Retail Theory and Practice

This essay examines the key changes in the UK fashion clothing marketplace and analyzes the strategies and tactics employed by Zara to adapt and thrive. It explores the impact of PESTLE and micro-environment factors on Zara's business and highlights their response through affordable pricing, legal policy adjustments, modern technology adoption, and eco-efficient store practices.

Retail theory and practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Identifies the key relevant changes in UK fashion clothing marketplace...................................3
Discuss the strategies and tactics that could be used by the retailer to respond the major
changes occur in ZARA..............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Retail enterprises is a process for selling the consumers good and services to the people
by using the different channels. This will help for organization to distribute the information
through channels and earn a profit in marketplace. ZARA is a leading brand in terms of retailer
which provide the different type of products according to the demand of customer and also
satisfy the demand of people through supply chain. This report will discuss about the key
element that help for changing the fashion industry in marketplace. Furthermore, this assignment
will describe the strategies and tactics that can use by the retailer to response in the term of
changes occur in ZARA.
MAIN BODY
Identifies the key relevant changes in UK fashion clothing marketplace.
ZARA is a leading brand in the terms of fashion industry. The company was founded in
1975 by Rosalia Mera and Amancio Ortega etc. This organization is operates their own brands
such as Uterque and ZARA Home. It has expanded their business in the different countries and
also establish their position in international marketplace. They also launched its online boutique
and maintain the online presence through website. ZARA online extended the services in
different countries such as Ireland, Belgium, Austria and Luxembourg etc. The fashion company
use the RFID technology in the store in 2014, the modern technology will help for providing the
security tags which easily removed from the clothing. There are more than 50 store exists in UK
to manage large number of collection every year (Aftab and et.al., 2018). In terms of
manufacturing, ZARA needs to develop a new product and get launch in its stores. The
organization preferred to invest a large percentage of their revenues in the new opening. ZARA
can design a new product and have finished the good in the physical stores. They also modify the
existing item to launch in a market in proper manner.
It is necessary for fashion industry to use the business tool for analysing the changes in
the micro and macro environment of business. Sometimes, the fashion retailer export the product
in UK store that affect the process of business (Wang, 2018). Fashion industry is the most
popular in market Because many women are preferred the brand images and buy the product due
to their market values. In this way, it is an essential for ZARA to build and maintain a strong
position in global world.

Analysis of ZARA
ZARA is the most popular brand that kept the growing during the past few years, It is an
excellent design for fashion clothes in affordable prices. Another attraction of Zara is that when
its faster fashion cycles. It has changed their fashion quality according to the demand of
consumers. The Fast rising the fashion brand has been lot of success in the recent years, In this
way, it is expanding the business in internationally.
There are some pressures in the global market and if the Zara has been success because
they are planning in the smarter ways to achieve their goals and objectives. The organization is
subjected to different forces sin the global market (Bernon, Tjahjono and Ripanti, 2018). Pestle
analysis help for easily understand that what kind of forces affect the ZARA in their moving
business. These forces are important factor and their effect on the enterprises. Pestle is consists
of macro environment factors that influence the ZARA to determine the changes in their business
functions.
Political Factor – It is the most common political factor that impact on the business
process which depends on the financial regulations of nation. Many business and its government
does not have the same out look on the enterprises. There are nations local law can make difficult
entry for the business. On the other hand, There remain no other ways to penetrate the markets.
For Example- China and Asian, these are the important nation that can face many barriers for the
foreign brands trying to enter in market (Colombi, Kim and Wyatt, 2018). The political
disruption is affects the economy of country and also disrupt the supply chain. ZARA has over
the difficult problem and issues by limiting the supply chain operations. It has minimizes the
threats and political disruption. The businesses are always under a threat where government
policies can spoil the game of brands.
Economic Factor – The economic activity in any country or market has impacted on the
business process. It is the most critical factor in term of enterprises. ZARA always planning an
effective strategy that is affordable of customers. Sometimes, economic activity will decline and
customer can do cost cutting (Wang, 2018). They also move to another luxury brands but Zara
sells the product at affordable prices. The price strategy help for business but economic activity
effects them. Recession had hurt the brand activity in deeply. In this way. Lower economic
activity reduces the purchasing power who also start cutting the costs. In UK and US, it will

