The fashion industry has changed over a period of time due to the growth of boundaries. This is attributed to the varying dynamics of the industry; declining mass production, altered structural aspects in the supply chain, need for more affordable cost and quality. This shows that fashion retailers are able to acquire a competitive power in the market through making sure through which they get their products to the market for the consumers (McAfee, Dessain, & Sjoman, 2007). Consumers are hence able to get product easy and of high quality. Fast fashion has been able to meet the needs of consumers while trying to acquire major merchandize turnover to retailers than local rivals. The Zara case study reported sales $8.15 billion to its competitors Hennes & Mauritz 0f $7.87 billion (Dutta, 2002). This was the consumer’s one stop shop due to the quality products offered both globally and locally.
This paper will focus on the fashion trend of the Zara case study. The paper will look at the varied roles that consumers play in the market and how the alter the market. From this, the paper will focus on the globalization of Zara from how it started and to how it grew to become a global company. Then the paper focuses on the theories that arise from the Zara case study and how they relate to the company’s techniques to appeal to the consumers.
Fast-Fashion Strategy: Zara Case study
Zara is a Spanish apparel store that is completely integrated. The company has been on the fore front in terms of technology by acquiring machines and applying their resources to acquire new ideas in shortest time (Delagarde, and Baykal, 2011; McAfee, 2004). This is focused on getting the products out to the consumers at the shortest possible time. Any delay would make other competitors go to other stores. In 2006, Zara’s stores were localized even though they had small labor costs that rivals benefitted most.
Zara created a global brand based on the consumer concept of fast-fashion. In a good year, Zara sold close to 10,000 new items which is about three times of its rivals (Capell, 2008). From its creation to the time it reaches the stores followed by advertising, consumers are well informed and are able to get new products. So as to be able to appeal to most consumers, Zara makes use of low cost strategy in combination with reduced stock for all the stores where consumers are available. Consumer’s perception of urgency is influenced through not restocking. This shield from any losses on the part of the retailer, while any product that is not successful in the local market is moved to other countries.
Zara makes use of point-of-sale that send details to its headquarters in Spain, displaying real-time information for consumers (Delagarde, and Baykal, 2011). Up-to-date information regard the consumers are left to the local managers of the company for them to be able to get new garments. Information moves from the local company to global stores as the digital...