Seven Factors That Made Zara The UK’s Top Retail Brand
“The customer has always driven the business model.”
Amancio Ortega Gaona was born on 28th March 1936 in Castile and León in the Northwest of Spain.
He left school at fourteen and moved to La Coruña, where he found a job working for a local shirtmaker, Gala, and learned to make clothes by hand.
This apprenticeship gave him the necessary skills to found his own company in 1963, selling quilted bathrobes.
But the young Amancio had grander ambitions, and in 1975, he opened his first Zara store with his then-wife Rosalía Mera.
Fast forward nearly 50 years, and the success of this clothing chain has been phenomenal.
It has more than 2,250 stores strategically located in leading cities worldwide, making Amancio one of the world's wealthiest men with a fortune of $89 billion.
Recently, Zara became the UK’s most prominent retail brand, with over 91 million social media followers and a sizeable 1,830,000 monthly brand searches.
But how did it get there?
From its inception, Zara adopted a business model that differentiated it from traditional fashion retailers in its ability to keep up with rapidly changing fashion trends.
This helped create a sense of urgency among customers to buy their clothes, driving sales.
The brand became known for its ability to offer trendy and affordable clothing while maintaining a sense of exclusivity and luxury.
Retail experts attribute the organisation's success to the following:
1. Vertically Integrated Business Model
Zara’s vertical integration means that it owns and operates its manufacturing facilities. This control allows the company to manage the production process more efficiently. Zara can adjust production schedules, prioritise certain items, and even experiment with designs without relying on external manufacturers.
2. Truly Fast Fashion
Although not revolutionary, Zara’s ability to quickly translate runway trends into affordable clothing that could reach stores in weeks gave it a competitive edge over slower competitors.
3. Scarcity
Zara intentionally produces limited quantities of each style, creating a sense of urgency among consumers. This “scarcity marketing” strategy encourages shoppers to purchase immediately, increasing the company's cash flow and profits.
4. Store Image
Zara strategically locates its stores in prime shopping districts, and their designs resemble high-end boutiques with affordable items. The store layout is changed frequently to reflect the latest collections, encouraging customers to visit often.
5. Big Data
Zara uses advanced data analytics to monitor consumer preferences, track sales trends, and gather feedback from store managers. This data-driven approach helps the company tailor its products to meet customer demands.
6. Rapid Global Expansion
Zara expanded rapidly beyond its Spanish origins, opening stores in various countries around the world. This global presence contributed to its recognition and popularity on an international scale.
7. A Strong Brand
The above elements contribute to the perception of Zara as a brand with a strong appeal. The various touch points that make up the Zara shopping experience add up to something greater than the sum of its parts.
It’s fair to say that the above factors propelled Zara to prominence in the fashion retail industry.
It’s also a great example of how many interacting elements build a brand and that building one of lasting value takes consistency and time.
If you want to learn how to build your own billion dollar brand, check out our Brand Building course.
