Zara Case Study Essay

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ZARA CASE STUDY
About Zara
Zara is a world renowned brand known for its affordable clothing with decent quality. The brand is owned by Inditex of Spain which owns other brands like Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho. Inditex is from the region of Galicia in Spain which is known for its ties in supplying clothing to the French aristocrats before renaissance. Inditex was founded by Amancio Ortega who started his career as an errand boy in a local apparel shop. Inditex went public in May 2001 and it was valued close to €13 billion by May 2002. It operated around 1,284 stores worldwide by 2001 and 54% of the revenue came from the stores outside Spain. It employs around26,000 employees worldwide which includes around 11,000
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It usually opens a store only in primary locations despite the cost involved. It takes care in designing the frontage of the shops as they are considered to be the first look of the brand. The displayed merchandise are generally changed every 3 year once. This makes ardent Zara buyers visit the store very frequently. Usually a buyer visits 17 times a year which is much higher than the average in other companies.
Zara’s international expansion
By 2001, Zara had 56% of its stores internationally outside Spain. 61% of its sales can be attributed to its International outlets. But, this international expansion hasn’t been easy and it was done based on thorough study. The following sections describe the methodology adapted by Zara for its international expansion.
Marketing
Zara believes that with moving time, tastes across nation are converging across national boundaries. It follows the same strategy of advertising only twice i.e. once at the beginning of each season in all its international markets as its study shows that advertisements done in the rest of the year has not much value add to its sales. Also, to increase its value, it labels its products as ‘Made in Europe’ instead of ‘Made in

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