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What will be Zara's strategy to continue it's growth?


Zara is mainly doing their business in Europe and North America and their business model requires the whole supply chain to be in close proximity. To make sure the whole inventory turn around happens quickly. But, to grow business they will have to step into emerging markets and replicating the same process from designing to getting the fabrics and then getting the whole inventory will need similar set up as they currently have in Spain. I think Zara will need time to integrate and operate in a similar model in new markets. Or they will have to change their current supply chain model. They will have to produce the products locally, as making in Spain or North America will make the products too expensive and unaffordable for consumers in emerging markets. Moreover, any disruption or conflict might disrupt their supply chain, so having a local supply chain will always act as back up if their original supply chain is disrupted.
Another problem I foresee is, Zara needs to open the online channel and promote that too. Millennials and young generations love shopping online. And all other retailers including the retail giant Amazon is getting into the space with Amazon wardrobe. And if Zara does not increase their online capabilities then they might lose out in the competition. To be specific, they need to go mobile too, that means having a store on a mobile app.
The target group is 24 – 35, I think Zara can expand their addressable target market and go till 45 or so. The older age group might have more disposable income, that way Zara can sell some more products for premium prices.


Zara is present in more than 90 countries. The business model starts from the designers and then from design to production and to store takes 2 weeks. We read, how all the products are shipped in store ready condition, in a hanger. Basically, each item is shipped globally from their manufacturing hug “the cube” (mhugos, 2015). Replicating this model everywhere is a challenge and on a global scale. But, the current model has a threat to be disrupted as it is very centralized. Zara needs to set up a similar supply chain and decentralize their operations, as they have in Spain. Moreover, they should hire local designers too to match and serve local tastes. Zara needs to continue doing what they do, from design to store the product should be ready in 15 days, and that baffled everyone including Harvard Business Review (Denning, 2015).
And if they bring their store on mobile apps, and then let shoppers pre-book any design that could be a great idea to forecast demand for design, soon to be a product. Zara can charge the customer once the product is shipped, in that way customer will not have to lose anything. When I checked Amazon, I found Amazon is selling Zara, which is great. But, right now there are apps available, that works as good as tailored garments, Zara can bring in such innovations and charge a premium price for such products.

Zara is mainly doing their business in Europe and North America and their business model requires the whole supply chain to be in close proximity. To make sure the whole inventory turn around happens quickly. But, to grow business they will have to step into emerging markets and replicating the same process from designing to getting the fabrics and then getting the whole inventory will need similar set up as they currently have in Spain. I think Zara will need time to integrate and operate in a similar model in new markets. Or they will have to change their current supply chain model. They will have to produce the products locally, as making in Spain or North America will make the products too expensive and unaffordable for consumers in emerging markets. Moreover, any disruption or conflict might disrupt their supply chain, so having a local supply chain will always act as back up if their original supply chain is disrupted.
Another problem I foresee is, Zara needs to open an online channel and promote that too. Millennials and young generations love shopping online. And all other retailers including the retail giant Amazon is getting into the space with Amazon wardrobe. And if Zara does not increase their online capabilities then they might lose out in the competition. To be specific, they need to go mobile too, that means having a store on the mobile app.
The target group is 24 – 35, I think Zara can expand their addressable target market and go till 45 or so. The older age group might have more disposable income, that way Zara can sell some more products for premium prices.

Zara is present in more than 90 countries. The business model starts with the designers and then from design to production and to store takes 2 weeks. We read, how all the products are shipped in store ready condition, in the hanger. Basically, each item is shipped globally from their manufacturing hug “the cube” (mhugos, 2015). Replicating this model everywhere is a challenge and on a global scale. But, the current model has a threat to be disrupted as it is very centralized. Zara needs to set up a similar supply chain and decentralize their operations, as they have in Spain. Moreover, they should hire local designers too to match and serve local tastes. Zara needs to continue doing what they do, from design to store the product should be ready in 15 days, and that baffled everyone including Harvard Business Review (Denning, 2015).
And if they bring their store on mobile apps, and then let shoppers pre-book any design that could be a great idea to forecast demand for design, soon to be a product. Zara can charge the customer once the product is shipped, in that way the customer will not have to lose anything. When I checked Amazon, I found Amazon is selling Zara, which is great. But, right now there are apps available, that works as good as tailored garments, Zara can bring in such innovations and charge a premium price for such products.

References -  
Retrieved on 12/8/2018. Retrieved from https://www.scmglobe.com/zara-clothing-company-supply-chain/
Denning, S (March 2015).How Agile and Zara Are Transforming The US Fashion Industry.Retrieved from https://www.forbes.com/sites/stevedenning/2015/03/13/how-agile-and-zara-are-transforming-the-us-fashion-industry/#6195869b7e82


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