Like Spanish songs are millennial favorites, things are no different when talking about vogue and clothing. In this world of constant competition, a Spanish retailer is ruling the fashion industry since decades. Back in 1975, Amancio Ortega and Rosalia Mera have co-founded an Arteixo-based clothing and accessory brand, named Zara. Well, who knew it will be so large today!
The budding name of late 20th century is now a bigwig with multiple brands under their roof. What you see trendy is their creation and what you think fashionable comes from their store – that’s how Zara has embedded the industry. If to be said precisely, Zara quirks a whim in fashion and it surges till they come up with a new drift.
Road to Success Is Built with Stratagem
They could have never sustained this retail excellence unless a team of expert strategists are at their service. Bringing in the reports from company analysis, market research, and industry exploration, these professionals work out what’s best for this fashion monarch. It’s their minds that predict the choice of Gen Y and decides where to trigger the spark!
Being a MBA grad or a business scholar, at some point of your academic life, you may have to study business model. It may also happen that you are assigned with similar assignments. It helped me a lot to gain perspective about writing paper and taught me the nitty-gritty of business model. That’s the knack I used while studying and analyzing Zara’s “Fast Fashion” business template. Ahead of this, you will find some slices from my platter.
Business Module of Zara: Illustrating the Concept Of “Fast Fashion”
Ask any industry insider and you will get the same response – only thing that’s constant in fashion is the change of trend. It’s the impulsive purchase decision of millennial demographic, in the vogue market, is defined as Fast Fashion. Fashionistas are impetuous of just one fact – what is available today may not be in stock after a few days. And, they go offhand to get it right away.
Forever 21, Primark, and there are many other luxury fashion brands who have blazed the trail in Fast Fashion but there’s no one like Zara. While all are dwindling at the base, Zara has catapulted itself high up in the business with just an agile marketing canvas. So what’s exactly their cardinal &?
Zara’s Operational Theory – They Work in A Loop That Never Breaks!
- They have a dedicated team to identify the latest fashion trend depending on weather, occasion, and sometimes, current affairs.
- Their best-in-town creative creators design the clothes just the way it should be preserving every minute detail and nicety.
- The designs then set off for the factory sites, and there, the concept is materialized, conserving quality and comfort.
- The exclusive clothes, with the tag of Zara, are packed and shipped to their retail shops, located at several geographic destinations.
- Lastly, these trendy attires are sold to the consumers and this whole loop continues.
Exclusive Factory Setup is the Secret of Zara’s Pioneering Business
Zara’s Fast Fashion factory structure is a streamlined process, nowhere similar to the Chinese copy-cat plant system. It’s a structured template which mostly focuses on spotting global trend and digging out the market choices through layers of authentic feedbacks. The unique process starts from the lowest level of human resources and globe turns out to be its limit. Each of the comments and advice are evaluated, modified, and sent to their manufacturing sites to design a new product line within a week or so.
Zara’s Supply Chain Management and Outsourcing Policy
Quality makes a big difference besides all these strategies and planning. Even with the best in class business tactics, many companies have crumbled and succumbed to downfall. Zara knows the drill – they never outsource orders to cheaper manufacturers. The availability of low-cost manufacturers in China and Middle-East Asia may offer a faster manufacturing, but Zara relies only on Spanish labors. Not only it reduces their turnaround time but also assures quality and value propositions.
Exclusive Retail Store Ideas from Zara – Business Strategy at its Best
Zara has made it clear that wittiness and shrewd approach can take a business further. Do you know how it beats the competition? Wherever a luxury fashion brand has opened a store, Zara finds a place beside it. They book the adjacent spaces even with higher brokerages and rents. And, the rest of deciding factors like consumer-attraction and customer-satisfaction is done with the quality of their products. Zara never back steps when it comes to competition and none can match the level of astute when it comes to Zara’s business intelligence.
Have you understood where Zara won the game? It’s their excellent strategy and sheer quality that has helped the company to climb the ladder of success. Suppose you are asked to draw a business strategy for a multi-national firm. Try to induce these ideas and maintain this level of brilliance so that the company ends up gaining larger leads than ever.