With ever augmenting mall culture and Indian customer base being exposed to more and more global brands, there are a select few who hold a status of most touted and sought after brands that deliver not just in terms of style and quality but also a unique panache with their names. Zara is one such brand that endeavours to create that sense of high style for anyone who owns it.
Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia.
The company was founded in 1975 by Amancio Ortega and Rosalía Mera. It is the main brand of the Inditex group, the world’s largest apparel retailer.
Zara opened its first store in the centre of La Coruna, Spain, in 1975.
In India, Zara started its operations in 2010. Ever since its debut, it has been on a continuous rise.
Objective of Zara is to produce high quality products at a very reasonable price and sell them by its own stores that are located at the commercial places by offering very fashionable prices and up to date stock.
Zara manufactures the products like clothes, shoes, cosmetics and accessories for men, children and women, rugs are also a part of zara productions. The company never disclose its manufacturing process, which makes it easier for them to keep full control on the products they produce.
New products are made available within a week or two from its production in sales stores.
Zara follows different pricing strategies in different markets. It decides prices based on type of market , geographical location , overall income level of the people, and also takes into consideration willingness of consumers to pay. Some Zara stores are very premium whereas others are very much affordable. But mostly Zara uses premium pricing strategy keeping in mind its competitors.
Zara is present in almost about 30 countries and at private location of these countries there are 600 commercial stores and Zara is selling its services throughout the world.
Zara has a unique marketing policy of “Zero investment in marketing”. Instead of using the money for promotions it utilizes it for opening new stores. The key marketing strategy is based on exclusivity, experience, differentiation and affordability.
Company relies heavily on the word of mouth advertising more than anything else. The product’s target population in age group 18-40 that live in the cities.
90% of Zara stores are owned by the company and the rest are joint ventures of franchises. Surprisingly, Zara comes out with at least 500 or more new designs per month.