Zara’s Current Trends and the Importance in the Retail Industry

This article discusses the current trends in the retail industry and the importance of Zara in this sector. It explores Zara's business model, customer base, and provides recommendations for improving performance. The article also highlights the use of technology and collaborations in Zara's strategy.

Zara’s Current Trends and the importance in
the Retail Industry

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BOODY...............................................................................................................................3
Trends in retail-................................................................................................................................3
Words for company-........................................................................................................................4
Recommendation-............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is the way in which business activities are being done by the organizations
such that it is able to attain high work outcome, also at the similar time the expenditures are also
being minimized. ZARA is the chosen business for the analysis in this report. ZARA is an
clothing based organization which tend to provide luxury clothing options to the customers at
various geographic locations. Evaluation on the current trends which are being happening within
the retail sector is being done in this report. With that analysis on the business model which is
being used by ZARA for proving its services to the customers and maintain its high work
productivity. Also with proper recommendations also have being provided to the organization for
improving its performance within the marketplace.
MAIN BOODY
Trends in retail-
ZARA tend to provide luxury products to the customers, due to which business is able to attract
the customers of the privileged class of the society. Due to which its selected targeted customer
base is limited, therefore it can be recommended to the organization that it tend to integrate the
midrange products within the product placement process. By which the corporation can make
sure that it is able to achieve new customer of the customer base by which the organizational
brand awareness can be increased (MOSCHETTI and ZANABONI, 2018). With that since
ZARA is widely known for its high quality and new designer products because of which
organization often tend to refresh its product placement. By which it tend to ensure that customer
are having an wide range of suitable products which is rare and also at the same time is best in
quality. Therefore, ZARA develop new designer products within a limited number of quantity,
this is done because the segmented customer base of ZARA tend to prefer to buy rare products.
Thus in order to fulfil the requirements of the products ZARA establish premium pricing upon
the developed product by which it manages to achieve efficient economic growth.
In the present time the retail sector is increasing its engagement in utilizing the technological
advancement within the working process by which organizations tend to be working within the
retail sector promote itself to the wide customer base (Bui and Muñoz Martinez, 2019). This is
done because with the efficient availability of the technological advancement to the customers
organizations tend to make sure that it is able to achieve elevated level of buyer engagement.

Due to which ZARA also introduced its digital customer touch-point by which the company
advertise itself to the different type of customer base. Through this approach it makes sure that it
is able to accomplish high level of brand awareness. ZARA’s engagement in use of technological
advancement is highly beneficial for the organization because social media marketing is high
cost efficient than compared to the traditional market which is done through pallet paper,
newspaper and radios (Avelar-Sosa, García-Alcaraz and Maldonado-Macías, 2019). However,
despite of several advantages of social media marketing over the traditional ZARA uses
integrated approach in which it uses both the type of marketing process by which new customers
can be attracted towards the company.
ZARA is having its appearance within a wide geographic area by which it is able to
attract the customers from different geographic locations. Company uses different method of
entering to the international market this consist of activities like franchise and buying a
company. Through this approach it tend to make sure that it is able to evaluate the market
potential and customer’s buying process within the selected targeted location. By this approach it
make sure that products placement is done according while maintain the cultural heritage of the
location and also it is new in trend. Through this approach company manages to identify the
buying nature of the customers and then establish creative marketing strategies to attract new
customers.
Thus in order to minimize the threat of failure ZARA often develop business
collaborations with different market competitor, by which it tend to make sure that it is able to
utilize its distribution channel. Through this approach ZARA increases its reach to the
unexplored geographic sections by the organization by which it is able to promote itself to the
customers at different location (Hani and et.al, 2020). Therefore, with this business collaboration
ZARA make sure that partner organizations are able to share the different experiences. Also the
partners companies tend to participate with each other for developing new product which is rare
and best in class through which company can promote itself to the customer base of the partner
organization. With that ZARA also tend to sell its products through the means of internet as well
by which it make sure that customers are able to remotely access the organizational services. By
this approach customers are motivated to increase their level of engagement with the institute
because of which the chances of target accomplishment can be increased.

Words for company-
ZARA tend to supply its services to the clients at different geographic locations because of
which organization uses business model. Through which it tend to ensure that it is able to
achieve high work efficiency and also at the same time the profit making capability of the
organization is also being increased. Through this it make sure that the overall chances of goal
achievement can be increased by achieving high work productivity. On the basis of requirements
business model is of different types, since ZARA tend to provide its products to a wide range of
customer at different geographic locations (Gazzola and et.al, 2020). Due to which ZARA uses
an integrated approach of business model in which the company uses different business models
like vertical integration, business strategy, efficient supply chain, etc. In which in the vertical
integration at the business model all the organizational activities of ZARA are being done by the
company itself (Purwar, 2019). Through which the organization is able to develop a unique level
of brand personality by which it motivate customers that they are able to achieve a new and rare
products. This is very important for ZARA because the targeted customer base of the
organization is the customers of higher class of the society and customer having a luxury
lifestyle. Therefore, organization make sure that the products placement is being refreshed on an
scheduled bases by which customers can be motivated to make purchases as soon as possible.
With that ZARA also uses tradeoffs in logistics, in this approach organization analyse the
buying capability of the customers at different geographic locations. Then on that bases it uses
different marketing strategy, such that it is able to attain high sales (Camargo, Pereira and
Scarpin, 2020). Also at the same time high prices can be taken through which organization can
accomplish efficient economic growth to maintain its sustainability within the market.
In order to achieve high profit margin ZARA has to make sure that the initial cost of the
product development and shipment is being reduced. Due to which ZARA uses close contact
between manufacturing and management units by which it make sure that availability of the
product can be maintained and also at the same time with closeness to manufacturing unit
customer requirements can be fulfilled within the shortest span of time.
Low cost on advertisement, since the organizational customer base of ZARA is the
customers of the higher class, due to which company uses unique ways for establishing
communication with the customers. This include advertisement through fashion shows, pallet

