The company spends significantly less than its main competitors on marketing and advertising. This has two beneficial effects. First, it gives the company the impression of being a high-fashion brand, by creating an artificial sense of exclusivity and scarcity; Zara stores are one of its strongest assets and are located in prime locations around the world; The fast fashion business model that the company employs allows them to quickly copy fashion trends and create near replicas that can be quickly sold at lower prices while the fashion style is still popular.
The company's ability to leverage its considerable knowledge of fashion trends on social media to dentist phone number list quickly detect and copy these trends, allowing them to produce over 11,000 different items per year ; The company can sell 85% of its apparel and accessories at full price, which is much better than the industry standard of 60%; Zara produces most of its clothing seasonally, with only 15% to 25% of its clothing items being produced in advance.
In trends during certain seasons and avoid having unsold inventory, which also helps create artificial scarcity and drive up clothing prices. Zara's weaknesses The company invests very little in marketing, a strategy that could ultimately backfire, as competitors invest at least ten times as much in advertising as Zara; The centralized distribution system (known as the Cube) puts the production process at risk of significant disruption and even catastrophic failure due to a single vital weak point. Zara's chances The brand needs to improve its online presence and capture a share of the fashion e-commerce sector; Zara must strive to achieve greater global relevance to survive increased competition from both local and global competitors.
This allows the company to respond to rapid changes
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