Topic: Brand loyalty of customers in Zara brand

Title of the problem of the project

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce

By
Asha Kannan

Under the Guidance of

Anuradha Hait
Thakur College of Science & Commerce

Month and year

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Figure 01. Online sales and increased from 2013 to 2021
Figure 02. Sustainable Retailing performance of Zara during
Covid -19 pandemic.

Certificate

This is to certify that Ms./Mr. ___________________________

has worked and duly completed her/his Project Work for the
degree of Bachelor of Management Studies under the Faculty
of Commerce in the subject of ___________________________
And her/his project is entitled, ‘’
_________________________________________________’’
under my supervision.
I further certify that the entire work has been done by the
learner under my guidance and that no part of it has been
submitted previously for any Degree or Diploma of any
University.
It is her/his own work and facts reported by her/his personal
finding and investigations.

Seal of the Name and Signature of

College Guiding Teacher

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Date of Submission:

Declaration by Learner

I the undersigned Miss/Mr._____________________________

here by, declare that the work embodied in this project work
titled “ __________________________________________”,
Forms my own contribution to the research work carried out
under the guidance of _________________________________
Is a result of y own research work and has not been previously
submitted to any other University for any other
Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of
others, it has been clearly indicated as such and included in the
bibliography.
I, here by further declare that all information of this document
has been obtained and presented in accordance with academic
rules and ethical conduct.

Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher

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 Acknowledgment
(Model structure of the acknowledgement)

To list who all have helped me is difficult because they are so

numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this
project.
I take this opportunity to thank the University of Mumbai for
giving me chance to do this project.
I would like to thank my Principal ,__________ for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator ____________,
for her moral support and guidance.
I would also like to express my sincere gratitude towards my
project guide _____________ whose guidance and care made
the project successful.
I would like to thank my College Library, for having provided
various reference books and magazines related to my project.

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Lastly, I would like to thank each and every person who directly
or indirectly helped me in the completion of the project
especially my Parents and Peers ho supported me throughout
my Project.

Index

Chapter No 1. Introduction PageNo

1.1 Abstract

1.2 History of the topic

Chapter No.2. Research Methodology

2.1 Statement of problem undertaken

2.2 Data Sources
2.3 Secondary sources
2.4 Objectives on Zara brand
2.5 Hypothesis
2.6 Sampling Designs
2.7 Data collection instrument
2.7 a. Types of Questions
2.7 b. Research Designs

Chapter No.3. Literature Review

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3.1 Store experience
3.2 Fashion Apparel Industry
3.3 Why Zara is successful ?
3.4 Fabric Mix
3.5 Why Zara is population in India
3.6 Value Addition
3.7 Inbound Logistics
3.8 Operations
3.9 Infrastructure
3.10 Human Resource Management
3.11 Operation
3.12 Manufacturing Process
3.13 Zara company’s process floe Map
3.14 Discuss about the company
3.15 How does Brexit affect fashion?
3.16 Promotion and Distribution
3.17 Role OF Zara as a brand commerce
3.18 Online stores
3.19 Advertising and Marketing strategy
3.20 Sense of scarcity
3.21 Supply Chain Management
3.22 Customer Feedback

CHAPTER NO.4 SWOT ANALYSIS, GRAPH INTERPRETATION, PRESENTATION

4.1 Strength of Zara

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4.2 Zara’s Weakness
4.3 Zara’s Opportunities
4.4 Zara’s Threats
4.5 Online competition on Zara brand on social media
4.6 Questionnaire
4.7 Graphic Interpretation
4.8 What is Zara Best known for?

Chapter No.5 Conclusion & Suggestion

5.1 Limitation & Recommendation
5.2 Recommendation

Chapter No.6 Bibliography

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 CHAPTER 1
ABSTRACT
Abstract:
Zara is the largest Inditex division accounting for more than 75% of the total sales .BY April 2003
Zara had 565 stores in countries albeit with the largest concentration still in Spain.
The company owns and operates almost its entire store network
It had opened its first store in 1989 by 2002
The company remained true to its brand core values expressed simply by four keys i.e., beauty
precision functionality and sustainability
The company is more prominent in its native Spain but has managed to expand globally
expanding its brand to include Zara home.
It is the youngest of the trio having begun in Spain 1975. The company is owned by textile Giant
Inditex and its flash grip brand.
The birthplace of Zara brand was Spain and the founder was Amancio Ortega.
They deal with wide range products including clothing shoes fragrances and other accessories.
The concept of brand awareness and customers relationship management are essential means
to facilitate the active business lives to impress absolutely it customers.
The main aim was to access how brand awareness and brand loyalty can stimulate customer
involvement and to examine how these theories dominate the business of Zara fashion.
This should also include theoretical framework to find out the relationship between brand
awareness brand loyalty customer relationship management and impact on sales and
customers involvement and to measure their impact on the profitability level.
The secret of Zara secret has largely been driven by its ability to keep up with rapidly changing
fashion trend and showcase it in its collections with very little delay from the very beginning
Zara found a significant gap in the market that few clothing brands had effectively addressed.

INTRODUCTION:

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Zara is a brand where the legend began when Ortega established a dress making factory in
1963 under the name of Inditex. the success of his foundation led him to the path of a retail
market for which he had a vision unmatched.
The annual growth has not dropped since day one and every year. Zara has been expanding in
countries and place across the globe France in 1990. During the 1990s Zara expanded to Mexico
1992, Greece, Belgium and Sweden (1993) .
Zara opened its first stores in Japan and Singapore 2002, Russia and Malaysia 2003 China,
Morocco, Estonia, Hungary and Romania 2004, the Philippines, Costa Rica and Indonesia 2005
South Korea 2008, India 2010 and South Africa and Australia 2011.
Zara is having 6500 stores across 88 countries Zara has kept pace with the technologically
advancing world. they pushed out their stock online in the year 2010 in their Spain, the UK,
Portugal, Italy, Germany and France. In the month of November that same year, Zara Online
extended the service to five more countries: Austria, Ireland, the Netherlands, Belgium and
Luxembourg. Online stores began operating in the United States in 2011, Russia and Canada in
2013 and Mexico, Romania and south Korea in 2014. India in 4th October 2017.
1. Zara has remained faithful to its core values, expressed simply in the same four key
words that define all our stores: beauty, Clarity functionally and sustainability.
2. Only a few clothing brands can keep up with the latest fashion while maintaining high
quality of products and selling then at an affordable price. It is no surprise that Zara,
which started off as a small store In Spain is now the world’s largest retailer and its
founder, Amancio Ortega, the 4th richest man in the world.
Zara is one of the largest international fashion companies.

3. Zara’s value chain is vertically integrated, which offers many advantages. It can react
quickly and it may have high control over the entire process from design to final
product. Supply chain is efficient when they have a smooth use of distributors centers
and warehouse. its strategy also allows distributing the products within a wide
geographic range within a very short time. The other thing also is that the products are
close to market demand. their products are made only in limited editions consequently
they must sale their products in short period of time so they can be sold at full price
without having them to be returned.

4. Online shopping became huge and significant market; customers can go online and
order what they need. If Zara allows customers to purchase online, that would increase
their sales.

5. The philosophy of their company is ‘No marketing’, ‘No communication’.

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 6. The Zara brand offers men women’s and kids clothing like shoes and accessories. The
sub- brand Zara TRF offers trendier and sometimes edgier items to younger women and
teenagers

7. Home goods and decoration objects founded in 2003. operating in 183 markets 70 of
the with stores.

8. High end clothing and accessories for cosmopolitan men and women acquired in 1995.
operates 186 markets ,74 of them with stores.

9. High quality fashion accessories at attractive prices founded in 2008. Operating in 158
markets 17 of them with stores.

Zara’s highly responsive, vertically integrated supply chain enables the export of
garments 24 hours 365 days of the year resulting in the shipping of new products to
stores twice a week. after products are designed, they take around 10 to 15 days to
reach the stores. All clothing items are processed through the distribution center in
Spain, where new items are inspected, sorted, tagged and loaded into trucks. in most
cases, clothing items are delivered to stores within 48 hours. The vertical integration
allows Zara to retain control over areas like dyeing and processing and have fabric -
processing capacity available on demand to provide the correct fabrics for new styles
according to customer preference.

Zara produces over 450 million items and launches around 12000 new designs annually
so the efficiency of the supply chain is critical to ensure that this constant refreshment
of store level collections goes off smoothly and efficiently.

Zara was founded by Amancio Ortega and Rosalia Meera in 1975 as a family business in
downtown Galicia in the northern part of Spain. Its first store featured low-priced
lookalike products of popular, higher-end clothing and fashion. Amancio Ortega named
Zara as such because his preferred name Zorba was already taken.

