ZARA SENTENCE 1 Would Zara’s model work for other retailers? Why or why not? Zaras model does not match other retail brands Because Compared to competitors, Zaras strategy is to launch more models t. Question 2: How is Zara going to expand successfully all over the world with the same level of speed and instant fashion?
ZARA SENTENCE 1: Would Zara’s model work for other retailers? Why or why not? Zara's model does not match other retail brands Because: Compared to competitors, Zara's strategy is to launch more models than the competition While most fashion retailers only produce and sell 2,000-4,000 models per year, Zara releases more than 10,000 models per year This approach allows Zara to attract a wider range of customers with different interests To be like a retailer Zara is not an easy thing, it is necessary to have supply chains close to the place of production to optimize product production time as much as possible Zara divides its products into a lower-end group and a higher-end group Its goal was to be seen from the outset as a retailer of high-end fashion at an affordable price Its main stores are always located in prime areas in major cities around the world, where rent is very expensive, such as on Fifth Avenue in New York In its brand strategy, Zara does not emphasize the issue of advertising Instead, the company poured money into opening new stores If the finances are not strong and the store is not located in a suitable attraction, it is difficult for other retailers to attract customers without spending as much advertising as Zara Zara is able to design, manufacture and market products quickly because it owns many production stages in the supply chain It has a main manufacturing plant in Spain, where it was founded Of Zara's products, 50% are made in Spain, and 24% are produced in Asia and Africa The difference between Zara's approach to fashion compared to other retailers is that Zara tries to forecast the future needs of consumers, instead of "following" existing fashion trends Zara's product turnover rate is very high On average, a Zara product is only available on shelves for month If they want to apply their model, other retailers have to create demand and get the attention of customers, which will be very difficult if the retailer does not meet the above conditions SENTENCE 2: How is Zara going to expand successfully all over the world with the same level of speed and instant fashion? -About logistics: Sourcing inputs in new markets + As an alternative to transporting products across the country, ZARA can consider and look for partners in the region with plans to expand (In order to transport costs for the whole enterprise; reduce the cost of products to consumers) + Choosing a suitable and convenient partner (In order to minimize the delivery time, produce to meet the fast fashion needs of customers; increase the frequency of consumers' purchases) -About the store: Developing an online store system in parallel with the expansion of the Zara store chain: Depending on the market, there will be more prominent e-commerce platforms, ZARA needs to combine with reputable exchanges to expand the file its customers globally -About customers: Thoroughly research the culture and style, aesthetic needs of the target audience + Each different culture and locality will have its own aesthetic taste, Zara has recognized this point very well in the Western market However, to develop the brand into the Eastern market and individual countries, Zara needs to spend more time and money to compete with the market leader there -About design and production: Continue to push the strategy of regular refurbishment of the store and improvement of its products ... As an alternative to transporting products across the country, ZARA can consider and look for partners in the region with plans to expand (In order to transport costs for the whole enterprise;... store system in parallel with the expansion of the Zara store chain: Depending on the market, there will be more prominent e-commerce platforms, ZARA needs to combine with reputable exchanges to... partner (In order to minimize the delivery time, produce to meet the fast fashion needs of customers; increase the frequency of consumers' purchases) -About the store: Developing an online store system