increase the labour and product cost on raw material that can lead to increase the financial
burden on the Fashion industry.
Social Factor- This factor is almost important in the Fashion industry across the world.
Business never stand divorced for the society and community. They have to work on the basis of
social trends and mind. ZARA is the fastest growing organization which investing in the social
responsibilities (Wang, 2018). It is worth it and generate the attractive results. Culture and
society are important part of enterprises that has proved by the research. In this way, Fashion
Brand has lost attention of culture aspects of enterprises. ZARA has planned a strategies and
does not enter in the new market without doing the research.
Technology Factor – Technology factor is changing the global market which makes
them happen at faster rate in terms of transport and communication. On the other hand,
manufacturing of marketing and their supply chain, This is type of business hardly unaffected by
modern technology. When the ZARA can be used the data that reached an unprecedented level
whereas no business makes its important for decision (Hayes, 2018). ZARA is being called the
most disruptive new brand in the fashion industry because it is implementing the mindful at
utilising the power of technology. ZARA has partnered with the Toyota in 2014 for the
application of lean facilities and JIT. In this way, ZARA has responded to the customer demand
as possible. It also coordinates to the supply chain and their logistics. Therefore, the technology
has been reduced the pressure on the company and also increase efficiency or performance.
ZARA is also used the RFID system for tracking the inventory along with the chain. It enables
employee to track the inventory product through website. It helps for improve the customer
experience. ZARA has improved their inventory management process.
Environmental factor- The sustainability is started as a trend that has become one of the
important concern for business development. Green side enterprise has become more important
than the ZARA, the firm has invested in the sustainability. Nowadays, company has pledged to
make its store become 100 % eco-efficient in 2020. ZARA stores also consume the less energy
and water as compared to others. It is used the equipped energy items so that they can be
recycling the features in proper manner. The organization is committed to eliminate all type of
waste from the supply chain process. In this way, ZARA always invest time, money and putting
some efforts in green business. They can use the sustainable clothes and wear prepared for the
organic material by using the sustainable technology.

Legal Factor- Legislations are important factor in everywhere, business cannot remain
uninfluenced by it. ZARA is mainly focused towards the ethics and sustainability across supply
chain and enterprise. There are various type of laws which required for organization to handle
the business operations and functions. Apart from it, ZARA is concerned about the ethical brand
image. Local compliances is an essential requirement of business and brands that help for
managing the entire system in proper manner. It makes sure that the organization follows local
laws for the purpose of development.
Micro environment Factors-
Micro environment factors are playing important in the business that affect the business
strategy, performance and decision making of organization.
Customer – Customers are integral part of business as they tend to attract towards the
fashion clothes. ZARA is also engaged with their potential consumer those who always wants a
new thing. Social culture and communities are important for organization that's why, ZARA
always try to identify the requirement of people. They can provide the best product on the basis
of their choice (Holbrook, 2018). In this way, This factor is combined with the social factor
because if customers are not happy so that it directly impact on the social communities. It is
needed for organization to added more values on their services as well as products.
Supplier- Supplier always influenced the business strategy and also provide the raw
materials for the purpose of production. ZARA try to use the legal aspects for the purpose of
supplier because each and every supplier has followed the specific rules or regulations. They also
give the service on reasonable and proper time (Sit, Hoang and Inversini, 2018). Otherwise,
delayed process is directly affected the production of organization. Sometimes, Supplier will
increase the price of raw materials and also impact the marketing mix strategy. For keeping a
strong relation with the customer that help for company's growth and development.
Competitor- This micro factor can directly impact on the business strategies and
planning. It must know how to do competition analysis in proper manner. ZARA must
understand the value in the services and also providing the unique selling point for competitors
(Suhartanto and et.al., 2018). ZARA is a leading brand in global world and always maintain
their position in marketplace. They can offer variety of service to the customer which help for
increasing the productivity and profitability. Sometimes, The competitors must affect due to

change of environment such as political and legal changes. This should be affected on the
consumer behavior towards the business process.
Discuss the strategies and tactics that could be used by the retailer to respond the major changes
occur in ZARA.
Retail strategy is basically holistic marketing plans for promoting the products and
service to reach the goals and objectives. This strategy always influence the business process to
cover all the channels which are available in to what should be the cost and incentives.
ZARA is the fastest growing organization in fashion industry that can use the strategies
and tactics for expanding the business all over the world. ZARA has applied to key relevant
changes in the business operations and functions (Li, Liu and Jacobson, 2018). There are
different type of key changes addressed for success of future.
Affordable price- This type of changes are applicable in the organization to increase the
popularity and demand in marketplace. ZARA is mainly used the penetration pricing strategy in
the changes where the price of product is initially kept the lower than the other competitors. In
this way, it will gain more attention in marketplace. This strategy will help for organization to
maintain the loyalty and trust towards the business (Sit, Hoang and Inversini, 2018). Afterwards,
Marketer will increase the price of product where they are getting more profit but ZARA always
maintain their position in marketplace. The tactic of affordable price is that when encouraging
the impulse purchase which requires selecting the correct product selection. It easier for ZARA
find the best placement for the impulse buy when the consumers follow predefined path. Pricing
is the most important concept for customer to choose the right product. It must require for
organization to keep all product under the lowest price.
Change Legal policies- Policies are high level documentation that can develop by the
organization's management. They are transmitted the strategy and philosophy to the employees.
ZARA is a firm where they use the strong policy scheme for managing and controlling business
aspects in proper manner. For management, They mainly used the Security law which are
provided to employee for secure their personal information. In this way, Security policy should
be driven by the enterprise objectives. This policy is integrated with the security in the business
operations and functions (Ovezmy, radov and Kurata, 2019). ZARA is implementing the security
policy for changing their rules and regulation on the basis of trends. Policy change is directly
influences the change of social culture because people are so much concern about the legislation,