paper, social media marketing like email, company website and many more by which customers
can make direct contact with the organization.
Company also tend to manage its supply chain such that overall work productivity of the
organization is being increased and also at the same time it is able to reduce the expenditures and
achieve efficient economical growth.
Recommendation-
The products which are being developed by ZARA are best in class and also at the same time are
having premium pricing being established on them. Due to which the organizational products are
being limited to the customers of the higher class only because of which if a new entrance tend to
enter within the market. Then the organizational customer base of ZARA will further be
decreased because of which organization has to make sure that it is able to increase its customer
base. Therefore, because of which it is recommended to ZARA that company make several
efforts by which it increases its customer base (Camargo, Pereira and Scarpin, 2020). Through
this approach it can make sure that it is able to promote itself to a wide range of customers by
which high sales can be achieved.
With that it can also be recommend to ZARA that organization analyse the present
market competitions and then develop business partnership by which it can promote itself to the
loyal customer base of the partner organization by which high sales can also be achieved. This
becomes important for the organization because it sells its products to the overall seas market
because of which by developing proper business collaboration and through the evaluation on the
market entry method. ZARA can make sure that it is able to utilize the distribution channels
which are being established by the partner company by which company can make appropriate
change within its working process. This has to be done in such a way that it is able to achieve
high sales and also at the same time it limit the amount of initial expenditure it has to make in
order to provide product to the customers.
With that it can also be recommended to ZARA that it integrate several technological
advancement within the working process, this is important because the company is having more
than 125,000 number of employee workforce at various international market. Due to which by
integrating the technological advancements like computerized monitoring, biometric presence
and various other. Organization can make sure that workers are capable to make collaborative

efforts for the achievement of the desire target by which the chances of goal achievement can be
greater than before for the association.
ZARA tend to provide luxury clothing options to its customers and because of which
organization has to make sure that it introduces a new fabric with the new designer approach.
This can be beneficial for ZARA because the company often refresh the designer product
placement by which the customer are motivated to develop direct contact with the company as
soon as possible. Therefore, organization has to make sure that it uses different types of fabrics
and develop a new fabric which can be implemented into the new product. With this approach
customers can be ensured that they are able to achieve a best in class new product.
ZARA also uses different business model by which it can ensure that it can make sure
that company is able to make appropriate change within the working process as per
requirements. With this move towards company can guarantee that it is able to evaluate the weak
areas which are affecting its performance within the organization by which the chances of goal
attainment can be increased.
Since ZARA tend to introduce new products in a scheduled bases because of which
company develop products such that it is new in design but also at the same time the developed
quality of the product is low. This is often being done by the organization because it has to make
sure that customers are motivated to buy new products due to which the introduced products of
ZARA fall into fast fashion products. The products which are being established within the fast
fashion often have low products lifecycle because of which customer’s level of engagement with
the products reduces quickly than compared to other fashion products. Therefore, it is
recommended to ZARA that company also uses standard designer products which are rich in
quality by which customers can use the product on an regular bases. Then compared to
occasional events, thus through this approach company can make sure that it is able to achieve
high level of customer engagement.
CONCLUSION
Thus from the above analysis it can be concluded that organization has to ensure that it is
able to make suitable changes within its working process, such that it is able to achieve high
work productivity. This is also important for the market competition has been increased
drastically because of which if the new entrance tend to enter the market. Then company’s
customer base will further be decreased because of which organizations have to take necessary

steps by which it can achieve high work productivity and also initial investment amount can be
reduced.

REFERENCES
Books and journals
Camargo, L.R., Pereira, S.C.F. and Scarpin, M.R.S., 2020. Fast and ultra-fast fashion supply
chain management: an exploratory research. International Journal of Retail &
Distribution Management.
Purwar, S., 2019. Digital Marketing: An Effective Tool of Fashion Marketing. In Proceedings of
10th International Conference on Digital Strategies for Organizational Success.
Gazzola, P and et.al, 2020. Trends in the fashion industry. The perception of sustainability and
circular economy: A gender/generation quantitative approach. Sustainability. 12(7).
p.2809.
Hani, A.B., and et.al, 2020. A Framework for Online Social Network Volatile Data Analysis: A
Case for the Fast Fashion Industry. Journal of Universal Computer Science. 26(1).
pp.127-155.
Avelar-Sosa, L., García-Alcaraz, J.L. and Maldonado-Macías, A.A., 2019. The importance of
supply chains in global competitiveness. Evaluation of supply chain performance.
pp.15-24.
Bui, A.Q. and Muñoz Martinez, V., 2019. The impact of product promotion on customer loyalty:
A quantitative study on Zara.
MOSCHETTI, N. and ZANABONI, N., 2018. Retail digitalization and urban rent. From
standard retail to Retail 2.0.
Online
Studious guy, ZARA Business Model, 2020 [Online]. Available through: <
https://studiousguy.com/zara-business-model/ >
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