Zara

CASE: Zara

Type: Sociedad Anonima   
                      

Industry: retail

Founded: Spain 1975

Founders: Amancio Ortega, Rosalía Mera

Headquarters:Arteixo, Spain worldwide

Product: clothing

Website: zara.com

Zara’s history begins with the owner company, The Inditex Group. Inditex Group is a large company based out of Spain running around one hundred stores dealing with textile design. Zara had 350 shops in Europe, 18 in the Middle East, 52 in the Americas and five in Asia. With roughly 40% of Inditex shops, Zara brings in about 80% of the group's revenue. There are now about 1,100 Inditex stores in the world, and a new one opens every other day.

Advertisements Strategies

Have you ever seen a Zara commercial on a billboard or on TV? The other trend-bucking aspect of the company's business model is its approach to advertising. Fashion retailers spend on average 3.5% of revenue on advertising their products, while Zara's parent company Inditex spends just 0.3%. But that does not mean that Zara is doing nothing for its product promotion, Zara’s take on product promotion are slightly different form the other counter parts. The company believes that its shop windows, the contents of which are also decided in La Corua are all the advertising it needs. The philosophy seems to have worked. The company's success is a proof that it is still possible to build a massive brand by doing no more than meeting a market need.

The compnay has achieved this without any advertising or promotion and without outsourcing it has manufacturing to countries where labour is cheap. The company's success lies in it having total control of every part of the business. It designs, produces and distributes itself; also cooperate with fashion design, the fashion design reparative the advertising campaign.