Zara Business Model Analysis

900 Words 4 Pages
Zara’s Business Model
Zara’s business model is very unique and different from other clothing retailers, it comprises of several stage of retail business which includes designing, manufacturing, distribution of the items and finally the sales. It focuses strongly on customer’s satisfaction and today it has a strong customer base. Zara has the ability to deliver new clothes to the stores very quickly and is known for that. In Zara customer knows that if he doesn’t buy that particular item right there at that time then he might not find that after 10 or 11 days.
The team of Zara has more than 200 professionals whose work is to continuously estimate the
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When the manager of Zara comes to know that a customer in Tokyo demanded for a red trouser then he finds out that if the demand is same in New York, Beijing or some other part of the globe. In this way they know about the global trend Another specialty of Zara is that here customers don’t buy any garment because he likes it but because he knows that he is not going to get such an item as cheap as it is here. In simple words, Zara offers fashion and style at a relatively cheaper …show more content…
Also it does not need to offer discounts for encouraging sale. For identifying the new fashion trends and designing the new styles to match those trends Zara has a team of experienced designers who are engrossed in research 24*7.
Lower Quantities - Zara also believes in less production so that there is very less inventory risk. There is some other benefit also of less production. By creating less it avoids itself from repetition and also it tries to show an artificial scarcity, thus the things which are scarce are desirable and so it is easily sold out. Another risk which it avoids by less producing is that if that fashion doesn’t work out in the market then they have very less items to dispose.
More Styles - Instead of producing more quantities of a single style, Zara produces more styles that is around 12000 designs per year. Thus when one style sells out then there are several other styles waiting for the customers. Unlike its competitors, Zara provides more choices in current fashion trends. Its stores look fresh after every 3-4 days. This is nearly impossible for other retailers to produce small quantities of numerous styles and that too in such a short span of

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