Zaras Global Target Market - Essay Example

Zara opened its first store in 1975 in Spain. Today, Zara is probably the worlds fastest growing retailer with over 2,700 stores around the world in 60 countries. The company started expanding worldwide including Portugal, France, Mexico, Greece, Sweden and U.S.A. Zara is now one of the most valuable and the 2nd leading brands in the world. It has successfully raised its brand significance by adopting several new brand strategies like offering ultimate fashion at a low cost. The company attracts the customers through product rotation, that is, it frequently changes the style of its products and also introduces several new products in the market. Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labour. Zara controls most of the steps on the supply-chain; it designs, produces, and distributes itself. (Rose 2001). Zara needs just two weeks to develop a new product get it to stores, compared with a nine-month industry average, and launches around 10,000 new designs each year. If a new design is not sold within a week, it is withdrawn from the shop and a new design is pursued. None of the designs stays on the shop for more than four weeks which encourages the shop’s fans to make repeat visits. The business model for the company is based on offering the latest style in a high quality product at a good price. With a creative team of more than 200 professionals, Zara’s design process is closely to the public. Zara pays special attention to the design of it stores, its shop windows and interior décor, and locates them in the best sites of major shopping districts Zara’s first outlet in Spain, the store was selling well designed clothes in a modern environment at a price anybody could afford. The in-store displays were kept minimal and the showroom was light and airy, with clean lines and white walls that act as a blank canvas for ad campaigns. Zara’s window aimed at attracting the potential customers who will become the ultimate purchaser of the product. To induce them, the displays were made realistic in an expensive method to attract the onlookers. The consumers are made to repeat visits to look at the products displayed before they buy them, as few customers are impulsive buyers. As the customers have wide range of choice products with variable prices they prefer to go around the store to decide the purchase depending upon their budget. Window display and strategic positioning refers to performing different activities than the rivals or the same activities in a different way. While the display model used by Zara itself is often very easy to replicate, technology is essential to creating and enabling novel approaches to business that are defensibly different than rivals and which can be quite difficult for others to copy. Zara stores offer a compelling blend of fashion, quality and price offered in attractive stores in prime locations on premier commercial streets and in upscale shopping centers. The in-house design and production capabilities enable them to offer fresh designs at Zara stores twice a week throughout the year. In the early 1990’s, Zara began formulating new type of design and distribution model. By that time it had opened up stores in countries like Europe and U.S.A. (Kotler 2008) Life like models dressed up in various costumes designed by leading fashion designers were kept in the window display. Zara’s most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. The strategy has changed lately with yearly sales advertisements, together with targeted advertisements in papers. The latest technologies with innovations were used to lure the customer in the showrooms. (Barthes 1972). Figure 1~4 This picture shows the window display of the showroom in Oxford Street, London. It was taken in October 2009. The window display contains models wearing trendy clothes created by the leading fashion designers of the world. It exhibits the latest designs. The models are put up with dresses that can be worn for various occasions. Each of them has been arranged in a different casual position. (Rose 2001). The costumes displayed exhibit comfort and luxury. The windows nowadays are aimed at attracting the people and hence they are decorated to the maximum. Figure 2~4 The image is captured on October 2009 from the Zara store located at Oxford Street, London. Here the models are dressed with the seasonal designer clothes. The collection includes casual and party wear which is specially made for the youth. Grabbing the attention of the people depends on the way they are displayed. The shop keepers make sure it is neatly placed so that people can easily relate it with them. (Hall 1997). Figure 1~4 shows the formal wear while this shows party wear. Figure 3~4 The picture was taken on November 2009, at a showroom in London, Oxford Street. The models have been arranged in a different way unlike the usual style. New arrivals have been put on them and some of the models are kept in box like structures. This is in contrast to the display in Figure 2~4. They have concentrated more in the order and place of arrangement. In that picture the dolls were placed in normal positions where as in this they have been kept in separate cabins.(Williamson 1978) Figure 4~4 Figure 4 is a view of one among the many windows in Zara store in London. This was captured on November 2009. They make sure there is some sort of difference in their window displays each month. Compared to Figure 3~4, the clothes here are designed for the upcoming Christmas season. The festive mood is created by decorating the window with color papers, articles and many other decorative items. In this picture, the models are made to stand in various patterns.(Barrett 2000). The materials are designed keeping in mind the pulse of today’s fashion and style statement of the people. Window display plays a formidable role in marketing the products by any company to popularize the products, to target the customers. The producers are trying to display the materials produced, through the windows to let consumers aware of the varieties, the quality and fashion created by Zara. If the customers are looking for great clothes at a reasonable price, Zara is the brand they could think about even if they are not too familiar with the products. As the times have changed and the competition grew between the products, to stay in the most competitive environment the manufacturers are forced to display their products in the most attractive methods to lure the consumers in tempting them to purchase. Promoters of Zara are always image conscious and they would not mind spending for window display to differentiate between and their nearest competitors. (Kotler 2008) With the aim of producing quality materials at affordable price range, Zara made products to reach the common man worldwide. Zara’s goal was to make the designer apparels available for the entire family at reasonable price. This being their company’s policy, Zara’s products became popular in all the countries.(Kotler 2008) They have created a brand image and become a tough competitor to retain their top slot in the industry. People at Zara do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara’s customer can be described as young -teenagers- consumers whose taste and consumption patterns change quickly and voraciously. Hence Zara’s global target market is a young, educated one that like fashion and is sensitive to fashion but price conscious. These customers want something new daily and Zara could make it possible. They also cater to the needs of consumers who are little conservative in their thoughts and dressing. This policy made Zara’s product more popular and highly demanding. Reference Zara- The Company. [Online] (n.d) http://www.zara.com/#/en_GB/THE%20COMPANY/Commitment/ [Accessed 15 Nov. 2009] Barrett T., (2000) .Criticizing Photographs- an Introduction to Understanding images London: Mayfield Publishing. Barthes R., (1972). Mythologies. London: Cape Publishers. Hall S., (1997). The Work of Representation: Cultural Representation and Signifying Practices. Milton Keynes: Open University Press (Pp. 13-74). Rose G., (2001).Visual Methodologies. London: Sage Publications. Williamson J., (1978). Decoding Advertisements: Ideology and Meaning in Advertising. London: Marion Boyars. Kotler, P.(2008) Principles of marketing. London: Prentice Hall. Read More