Fast fashion, with “rapidity, decisiveness and accuracy” as its main feature, is rapidly
emerging, maintaining a very good momentum of development. Fast fashion brands are
characterized by the rapid update of products, the design of following international
brands and the price of ordinary people, which is a successful new trend in the apparel
retail industry in the past 10 years. However, with the emergence of a large number of
fast fashion brands, competition in this area has intensified, and the development of the
fast fashion clothing brands is confronted with severe challenge. Among the many fast
fashion brands, ZARA, a Spanish clothing brand, has grown from a small ready-made
shop to a global fashion brand leader in just a few decades, and has become a model in

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 the fast fashion clothing industry. Specializing in fast fashion and its products include
clothing, accessories, shoes, swimwear, beauty and perfumes, ZARA is the largest
company in Inditex Group and the largest clothing retailer in the world. As of 2017,
ZARA manages as many as 20 clothing collections per year. Based on this, this paper will
take ZARA as a case study and carry out the research through SWOT analysis with the
expectation that it will provide relevant policy implications for the global fast fashion
brands and help their rapid development.

2008 Foundation of SHEIN

Early Made products available in Spain, France, Russia, Italy and Germany.
2010s
2012 Started using social media for advertisement and collaborative works.
2014 ROMWE was acquired
2016 Established headquarters in Guangzhou, China
2018 Started to form it is very own supply chain system
By The company grew from $15 billion to $30 billion
November
2021
As of May It is the most significant fashion clothing firm online.
2022

Characteristics of Zara:
Here are some are the characteristics of Zara’s supply chain that highlight the reason
behind its success:

1. Frequency of customers insights collection: Trend information flows daily into a

database at the head office which is used by designers to create new lines and
modify existing ones.

2. Standardization of product information: Zara warehouse have standardized product

information with common definitions, allowing quick and accurate preparation of
designs with clear manufacturing instructions.

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 3. Procurement strategy: Around two thirds of fabrics and undyed and are purchased
before designs are finalized so as to obtain savings through demand aggregation.

4. Product information and inventory management: Zara is capable of designing a

garment with available stock of required raw materials.

5. Distribution management: Zara’s state of the art distribution facility functions with
minimal human intervention. Optical reading devices sort out and distribute more
than 60,000items of clothing an hour.

Zara is effectively competed 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 store when it
launches in new markets.

Zara does not engage in advertisement and instead uses its store locations as a
marketing strategy. However, brand communication is crucial in attracting new
customers to the brands to support its growth.
without advertisements Zara relies heavily on word of mouth or social. this causes
the perception of potential customers towards Zara to be heavily shaped by family
and friends, which may not be accurate. In addition, Zara’s social media platforms
such as Facebook and YouTube exist merely as a feed for updates rather than a
platform that consumer can interact with. Its video on YouTube is also seeing very
low viewership in comparison with its follower count, which is not deal as videos are
a powerful medium for brand in the fashion industry. This is a gap that Zara needs to
plug immediately as the reach impact of social media marketing get stronger. As
Zara’s target customer segments start using more social and digital platforms for
communication and for sharing their lives it is important for Zara to have a strong
presence on such platforms.

Overs the years, Zara has remained faithful to its core values, expressed simply in
the same four keys words that define all their stores: beauty, clarity functionality
and sustainability.

Zara stores also include Radio Frequency Identification Technology (RFID) using
cutting edge system to track the location of garments instantly and making those
most in demand rapidly available to customers.
This technology has allowed Zara to complete the implementation of its integrated
stock management system in the 49 markets in which it operates its integrated store
and online platform.

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 Zara’s join life collection and the eco stores are two examples that underline the
brands unwavering focus on sustainability and improved customers experience.
Those developments have been further enriched by a range of new and innovative
projects such as the installation of clothing recycling containers in store and a
scheme providing for free at home collection of used garments to complement the
delivery of online orders.

Zara has committed to eradicating all releases of hazardous chemicals throughout its
entire supply chain and products by 2020. Furthermore, Zara became the biggest
retailer in the world to raise awareness for Detox Campaign, and switched to a fully
toxic-free production.

Zara is also known to be one of the most eco-friendly companies. It uses solar panels
and winds turbines in the headquarters in La Coruna. Zara is also known to be one of
the few clothing brands that produces 100% toxic free clothing but not until after
the uproar that was caused on how it was using the cancer inducing azo dyes in its
clothing

There’s one thing about Zara that’s is surprising. The name has poor marketing for
all success. The name has poor marketing of all the success it continues to bask in.
The brand does not advertise itself in any form at all. Amani had never spoken to the
media nor has in any way advertised Zara. Zara needed no advertisement to become
such a widely loved brand. Talk about quality doing all the work.

Zara sells both Men’s and women’s clothes. They also sell shoes, cosmetics and
accessories. Recently they started with children’s as well. The clothing retailer has
more nearly 3000 stores, including its kids and home stores. It has stores in 96
countries and is the flagship brand of the Inditex Group.

Zara is renowned for its ability to develop a new product and get it to stores within
two weeks, while other retailers take six months. The Zara target market includes
women and men mainly younger adults in the age range of 18 to 40.

There are many factors that have contributed to the success of Zara but one of its
key strengths which has played a strong role in it becoming a global fashion
powerhouse as it is today, id its ability to put customers first. Zara is obsessed with
its customers and they have defined the company and the brands culture right from
the very beginning.

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 The Brand keep a close watch on how fashion is changing and evolving everyday
across the world. Based on the latest styles and trends it creates new design and
puts them into stores in a week or two. In stark comparison, most other fashion
brands would take close to six months to get new design and collections into the
market.

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 meager 0.3 percent of sales on advertising compared to
an average of 3.5 per cent by competitors.

Zara is one of the most successful fashion brands in retail brands. if not the most
successful one. with its dramatic introduction of the concept of fast fashion retail
since it was founded in 1957 in Spain , Zara aspires to create responsible passion for
fashion amongst a broad spectrum of consumer spread across different culture and
age groups.

In 2019 Zara was ranked 29th on global brand consultancy Interbrand’s list of best
global brands. its core value are found in four simple terms: beauty, clarity,
sustainability.

The events affected almost everyone and caused significant changes both consumer
behave and business strategies.

Chapter No: 2

RESEARCH METHODOLOGY
Statement of problem undertaken:

The main motive of preparing this report is to study about the consumers loyalty
and preferences towards Zara and also their buying behavior of consumers towards
Zara.

The main concern is to learn about the customers Loyalty and satisfaction toward
the brand.

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 Data sources:

Data are collected by two main categories that are

1. Primary Data & Secondary sources

1. Primary data are collected for a genuine purpose i.e., they are
critically analyzed to find out answers from the research
questions.

2. Primary sources can be firsthand accounts of actual event written

by an eye witness or original literary.

3. Popular quantitative methods of the data collection and analysis

include correlation, mean, median, swot analysis.

4. The most popular qualitative method of the data collection and

the analysis in business studies are interviews, focus groups,
observation and the case study.

Secondary source:
Secondary data, refers to a type of data that has been previously published in journals,
magazines, newspaper, book online portals and other sources.
Secondary data is the data acquired from optional source like magazines, books, documents
journals reports and the web

Objectives of the Zara brand:

1. Zara mission statement is to give customers what they want and get it to faster than
anyone else.
2. Continue to grow by extending the Zara fashion brand.
3. Increase purchase frequency among plus size customers.
4. Increase brand awareness and favorable attitudes among customers.

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 Hypothesis:
H0- Zara is the most lovable brand in the youngsters of Thakur College.
H1- Zara is not the most lovable brand in youngsters of Thakur College.

Sampling design:
 Total population: This study is conducted on
Zara based on the why the preference among
fast fashion retailer is Zara.

 Sampling units: The survey sample is based on the occupation.

 Sample size: One of the first things Zara should is the fact that sampling for this research
can be based on profitability sampling. Almost every element in the population is
already known and one of the most important factors is that Zara can target specifically
to customers.

Data collection instrument:

On the basis of questionnaire

Types of Questionnaires:
I have chosen structured questionnaires because they consist of closed or prompted
question (predefined answers) that require the designer to be aware of or to anticipate
all possible answers. They may be carried out over the telephone face to face or the
self- completion.

Types of questions:

 In my market research, I have used different types of question.

 Classification questions: These questions are used to classify the
information once it has been collected.
 I have used them for gender and age because I consider that they are
sufficient for the objectives of my research.

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  Open questions: I have used these types of questions because the
respondents have the freedom to express an answer in any way they
like.
 Scaled questions: the respondents are asked to give a numerical score
that is often out of a number.

