An Inquiry-Based Project of Zara Company

AN INQUIRY-BASED
PROJECT OF ZARA
COMPANY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SECONDARY RESEARCH...........................................................................................................3
Trends in retail business..............................................................................................................3
PRIMARY RESEARCH.................................................................................................................5
Data analysis................................................................................................................................5
RECOMMENDATIONS...............................................................................................................12
Action plan.................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................15
Questionnaire.............................................................................................................................15

INTRODUCTION
It is essential before making decisions and plans in the organization to have the right
information about the competition and market so that the resources and products can be well
maintained. The company gains a reputation in the market which has to be maintained for having
loyal customers and the economic factor to be stable. Zara is having its headquarters in Arteixo,
Spain. There are 2,270 stores and is serving worldwide. The organization has been in this
industry from 45 years which is 1975 and the company gained the market base quickly because
of the well-maintained quality and services to the customers. There are a lot of ways through
which the information of the market can be gathered so that the company can have better
functioning in the future and compete effectively as well in the market. There is also going to be
a discussion on the recommendations which the organization must consider and plan accordingly
to achieve the objectives.
MAIN BODY
SECONDARY RESEARCH
Trends in retail business
The retail industry goes through distinct changes due to dynamic customer behaviour, tastes,
preferences and expectations. Key industry trends in context to the retail sector are as follow:
1. Omnichannel retail: According to secondary qualitative research, average digital
consumer has around three or four connected devices which are used to make purchases.
Consumers browse products and services on their mobile phones and might complete the
purchase on laptops, iPad or they can even search for the product on web and pick up the
item from the store later. So, consumers can demand smooth experience across various
touchpoints due to the ubiquity of multiple channels. There is an increased demand for
both online and offline retailing. Seamless shopping experience begins with ‘mobile-first’
approach and is a strategic move for retailers (Artusi, Dell'Era and Bellini, 2018). The
experience should include easy navigation, customer support, exploration and
comparison of sales prices. Zara, the fashion clothing retailer, is already using this
approach by integrating its online and bricks & mortar stores, that is, 49 online markets
and 7500 physical shops.
2. Personalised Retail experience: Another trend in the retail industry is personalisation
and customization of products and services for customers. In personalisation, the retailers
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give suggestions and to customers on the basis of their preferences, order history,
location and previous searches. It is also done through interaction and customer
engagement via text messages, tele based communications, order updates etc. Artificial
intelligence is also used to predict and suggest customers to emphasize on a more unique
customer approach. Zara’s ‘Edited’ customization features allows customers to
personalise apparels like denims, sweaters et. According to the choice of embroidery or
shades, fonts for letter prints etc. This is enabled through a tech pop-up interactive A R
experience.
3. Culture of immediacy: The significant rise in technology has led to a growth in
impatient customers. According to secondary qualitative research of KANA software, the
present generations wants a communication response in under 10 minutes as opposed to
the previous generation who could wait for the response for a period of 10 days
(Sugimoto and Nagasawa, 2017). Therefore, the retailers are ensuring a fast-paced
process and culture in their organisations by enhancing their supply-chain. They carry
activities like displaying and updating inventory in real-time, providing same day
delivery options, quick restocking etc. Zara offers of-the-moment fashion and has
vertically integrated the company to design, produce and distribute apparels and garments
to their retail stores as quickly as three weeks.
4. Digital mobile payments: When it comes to payment methods, the retail industry
heavily relies upon mobile payment services and mobile wallets apart from cash, debit
and credit cards. According to a study by Bank of America, 91% people out of 1000
viewed mobile phones as ‘indispensable companion’ (Horn, Oehler and Wendt, 2020).
Most retailers are adopting API systems for seamless payment experience and merchants
are increasingly using services like Apple pay, Mastercard PayPass, PayPal, Android pay
and currently trending Google Pay. Therefore, incorporation of digital wallets is a
necessity in current times to cope up with future billing and payment techniques. Zara
uses NFC contactless tech and QR code scanning to enable transactions and has started
using Inditex brand’s (parent company) umbrella payment app called InWallet.
5. New Markets: Retail industry if aimed at finding new channels by using technology to
tap into new and emerging markets. Overseas and digital expansion is what retailers are
trying to attain to maximise their reach across the globe. Adoption of a ‘digital first’
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