A Business Strategy From Zara That You Need to Copy

[Mika]

Zara is a 47 years old 13 billion dollar company. Zara is also the world’s biggest apparel retailer. Do you know what helped Zara to become so big?

If you are thinking marketing helped Zara to become big, you are absolutely wrong. The industry standard marking budget is 3.5 percent of the sales, however, Zara hardly spends more than 0.3 percent of sales on marketing.

If that is the case how does Zara manage to make a lot of money and how the products are always sold out?

There are two reasons

Create new products

The moment a Zara product reaches the market, Zara starts working on a new product. By doing this Zara discourages the competitors from copying its products.

Manufacture in limited quantities

Zara does not produce its products in huge quantities. It only makes limited quantities. By doing this they create dead stock. They don’t have t bother with storage, and last but not least there will be a scarcity in the market. Scarcity will lead to the products being sold quickly.

 

[btaliat]

To be frank, there is a lot to learn from this write up. And to be frank, each notable that we are hearing today has what makes them unique. They have what they are doing or what they have done that made them their names stick to our lips.

Ironically, what Zara did that made it blows, other may do it and won't make it to the top. This means we need to study our uniqueness first before we try to utilize our strategies. If not, our efforts may not be crowned. I will try to say my own view on what Zara did and what I do recommend.

We need to study our competitors when we start our business. We don't need to fight them where they are strong or else they will be flooring us. We need to know what they are weak it. Some may be poor in handling customers, while some may be late coming. These are what we need to amplify. And our weaknesses? We need to manage it and make sure that we are not exposed.


Create limited stocks may help us to know what people feel about our products. Besides, limited edition makes us unique. When our products can be easily seen, it means we don't have value.