Research design:
Research design can be exploratory or conclusive. If you want merely explore the research
problem and you do not want to produce final and conclusive evidence to the problem, your
research design would be exploratory.

Conclusive research design on the contrary, aims to provide final and conclusive answers to the
research questions. Conclusive research be further divided into two sub categories.

Furthermore, there are two basic approaches that can be used to investigate the data which
are quantitative and qualitative approach.

Qualitative research is defined as broader term for analytical methodologies described as

naturalistic, anthropological or observation-based research.

The researcher designed the questionnaire with close ended question on appoint scale as it
encourages respondents’ readiness to complete the survey. Moreover, this type of consumes
less time, cost and energy.

CHAPTER 3
LITERATURE REVIEW

Zara is one of the most fashionable and worlds first successful fashion retail brand. Zara aspires
to create responsible passion for fashion amongst a broad spectrum of consumers, spread
across different cultures and age groups.

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The Zara brand offers men’s women’s clothing children’s clothing even accessories like bags,
shoes, perfumes etc.
Zara brand is the most fashionable brand from where people would love to buy their stuffs.
customers loyalty is one of the most important roles played. Zara brand is mainly used for
clothing more than accessories because customers buy clothes more than accessories or shoes.
Zara brand is very expensive for middle class people.

The fashion industry such as Zara is becoming more sustainable if the designer’s fabricator as
well as the retailers are more sustainable in their norms. The way to produce sustainable
garments is the most accurate way to catalyze the consumer revolution towards both durable
as well as ethical fashion.

Zara introduce to new design of products as well as launches their new products very quickly.
The company believes that more style is similar to new choices Akbalik and Penz (2011) opined
that its strategy made their products more accessible in the market and sold out their stock
quickly also generate in customer related to next launch.

Zara makes their supply chain sustainable by making sure to their consumers that they are
looking for use renewable energy as well as user friendly dyes as well as fabrics in their fashion.
Sustainable in the fashion industry does not mean that using renewable and recyclable
materials. The most vital is the mass production that increases the consumerism. it leads to
change in attitudes as low priced as well as disposable. The company Zara will, provide both
internal as well as external funding in their fashion brands in order to make changes as well as
innovates new ways to do so.

Zara’s strategy requires the generation of a great deal of product variety throughout the year.
we are in the fashion business not clothing. Our customers buy our products because they like
it not because it is Zara explained Mr. Diaz .to its customers, Zara stores are places where you
can find something new and crucially, of limited supply. As part of this fashionably exclusive
image, stores hold very low levels of inventory – typically only a few pieces of each model and
this often means that a stores entire stock is on display.

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As result of the low inventory policy, it is not unusual to find empty racks by the end of a day’s
trading and therefore stores are completely reliant on regular and rapid replenishment of
newly designed products.

There are several trends for the retailers to overcome challenges that were previously
mentioned. Retailers started to be more service oriented. due to the fact consumer spending
on goods as a share of GDP tends to decline while spending on service grows
disproportionately. The focus on customer experience started to be even more important since
one of the leading problems faced by many retailers is a lack of differentiation among
competitors which leads consumers to view store as commodities. One way to tackle this
problem is to focus on improving the experience of consumers inside the store. Integrating
multi-network operation is another trend that enables an expansion of the business to the
virtual environment and the possibility to gain market share (Simona and Raoul, 2008)

Harvard Business Review in 2001 cited five rules for the retailers match the recession
1. Focus on customers who are loyal neither to you nor to your competitors;

2. Close the gap between their needs and your current offering

3. Reduce the bad costs -those producing benefits customers won’t pay for.

4. Cluster your stores according to local similarities and differences in customers’ needs
and purchase behavior;
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5. Retool your process – customers research, merchandise, planning, performance
management, strategic planning – to better position their company Ken Tim and David
(2009) mentioned that ‘Hard times can be a opportunity to win loyalty from more
customers, increase productivity and strengthen market position’ and retailers are not
an expectation.

Store experience

Whichever the industry is customer experience is a major tool for achieving competitive
advantage. it is the sum total of feelings perceptions and attitudes formed during the
entire process of decision making and consumption chain involving an integrated series
of interactions with people objects processes and environment. Positive customer

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 experience leads to enhanced productivity therefore the best way to achieve this in the
retail industry is by starting to analyze customers expectations.

Retailer practitioners have widely recognized the critical role of stores designs and
invest considerably on creating attractive and pleasant shopping environments.
The greater the degree to which a customer experience satisfaction with a retailer the
greater would be the probability to revisit (Wong and Shoal 2003)

A retail store experience involves activities such as browsing price comparison search for
merchandise evaluating product variety and quality and interaction with store personnel
(Terblanche and Boshoff 2001) Colors lighting music arrangements ambient scents and
layout influence consumer responses in a variety of ways (Michonne and Chebet 2004,
2007)

Retailers should create a theatrical retailing environment emphasize fun excitement and
entertainment and encourage greater customer participation in the retail service
experience.
Retailers need to affect all aspects of customers experience by properly managing all
possible touch point store designs and layout package design product function
employee training and shipping and logistics method (Kotler et.al 2009)

It has been reported that stores atmospherics ambience design social sensorial and
functional element have significant influence on shoppers’ enjoyment satisfaction,
desire to stay and spend more, and state of mind (Kotler 1973; Turley and Milliman,
2000, Baker et. Al 2002; Andreu et. Al;2006)

The right store layout might be more important than ever for brick-and-mortar
businesses wishing to stay competitive with their online counterparts a new study
suggest.

Fashion Apparel Industry

The fashion apparel industry has significantly evolved particularly over the last 20 years
when the boundaries of the industry started to expand (Delict and Ainamo 1999) The
changing dynamics of the fashion industry since then and such as the fading of mass
production the increase in number of fashion seasons and modified structural
characteristics in the supply chain have forced retailers to desire low cost and flexibility
in design quality delivery and speed to market (Doyle Moore and Morgan 2006) .

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 In addition to speed to market and design marketing and capital investment have also
been identified as the driving forces of competitiveness in the fashion apparel industry
(Sinha 2006) Franks 2000 suggested and sense and respond as the key strategy to
maintain a profitable position in this increasingly dynamic and demanding market.

A key defining characteristics of rapid responsiveness and greater flexibility in this

context is to maintain closer relationship between suppliers and buyer (Wheelwright
and Clark 1992).
Among the various reasons changing the dynamics of the fashion industry are the
following:

Fading of mass production

Modified structural characteristics in the supply chain
Desire for low cost and flexibility in design
Quality
Delivery
Speed to the market (Doyle, Moore and Morgan 2006)

This indicates that fashion retailers can gain a competitive edge in the market by allying
speed to market with their ability to provide fashion trend rapidly to the consumers,
resulting in adoption of quick fashion to reduce the time gap between designing and
consumption on a seasonal basis (Taplin 1999).

Why Zara is successful?

Zara is well known for its ability to be prompt in quickly delivering new clothes to their
stores which are achieved by following a strict routine. Twice a week at precise times
store managers order clothes and twice a week on schedule new garments arrive.

This routine and culture are believed to be the foundation of Zara’s success story and
continued dominance and popularity.
And that’s not all Zara also controls its supply chain more effectively than most retailers
which is a crucial advantage it holds.

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 Fabric mix:

Which fabric do Zara use?

All of Zara’s apparel fabrics are cotton, Polyester, and linen and they intend to make
everything organic soon. Reports suggest that Zara clothing will be categorically
manufactured using 100% sustainable fabrics by the year 2025.

Trent now plans to open 40 outlets of its flagship Westside chain every year and
hundreds of its mass markets Zudio Stores, where nothing costs more than 15 dollars
across India, said chairman Noel Tata in an interview in Mumbai. The target audience a
consumer population that is newly trend conscious and globalized, nut whose low
average incomes means that clothing from Zara itself is still mostly out of reach.

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 The middle class is growing income have grown Indians are traveling more and they
have more money to spend, Tata said. Now that we’ve built this capability and this
model that’s working so well, its time to grow faster.

All buys

While India fashion consciousness has surged its purchasing power hasn’t keep pace.
Less than a quarter of Indian household had annual income of $8,500 more in 2018
according to the WEF report putting brands such as Zara & H&M beyond the reach of
most consumers.

WHY IS ZARA POPULAR IN INDIA?

While many retailer companies aim for innovation, Zara tends to ride over the wave of
trend.
They bring in whatever is currently hot and trendy often making affordable copycat
versions of high-end fashions.

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 The store pride itself on getting new designs in stores within 2weeks.

