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Case study ZARA, Would Zara’s model work for other retailers? Why or why not?

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ZARA
SENTENCE 1: Would Zara’s model work for other retailers? Why or why
not?
Zara's model does not match other retail brands. Because:
Compared to competitors, Zara's strategy is to launch more models than the
competition. While most fashion retailers only produce and sell 2,000-4,000
models per year, Zara releases more than 10,000 models per year. This approach
allows Zara to attract a wider range of customers with different interests. To be like
a retailer Zara is not an easy thing, it is necessary to have supply chains close to the
place of production to optimize product production time as much as possible.
Zara divides its products into a lower-end group and a higher-end group. Its goal
was to be seen from the outset as a retailer of high-end fashion at an affordable
price. Its main stores are always located in prime areas in major cities around the
world, where rent is very expensive, such as on Fifth Avenue in New York. In its
brand strategy, Zara does not emphasize the issue of advertising. Instead, the
company poured money into opening new stores. If the finances are not strong and
the store is not located in a suitable attraction, it is difficult for other retailers to
attract customers without spending as much advertising as Zara.
Zara is able to design, manufacture and market products quickly because it owns
many production stages in the supply chain. It has a main manufacturing plant in
Spain, where it was founded. Of Zara's products, 50% are made in Spain, and 24%
are produced in Asia and Africa. The difference between Zara's approach to
fashion compared to other retailers is that Zara tries to forecast the future needs of
consumers, instead of "following" existing fashion trends. Zara's product turnover
rate is very high. On average, a Zara product is only available on shelves for 1
month. If they want to apply their model, other retailers have to create demand and
get the attention of customers, which will be very difficult if the retailer does not
meet the above conditions.
SENTENCE 2: How is Zara going to expand successfully all over the world
with the same level of speed and instant fashion?
-About logistics: Sourcing inputs in new markets




+ As an alternative to transporting products across the country, ZARA can
consider and look for partners in the region with plans to expand (In order to
transport costs for the whole enterprise; reduce the cost of products to consumers)
+ Choosing a suitable and convenient partner (In order to minimize the delivery
time, produce to meet the fast fashion needs of customers; increase the frequency
of consumers' purchases)
-About the store: Developing an online store system in parallel with the
expansion of the Zara store chain: Depending on the market, there will be more
prominent e-commerce platforms, ZARA needs to combine with reputable
exchanges to expand the file. its customers globally.
-About customers: Thoroughly research the culture and style, aesthetic needs of
the target audience
+ Each different culture and locality will have its own aesthetic taste, Zara has
recognized this point very well in the Western market. However, to develop the
brand into the Eastern market and individual countries, Zara needs to spend more
time and money to compete with the market leader there.
-About design and production: Continue to push the strategy of regular
refurbishment of the store and improvement of its products.



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