E-commerce strategies of zara Assignment

Running head: E-COMMERCE STRATEGIES OF ZARA
E-COMMERCE STRATEGIES OF ZARA
Name of student
Name of the University
Author Note

1E-COMMERCE STRATEGIES OF ZARA
Executive summary
The report focuses on showing the advantages and importance of e-commerce for all retail
organizations. ZARA, which is one of the best brands of apparel retail industry, has faced
many problems due to its slow approach towards online shopping. Its market share has fallen
and sales have fallen. This report highlighted the importance of providing recommendations
for high-level e-commerce such that it can gain back its market share and have a competitive
advantage over its competitors.

2E-COMMERCE STRATEGIES OF ZARA
Table of Contents
Introduction................................................................................................................................3
Strategic recommendation for high level e-commerce..............................................................3
The implementation of the strategic recommendations and justification:.................................5
The steps for implementing them...............................................................................................5
References..................................................................................................................................8

3E-COMMERCE STRATEGIES OF ZARA
Introduction
E-Commerce means doing business over internet and includes online transaction
processing, supply chain management, electronic fund transfer and many more facilities
(Laudon, Kenneth and Carol). E-commerce in the present day includes World Wide Web as
a part of it though it can also include e-mails. The scope of e-commerce varies from-
purchase of booking, to selling cars, to buying music, online retailing and many others. Most
of the apparel and accessories businesses are expanding their scope of operation by using E-
Commerce. ZARA retailing was started with the objective of zero-advertisement and it was
selling its products through large number of retail stores (https://www.zara.com). However,
due to the pressure from other apparel retailing companies it has adopted online shopping.
Still ZARA is facing many issues related to online shopping. If ZARA wants to become a
global brand it needs to improve its online shopping strategies.
Strategic recommendation for high level e-commerce
ZARA is the part of Inditex group that is the largest retailer of apparels and was
ranked at number 30th brand out of all the best global brands. However recently it has been
reported that ZARA has been losing its share in the market due to pressure from competitor
brands with strong online presence (Fernie, John and Leigh). ZARA believes in zero-
advertisement strategy but this strategy needs to be changed to become the best global brand
in the apparel retailing industry. The best way to advertise is with the use of internet because
present generation is tech savvy and they have adopted digitalized marketing because of the
convenience that it offers and safety related with it (Paris et al.). According a report the
online shopping of shoes and apparels amounts to 231 billion approx. and this shows the
rising demand for online shopping among customers. It has been seen that ZARA has been
lagging in meeting the online requirements of customers. Major online businesses that is

4E-COMMERCE STRATEGIES OF ZARA
covering the retail market of apparels include amazon and many others (Molinillo et al.). The
company finds it difficult to establish itself as an online shopping site among its competitors.
ZARA can still become the best global brand if they focus on their online shopping
techniques and improve their mobile app and add more features. ZARA can take advantage
of their fast delivery to gain a competitive advantage for their online shopping. Usually it
takes at least 36-48 hours to deliver apparels online. ZARA can take advantage of this
weakness of other online companies and deliver the apparels faster. They can adopt many
other promotional techniques to attract customers online by giving various offers such as free
delivery charges for customers if they purchase apparels or accessories worth a certain limit
(Hew, Jun-Jie et al.). ZARA’s treasure trove is facing problem from online users. While
ZARA’s retail store of treasure trove has very good sales in the market, the offline treasure
trove is suffering from negative feedbacks from customers due to poor quality products and
online services and other issues (Escobar-Rodríguez, Tomás, and Rocío). The company
instead of reacting actively to the responses of the customers they are saying that it is better
to shop from treasure troves offline. To overcome this problem of quality and service issues
the organization needs to employ people who can handle the quality management of the
online deliveries and can ensure a good customer service in terms of active responses to
them. This will help the customers in feeling that the organization is taking care of their
needs and this will enhance their online shopping experience good. The click and collect
option of ZARA has created a new problem related to online issues . The customers click on
the apparels that they would like to carry from the stores offline (Juaneda-Ayensa et al.).
However, the customers have to face a problem due to this option of online shopping of
ZARA because they have to stand in queues to collect their products and that result in
reducing the efficiency in buying and makes the customer experience poor. If the company
can improve its click and collect option on the website such that they can show the number