In order to analyze the Spanish company’s pricing strategy In the 88 countries where it s
present, the bank Morgan Stanley, with the assistance of research firm Alpha Wise,
conducted a survey comparing nearly 7000 products from 14 sites in market where Zara
is present the brand representing two thirds of the company’s physical stores.

The market with the highest prices was South Korea (96% more expensive than in Spain)
followed by USA (92%) and China (76%) . Given this results its not surprising that Asia
recorded the largest sales in 2014 for Inditex accounting for 21.1% of the company’s
total turnover as compared to 20.4% during the previous year.

It thus appears that beyond following a pricing strategy tailored to the characteristics of
each market. Inditex is attentive to what consumers are willing to pay based on their
income.

VALUE ADDITION

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 INBOUND LOGISTICS:

Zara’s inbound logistics need to move and distribute raw material for manufacturing
allocate products keep an inventory of raw material supplies and finished products in
the stores as well.

Another key element in Zara’s inbound logistic is its control of the supply chain with at
least half of products being manufactured inside Spain and another half being produced
abroad However all of the production is received and stored in warehouses before its
distribution.

They have configured their manufacturing centers without specific colors or prints so
they can be ready to react to minimal market changes, such as for example increasing
the production of a highly sold product.

Operations

Zara’s headquarters are located in Spain from where the brand is managed and the first
thing an analysis could outline is that main design departments are located here so they
can easily integrate with the procurement branch to make fast adjustments and
decision.

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 However, Procurement sales design and marketing exist for each one of these lines and
it done differently on each one.

Zara runs three different and independent business lines men, women and children with
an accent on the women’s clothing side of the business. These also guarantee that each
line can quickly react to market changes and implement solutions without asking
permission from another department.

Infrastructure:

Due to Zara’s very particular business model high speed production and change and
decentralized decision making the company has configured its infrastructure to respond
and support these aspects.

HUMAN RESOURCES MANAGEMENT:

In Zara’s business model Human resource management is very important. All the Inditex
brands have their own human resource directors which address all related issues

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 outside operations. They rely a lot on employee training which tends to last at least one
week in all stores.

Zara is a subsidiary of the Spanish Inditex group which is not only the clothing brand but
also the franchise Zara brand clothing retail chain brand. As of June 2006, it in 64
countries and regions worldwide.

Transit a young, modern and successful image of the company Employees feel they are
working in an innovative company. It gives rise to a particular profile that is very much
identified with the store.

Promote teamwork : in all stores a cooperative system is established in which all

employees have responsibility.

High self-Demand: This is one of the main requirements. This company is looking for
motivated and cooperative employees who can assume the established requirements.

Distribution of employee shares: This is a way for employees to participate in the course
of business.

OPERATION:
The key piece is the store where the customer’s fashion wishes and the proposal of the chain
design teams converge. They are also the main image support of the brand.

First the garment is designed by computer on which a prototype is made in a handcrafted way
and then subjected to examination by its own creative team that will decide whether to
market the pattern or not, thus avoiding time and material costs.

MANUFACTURING PROCESS

Zara’s production is based in the term ‘ Just in Time ‘ is a concept from Japanese philosophy
focusing on the elimination of waste in management or production system.

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The company’s production gives an advantage in time and capacity which seeks to increase
your quality and productivity committing the least possible defects and increasing production
without increasing costs.

ZARA COMPANY’S PROCESS FLOW MAP:

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 SUSTAINABILITY AND SOCIAL RESPONSIBLE :

In order to carry out this strategy this company has a departmental organization which
splits up in four rules:

1. Fulfillment of the Code of conduct

2. Security and health in the work
3. Projects of social investment
4. Projects of integration in the company.

The company uses in this sense a triple system to manage the sustainability and
responsibility of its business model following the traceability of its vertical and
horizontal integration model form. This is the origin to the final presentation to
clients what is known as the 3 pillars of the responsible behavior in the production
chain.

1. The DNA of its offices : tied to its employees (legality , respect and diversity)

2. The DNA of its factories: tied to its suppliers and business partners
(transparency, legality, and traceability)

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 3. The DNA of its stories: tied to its clients (quality, security and health)

Zara has achieved three great milestones in search for a management model and
the most sustainable business :

1. Design of the business : Creation of value for consumer , for society and
especially for the community.

2. Operation: Control of supplier’s responsible policies

3. Logistics: Sustainable mobility plans following the principle of Kyoto

4. Sales : Teaching for a more responsible way of consumption.

DISCUSS

Zara’s company did not have any problem with technology’s innovation. it is the best way for
carry out a company and for offering a good service. In 2007, Inditex launched its first website,
Zara home com, then in 2010 Zara.com was created. The company has invested one billion of
euros to increase its technology, such as the creation of the technologic center which is
operational the 24 hours a day a week. its function is to promote the online sales of than 90
markets in which it is present.

Another innovation to improve the logistics of the company has been the internal development
of radio frequency system (RFID), which make the location of the clothes is faster and more
accurate.

How does Brexit affect fashion?

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In 2015 Inditex sales in the United Kingdom rose to 700 million pounds thanks to the six chains
of the group ‘Inditex but especially to Zara and Zara home due to the higher number of
establishments.

Pablo Isla, the president of the group declared in the last presentation of result that Brexit
would have a minimally relevant impact on the company’s account.

This possible weakening of the economy and the increase in inflation due to the depreciation of
the pound is what worries the managers of the company .On the other hand Zara despite the
fall of the pound has increased its market share from 0.6% in December2015 to 0.7% in
December 2016

Where the company has noticed a greater impact is in the real estate investment. Brexit will
cause a devaluation of the pound sterling which would cause a loss of purchasing power of
buyers and lead to declines in sales in the company stores.

A devaluation of the pound would lower the price of the property, so Amancio Ortega would
notice significant losses.

PROMOTION AND DISTRIBUTION:

This company does not invert in the publicity nut they invert all the money in stores ubication
decoration and shop window that is Zara wants to improve the imagine of the stores.
They do not chase possible consumer with aggressive advertising. They just place where the
aim public will be standing them out in order to they enter and buy.

For it, they use several and big shop windows so that does not go unnoticed with wide and
ample doors promoting a more fluid entrance for the store and inviting us to enter.

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Furthermore, the order decoration and the cleaning are essential in order to not get distracted
with the clothes.

Also the majority of the stores are in the best ubication in good street of each city or near of
other luxury shops which give prestige for Zara. However these types of shops like Gucci , Prada
wants to keep away from Zara.

ROLE OF ZARA AS A BRAND COMMERECE:

Zara focuses on the apparel business more as a consumption market rather than being a
commodity market.

MERCHANDISE DISPLAY:
The internal classification of Zara stores is complete and clear. the store has created three
sections of MEN, WOMEN, AND KIDS according to different age and gender of consumers. Such
divisional design not only helps customers saves times in searching but also helps divert the
target customers in different area which makes it easy for staffs work. At the same time in each
theme area the clothes are displayed in complete sets putting jackets shirts pants and skirt
together to give consumer matching guiding so that consumers are more likely to buy a whole
set in impulse.

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ONLINE STORES:

FIGURE 01. ONLINE SALES AND INCREASED FROM 2013 TO

2021

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 SUSTAINABLE RETAILING PERFORMANCE
FIGURE 02.
OF ZARA DURING COVID -19 PANDEMIC.

In recent years with the rise of online shopping Zara has also develop [ed online sales channels
in response to consumer demand. In China Zara has been stationed in online shopping
platforms such as Taobao, Tmall and Vipshop and has actively participated in major shopping
festivals such as Double Eleven and Double Twelve in China, creating substantial operating
profits in online platforms.

In figure 02 it can be clearly seen that Zara’s online stores sales showed a trend a continuous
growth and the proportion of online turnover to total turnover was increasing. Especially in the
period of covid-19 the sales of Zara’s store suffered aan unprecedented impact . at this time the
advantages of online stores were presented.

During the epidemic more consumers chose to shop online during home quarantine.
Asa result about one third of Zara’s turnover cane from online stores last year and the online
turnover surged by 69.23% comparing to 2019.

In addition Zara also uses to online platform to provide consumers with virtual consulting
services and virtual fitting service which improves the efficiency of shopping. If consumers need
to return or exchange goods after shopping from Zara online stores there are two way
available: home pick -up or going to offline stores.

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In terms of price Zara insists on uniform price for online and offline because it can avoid the
psychology of price discrimination to consumers.

ADVERTISING AND MARKETING STRATEGY:

Zara spends only 0.3% of its annual sales on advertising which is far below the industry average
of 4%.

At the same time Zara also spends little on celebrity spokesperson and brand ambassadors.
However in recent years Zara’s stores in China have gradually adopted the celebrity
endorsement using the powerful fan appeal of celebrities to increase sales.

