ZARA‘s Brand strategy
nbsp;ZARA was founded in 1975 which has set up a file 2200 women dress chain stores in the European 27 countries around the world and 55 countries and regions. 2004 annual global business income is 4.6 billion euros, the profit is 440 million euros, the interest rate is 9.7% which is higher 6.4% than the United States first big clothing chain GAP brand.
ZARA business has success in recent years which can be divided into four factors: it has a huge designers’ group; The company itself has nine clothing factory, from planning to new production factory,it will be finished in a week; ZARA delivery speed is very quick; It take a small amount of the mode operation, various every three weeks all the goods in the clothing store must change for new.
The designers of ZARA have young people’s unique creative and passion, and they often go to New York, London, Paris, milan, Tokyo, and fashionable city first line to understand women clothing, accessories of the latest fashion and consumption tendency, and grasps the commodity sale condition, customer response letter first hand carry.
ZARA currently has nine their own production factory in Spain which can master production speed motor. After designers complete clothing design,they will send the design material specifications to factory for formal production.The order all over the world’s chain store, after reasonable assessment then will be send to the factory and they will inventories to a minimum. Current inventory is about 15% to 20% which is 40% lower than the other dress chain companies.
In the logistics distribution, ZARA are mainly shipped by truck in France, Germany, Italy, Spain and other European countries, average 48 hours can sent to the chain store.In these regions accounted for 70% of sales sales. Only 30% of the sales volume, the one with the air way to Japan, America, eastern European countries and other distant countries and regions.
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