5E-COMMERCE STRATEGIES OF ZARA
when the customers turn will come then it will be more convenient for them. The company
can create an option of clicking the product selected and they can be given a time limit in
which the customers can go and purchase their clicked or selected items.
The implementation of the strategic recommendations and justification:
The following recommendations have been given to the company to improve its sales
online- ZARA should provide fast delivery and other promotional activities, improve the
quality of the clothes online and better online customer services and modifying the option of
click and collect. The recommendation for improving fast delivery and promotional activities
have been given so that the company can attract new customers who are being influenced by
other brands. The second recommendation of improving the quality of clothes online and
improving customer feedback services has been given to make the customer experience
better. The recommendation for modifying the click and collect option has been given to
remove the inconvenience that customers have to face due to queues.
The steps for implementing them
Recommendations Objectives Budget notion Resource Deadline Return on
investment
Fast online
delivery and
promotional
activities
Reach
customers
faster and
attracting
customers
Better
logistics
means more
investment(76
euro per
square meter)
Logistics
resources
and
promotional
resources
1 month
approx.
Faster
delivery and
satisfied
customers

6E-COMMERCE STRATEGIES OF ZARA
Table 1: better logistics and promotional activities
(Source: Created by author)
The steps in the process of implementation involves laying down the objectives of the
recommendation such as the objective here is to reach the customers faster than the
competitors. The budget notion discusses the investment required to improve the logistics and
for promotional activities. Resources show what resource is needed to improve the logistics.
The return on investment part discusses what will be the advantage of applying the
recommendation.
Recommendation no. 2:
Recommendatio
n
Objectives Budget notion Resource Deadline Return on
investment
Providing
active response
and better
quality products
To improve
customer
experience
2000 euro
(approx.) per
month
Human
resources
with soft
skills
2 weeks
approx.
Better
customer
experience
and better
reviews
Table 2: better customer services and improving product quality
(Source: created by author)
The table discusses about the steps of implementing the recommendation. The
objective is to improve the customer experience and service by providing better quality
products online and by giving active responses to the queries and feedbacks of customers.
Resources required is employees with good soft skills to deal with the customers and improve
their experience. Return on investment means better reviews from customers.

7E-COMMERCE STRATEGIES OF ZARA
Recommendation no. 3:
Recommendation Objectives Budget Resource Deadline Return on
investment
Modifying the click
and collect option
To reduce
inconvenience
10000-
50000 euros
approx.
Technology
up gradation
3 weeks
approx.
Customers
conveniently
buy their
products
Table 3: modification of click and collect option
(Source: created by author)
The above table discusses about the recommendation of modifying the click and
collect option in the official website of the company for this the resources required will be
technological up gradation. This will reduce the inconvenience and as a result, the customers
can easily buy the products.

8E-COMMERCE STRATEGIES OF ZARA
References
Escobar-Rodríguez, Tomás, and Rocío Bonsón-Fernández. "Analysing online purchase
intention in Spain: fashion e-commerce." Information Systems and e-Business
Management 15.3 (2017): 599-622.
Fernie, John, and Leigh Sparks, eds. Logistics and retail management: emerging issues and
new challenges in the retail supply chain. Kogan page publishers, 2018.
Hew, Jun-Jie, et al. "Mobile social commerce: The booster for brand loyalty?." Computers in
Human Behavior 59 (2016): 142-154.
https://www.zara.com/ (2019). ZARA Official Website. [online] Zara.com. Available at:
https://www.zara.com/ [Accessed 16 Apr. 2019].
Juaneda-Ayensa, Emma, Ana Mosquera, and Yolanda Sierra Murillo. "Omnichannel
customer behavior: key drivers of technology acceptance and use and their effects on
purchase intention." Frontiers in psychology 7 (2016): 1117.
Laudon, Kenneth C., and Carol Guercio Traver. "E-commerce 2017." (2018).
Molinillo, Sebastián, Francisco Liébana-Cabanillas, and Rafael Anaya-Sánchez. "A social
commerce intention model for traditional e-commerce sites." Journal of theoretical
and applied electronic commerce research 13.2 (2018): 80-93.
Paris, Deborah Libu, Mahadi Bahari, and Noorminshah A. Iahad. "Business-to-customer
(B2C) Electronic Commerce: An implementation process view." 2016 3rd
International Conference on Computer and Information Sciences (ICCOINS). IEEE,
2016.