ZARA: HOW THE COMPANY HAS MADE ITS MARK
by Sarah Ledbetter
Zara takes a different approach to their marketing strategy–little to no sales, no advertising, and a difficult website. Even though they don’t put themselves out there, we still come back for more. Is Zara playing hard to get?
It's pretty clear that Zara has made their mark in the fashion industry. When you look for trends, you look at Zara. However, they make their website difficult to navigate. Have you ever wondered why browsing Zara’s website is a maze? The idea behind this electronic puzzle is that if they make it difficult to shop online, it will encourage customers to come to their stores for an easier, in-person experience. It is more likely that customers will purchase more when they are shopping in person, rather than online, thus expanding Zara’s profit and improving customers' shopping experiences.
Zara is able to figure out what customers’ wants and needs are with the help of their technology, which gives them an advantage over other competitors. Radio Frequency Identification (RFID) tags allow for internal controls, which is a key tool used by employees and management to track inventory levels. They also send in information when customers want something a little different than what they are seeing in the store. And with Zara’s fast production and distribution methods, they hit the stores not long after certain trends have been requested.
They have taken the industry by storm by vertically integrating, with almost all of their products being made in-house. Zara is growing rapidly, opening stores daily, and offering clothes that look designer, but are true to cheap. Zara gets in-store deliveries twice a week, also known as “Z-day.” This routine keeps the stores circulating new trends and styles. Zara gets clothes and accessories in stores fast, which keeps inventory manageable, and the newest and hottest styles always in store. This way they avoid overproduction of clothing, which takes a lot of time and resources, and most of the trends would be outdated before they even reach the rack.
The Zara model has been proven to work. They are popular without having to advertise, and without a lot of sales. The data they collect with their efficient technology keeps them in the know, and allows them to meet customers’ fashion needs. Zara keeps us wanting more.
Information Systems: A Manager's Guide to Harnessing Technology v8.0
By: John Gallaugher
Discipline: Information Systems Textbooks