IntroductionZara is the most popular and profitable brand of Inditex SA, the world's largest retail group. The first Zara store opened in 1975 in La Coruña, Spain; a city that eventually became the headquarters of Zara's global operations. At first the store was called Zobra, but after a while the founder and CEO Amansio Ortega renamed it ZARA. The first international Zara store opened in 1988 in Porto, Portugal. Zara has since expanded its operations to 87 countries with 1900 stores located in the most important shopping districts of over 400 cities in Europe, America, Asia, Africa and the Middle East. Throughout this rapid international expansion, Zara has remained focused on its core concept that creativity and quality design, coupled with a rapid response to market demands, will lead them to profitable results and further growth. To achieve these results, Zara developed a unique business model for fashion retail that incorporated the following three objectives: develop a system that requires short delivery times, decrease the quantities produced to decrease inventory risk and the number of items in stock, and increase the number of available styles and/or choices in stores. These initiatives have helped Zara formulate a unique value proposition: the combination of reasonable pricing with the ability to offer new/on-trend clothing styles faster and more often than its competitors. Let's take a closer look at Zara's business model that has helped this brand achieve global success. Zara Business Model Customer Segments The main bases for segmenting the consumer market for Zara are geography, demographics, psychographics (interests, lifestyle, etc.). Geographic segmentation ...... middle of the paper ...... fashion edge”, Bloomberg Business Week, 20135. A. Pearson, “The story of Zara-The speeding bullet”, Unique Business Strategies, 20126. “Zara : IT for fast fashion”, Harvard Business School7. Bradley Richard Yim, “High Fashion Low-prices and Logistic in Apparel Industry”, Massachusetts Institute of Technology, 20038. Amalia Paola Palladino, “Zara and Benetton: Comparison of two business models”, 20119. S. Steventhon, “Polka Dots Are In? Polka dots it is!”10. “Inditex. Global Fashion Powerhouse”, MarcetLine Case Study, 201311. Suzy Hansen, “How Zara Grew Into the World's Largest Fashion Retailer”, < http://www.nytimes.com/2012/11/11/magazine/how-zara-grew -in-the-largest-fashion-retailer-in-the-world.html?pagewanted=all&_r=1&>
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