Communication is a very integral part of the Zara strategy. They have communicate the most popular
and trendy clothing items to there stores in a method that is many times quicker than competitors and
they are able to do this successfully by having teams of people go to each store and design them to be
the most eye-catching store around it. They model these stores in “the cube” so they know exactly what
theyll do when they get to the stores in the actual market. They replicate high fashion stores and are
able to provide it at a much cheaper cost. They also source their production in house so they dont
sacrifice quality. Their research and communication allow them to turn out new and more products in a
matter of weeks, instead of months. They also dont waste a lot of money on marketing because they
know their brand will be successful from price levels, and word of mouth marketing. Also, through
research and technology, they are able to figure out which clothes will be popular in which markets such
as specially designed clothes for people in Japan, Middle East, and India to cater to their cultural
needs. They also use technology to find price points and figured out that they are able to mark up prices
significantly in certain markers to maximize profits.
I think that the most powerful points of innovation for Zara include their ability to produce new fashion
lines in a very fast pace, as well as being able to price them below other brands. They are able to pump
out 30,000 clothing designs a year and have them mimic some of the more expensive brands at a far
cheaper price. They target the local markets that they are selling to and this causes sales to skyrocket.
The Madonna concert outfit is a perfect example of this. They are able to make a new design and have
it on the shelves in 3 weeks compared to the 6 month average of their competitors. They bring designs
to markets in 2 weeks and sell out very quick. The first Australian store sold 80% of clothes in just 3