This invitation represents that Zara has changed its previous marketing strategy in China.

A SMALL NUMBER OF ITEMS CREATING A SENSE OF SCARCITY:

Zara seldom provides discounts but uses a marketing strategy of more styles but less quantity.

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The reason is that Zara’s selling price is low and the number of each style is small. Ans Zara
rarely replenishes twice at most.

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Therefore, the new products will be snapped up in a short time and there is no need for
discount promotion.

SUPPLY CHAIN SYSTEM

TABLE 1. THE SUPPLIERS AND FACTORIES OF ZARA

CUSTOMER FEEDBACK:

Zara collects feedback from customers by phone and email and products according to
customer’s needs. In addition, all stores are required to report sales and inventory quantities to
the headquarters on a daily basis.

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Based on the feedback from each store the professional marketers will make analysis and find
out which styles and elements are the most popular in the market, and then provides
suggestions to the design department . in this way Zara’s products can quickly respond to
market changes.

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CHAPTER NO 4:
SWOT ANALYSIS, GRAPH INTREPRETATION &
PRESENTATION

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The marketing strategies used by Zara have been very successful. This success comes from
multiple strengths that have been brought by the marketing strategies. The strength includes:

 Fashionable clothing
 Global reach
 Brand valuation
 Strong online presence
 Affordable prices
 Rapid and efficient production lines
 Efficient manufacturing design
 Visual merchandise

STRENGTH OF ZARA:

The main strength of Zara is that the company has trendy and highly rated clothing. the
clothes come in different sizes and shapes to suit people of all ages. Zara can produce
these highly fashionable apparel through its team of designers. the designers take the
feedback they get from customers and designs customer centric products. This ensures
that Zara keeps producing superior quality apparel for all types.

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 Zara the strength of having speedy efficient production line. The company can design
and manufacture as many as 500 different designs in a year. This fast production
ensures that the company has an adequate number of products for all the worldwide
outlets.

The Zara company has set up comprehensive strategies that enable it to sell at
affordable price. The company does not use its money and resources on advertising and
this saves production costs. This allows the company to sell high quality apparel at
relatively lower prices.

Global Reach
Zara stayed close to home for the first few decades of the company's existence, but today, it has already expanded to 96
countries and is currently operating 2270 retail outlets around the world.

Brand Valuation
According to Forbes, Zara is the 53rd biggest company in design and business, and this is largely due to its brand
valuation.

Fashionable Clothing
One of the main goals of Zara is to create trendy and distinct clothing for everyone, and it is able to accomplish this
through the skills of its team of designers who understand the needs of the target market very well. Zara makes a wide
variety of superior quality clothes for all ages, including casual wear, business wear, and even some formal outfits.

Fast and Efficient Production

Every two weeks, Zara releases a new collection that includes as many as 500 different designs. Production is fast, but the
quantities per design are limited, which makes for higher exclusivity that is favorable for customers.

Affordable Prices
With the unique marketing style of Zara, it spends very little on advertising. This allows Zara to keep prices low while
maintaining the outstanding designs and quality of its clothing.

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Spacious Stores
It is very important for customers to have a pleasant shopping experience. This is why Zara makes it a point to build
spacious retail outlets in prime locations, allowing customers to have a relaxing time while choosing outfits.

Visual Merchandising
Zara exerts a lot of effort in creating an aesthetically enticing image in all its stores. From the lighting and layout to the
mannequin displays and decorations, Zara understands that all these elements play a role in luring customers in to make a
purchase.

Sustainable Manufacturing
Sustainability and environmental awareness are issues that are very important to this fashion brand. Its manufacturing
process is completely toxic-free, and it strongly supports campaigns for the preservation of our natural resources.

The entire production and sales process maintained by Zara has sustainable
manufacturing. The company ensures that the entire process is toxic-free. The company
also engages in campaigns to conserve the environment and promote the development
of society. 

What are Zara's major strengths?

Pioneer Advantage:

 Fast-fashion focuses on designing, producing, and selling clothes as soon as they

identify a trend. In traditional fashion, the process takes months; Zara does this in 3
weeks

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 ZARA’S WEAKNESS:

Coming up with weakness in the business strategy used by Zara is quite challenging.
however, some areas make the company weak. These areas include:

 Limited marketing and advertising when compared to competitors

 The negative image of being an expensive brand
 High competition in the fashion industry.
 Inadequate supply chain insufficient information about products.

Zara has the weakness of having an insufficient supply chain. despite the company having more
than 2000 stores in 96 countries it still relies on the main production line for all its products.
Zara has to tackle this weakness by increasing regional production.

Inadequate Supply Chain

Zara has over 2000 retail outlets worldwide, and it is still relying mostly on its main production facilities to provide the
clothing for all these outlets. An increase in regional production might be necessary to prevent problems like delivery
delays and customer dissatisfaction.

Limited Advertising
Unlike other clothing brands that spend millions on print and TV ads, Zara relies mostly on social media and word of
mouth for its advertising and promotion. It's actually working very well, but maybe if it spent a little more on real ads, it
might be able to increase its revenue even further.

Insufficient Product Information

Zara's official website brings in a substantial amount of revenue, but there it also generates a notable volume of product
returns. The most commonly cited reason is the lack of information about the products on the website, so clients are not
entirely sure of what they are buying.

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ZARA’S OPPORTUNITIES:

Zara’s SWOT analysis shows some opportunities that the company can focus on. The
opportunities include:

o Online channels and e-commerce options

o A wide global global market
o Zara can target the time to make a trademark design.

Wide Global Market

There are still many parts of the world without a Zara store. If the fashion brand is able to harness these untapped markets,
it will be able to increase its sales tremendously.

Online Channels
More customers are now buying clothes from online stores. Zara can maximize this market potential by improving its
online presence and building a more efficient eCommerce marketing strategy.

Creating a Trademark Design

Many fashion brands have attained longevity and a solid reputation in the business because it have a distinct design or
item. Think Vera Wang wedding dresses, Prada handbags, or even Lacoste polo shirts. Zara's clothes are all amazing, but
they do not have a trademark design. Creating one just might do wonders for the brand.

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ZARA’S THREATS:

Threats are those factors that negatively affect a company. Zara faces the following threats:

 Fake imitations
 High competition in the fashion industry from high end fashion merchandisers.
 The covid 19 pandemic and economic down turns.

Zara is facing a severe threat in the form of upcoming competing fashion brands . the
competitors are coming up with highly marketed designs and taking a huge market share. This
negatively impacts the fashion market.

 Competition: China’s fast-fashion giant, Shien, is the world’s biggest fashion

retailer with a purely online presence. During September, the Shein app saw 10.3
million downloads. Zara, with only 2 million downloads in the same period, must
watch out for its rivals in the digital arena.

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  Price War: Fast-fashion, Zara’s primary niche, brings the latest trends from the ramp to the
customers quickly and at low costs. However, the industry is vulnerable to imitators waging price
wars to leech off from Zara’s line. 

COVID-19 Pandemic
Like most clothing brands, Zara took quite a hit when the pandemic erupted in 2020. It had to close down 88% of its
stores, leading to a 44% decrease in revenue compared to the previous year.

Imitations
As with any popular brand, Zara has to deal with cheap imitations in the market that bear its name or logo. The more
discriminating customer will be able to identify these fake items, but others might not, and this might affect the sales of
Zara products.

Fast Fashion Competition

A few years ago, Zara was basically dominating the fast fashion scene, but that changed when Chinese fashion brand
Shein entered the picture. Shein doesn't have a physical store and operates completely online. Shortly after it launched its
app, it got more than 10 million downloads compared to only 2 million for Zara in the same month. Zara might have to up
its online game to keep from getting overtaken by this newcomer.

Unique designs – 

One of the first and foremost advantages of Zara lies in its design abilities. It has a plethora of
designers on board who understand the Zara brand and the psyche of the customers who visit
Zara very well. The clothes are elegant, superior quality and have fantastic finishing. They come
in a lot of varieties including party wear, office wear, for kids, for men and women, casuals as
well as several others. Even accessories are an integral part of Zara wear.

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 ONLINE COMPETION ON ZARA BRAND ON SOCIAL
MEDIA:

Since the inception of Zara the priority of the brand is its customers. The working
approach of Zara is centered on its customers.

It is very easy to access for the new arrivals through social media such as Instagram ,
there people who even follow the Zara page on all the social media.

Zara has more followers and following on Instagram than others for people who shop
from Zara.

