How does Zara differentiate its clothing?
The differentiation of the products in Zara is based on increasing the number of available styles and decreasing quantities of the same product in the inventory. For each design, Zara produces small quantities. By this way, Zara obtains a differentiated product line with low cost.
Zara's product differentiation strategy is based on high quality and low prices. The company wants to be fashionable and desire for everyone. This is the reason of their strategy (low price and high quality).
Zara´s reflection is about style, individualism and assurance. This refers to the reflection of the consumer of which the brand is the source of identification while Zara´s self-image is confident, trendy and unique. This is the way consumers should think about the brand.
Zara's generic strategy is cost leadership. The brand holds a competitive advantage in the market by offering products similar to high-end fashion and designer brands' styles at modest prices.
Zara has cultivated unique advantages with its 4Es approach to marketing by focusing on experience, exchange, evangelism and every place strategies for the customer, rather than the old product, price, promotion and place concept focused on the brand.
The differentiation of the products in Zara is based on increasing the number of available styles and decreasing quantities of the same product in the inventory. For each design, Zara produces small quantities. By this way, Zara obtains a differentiated product line with low cost.
Zara relies on local manufacturers with which it has longstanding relations, and this allows it to place short-term quick orders, to be cancelled or expanded at short notice depending upon fashion trends and customer demands.
The ad, which has been seen in stores in England and Spain, features the slogan "Love Your Curves." While it's seemingly a well-intentioned message about body-positivity, there's a problem: The two models featured alongside the phrase are straight-size, and thus, the curves that Zara is asking customers to love aren't ...
"That they are agile and flexible really comes down to their business model," he wrote, adding that "Zara uses a push based model which means factories push out product to stores which is then sold to consumers; there is no customization or products being made to order.
2. The Zara brand value sits at £9.8 billion. Even though Zara continues to be one of the most valuable fast fashion retailers, the brand's value has been decreasing in recent years. In 2020, its value amounted to nearly £11 billion, almost £3 billion less than in 2019.
What makes Zara different from other specialty apparel retailers?
While the likes of H&M, Gap, and Uniqlo outsource their production to third parties, Zara keeps the production process in-house. Rivals outsource to Asian countries for lower labor costs, however, Zara keeps factories near its Spanish headquarters (mainly Spain, Portugal, and Morocco.) Zara isn't minimizing costs.
The secret to Zara's success has largely being driven by its ability to keep up with rapidly changing fashion trends 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.
Zara competes against some of the world's top fashion companies, however there are a few aspects to our company that set us apart from competitors. Zara takes advantage of the most current technology to control all aspects of the design process, production, and distribution.
Zara's overarching strategy is achieving growth through diversification with vertical integrations. It adapts couture designs, manufactures, distributes, and retails clothes within two weeks of the original design first appearing on catwalks.
Just-in-Time Production
Known for staying ahead of the trends, Zara changes its apparel designs every two weeks on average; most of its competitors do so every 10–14 weeks. To maintain this lightning pace, Zara utilizes Just-in-Time (JIT) production methods to keep turnaround times as tight as possible.
However, the brand has recently faced three main challenges: e-commerce, competition and sustainability. To sustain its global expansion, the brand made a step toward digital expansion even before the pandemic hit, and it paid off. So far in 2020, Zara reports a 74% jump in online sales alone.
These fast-fashion brands have cheap labor, cheap materials and fast production schedules. These factors enable Zara to adopt low pricing strategy. ZARA was recognized as its first-class image, second-class production and third-rate price. It doesn't have expensive design, advertising and raw material costs.
CASE STUDY CONCEPT: The Zara supply chain drives its successful business model. Zara changes its clothing designs every two weeks on average, while competitors change their designs every two or three months.
Unrelenting focus on the customer
They prioritize customer needs and insights. The staff and employees are trained to provide the best customer service possible. The brand uses cutting-edge systems to track the location of garments instantly and makes those most in demand rapidly available to customers.
ZARA is following vertical integrated distribution strategy which allows ZARA to enjoy benefits like strong control, cost control, competitive advantage and differentiation.
How is Bershka different from Zara?
Bershka is the product of Zara's parent brand, Inditex, and is geared toward a younger audience, with a slightly cheaper price point to boot.
There are 2,238 Zara stores in 96 different countries around the world, each receiving shipments of new items twice a week. Every single piece of clothing passes through one of Zara's four distribution centers across Spain.
Since 1974, the year Zara was founded, the brand has been able to keep up with rapidly changing trends. The brand style is trendy and urban, at relatively low prices. The offering is broad and targets not only women and men aged 20 to 45 but also children.
