Zara wowed everyone for the last five years with the total sale’s revenue of £2.5 billion and has become a best-known Spanish fashion brand around the world.

Zara’s game changing strategy broke through the expectations of its consumers and competitors. The striking thing is that Zara has found differences that matter to its customers and differentiate the brand from its competitors by performing key activities differently. Zara’s strategy based on its frequent turnaround of totally new collection, that make its customers feel unique and has them want to come back. “Customers are creating a buzz by snapping up new clothes before they go,” says Kris Miller, a New York-based retail analyst.

Manufacturing companies don’t produce more then customer’s want anymore. Everything is based on a short notice communication between demand and supply, that how designers feel the demand these days. Therefore Zara has low advertising cost, and due to its high efficient technology and multiple designer’s choice it helps to operate and process fast chain reaction on marketing, supply and demand.

Zara’s target market is working women and men of 25-50, who can afford cloth of prices $50 and up. Zara’s design is sophisticated, classy cloth brand with variety of choices between casual and special occasion cloth. Design collections are developed by creative teams rather than groups of designers. Creative teams consist of designers, sourcing specialists and product development personnel. The teams work simultaneously on different products, building on styles that were previously successful.
Zara hires young designers and trains them to make quick decisions. speeding up the development process and minimizing the number of samples to be made. Decision-making is encouraged and bad decisions are not severely punished. Small and frequent shipments of the cloth keep product inventories fresh and scarce—compelling customers to frequent the store in search of what’s new to buy now, because it will be gone tomorrow.
Zara’s global average of seventeen customer visits per year is considerably higher than the three visits to its competitors. In comparison with other clothing retailers, who spent 3-4 percent of sales on advertising, Zara spent just 0.3 percent. The little it spends goes to reinforce its identity as a clothing retailer; low-cost but high fashion.
As the eyes and ears of the company, empowered retail managers provide word-of-mouth information on customer wants and preferences. This is quite at odds with relying solely on electronically collected data, an approach used by competitors.
“Thus lines that are not selling well we are quickly removing and replenishing with popular items quickly. A quick turn around on merchandise helps generate cash, reduces inventories and eliminates the need for significant debt”, said Zara Spokesman Susan Suett.
In today’s competitive environment, Zara sets new marketing standards and continues to lead the industry.