Zara’s Success Story: We will tell the success story of the Spanish fashion brand Zara, famous for its fast fashion and latest designs and for changing its collection every 15 days. According to a Bloomberg report, Zara CEO Amancio Ortega is the 15th richest person in the world. Amancio founded Zara from a small store in Spain with just Rs 2600. Today, Zara has more than 2,200 stores in 96 countries. Amancio’s unique business strategy has taken Zara to this position.
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Zara’s Success Story: Amancio’s Fast Fashion Strategy
Summer Collection, Winter Collection, and Spring Collection. Whereas trends change rapidly in the fashion industry. In such a situation, the customer had to wander here and there for the latest trend of clothes. Amancio closely understood this gap in the market and asked the designer to launch the latest collection as soon as possible. After this Zara started launching a new collection every 15 days to 1 month. Besides, the price of clothes was also kept lower than other big brands.
Zara’s Success Story: Zara’s Designs According to Countries’ Demands
Zara’s designers design clothes keeping in mind the market and customer demand. The company’s designers and agents visit places like social gatherings, universities, and clubs to understand the latest fashion trends. We design clothes according to the demand of every place, Like small size clothes for Japanese stores, long coats and boots for Europe.
Zara’s Success Story: Zara Limited Stock
Zara creates FOMO i.e. ‘Fear of Missing Out’ among its customers. For this, he makes limited stock of every design. Removes the new collection from the store after 30 days. So that the customer can buy the design he likes as soon as possible. This also increases sales and reduces the cost of storing the stock.
Zara Spends Money on Prime Locations and Store Interior
Zara’s marketing strategy is quite different from other brands. Zara does not spend much money on traditional marketing i.e. advertising. Zara spends a lot of money on the prime location and interior of its stores. Whenever anyone passes by the shining showroom, he visits the store once.
About Amancio childhood
Zara’s founder Amancio Ortega was born in a small village in Spain. Father used to work in railways. Whereas she used to work in other people’s homes. One day when 13-year-old Amancio went to the grocery store with his mother and was refused by the shopkeeper when his mother asked for a loan, Amancio left his studies and started working in a luxury shirt maker shop in the city of A Coruña, Spain.
After 14 years, Amancio was made the manager of the same shop. Meanwhile, Amancio had gained a good understanding of the textile trade and customer demands. The company started in 1963 named GOA.
In 1963, Amancio, along with his wife Rosalia, launched their own company called GOA, which manufactured clothing. Within 10 years, 500 employees joined this company.
Now Amancio started feeling that instead of selling these clothes through retailers, he should start his
shop so that the profits could be higher.
Zara’s Success Story: That’s why it was named Zara
By 1975, Amancio and his wife Rosalia opened Zara’s first store in Spain. Initially, it was named Zorba. In the same street where this store was located, there was also a bar named Zorba, hence the name of the store was changed from Zorba to Zara.
- Zara’s first garment factory opened in 1977 in A Coruña. Within no time his brand became famous all over Spain. By 1983, Zara had 9 stores opened in Spain.
- In 1983, Zara had 9 stores opened in Spain.
- Zara stepped out of Spain in 1988.
- In 1985, Amancio Ortega combined all Zara stores into one network, founding the Inditex company. Only three years later, in 1988, Zara crossed the borders of Spain and reached Portugal. After this, Zara expanded to many more countries like New York, Paris, and Mexico.
ZARA SRPLS. DROP II NOW AVAILABLE https://t.co/IA7TYVGEfe pic.twitter.com/Kjm79KJrkg
— ZARA (@ZARA) April 25, 2024
Zara
- Zara launches 12000 designs in a year.
- Zara has more than 2200 stores in 96 countries.
- Zara brand value -1.40 lack.
- Zara net sales – 2.32 lack Crore.
- There are 24 stores in 13 cities in India.
- Zara opens its first store in India with the help of Tata
- Ratan Tata wanted to bring Zara to India. He not only wanted to bring Zara but also wanted to change India’s retail market and fashion industry. Tata wanted to make Zara not just a luxury brand but a stylish brand reaching middle-class families.
- Zara opened its first store in India in 2010 in Delhi.
- After that, he opened stores in Mumbai and Bengaluru.
- In 2024, Zara has done business of about Rs 2,769 crore in India.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