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Zara Inc Success - Research Paper Example

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This research paper presents one giant which has cruised its way through this so called struggle and race to become the most accepted or top fashion brand. Its name is ZARA. The main success has been in their effective inventory management and cost control…
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Zara Inc Success
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Download file to see previous pages As the paper highlights the Fashion Retail world has evolved ahead of others with companies fighting for share in the market and the consumers demanding the next exotic collection every few months. The internationalization has enhanced the commercial aspect of these Fashion Titans who struggle to roll out new designs and trends every season with the hope of getting noticed in a crowd of thousands. The new global economic environment has provided Zara with an opportunity to improve its current brand perception and become the premium brand for European consumers. This can be achieved by creating a high end line for Zara. This would not only increase the potential target market for Zara but also allow Zara to charge premium prices.
This study declares that in 1963-74 Amancio Ortega Gaona, chairman and founder of Inditex2, begins his business activities in the textile manufacturing sector. The business grows steadily throughout the decade to include several manufacturing centers distributing products to various European countries. The first ZARA shop opened its doors in 1975 in A Coruña (Spain), the city that saw the Groups early beginnings and which is now home to its central offices. Its stores can now be found in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa which is indeed a remarkable achievement. Interesting as it may seem, its first store featured low-priced lookalike products of popular, higher-end clothing fashions. This was of course an instant success as it enabled the people to have copies of the more luxurious clothes at a reasonable price and so Mr. Ortega opened more stores all over Spain. “ZARA was a fashion imitator. ZARA’s strategy of low volume per style and changing products quickly in its stores helps it to down on the discounts as well. Of its 12,000 distinct items annually, only about 18% of its clothing does not work with customers and has to be discounted.  ...Download file to see next pagesRead More
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