Zara is a leading global fashion retailer founded in 1975 in Spain. It has over 1500 stores worldwide generating over $8.6 billion in annual sales. Zara's success is due to its ability to deliver new fashion-forward designs to stores twice a week through an efficient logistics and distribution system. This rapid replenishment of inventory keeps consumers visiting Zara stores an average of 17 times per year. Moving forward, Zara aims to continue its expansion into new markets while growing its online presence to maintain its brand's perception of constant newness and fresh styles.

1. Marketing Excellence

2. Zara
• One of world’s leading
retailer
• Over 8.6 billion dollars in
Sales at over 1500 stores.

3. Founded by Amancio Ortega
in 1975
• Provides fast fashion at
affordable prices
• This has created a huge fan
following for Zara.

4. ZARA’s huge fan following – People lined up
outside its showroom

5. But, how did ZARA manage
to create such a great brand?

7. ZARA constantly creates new
designs and tweaks the old ones
Consistently delivers fresh styles
catering to fast fashion
enthusiasts

8. Logistics

9. • Distributes all its merchandise
from Spain
• All stores receive shipment twice
a week

10. • Brings consumers to the stores again and
again.
• Consumers visit a Zara store 17 times a year
on average
• Allows Zara to keep the sales strong
throughout the year

11. Stores

12. • Zara’s stores are its biggest
advertising elements.
• Located located in prestigious
high-traffic locations around the
world

13. Consumers
Lie at the heart of Zara’s Strategy
Consistently react to changing
consumer tastes, needs and trends

15. Moving forward, Zara
wishes to achieve major
success in emerging
markets, some of which
it has already entered.
It also trying to establish itself in the online
retailing market

16. Would Zara’s model work for other
retailers? Why or Why not?
• Zara’s model may work for other retailers.
• However, it would be extremely difficult to copy.
• It follows techniques like JIT manufacturing which
take time to learn
• Its central distribution system would be difficult to
emulate for companies to outsource production.
• This efficient supply chain allows them to cater to
fast fashion enthusiasts.
• If other retailers wish to setup such a supply chain,
it would cost them a significant one time
investment. However, if they do, it would work
well for them too.

17. How is Zara going to expand successfully all over the world
with the same level of speed and instant fashion?
• Online Retailing
• This allows Zara to connect with consumers across
the world, while providing them access to all its latest
collection
• With a large fan base on social networking sites, it
could leverage those to promote its online store.
• Establishing Zara Stores in new markets
• It could follow the trend that made it successful in
Europe, by establishing stores in prestigious areas.
• They need to ensure their distribution network is
upto the task as “fresh” and “fast” fashion are Zara’s
biggest strengths

18. Zara’ Strength’s:
• Fast Fashion
• Brings consumer back to
the stores again and again.
• Efficient manufacturing
and distribution.
• Understanding and
changing according to
consumer needs.
• Uses Stores as an
advertising tool.

19. Continue to maintain
the “newness” and
“freshness” of the
brand.
Enter new markets and
increase focus on online
retailing

21. Disclaimer
Created by Ashutosh Sharma,
IITD, during an internship by
Prof. Sameer Mathur, IIM
Lucknow