Friday, 15 May 2015

From Zorba to Zara



Zara is without any doubts the flagship brand of chain-store - profitable INDITEX. Actually it’s most unconventional strategy was its policy of zero advertising. The company preferred to invest a percentage of revenues in opening new stores instead. The history of brand had started in 1975 when Amancio Ortega opened the first Zara store in downtown a Coruña.

The name of brand was absolutely a fluke. Supposedly it had to be Zorba after watching the famous film Zorba the Grek by Ortega.  The title was not right, because probably some local bar had the same name. 




Paradoxically, Spain is the only country in which ZARA is pronounced not “Zah-rah”, but “Tha-ra¨.




The first store featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega started opening more Zara stores throughout Spain. During the 1980s, Ortega begun changing the design, manufacturing, and distribution process to reduce lead times and react to new trends in a quicker way, in what he called "instant fashions".

Porto was the first city, through the company was started its international expansion. It entered the United States in 1989, and two years later-France. This international expansion was increased in the 1990s, with Mexico (1992), Greece (1994), Belgium and Sweden (1994), etc. until reaching its current presence in over 88 countries.

The success of Zara lies in fast deliveries, approximately twice a week. Products that designed at the headquarters in Arteixo reach stores three weeks later. This is a stunning pace, forced by the fact that between 51pc and 55pc of clothing is manufactured in “proximity” markets, Spain, Portugal, Turkey and Morocco, instead of Asia. So while some competitors outsource all production to Asia, Zara makes its most fashionable items particularly in Galicia and northern Portugal where labor is probably cheaper than in most of Western Europe. This successful strategy is vertical integration, that give Zara possibility to quick respond on any market contingency. 


Zara was commented by Louis Vuitton Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world." Zara has also been described as a "Spanish success story" by CNN.

The most astonishing issue about ZARA is that the brand has managed to win over the fashionistas as well as the masses. From Hollywood to Bollywood, the brand is loved by all. Moreover Catherine, Duchess of Cambridge also has a strong inclination toward the brand. Kate Middleton has been recognized frequently in using ZARA.

No comments:

Post a Comment