Zara, the popular Spanish fashion brand, is a retailing chain that has a large number of stores worldwide. The brand started its operations in 1975, in A Coruna, Galicia. It was founded by Amancio Ortega and Rosalia Mera. The company’s primary focus was to excel in fast fashion and products including clothing and shoes.
Initially, the company was named Zorba the Greek, but since there was a bar with the same name, Ortega had to reconsider the brand title hence coining the term, Zara.
Marketing Strategy of Zara
Zara’s marketing strategy has been consistent for a really long time and it looks like it is still viable in this competitive fashion era.
The company’s mission statement says:
Zara moves at the pace of society, fashion ideas, and trends that society itself has natured. Hence its success among people, cultures and generations that, in spite of their differences, share a special sensitivity for fashion.
To enhance the brand’s sales and recognition, the popular fashion brand has the following objectives:
- Increase customer equity,
- Increase brand awareness among consumers,
- Cater to the needs of “plus-size” customers.
Since Zara practices the unique strategy of “zero investments in marketing”, the brand focuses on growth through store expansion in densely populated cities. This allows the leading fashion retailer to maintain a competitive advantage in releasing newly fashioned designs, regularly.
The target group for the successful Spanish fashion brand is mainly women ranging from 18 – 40 who are either pursuing their studies or working in developed cities. Since the brand promotes affordability, its target customers are the mid-range earners who intend to stay relevant to the fashion trends while relaxing their wallets.
Following the marketing strategy, the company has successfully opened stores in about 70 countries worldwide. With the pricing strategy of producing inexpensive and affordable clothes, the company trumps over its competitors by providing premium quality.
The company’s marketing strategy focuses on building a customer-centered product that will help Zara stand out against its rivals.
The marketing strategy of Zara has seen undoubtedly a high rate of return. However, a marketing strategy is always judged by its ability to sustain the results and ensure long-term growth.
The sustainability of Zara’s marketing strategy is dependent on two factors. The first is that Zara prefers to avoid outsourcing to developing countries in search of cheap labor costs. Due to this, the fashion brand is able to be the controller of its products’ quality and attention-to-detail. However, due to this decision, since the labor costs are excitingly high in Spain or Portugal (Zara’s outsourcing partner), the company has to suffer major fluctuations in the finances. The current worldwide recession may have a serious impact on this strategy.
Secondly, the importance of environmental impacts in the fabric sector has seen an unusual rise. Currently, Zara prefers to perform the pre-treatment, dyeing and printing tasks in-house. However, consumers can pressurize the company for environmentally sensitive production. This means that Zara will have to scout alternative materials of recycling options to reduce the threat to the environment.
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