Taking a Look at Zara's Retail Stores

Taking a Look at Zara's Retail Stores

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Zara retail’s stores normally placed in the center area or the best location on streets to attract their targets customers. Their target customer is obviously high fashion interested and shop frequently. For example, Zara in Thailand is located in the middle of town and in the center of the mall, which is easy to get by the sky train, bus or car. Everyday Zara has many shoppers coming to the store looking for the new product and some of the people, who is passing because Zara’s store has located in front of the escalator. Especially on the weekends there are crowded and hard to get into the store. The store has decorated with clean and wide atmosphere so it gives customer a good experience when shopping at Zara. Moreover, Zara’s stores design are always have a big window displays and attractive layout to advertise the products to customers because Zara does not spend much on advertisement. Furthermore, the stores are combined with the big entrance that customers are easy to access to the shop. Zara’s stores also decorated with yellow light that effect to the customers shopping time because yellow light provide comfortable feeling and make customers stay longer. In addition, store’s materials are decorated with the classy and glossy tones that refer to the Zara’s position of classy and fashionable brand. In term of weakness, even though he area, which Zara is located is the best area, there are a lot of competition.

As Zara does not spend much on advertising, so they are better than the competitors with high profit margins and low cost of goods sold. However, Zara try to promoted and advertised their products in the different way. For instance, Zara always decorated nice and luxury window displays that make a promotion more attractive to customers and rent or buy good locations store, which customers are easy to find, and also seen Zara’s promotion on the window displays. Moreover, in sale season, Zara used only one poster posted on the window displays and communicated though online social network. Zara’s sale promotion is the same as the competitors. Although, Zara hold a low inventory that make their sale does not important. Even though, Zara does not spend much on advertising but they are using online social media to communicate with their customers. For example, Zara’s Facebook fan page has more than 19 million people like them. So, Zara can keep in touch with their targets customer by posted pictures, video, look book, Zara’s new collections, sales information, new events, etc.

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Thus, Social network seem valuable and effective tools in term of advertising such as low operation cost, reach to new targets customer and maintain existing customer. To sum up, because Zara does not focus on advertising, they will lose customers who do not shopping in the stores or using Facebook and this is one of Zara’s weaknesses.

As discussed above, the product cycle is the first priority that Zara take into their consideration. Their vertical supply chains are difficult to integrate the same product cycle into their competitors business because of its complexity. As a result, this makes Zara still popular and maintains their market position. There are limited stocks with high quality and low price products; therefore, customers have to come often to check in the store. Moreover, fastest fashion trend make general customers become loyal customers. Furthermore, Zara’s product covers all standard size range so, Zara can satisfy their customers' needs in term of fastest fashion trend, high quality, low price and available products size that fit to what they want.

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