes them set out in the market. It has promoted the message of high fashion at a lesser cost across all countries through its unique and different selling techniques.
The Sustainability of Zara
Understanding and comparing the Business strategy and the financial differences of Inditex and its major competitor will help in understanding the sustainability of Zara in the international apparel market. Gap which is one of Zara’s major competitors sells the same range of merchandise with a less trendy style. H&M (Hennes and Mauritz) a threatening competitor too has been quick to “internationalize”, which allows them to gain sales in countries outside their native Sweden.
H&M also is more attentive when entering new markets and tends to enter one country at a time, as opposed to Zara who multitasks globally.
[pic]
The above image shows the suppliers chain of Zara and it’s major competitors.
It’s been known that H&M has 85% current assets in its business where as Zara has only 50% of current assets. This shows that Zara has more of fixed assets and its current assets are quite fast moving as seen in its business model.
[pic]
Zara and its major competitor H&M
Spain’s well-liked brand Zara, aims to offer the latest catwalk style at the most affordable price. With a unique