Ringkasan Brand Zara

Zara Organization Structure
Zara organization structure is a hierarchical flow of subordination of functional

department. It is a well- organized structure, by looking at this, employees know
who to report to, and would find easy to communicate with their colleagues. Thus, it
would improve the efficiency of making work easier as well as productivity of
employees. With over 200 professional designers, they concern about customer
needs, then create clothing with societies trends, ideas in order to develop their
products. The Inditex Company is owned some retails store includes Zara. Amancio
Ortega Gaona is a Chairman of the company. Pablo is the First Deputy Chairman and
CEO, Carlos is the Second Deputy Chairman. Antonio is the Secretary. Under the top
management of Inditex, there are some smaller managers such as store managers,
regional managers and country mangers. They manage 70,000 international staffs.
Zara brand communication strategy
Zara has used almost a zero advertising and endorsement policy throughout its
entire existence, preferring to invest a percentage of its revenues in opening new
stores instead. It spends a meagre 0.3 per cent of sales on advertising compared to
an average of 3.5 per cent by competitors.
Instead of advertising, Zara uses its store location and store displays as key
elements of its marketing strategy. By choosing to be in the most prominent locations
in a city, Zara ensures very high customer traffic for its stores. Its window displays,
which showcase the most outstanding pieces in the collection, are also a powerful
communication tool designed by a specialized team. A lot of time and effort is spent
designing the window displays to be artistic and attention grabbing.
To tap into the emerging e-commerce trend, Zara launched its online boutique in
September 2010.As of 2018, online sales grew to constitute 27% of Zara’s total
global sales. As a fast fashion retailer, Zara is definitely aware of the power of e-
commerce and has built up a successful online presence and high-quality customer
experience.
Zara’s future brand and business challenges
Mobile commerce: Zara woke up late to the potential of mobile commerce and

needs to catch up fast with competitors. Different forms of market analysis strongly
point towards a scenario wherein spends on mobile commerce will overtake desktop
based ecommerce by 2021. On an average, most brands currently get about 15-20%
of their website traffic via mobile devices and this is growing rapidly. With the deluge
of investments planned in the mobile commerce space and Zara’s competitors
already having an advantage on the mobile front, Zara needs to quickly make mobile
shopping not only an effortless experience but also a delightful one.
Price is not an advantage anymore: Offering the latest fashion lines at affordable

prices continues to be a strategic advantage for Zara, but cannot continue to be the
only one. Across the world, and closer to home in Europe, competitors are cutting
prices and refining their business models to cut the competitive advantage that Zara
has. For Zara to effectively compete and maintain its strategic advantage, the focus
needs to shift away from price but towards quality. Even today the Zara brand enjoys
high levels of appeal, which is evident by the serpentine queues outside its stores
when it launches in new markets. There is a need for Zara to start investing in
building a strong brand positioning and aggressively communicate it. Additionally,
Zara needs to adopt, imbibe and leverage social media and digital platforms in its
advertising and communication strategies deeper going forward.
WHY YOU SHOULD DO INVESTMENT IN

ZARA
.
(1) Low risk of fashion mistakes

The risk of making fashion mistakes by stocking clothing that customers do not want
to buy is small, If you have only a limited number of ranges, then the impact of a
fashion mistake is immense. You end up with large write-downs on unsold stock. But
for zara, fashion risk is very low, because zara have factories and suppliers close to
their markets.
(2) Always something new

The Zara brand offers many different collections each year that attract increasing
numbers of people to the store. This short cycle is due to the extremely short lead
times for design, production and distribution, a concept sometimes referred to as
‘fast fashion’.
(3) Easier to react to local consumer tastes

The company can easily cater to local consumer tastes. For example, if a certain
type of jeans becomes popular in Rotterdam, then the manager can easily receive
more because of short lead times. But if you order additional jeans produced in Asia,
then these can be out of stock for a considerable period of time.”
(4) Edge on the competition

Zara is better positioned than its competitors, which allows the company to gain
market share,. Mango, their Barcelona-based rival, is a successful brand and a big
competitor in their home market. But it is not in the same league, Mango is
expanding abroad, but it still lacks the global scale of Zara.” Zara sells fashionable
clothing at attractive prices.
(5) Low risk associated with international expansion
Zara has substantial growth potential in the countries where the company is
already represented. Entering markets in new countries is the riskiest part in
the growth strategy of any major company. Zara brand has just over 2,000
stores in 88 countries, Future growth will come mainly from the emerging
markets and, to a lesser extent, the rest of Europe
(6) Online shopping is helping zara to grow quickly

While the company was slow in starting up online shopping, it is now rapidly rolling
out the concept internationally. You can order online and pick up the clothing at the
store or have it sent to your home.” He adds: “To return items, you need to go to the
physical stores or return items by mail and pay for postage. This is an effective
policy, because it creates a barrier to returning goodsWith online shopping, everyone
can buy at Zara even though there isn’t a store nearby.
(7) Innovative promotion of the brand

Zara spends very little money on advertising, The stores promote the brand. There
aren’t any Zara billboards or commercials around. Instead, zara promotes its brand
by buying prime real-estate locations and creating stores with an air of luxury.”
Conclusion: Take Zara’s cue and listen to your customers
The Zara brand was born with a keen eye on its customer – its ability to understand,
predict and deliver on its customers’ preferences for trendy fashion at affordable
prices. In addition to its effective supply chain, the brand’s ability to have its
customers co-create designs is unique and provides it with a competitive advantage.
One of the secrets behind Zara’s global success is the culture and the respect for the
fact that no one is a better, authentic trendsetter than the customer himself or herself
– and this philosophy needs to be continually reflected in all its business strategies
going forward.

Ringkasan Brand Zara

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Zara Organization Structure

Zara organization structure is a hierarchical flow of subordination of functional

Zara brand communication strategy

Mobile commerce: Zara woke up late to the potential of mobile commerce and

Price is not an advantage anymore: Offering the latest fashion lines at affordable

WHY YOU SHOULD DO INVESTMENT IN

(1) Low risk of fashion mistakes

(2) Always something new

(3) Easier to react to local consumer tastes

(4) Edge on the competition

(5) Low risk associated with international expansion

(6) Online shopping is helping zara to grow quickly

(7) Innovative promotion of the brand

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