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That the world is a global village has been appropriately proven by the way the fashion industry has spread itself on the world map. Today, the context of fashion is more global than home-grown and the way fashion industry is perceived in these times is much advanced. At the moment there is an increase in demand for new products and the supply is not restricted to a country or two but throughout the globe. A surge in growth of this industry prompted large fashion houses and clothes line to open their stores worldwide. This powered, slowly but steadily the development of this business which is no more gender biased. It serves men, women and kids with equal enthusiasm and strength. Zara, being no exception to this, has emerged as one of the best accomplishment stories of this global chapter. This case study establishes that, today, Zara is one of the most sought after brands throughout the world. From celebrities to commoners, all look forward to the changing trends at Zara.
Zara is based out of Spain and its concept was conceived by its founder Amancio Ortega of the Inditex group. Zara with more than 2000 stores around the world is the most valuable fashion brands in the current times. Its presence is in 96 countries and Australia being the latest feather to its cap. From the first humble store till the latest lavish extension, a lot has changed in its journey. But there are few core principles and business ethics which seem to have remained and proved fruitful in the long run. One of it being very low advertisement and relying on word of mouth and good reviews from old regulars to attract new patrons. Be it a very strict quality control or the fact that each product is checked and approved by the Spain headquarters or shipped to any store around the globe, maximum by 48 hours, the Zara philosophies have paid the company well. Zara today is valued as one of the finest fashion houses by the Forbes list and all these have contributed to a turnover of more than $18 billion sales in the year 2017.
Its first store in the southern hemisphere being in Australia, Zara boasts of remarkable sales since its contact with the Australian shores in 2011. What has worked extremely favourable for Zara in the Australian market is that the consumers were already aware of its products, and that helped it to establish the brand rather rapidly. Moreover the swanky showrooms in the metro cities around the world with a lot of changing rooms, ever helpful customer friendly executives is like an icing on the cake. Zara showroom helps are very well educated about the product line and the fashion trends. They help their consumers to choose appropriate sizes and colours that will best suited them. All in all, they try their best to give the purchasers a very good and satisfying shopping experience. This also seems to be a reason why customers frequent the stores at least once in two months. Another positive aspect of Zara Australia is a lot of designing of apparel and timing of placing it in the stores is exclusive to the Australian market and weather changes. As we all are aware, the climatic conditions in Australia are quite opposite to the rest of the globe. Thus fashion trends are also dissimilar than the rest of the world. What is more impressive is that customer feedback and the local Australian market survey is taken very earnestly. Any type of complaints or suggestions regarding a product or store is forwarded directly to the Spain headquarters where there is a 200 member strong design team. This unique vertical integration system helped in the swift growth of Zara in Australia. Fast and responsive shipping of products is done almost twice a week in stores throughout Australia. This has worked very well in keeping up with the ever changing trends and tastes of the market
A reason why Zara today is dominating the fashion scene is that their stores are sticking to the core principles of the founders. At every store, their aim is clearly stated. They save energy, they are eco-friendly, they produce less waste and encourage recycling and their commitments extend to all their staff. Their fabric is also made from organically grown cotton and they make PVC free footwear. Though Zara first had an ethnocentric approach, the flexibility with which the Zara marketing team took up a geocentric approach has worked very well for them around the world, including in the Australian prospect. Few products displayed in showrooms are according to the taste of the local customers and the discretion to display or take it off the shelf is entirely dependent on the manager of that particular store. This helps in creating a loyal fan base who keep visiting them to satisfy their needs and as well as get introduced to new trends simultaneously. This has encouraged the fashion giant to launch its online store too. Now customers have the comfort to either shop in the store or go online and shop. They can either pick their products from store or get it delivered in the comforts of their home. Free returns and same day delivery in big cities are sending customers with a big smile back to their stores, every time they buy at Zara. When other fashion houses like Topshop and Gap have been erased from the Australian chapter, Zara surprisingly is doing tremendously well. Be it the market placing or the way the products have been priced, it looks Zara has a well-lit future on the Australian landscape. The continual improvement in customer experience has made Zara‘s seven year old Australian story a huge success.
Online sales with almost everything at a reduced prices also encourages binge buying. Zara Australia is going strong and has proved that with styling and responsiveness to customers' needs and by selling catwalk clothes at affordable prices, Zara Australia is going strong. Synergy between supply chain management and operational process which has been adapted to large extent to suit the local Australian market is the reason why this retail house has been able to consistently sustain and earn profits.
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