Topic > An examination of the business strategies of Zara, a fashion retailer

One of the phenomena in Spain is the rise of Inditex, known for its ownership of Zara. It would seem strange that Inditex, a rapidly expanding global company, has its headquarters in La Coruña, a typical and quiet European city. Yet despite being based in a troubled country with over 50% unemployment among young people under 30, it is still able to generate a large demand for clothes. Zara is a company that has taken advantage of "fast fashion" where the latest trends shown at fashion shows are redesigned and produced cheaply for the general population. Many people at the forefront of the fashion industry agree that Zara's “fast fashion” has changed the fashion industry. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Zara's "fast fashion" has evolved as a result of people's continuous desire for change and new things. Why exactly do people constantly want to change clothes despite it being seemingly frivolous and the evolution of fashion seemingly having no sense of direction? Agnes Brooks Young responds to this dilemma by presenting the theory that our spiritual needs for “experience, recognition, and response” must be met (167), which are just as necessary as our physical needs, namely food, shelter, and clothing. Brooks states in her book, "the fashion of each new season is an attempt at a partial experiment, cautiously embraced by women until its general safety is assured" (170). In the case of women, they want to be beautiful and stand out from their peers. At the same time, these changes are slow because women do not want to be undesirably noticeable because they want to be unique. No other membership is as personal or revealing of a woman's personal preferences. Fred Davis also offers an additional explanation for the origin of fashion cycles. In Davis' book, he points to Charles Frederick Worth as the man who revolutionized fashion. In the mid-19th century, Worth becomes the first person to brand a clothing line, thus advertising himself to the public. Before this event, clothing styles did not change for more than consecutive decades. In his research he uses Sprole's theory to analyze fashion. This theory conceptualizes fashion as a process: invention, fashion leadership, increased social visibility, conformity within and between social groups, social saturation, decline and obsolescence – each step is equally important. Modern technological advances have made brands better known and changes in fashion more publicized; as a result, people are more aware of what they want. Davis concludes that “the intensive capitalization… of the apparel industry, the abundance of consumers along with the democratization and loosening of class boundaries, and the greatly accelerated flow of information through electronic media” (Davis 107) are the reasons of the rapid change in consumer preferences. “Fast fashion” developed as a result of this modern phenomenon. Its success comes from its ability to exploit the accelerated pace of each stage of Sprole's theory, becoming a highly successful business model for a company like Zara. Zara's effective copying of designs has increased the copying speed among all fashion designers. Raustiala comments that one of the unique characteristics of the fashion industry is that "fashion companies take steps to protect the value of their trademarks, but appear to accept the appropriation of their original designs as a given" (Raustiala, Sprigman4). From a legal perspective, it would appear that intellectual property is best protected in an industry that produces a huge variety of goods. Industry critics have criticized the current legal regime for failing to protect clothing designs. Despite this, the fashion industry is surprisingly silent on the topic of copying. Another unique feature of this industry is that there are no anti-piracy campaigns. Raustiala argues that this lack of emphasis on intellectual property protection drives innovation in the retail sector in what is called the “piracy paradox”. Nebahat Tokatli also concludes this way, noting that Zara has “'introduced affordable interpretations of catwalk styles into its stores with breathtaking speed'” (29). A designer dress photographed on a model during fashion week usually doesn't arrive in department stores for months, but an imitation or derivative can be seen hanging in Zara in a couple of weeks. Discussing this issue with her colleague, she says that the clothes she saw during a visit to a Zara store reminded her of Prada, Alexander Wang, Balmain and many other high-end brands. These high-end designers are now forced to reanalyze their marketing and release program in response to Zara's success to remain competitive. Hansen recognizes Zara's success for its ability to "produce 840 million garments per year and have approximately 5,900 stores in 85 countries, although this number changes continuously because Inditex has opened more than one store per day in recent years, that's about 500 stores a year." .” Zara has taken copying to its limits, eliminated the innovation process and perfected the manufacturing process. As a result of this efficiency, Zara has been able to grow rapidly. Zara's quick response to trends has influenced how quickly other fashion companies respond to consumer demands. Tokatli notes in his research that “fast fashion” aims to increase variety for customers. Short delivery times and production cycles are characteristics associated with “fast fashion” compared to traditional ready to wear and haute couture. Zara offers customers good quality and inexpensive clothes in high-end stores. As a result, customers do not feel like they are buying something “cheap” (Tokatli 28). Hansen notes that "an Inditex brand will make a fall collection and then ship only three or four suits, shirts or jackets in each style to a store." Because styles change rapidly, customers are forced to buy impulsively because they know they won't have a second chance to purchase the clothing a week later. Zara stores are located in close proximity to the factories, allowing it to respond quickly to customer preferences. More than half of Zara factories are owned by Zara itself: this vertical structure allows for a rapid flow of information when changes need to be made to production (Hansen). As a result, excess inventory is minimal, thus reducing the losses that traditional retailers face. The money saved here is used to respond more quickly to producing clothes that adapt to new consumer preferences. Store managers are trained to ask for more if there is demand for a particular style. Popular styles are copied immediately. Raustiala notes that the beauty of copying is that it also generates new ideas. “Of course, many “copies” are not stitch-for-stitch reproductions at all, but rather new garments that appropriate design elements from the original and reformulate them in a derivative work” (Raustiala, Sprigman 40)..