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 Zara has 56.2 Million followers for women

Instagram

Instagram reigns supreme for Zara, as it provides the perfect platform for their visual
brand image. Zara has 24.3 million followers on Instagram of which 8.5 million followers
were added in the last year. With a significant 56% growth in followers, Zara registered
the highest growth among its competitors.

They published 469 posts on Instagram, out of which 340 were photos and 149 were
videos.

Zara ran a number of integrated campaigns which drew a lot of engagement for the
brand. For example, Zara released a sustainable clothing collection under the label
#joinlife. They posted 16 times referring to the hashtag and received more than 1
million likes on the posts.
.

Zara took an interesting approach with their influencer marketing on Instagram. They launched
a ‘Timeless’ campaign featuring models over the age of 40. It featured fashion industry veterans
Malgosia Bela, Yasmin Warsame and Kristina de Connick. The video campaign involved these
women discussing the effect of aging on their personal style. This effort also earned social
media praise for the retailer.

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To know more about what to post on Instagram and win engagement, check out our
latest infographic.

YouTube

Zara added more than 10,000 subscribers in the given time period. They uploaded 17 videos,
mostly centering around the retail seasons. These short one minute videos are catalogues
introducing their new merchandize.

The PR Crisis
From the “Love Your Curves” campaign to Pepe the Frog controversy, the brands has had its fair
share of negative publicity. Last year, the brand came under intense public scrutiny when
shoppers found notes from unpaid labourers sewn inside the clothes. Interestingly, the brand is
unwilling to use their social media platforms to address these issues. Despite the reactions from
their disgruntled customers, Zara maintained its silence.

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Zara’s Social Media Success

Content consistency

Zara’s social media strategy is highly dependent on visual elements. They have a photo-oriented
synchronized layout across its social platforms. This kind of visual content consistency is vital to
brand recall. Maintaining a uniformity helps consumers know what content to expect from you.
This organically curates a brand identity that resonates with your audience.

Posting consistency

Similar to content, frequency of posting is vital to building brand consistency. Even though
there is no one-size-fits-all approach to the number of posts, regularity is key. Zara manages to
remain consistent in its frequency of posting on both Instagram and Facebook by posting at
least once every day. To know all about the best time to post and perfect your social strategy,
check out our detailed study here.

Customer relationship

Customer research has been the holy grail to Zara’s success. They translated the same strategy
to their social media as well. Zara consistently uses social media to talk to their customers and
this in turn have managed to retain brand loyalty.

Organic Growth

A major aspect of Zara’s social media success can be attributed to endorsement from their
consumers which include fashion-focused influencers and bloggers. There are countless
Instagram accounts solely dedicated to clothes from the retailer. Every season, there’s a Zara
item trending on social media and their brand-related hashtags account for millions of results.

From Zara’s brand story, it’s evident that to grow and remain viable in today’s business
landscape, every brand needs a good social media marketing strategy. If you are looking for
insights on how to better your social media performance, have a go at Unmetric Analyze.

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Its core values are found in four simple terms: beauty, clarity, functionality and sustainability.
The secret to Zara's success has largely been driven by its ability to keep up with rapidly
changing fashion trends and showcase it in its collections with very little delay.

The brand could expand its customer base and encourage more shopping by investing more
time to market themselves on digital platforms and improve its e-commerce sector's
functionality. The biggest threat Zara is facing is the intense number and level of competition in
the industry.

Zara has the worst size and fit out of the five retailers analyzed. The products with the most
problematic sizes are trousers, dresses and jeans. These are also the top three products most
frequently returned by customers, the data showed.

Zara is one of the largest international fashion companies. It belongs to Inditex, one of the
world's largest distribution groups. The customer is at the heart of our unique business model,
which includes design, production, distribution and sales through our extensive retail network.

Zara is one of the largest international fashion companies. It belongs to Inditex, one of the
world’s largest distribution groups.

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The customer is at the heart of our unique business model, which includes design,
production, distribution and sales through our extensive retail network

Why did Zara fail in India?

Zara has failed to understand the needs of the customers of the Indian market measures
should be made to adapt to the Indian market as it is being one of the fastest-growing ones.
Decentralizing it's manufacturing policies so that it can open its distribution center.

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 High street fashion enthsiasts collectively let out a sign of relief when Zara went online.
Our go to brand for chic everyday wear is a click away . Ans we’re taking you on a spin
of the website for you and are happy to report that it includes everything from women’s
wear men’s wear kid’s wear and the sub categories are super specific.

Zara has social media profiles on Facebook, Twitter, Instagram, YouTube, Pinterest, and
LinkedIn (as Inditex, the brand’s parent company). Because of the importance of
pictures and videos in fashion, Instagram and Facebook are their primary social media
platforms. Across the different social networks, Zara posts product-focused content
which gives the audience a peek into their latest offerings. Their fanbase consists of
mostly young females, according to Facebook demographic data.

Facebook

In 2017, Zara added more than one million followers, making it one of the most successful
fashion retail brands on Facebook with 26.4 million followers. The brand posted 497 times, with
more than 70% of it being photos, and videos accounted for just over 20% of the content.

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 Zara’s Facebook page mostly showcases their latest collections. Their visual content
involves look book-style photos. Not surprisingly, their clothes do the talking for them
and drive the most engagement in terms of likes and shares.

The brand promoted 236 posts, out of which 143 were photos. Interestingly, the organic posts
involving photo content managed to achieve a higher overall engagement than the promoted
posts. This could be the reason why the brand chose to promote 87 videos from a total of 126
they uploaded. These videos managed to gain high engagement with over 6 million views.

Zara participated in 255 user conversations, mainly receiving a positive (81%) response
from their audience. We took a look at the comments on their most engaging post.
From the word cloud below, it’s clear that customers appreciated the retailer and
there’s considerable brand excitement

Twitter

Zara has 1.3 million followers on Twitter with 79,026 followers being added last year.
The brand page registered a 6.5% increase in fans. Their Twitter strategy centers around
conversing with their customers and proactively responding to their queries and
concerns. On average, Zara tweets 52 times per day; 98% of their tweets are replies.

Zara responded to 10,937 tweets against a total of 113,889 mentions, keeping their
response rate at 9.6%. On average, Zara replies in 14-15 hours, most frequently
between 4 am and 1 pm. This is also the time when brand mentions peak. Customer
tweets are mainly regarding delayed deliveries, product damages or misplacements and

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 bad in-store customer service. The brand opts to handle queries through requests to
direct message, apologies or otherwise directs them to the brand’s separate customer
service handle @ZARA_Care.

In regards to content, product launches and new arrivals are the top performing.

Being in the forefront of fashion brands, Zara gets regularly featured in fashion magazines,
journals and websites. The brand had 241 @-mentions from Elle España, 15 @-mentions from
British Vogue and 6 @-mentions from In Style and WWD.\

Zara is also @-mentioned by a number of high profile influencers. We find that Zara has
appeared in @-mentions from 13 influencers who have more than one million followers.
This also includes high-profile celebrities like Danielle Peazer, Davina McCall, Nigella
Lawson, Vicky Pattison, Amanda Holden who have a following of more than 2 million.

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 It’s interesting to note that Zara gets frequently mentioned not just in influencer
endorsements, but also in their Twitter conversations with fans.

The Prices average:

What is Zara's price point?

At H&M nearly half of the women's offering sits in the $1-$20 bracket, whereas Zara's most
optioned price point is $20-$40, also representing 49% of their products. The different pricing
structures are visible when comparing two of the most competitive categories: womenswear
tops and dresses

or service to remain competitive in the market while also making a profit. Usually, it considers
the demand and supply, the competition, and alternatives to a product or service.

What are the 4 major pricing strategies? 

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 Value-based, competition-based, cost-plus, and dynamic pricing are all models that are
used frequently, depending on the industry and business model in question

The 5 most common pricing strategies

 Cost-plus pricing. Calculate your costs and add a mark-up.

 Competitive pricing. Set a price based on what the competition charges.
 Price skimming. Set a high price and lower it as the market evolves.
 Penetration pricing. ...
 Value-based pricing.

