Zara Case Summary

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ZARA’s business model is to offer “medium quality fashion clothing at affordable prices” (7). After reading this case, I look at this model in two parts, the first part is offering trendy fashion and the second part is offering it at an affordable price.
I will first talk about how ZARA stays on top of the latest fashion trends. ZARA has heavily invested into Information Technologies that allow them to to sort and acquire information about their consumers in order to design their products to fit future trends. In addition to this technology, ZARA relies upon their store managers to gain information on any trends they see in their store that the automated system may not pick up on, like clothes people wear in the store or what other stores
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To add upon what I said about the supply chain earlier, ZARA uses a Just-in-Time Manufacturing system (9), that allows their product to hit the market quickly and in the correct locations. Also, their supply chain relies on one centralized distribution center which allows the company to know exactly when products are being shipped and where to. Lastly, ZARA keeps a low inventory and will only supply a limited amount of their product and will not supply more if sold-out. This makes the process of supplying products easier as well as implementing scarcity with their products so consumers will “buy now because you may not be able to later” (13). Secondly, ZARA markets themselves in a unique way. They spend very little in media marketing compared to other retailers, thus relying heavily on brand awareness. They do this by investing in prime locations (13) and are willing to change their store locations due to the evolution of shopping districts and traffic patterns (14). This will keep their stores in popular locations and people coming in. When people do enter their stores, ZARA spends a lot of money on renovating their stores so their consumers will enter a beautiful store (13). ZARA relies on their window displays and in store presentations to promote its market image and keep people coming back

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