Essay on The Zara Business Model - 2190 Words

Introduction Zara is the most popular and profitable brand of Inditex SA, the world’s largest retail group. The first Zara store was launched in 1975 in La Coruà ±a, Spain; a city which eventually became the central headquarters for Zara’s global operations. In the beginning the store was named Zobra, but after a while the founder and CEO Amansio Ortega has renamed it to ZARA. The first international Zara store was opened in 1988 in Oporto, Portugal. Since then Zara has expanded its operations into 87 countries with 1900 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia, Africa and Middle-East . During this rapid international expansion Zara has stayed focused on its core concept†¦show more content†¦Zara’s target market are young (18-40), urban, price-conscious people with active life-style and middle-range income, who are highly sensitive to the latest fashion trends. Like a separate segment we should als o mention young mums, looking for a fashionable outfit for their kids (Zara Kids Department). In order to avoid extra-costs Zara is not producing clothes in big sizes, so we can assume that the main segment are customers of small-medium clothes size. According to the latest marketing studies 75% of the Zara customers are women, compared to 25% male. That indicates that Zara is mostly focusing on the women fashion market as the most profitable one. Value Proposition Zara is a very customer- oriented brand, so the customer is the center of its business model. So what value is Zara creating for its customers? -Fashionable Clothes Zara’s designers are picking up the latest trends of the leading boutique clothes retailers, developing new designs and quickly putting them in production. So the customer are able to get a fashionable/trendy outfit from the catwalk within few weeks. That is a very strong competitive advantage of Zara, as it takes 3-4 month to its direct competitors (HM, GAP) to release a new line of clothes. -Affordable Clothes Zara’s prices remain on the low/medium level. It is affordable clothes for every customer that is followingShow MoreRelatedZara Business Model1004 Words   |  5 PagesBy Wendy –Zara exericse 1 Q5. Who are the customer ? The target market is broad, women, men, children that likes fashion and is sensitive to fashion. Q6 .Who are the customers, and what product/ service attributes do they consider important? The target market is very broad, Zara do not define their target by segmenting ages and lifestyles like what traditional retailers are doing. Its target market is working in big cities, with mid range income, a young, educated person that likesRead MoreZara - Unique Business Model2120 Words   |  9 PagesQ 1.: What is unique about Zaras business model? 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