Zara Essay

Introduction

Zara is a fashion label and fashion chain stores established in 1975 by the Spanish group Inditex owned by Amancio Ortega. Ortega is the founder of Inditex, which was established in 1963. Inditex has been the holding company above Zara and other retail chains since 1985. In addition to Zara, the rest of the labels the groups own are Bershka, Massimo Dutti, Pull and Bear, Stradivarius, Oysho, Zara Home, Zara kinds and Uterque. Zara is one of the largest international fashion brands of Inditex. Zara is available in 86 countries with total of over 1,700 stores worldwide. Accordingly, Zara generates a major portion of Inditex’s sales, accounting for over 70%. It is not only generating the highest profit margins for the organization, it is also the most famous and most recognized by customers in market. Zara offers a great choice of new-style clothes for men, women, and children at moderate prices. Unsurprisingly, women’s clothing account for 60% of Zara’s revenue. Zara has developed

For example, the increasing middle class in Asia represents an increase in their target market. Not only because Asia is a booming continent in which there are populous countries with growing GDP, but also because the people in Asian countries have a taste for what Zara offers with its clothing. That’s because people in Asian countries, especially the teenagers and young adults are usually western oriented. This means that they like to follow the trends that the western culture currently has and adopt those trends in their country. One of the most important of Zara‘s opportunities is its international recognition because it is key to successful expansion. Another opportunity they might have is that they can build distribution centers and stores in developing countries for a lower cost. Not only might the location and materials be cheaper but the labor cost will be low