Zara Company: Expansion Strategies and Challenges in Asian Markets

Zara Company 1
ZARA FASHION RETAILERS COMPANY
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Zara Company 2
Zara Fashion Retailer Company
Executive summary
ZARA fashion Retailers Company is a multinational company that trades in fashioned high-end
clothing for men, women and even children. The company designs, develops, and distribute new
fashions worldwide through its stores that are located in various countries such as Spain, USA,
Morocco, South Korea, and even Mexico. The company’s main objective is to distribute fashions
clothing globally at as low prices as possible. The company produces products that fit a range of
wide market that include both the young and the elderly, average and the rich and customers
from various religious backgrounds. Zara Company boasts of very high competitive advantage
over its perceived competitors as it produces its own products in the company-owned factories. It
has embraced technology through the use of Radio-frequency identification (RDIF) chip that
helps in monitoring the stock flow. The company has experienced a substantial growth from its
establishment to date due to its efficient response to the market dynamics and some of its policies
like the zero advertisement policy that enables reinvestment of profits in establishing new stores.
From the already done strategies, the company has expanded in many countries but there are
places where its presence has never been felt such as some parts of Africa. A continued effort
plus handling the current challenges well present a bright future for the company’s growth.

Zara Company 3
Introduction
Zara Fashion Retailers Company is one the largest fashion international companies that trade in
clothing and accessories. It is a Spanish company formed more than forty years ago by the
cofounders Amancio Ortega and Rosalia Mera in Arteixo, Galicia, Spain. The store started as a
small store that featured low-priced products but of popular high-end fashions. Zara has then
grown into a large company with several stores in various parts of the world; entire Europe,
USA, Mexico, Middle and even Far East. Currently, Zara is the main brand of the Inditex group
and boasts of more than 2200 stores globally, trades online and with an annual revenue collection
of approximately $9 billion. Such a growth from just a single store into being a multibillion
dollar company has been characterized by tremendous changes, improvements and even errors in
the process in a bid to satisfy the demands of the ever dynamic market.
Zara Company Expansion Strategies
The company has undergone various adjustments in their attempt to maintain and expand their
market share in the fashion industry. Some of the main decisive factors in the industry has been
the ability to adjust to the dynamics of the market in terms of the emerging trends and changes in
the taste of the consumers. Zara Fashions Company, just like other companies in the industry has
tried to do their business differently in order to lure customers into their stores and to maintain
the existing ones (Gamboa & Gonçalves 2014). For instance, the time taken to develop and
deliver a new fashion into the market is of great importance as the company that develops and
delivers a new trendy model in the market has upper hand in acquiring and maintaining new
customers. To achieve this milestone, Ortega in 1980s decided to alter the processes of design,
manufacturing, and distributions to help reduce time and logistics involved in coming up with a