rules and regulations. The important tactic is to provide the equal right to the consumers,
employee where they would take own decision and choose the best services.
Uses modern technology- Technology has become important for business process that
help for increasing efficiency and performance. It is required for easily identifying the need and
requirement of people. ZARA is used the social media networking and online marketing
campaign strategy. It is beneficial for fashion industry to promote their new products in
marketplace. This organization will be using the marketing campaign strategies and also apply
on the business operations to share the information for targeted consumers. This type of changes
are necessary for organization to directly interact with the consumer by using distributed
channels and other applications (Sit, Hoang and Inversini, 2018). Technology is a type of overall
plan of organization because they can change their business operation and function by using the
techniques. In this way, it easily tracking the location of consumer to provide their product on
time. ZARA continuously uses the modern concept to check the performance and efficiency of
employees. It has changed the plans to use new concept for growth and development.
Eco efficient store- This is another change in the retail industry that help for changing
their business aspects in term of growth and development. ZARA uses the less energy
consuming lights, bulbs which requires maintaining their electricity charges. In this way, many
consumers are attracted towards the lights and layout in stores (Soysa and Chintagunta, 2019).
They also maintain the store cleaning supplies but it should not much cost effective. The
organization uses the combination of distilled water and vinegar to clean with spray. It will take
less time to clean the physical stores.
CONCLUSION
As per discussion, it concluded that Retail enterprises is a process for selling the
consumers good and services to the people by using the different channels. It is beneficial for
company to easily share the information from one consumer to another through channels. In this
way, It helps for ZARA to increase the productivity and profitability in marketplace. ZARA is a
leading brand in terms of retailer which provide the different type of products according to the
demand of customer and also satisfy the demand of people through supply chain. It summarized
the key changes in the fashion industry across the world. It also planning strategies and tactics
that can use by the retailer to response in the term of changes occur in ZARA.

REFERENCES
Books and Journals
Aftab, M.A. and et.al., 2018. Super Responsive Supply Chain: The Case of Spanish Fast
Fashion Retailer Inditex-Zara. International Journal of Business and Management. 13(5).
Bernon, M., Tjahjono, B. and Ripanti, E.F., 2018. Aligning retail reverse logistics practice with
circular economy values: an exploratory framework. Production Planning &
Control. 29(6). pp.483-497.
Colombi, C., Kim, P. and Wyatt, N., 2018. Fashion retailing “tech-gagement”: engagement
fueled by new technology. Research Journal of Textile and Apparel. 22(4). pp.390-406.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Holbrook, M.B., 2018. Creating value: the theory and practice of marketing semiotics research.
Li, K., Liu, X.Y. and Jacobson, D., 2018. Information and profit sharing between a buyer and a
supplier: Theory and practice. Managerial and Decision Economics. 39(1). pp.79-90.
Ovezmyradov, B. and Kurata, H., 2019. Effects of customer response to fashion product
stockout on holding costs, order sizes, and profitability in omnichannel
retailing. International Transactions in Operational Research. 26(1). pp.200-222.
Sit, J.K., Hoang, A. and Inversini, A., 2018. Showrooming and retail opportunities: A qualitative
investigation via a consumer-experience lens. Journal of Retailing and Consumer
Services.40. pp.163-174.
Soysal, G. and Chintagunta, P.K., 2019. What Explains Price Declines in Seasonal Goods
Markets? An Empirical Examination. An Empirical Examination (January 10. 2019).
Suhartanto, D. and et.al., 2018. The link between tourism involvement and service performance:
Evidence from frontline retail employees. Journal of Business Research. 83. pp.130-137.
Wang, Y., 2018, July. An Exploratory Study of Brand Strategy in Fast Fashion Brand--Using
Zara as an Example. In 3rd International Conference on Contemporary Education, Social
Sciences and Humanities (ICCESSH 2018). Atlantis Press.

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