Planet Zara: Analysis about its expansion and growth
In this documentary, Zara’s great expansion and growth is presented in the fashion market. They talk about their organization and the techniques they use to be one of the strongest companies in this sector.
Zara was created in 1975 by Amancio Ortega. From a young age he worked as a dependent at a store in A Coruña and in a family sewing workshop. He is a person who does not make himself known in public, does not go to any interview and does not even attend inaugurations of his stores.
Amancio, soon realized the importance of adapting to the taste of customers to sell fashion and he considered it as one of the essential keys to grow in the market in an unstoppable and fast way.
A relevant fact is how Zara manages to enter the Italian fashion market, since neither Inditex had achieved it until then, due to Italian protectionism in this sector.
The Zara distribution center is in Arteixo (A Coruña) sells to 36 countries and manufactures 43.000 garments a day. They distribute the clothes twice a week to each of the za stores around the world. The orders that are made in the different stores arrive at a maximum of 72 hours and in no store there is a warehouse so the garments do not accumulate. The coordination department is responsible for placing and coordinating garments to facilitate purchase to customers and thus increase sales.
The secret of this company is to create “a fresh and at the moment”, it is a changing and short -term fashion. As people know that the garment will disappear in a short time, they do not think so much when buying and this causes sales to increase. Designers observe what people are wearing and their tastes and adapt to customer demands.
Zara does not advertise, the image is shown in the windows so they consider that the location is essential to make known. In relation to location, it is also important.
For the operation of the companies, the treatment with the customers is essential, they mention that "the human value is the key and that" without the customer we are nothing or anyone, then the client is always right ". They always listen to the criticism or suggestions of the customers and when someone enters a Zara store, there is always a dependent who looks at him and smiles making the client feel attended.
In conclusion Zara is a company with a good commercial strategy that is responsible for satisfying people’s tastes and fashions, obtaining great economic benefits. This makes Zara one of the world’s largest and Amancio Ortega one of the richest and most powerful men.
Personal contribution of the documentary:
The growth and evolution of Amancio Ortega has caught my attention that thanks to his effort and his record at his work has achieved great successes starting from below. Apart from being a successful man, he personally is generous offering scholarships to young people to study abroad.
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