Business practices used by Zara
What are the business practices used by Zara that have made it responsive to customer needs and successful financially?
Zara has captured what it means to “put the consumer first” and really dig in to what the consumer wants. Zara has people who walk around and get peoples opinion on the spot while shopping what trends they like and don’t like. If there is a trend that is more popular then another then Zara with trash the old product and make more of a popular product. Zara also ships too many countries, and puts new trends in there store within two weeks while competitors can take six months (Roberts, 2013).
Zara has the ability to strengthen their relationship with customers buy capturing their question on the sales floor. This allows them to quickly send up the information gathered from customer interactions up to headquarters where they are able to gain a lead in the fashion market putting them above their peers. All of this information that is sent up is answered is answered with a speedy response from the designer team at headquarters. The operations includes the ownership of their own production facilities which are located in surrounding areas. This gives them an advantage over other fashion businesses which outsourced in other countries. This allows Zara to deliver new products to stores in as little as 2 weeks. Other companies have been shown to take 8 months to get product into stores.