Zara Business Plan

Published: 2021-06-29 07:00:19
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Category: Business

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Zara: An Overview
Zara is a fashion retailer that was started in Spain and has expanded all over the world. Rosalia Mera and Armancio Ortego started the company in 1975. The first store opened in Galicia, Spain and was originally branded Zorba until the owners found out that there was a store with the same name a few blocks away. They opened their first store internationally in 1980 in Portugal. They finally reached the American market in 1989. What makes Zara so unique is its vertical integration, which helps the corporation rapidly design, manufacture, and ship all of its designs within a very short time. They currently have over 2000 stores and are still rapidly expanding around the globe with their fashionable and affordable clothing for the young and fashionable.
What Zara Sells
Zara Sells Men’s, Women’s and children’s clothing at a mid price point. Because it only takes a few weeks to get from design to shelf, the store restocks at least twice per week and attracts customers on average six times per year. Competition for Zara includes Gap and H&M, but has a slightly higher price point than these competitors in North America. It sells clothes through small, mid sized, and department stores, as well as online. Zara is a huge brand and has stores in over 80 countries, making it very recognizable. Another unique aspect of Zara is that it does not spend money on advertising, but rather uses that money to invest in opening new stores.

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