The bad reputation of plagiarism. Since ZARA has made a lot of profits through imitation, it has
to bear tens of millions of infringement costs each year. Some media ridiculed that ZARA used
infringement fees as copyright fees. For example, ZARA copied illustrations from New York
designer Adam J. Kurtz, prompting artists to complain. In September 2013, the Internet was
besieged with Weibo posts alleging that ZARA's latest fall/winter campaign had been copied
from Louis Vuitton, Saint Laurent, Stella McCartney and other brands, and that the high-priced
brands were being copied by the low-priced ZARA. ZARA's plagiarism is not only a big impact on
high luxury brands, but also on ZARA itself, although it will gain high profits in the early sales,
but in the long run it will make the brand image in the minds of the audience greatly
discounted, seriously affecting the brand's future development

Lower product quality. In usual, fast fashion products cannot last for many years. In
addition, ZARA's doesn't pay much attention to its product quality. As a result, its quality
of the product has been worrying and it has repeatedly been the target of local industry
and quality control departments. In April 2012, Greenpeace sourced 141 samples from
29 countries and regions around the world, including Arman, Victoria's Secre, C&A,
Calvin Klein, ZARA, H&M, etc., and found that ZARA's clothing contained the most
harmful substances. The China Beijing Consumers Association has also decided to write
a letter to ZARA's Spanish headquarters, hoping that the head office can urge ZARA
Beijing to take the quality of its products seriously and take effective measures to solve
and improve the existing quality problems to safeguard the interests of consumers .

ZARA is a leader in the sustainable development of the fast fashion industry. In this
paper, we draw the following conclusions through SWOT analysis (see Table 1): first,
ZARA has the advantages of low product price, unique and numerous design styles,
efficient production, and low production cost. Secondly, ZARA's disadvantages mainly lie
in its low product quality, excessive expansion of scale, and its deep involvement in

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 plagiarism. Thirdly, the current opportunities for ZARA are mainly the rapid
development of AI, the increase of residents' income and the development of Internet
and e-commerce. Fourthly, ZARA's main threats are the strength of its competitors and
the decline of brand loyalty.

Zara's eCommerce strategy uses an automated marketing platform for sending relevant

and timely emails notification to shoppers regarding everything from order status
updates to back in stock notifications, and so on

How do fashion brands use social media?

Build brand awareness and customer loyalty in key markets. Visually showcase their products
(e.g., modelling pictures) Ensure that advertising campaigns are resonating with global
audiences. Share company updates, new releases, events, and other information.

What is Zara slogan?

The ad, which has been seen in stores in England and Spain, features the slogan "Love Your
Curves." While the well-intentioned message seems to celebrate body positivity, there's a
problem: The two models featured alongside the phrase are both similarly slim

Which brand is most active on social media?

Facebook is the #1 social media app. It is used by millions of people around the world to
connect with friends, family, and businesses. It allows users to share photos, videos, messages,
and other content with other users

What are the 6 types of social media marketing?

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What Are the 6 Types of Social Media?

The six types of social media, though this can be broken down in many ways, include social
networking, bookmarking, social news, media sharing, microblogging, and online forum sites.

The most commonly accepted theory on TikTok is that a circle means the item runs large, a
triangle means it runs small and a square means it fits true to size.

A Closer Look at the Top 15 Social Networks

1. . Facebook – 2.74 Billion Active Users. ...
2. YouTube – 2.291 Billion Active Users. ...
3. WhatsApp – 2.0 Billion Active Users. ...
4. 4. Facebook Messenger – 1.3 Billion Active Users. ...
5. Instagram – 1.221 Billion Active Users. ...
6. Weixin/WeChat – 1.213 Billion Active Users. ...
7. TikTok – 689 Million Active Users/

Top Social Media Platforms in 2022

Platform Monthly Active Users (MAUs) as of Q1 2022

1. FACEBOOOK 2.9 BILLION
2. YOUTUBE 2.56 BILLION
3. WHATSAPP 2 BILLION
4. INSTAGRAM 1.47 BILLION

The metric we use to determine a social network’s size is “number of active users” – the total
amount of unique users currently registered on the platform. It’s a metric that’s used
throughout the tech industry as a key indicator of popularity, engagement, and growth.

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Below is a graph depicting the top 15 social networking sites and apps as calculated by industry-
leading provider of business data, Statista.

YouTube is also one of a tiny selection of social media platforms that reaches very young age
groups. A 2020 study conducted by Pew Research revealed the following about the viewing
habits of US children under the age of 11.

 80% of parents say their children watch YouTube videos.

 Only 19% of parents say that their children don’t watch YouTube videos.
 More than half of parents said their children watched You tube at least once a day.

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Despite its popularity amongst a younger audience, YouTube also boasts some remarkable stats
for reaching the adult demographic. Almost three-quarters (74%) of all adults in the US use
YouTube. Facebook comes in second at 68% and Instagram is third with 40%.

It says a lot about the power of Facebook that a service WITHIN their main platform reached
the number four spot on this prestigious list.

It also says a lot about WhatsApp that they were able to dramatically outperform Messenger
despite the latter being embedded into the world’s most popular social network.

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Age-wise, there’s one group that towers above the rest when it comes to Facebook Messenger
adoption in the United States:

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  13 – 17-year-olds account for 1.7% of the app’s usage.
 18 – 24-year-olds account for 14.7%.
 25 – 34-year-olds represent 27.3% of Messenger’s US user base.
 35 – 44-year-olds come in second with 21%.
 45 – 51-year-olds account for 14.7% of the country’s Messenger’s user base.

Weixin/WeChat – 1.213 billion Active Users

With an incredibly wide range of functions that allow users to do everything from sending text
messages and conducting video calls to processing digital payments and playing video games,
it’s no surprise that WeChat has such a high position on our list

It’s also a testament to WeChat’s immense usefulness that the app achieved this level of
popularity despite actively sharing users’ private information with the Chinese government as
part of the latter’s mass surveillance and censorship efforts.

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Regardless of this unfortunate collaboration, WeChat has blasted its way into virtually every
aspect of Chinese life – a notion underscored by the fact that the app’s adoption by older age
groups is extremely impressive.

There are few questionnaires through which we will understand student respondent:

1. How do you know the Zara brand?

a. Tv
b. Print media
c. Word of mouth (from friends, parents, youngsters)
d. Online (social media)

2. Does the brand have a big influence of buying your decision?

a. High
b. Low
c. Neutral

3. What do you think is Zara brand price?

a. Expensive
b. Cheap
c. Medium
d. Luxury

4. What is the other thing which attract u except clothing

a. Perfumes
b. Shoes.
c. Bags.

5. How much would you like to spend on Zara products in one shopping?
a. 2000/- to 3500/-
b. 3500/- to 5000/-
c. More than 5000/-

6. Does Zara as a brand satisfy your expectations about the quality of its products?
a. Yes
b. No

7. Do you like to get the notification from Zara about its products or a new launch?
a. Yes

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 b. No

8. Will you keep Zara as your first preference for fashion brand?
a. Yes
b. No

Here is graph in which it is shown the increase in the last 7 years how it has rapidly increased in
their market .

Through the help of Pie diagram, we have studied the customers responds.

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  GRAPHIC INTERPRETATION

1. A pie chart is a circular statistical graphic which is

divided into wedges that represent portions of a
whole.
2. In this chart as we can see that there are many
people who prefer perfumes, bags and shoes.
3. a. In perfumes there are 43.2% people who would
prefer to buy perfume from Zara.
b. 22.1% people would shop bags of this brand.
c. 34.7% people would shop shoes of Zara brand.

1. In this pie diagram we would be studying

about the prices of the products.
2. There are different types of prices that are
expensive, cheap medium and luxury.
3. a. As per the chart there 59.3% people who
think the Zara brand is expensive to shop.
b. Less than 10% people think that the
products of Zara are cheap.
c. 25.1% people think that the prices of Zara brand are medium.
d. 14.6% people feel that the prices of Zara brand are luxury.

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 1. In this diagram we would be studying about
how many people usually spend on this brand.
2. In this diagram we would talk about the individual expenses. How much people
spend individually.
3. a. As per chart there are very few people who spend more than Rs 5000/-
b. There are only 27.9% who would wish to spend Rs2000 – rs3500/- in Zara for
shopping
c. There are only 14.7% who would spend nearly around Rs 3500/- to Rs 5000/- .

1. In this diagram we would study about

the modes of the products .
2. In this there are few people whose modes are sometimes high, low, neutral
3. a. There are 31.5% people who thinks the Zara brand are high.
b. 15.7% people think that the Zara brand are low .
c. 52.8% are that Zara brand neutral.

1. In this diagram we would study about how

people came to know about this brand.
2. There are people who have come across this brand from various types of digital
source some are from television, print media, some have even heard it from other

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 people such as friends, youngsters etc. and some have heard it or seen it on social
media platform.

3.a. Around 5.5% people have heard and seen about this brand on television.
b. less than 10% people have seen this brand on print media more than television.
c. 42.3% people have heard this brand from their friends’ youngsters and from
parents.
d. Around 49.3% people has seen this brand and heard about this brand on social
media like Facebook, Instagram etc..

WHAT IS ZARA NEST KNOWN FOR?

