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Windowsshopping at Zara - Case Study Example

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Windowsshopping at Zara

Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labour. Zara controls most of the steps on the supply-chain; it designs, produces, and distributes itself. (Rose 2001).
Zara needs just two weeks to develop a new product get it to stores, compared with a nine-month industry average, and launches around 10,000 new designs each year. If a new design is not sold within a week, it is withdrawn from the shop and a new design is pursued. None of the designs stays on the shop for more than four weeks which encourages the shop's fans to make repeat visits. The business model for the company is based on offering the latest style in a high quality product at a good price. With a creative team of more than 200 professionals, Zara's design process is closely to the public. Zara pays special attention to the design of it stores, its shop windows and interior dcor, and locates them in the best sites of major shopping districts
Zara's first outlet in Spain, the store was selling well designed clothes in a modern environment at a price anybody could afford. The in-store displays were kept minimal and the showroom was light and airy, with clean lines and white walls that act as a blank canvas for ad campaigns. Zara's window aimed at attracting the potential customers who will become the ultimate purchaser of the product. To induce them, the displays were made realistic in an expensive method to attract the onlookers. The consumers are made to repeat visits to look at the products displayed before they buy them, as few customers are impulsive buyers. As the customers have wide range of choice products with variable prices they prefer to go around the store to decide the purchase depending upon their budget.
Window display and strategic positioning refers to performing different activities than the rivals or the same activities in a different way. While the display model used by Zara itself is often very easy to replicate, technology is essential to creating and enabling novel approaches to business that are defensibly different than rivals and which can be quite difficult for others to copy. Zara stores offer a compelling blend of fashion, quality and price offered in attractive stores in prime locations on premier commercial streets and in upscale shopping centers. The in-house design and production capabilities enable them to offer fresh designs at Zara stores twice a week throughout the year. In the early 1990's, Zara began formulating new type of design and distribution model. By that time it had opened up stores in countries like Europe and U.S.A. (Kotler 2008)


Life like models dressed up in various costumes designed by leading fashion designers were kept in the window display. Zara's most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. The strategy has changed lately with yearly sales advertisements, together with targeted advertisements in papers. The latest technologies with innovations were used to lure the customer in the showrooms. (Barthes 1972).


Figure 14
This picture shows the window display of the showroom in Oxford Street, London. It was taken in October 2009. The window display contains models wearing trendy clothes created by the leading fashion d ...Show more

Summary

Zara opened its first store in 1975 in Spain. Today, Zara is probably the world's fastest growing retailer with over 2,700 stores around the world in 60 countries. The company started expanding worldwide including Portugal, France, Mexico, Greece, Sweden and U.S.A…
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