What Is The Business Model Of Zara

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This paper as a result helps us understand how successful ZARA’s business model and how efficient over the year ZARA has been in reaching to its customers need, as we all know ZARA is a very trendy fashion brand especially among the youths and as a matter of fact it ranks 51 in Forbes most valuable brand list with total revenue of 11.3$ billion (Forbes). Over the year ZARA has come up with better strategies to improve their supply chain thereby improve their products and service to the customer and in this I Shall completely explain the business ideology of ZARA and as why it is one of the most preferred brands and also what improvement ZARA can get in their business strategy to improve more , this paper shall also explain as to why other …show more content…

What distinguishes Zara from its competitors is the feedback that Zara’s managers get from the customers at the point of sale about new garments or new products that they are interested in. Around 60 percent of its products are permanent and the remaining 40 percent vary continually. The company estimates that customers visit a Zara store 17 times a year on average, compared to merely four visits for other fashion firms. The outlets are situated in main commercial areas and the interiors are designed to create a unique atmosphere with attractive window displays. The firm spends only 0.3 percent of its annual turnover on advertising , normally at the beginning of the sales season or on the occasion of a new store opening. The store is considered its most effective communication tool. The two key factors in Zara’s business model – the time factor and the store as a source of information – demonstrate the company’s customer

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