Zara is one of the largest international fashion companies. It belongs to Inditex one
of the world’s largest distribution groups. The customer Is at heart of our unique
business model, which includes design, production, distribution and sales through
our extensive retail network .

When it comes to the high street fashion brands. Zara dominates the scene. The
brand is at the forefront of offering the latest fashion trends high quality products
and most importantly to consumers awesome affordability. So how did the brand
grow from humble beginnings to become the number one fashion retailer in the
world – not to mention setting the global standards for success with their Zara e
commerce channel?

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 The bottom line is that this policy enables Zara to design produce and stock a new
fashion design throughout its international stores in less than a month. This unique
fashion design process allows Zara to utilize their brick and mortar and Zara e-
commerce shop channel by providing their shoppers with the latest trending
fashion.

CHAPTER 5:
CONCLUSION & SUGGESTION

Zara is a successful international retailer which in less than 30 years has transformed
itself from a Spanish local brand into a truly global brand. though its domestic
market in Spain still accounted for close to 30% of sales, the retailer plans to
accelerate expansion of its stores abroad to reduce its reliance on Spain.

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 Zara has a unique business system that gives the company its competitive
advantage. One of these advantages is the economies of scale that Zara is able to
utilize and the company has been successful in scaling up its distribution system
(Palladino 2010). However, with the continued growth of the company especially
due to the expansion in the international markets, there are concern in regards to
Zara’s centralized logistics model. some argue that a centralized logistics model
might suffer from dis economics of scale.

By performing a person’s correlation, it was not possible to statistically verify a

correlation between the perception of safety in online shopping and buying more
online clothes in general once. However, by analyzing separately the survey answers
it can be verified that online shopping is a determinant when it comes to buying
more online clothes in general.
The behaviors preference and shifts in mindset that people have adopted during the
pandemic will lead to permanent changes and the fashion world will never be the
same (Mehta, Saxena, & Purohit 2020)

The accelerated adoption of e commerce increased demand for purpose -driven

brands and sustainability have taken over the market. Consumers will buy more and
be more demanding when they do. And although it was possible to observe that the
overall spending declined a little bit , the attraction in home wear, casualwear home
categories / products escalated.

Channel shifts accelerated and sales through digital media overdriven . in order to
keep customers attention brands has to strengthen their online presence through
customization and improving online shopping interfaces.

LIMITATION & RECOMMENDATIONS FOR FUTURE

WORKS

The scope of this study was to understand the factors that affect consumer buying
behavior on online shopping along with factors respecting the website design
reliability and security that may influence the consumer buying behavior .
Another limitation is related to geography. This study was focused mostly on
Portuguese people users in other countries could have different view and opinions
making this is more interesting

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 Finally it would be interesting to study the impact of investing in advertising on the
company’s results to understand the impact on the company’s financial income the
number of online purchases .

RECOMMENDATION:
In order to give valuable recommendation that can be helpful to the company’s
strategy this section will be focused on three key point : the capacity to adapt to
customers’ demands advertising and inventories.

To finish the reports revealed that Zara has low inventories in store , Zara stores
receive goods twice a week . deliveries in small batches because it is a way of
1reducing the cost having too many inventories.

BESIDES THAT, THE STORES HAVE FEW QUANTITIES OF EACH PRODUCT. However,
there are opportunities to gain market share as respondents were saying that they
did not online purchases due to lack of adaptation.

Chinese women prefer clothes in pastel tones to favor their pale skin and European
women prefer stronger colors but both of them have similar taste.

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 Zara is an extremely renowned brand know for its latest design and is among the top
100 best global brands in 2010. It uses the unusual strategy of zero advertising and
instead invests the revenue in opening new store across the world. Zara is popular
amongst old and young generations too because it is affordable fashion. Is crystal
clear that Zara is successfully living up to the standard of its two winning retail
trends firstly, it is fashionable and secondly it is low in price thus resulting in a very
effective mixture out of it.

Zara is particularly strong position within the fashion market having established itself as a
brand name that produces cutting edge fashion ahead of the rivals and at a low cost.

Zara has developed a highly responsive supply chain that enables delivery of new fashions as
soon as a trend emergers.

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Zara delivers new product twice each week to its 1.763 stores around the world.
Zara is a successful international retailer which in less than 30 years.
Zara has transformed itself from a Spanish local brand into a truly global brand.
It also has some problems to face to.
Zara leads in the profit margins and growth rate due to unique business model.
Zara being a top-match clothing brand should increase its online presence.
Improve customers service even more by implementing the strategies of competitors in better
ways to capture their customers as well.
Currently it has 335 stores distributed through out Spain and it is an Inditex Company as
Spanish is the parent company with the profit of 17 billion dollar in a month.

Zara is an organization in a strong position in the financial market that has established itself as a
brand name which produces cutting edge fashion products that are better than its competitors
at a Strategic appraisal of Zara.

Zara has also been working to extend the life of its product through its social and
environmental commitments. The company provides a clothing collection program of which
received garments and distributed to none profit organization that allow them to be reused or
recycle.

Zara has revolutionized the world of fashion by bringing out a large number of collections each
season instead of the same old two collection every year one for spring summer and another
for fall winter which has been the norm in the fashion industry.

The company focuses on responding to current fashion needs rather than forecasting fashion
trends for a distant future :85% of its production is done during the current season .
By doing so, Zara can avoid overproduction an issue its rival H&M also faces and become more
sustainable.

Radio frequency identification technology (RFID), which has been applied in Zara during the
past years to stock management has increased its implementation in more of the brands store

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and markets. Self-checkout and interactive fitting rooms have also been introduced and
developed during this period.

Zara doesn’t have a any advertising policy . Zara is a brand of which you will not spot a single
billboard. . This gives a sense of exclusivity. So this creates a chance for customers to be in the
cool spot of society. It invests extensively on brand experience rather than ads.

Let’s run through an overview of the industry from bottom to top. These are cheap and low
quality brands and stores such as H&M, ZARA, Target, GAP, Wal-Mart, American Apparel.
The clothing that that these stores sell, like fast food, is cheap with consequences.

As a result Zara’s approach has a few benefits: Less clothing in stock means lower storage costs
and fewer markdown.
Shoppers will frequently stop by Zara to see fresh and trending designs. Since merchandise is
limited there’s a frenzy to grab clothing before its gone.

Zara choose to handle design, production ,and distribution .in house and concentrate the whole
production close to their headquarters in Spain.

By entire process Zara can react much faster than its competitors to do both the ephemeral
trends in the world of fashion and the capricious tastes of its customers most innate needs and
desires and tie these to successful innovation strategies which ultimately lead to these new
and unique approaches to their business .

Their success is directly related to their ability to understand their customers most innate needs
and desire and tie these to successful innovation strategies which ultimately lead to these new
and unique approaches to their business.

CHAPTER 6.
BIBLOGRAPHY

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 1. https://martinroll.com/articles/strategy/the secret of Zara’s - success-a culture-of-
customers-cocreation/

2. Balmer, J.M.T and Grayer (2003),” Corporate brands: what are they? What of them?”
European Journal of Marketing, Vol.37 No.7/8, pp.972-97.

3. Brand watch Zara (2003) Retrieved May 13 , 2007 from

http://www.3isite.com/articles/Deconstructing_Zara_handout_version.pdf.

4. Burghausen, M. and Fan, Y. (2002),” Corporate branding in the retail sector: a pilot
study,” Corporate Communication: An International Journal, Vol.17 No. 2 , pp,92—9.

5. David Walters, Effectiveness and efficiency: the role of demand chain management, The
International Journal of Logistics Management, Vol.17 No.1, 2006, pp.75-94, Emerald
Group Publishing.

6. Folpe, J. (2000) ,” Zara has a made -to-order Plan for Success”. Fortune, Sept 4

7. Gluyas, R. (2004), The Australian, 15 November.

8. How Zara Fashion its Supply Chain, Strategic Direction, VO 21, NO.10 2005, PP.28-31,
Emerald Group Publishing Limited.

9. Kennedy, S.H. (1997), “Nurturing corporate images- total communication or ego trip”.
European Journal of Marketing, Vol.11, pp.120-64.

10. Murphy, (2008), “Expansion Boosts Inditex Net,” WomenaYs Wear Daily, April 1

11. D, and Turconi ,S.(2008) “Fast Fashion Lesson”, Business Strategy Review, Summer

12. Linkedin.com/news

13. Van Rekom, J. (1997), “deriving an operational measure of corporate identity,”

European Journal of Marketing, Vol.31 No.5/6, pp.410-22

14. Waller,A. (1998), “The globalization of business : the role of supply chain management.:
Management Focus , No 11.

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 a. Press, Tamarac, Florida . Website
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