Zara SWOT analysis, Zara, SWOT Analysis, fashion brand, fashion trends, fashion industry, clothes, clothing, ready-to-wear, prêt-à-porter
Zara is an internationally famous fashion brand. The company currently sells in two hundred markets with over two thousand stores worldwide. Zara is one of eight brands that are owned by Inditex Group, the largest apparel retailer in the world. According to 2019 financial statements, Inditex earned healthy net sales of 28,286 million Euros, with Zara accounting for 70 percent of these net sales. Zara specializes in the sale of clothing and accessories operating under its core values of beauty, clarity, functionality and sustainability. Zara's high quality and on-trend products power the success of the company, as well as stylish yet practical store floor plans and welcoming customer service.
[...] Political exposure is a concern for such extremely well-known brands. Even a small error can instigate enough media attention to give a company a bad reputation and tarnish a brand name. In 2007, Zara hit the news for selling a purse that featured a swastika as part of its design. The company was accused of anti-Semitism and responded by quickly removing the product from all Zara stores. Therefore, a weakness of such brand popularity is that negative attention will be far greater, more detrimental and harder to cover up than it would be for a smaller more insignificant brand name. [...]
[...] The release of these designs could start a new trend and build more Zara brand identity. D. Threats As mentioned earlier, the current Coronavirus pandemic may pose as a threat to Zara as they do not engage in much advertising. With more people staying home and online shopping, companies are able to advertise through the internet and social media. If the market is saturated by Zara's competitor's advertisements, customers may switch their support away from Zara. Climate activism has increased dramatically. [...]
[...] dollars. This amount of wealth makes the company more likely to survive most unfavourable economic circumstances. Zara operates over 2000 stores worldwide spanned over 96 countries, which helps to reduce economic climate risks. B. Weaknesses It may come as a surprise that Zara, a famous clothing brand, spends little to none of its revenues for advertising purposes. Instead, the company uses its store locations and shop window designs as its marketing strategy. Without advertisements, Zara has to rely on word of mouth which is not always ideal if people share inaccurate perceptions. [...]
[...] The 2019 Deloitte audit report states that Zara design teams are strongly focused on the customer. Permanent contact with stores and online teams by Zara's teams of designers, through the Product Management Department, helps them to learn about consumer preferences. Zara's conscious effort to satisfy its customers helps to gain and maintain consumer support and loyalty. Due to the frequent launching of new designs, customers are compelled to do regular shop visits to see the new stock, this helps to keep customers interested. Effective supply-chain management is a very strong factor in Zara's success. [...]
[...] O'Connell Zara's Brand Value Worldwide from 2016 to 2019. Statista. Online at: https://www.statista.com/statistics/980126/brand-value-of-zara- worldwide/#:~:text=Global%20brand%20value%20of%20Zara%20from%202016%20to%202 019&text=In%202019%2C%20the%20Zara%20brand,billion%20U.S.%20dollars%20in H. Bhasin SWOT analysis of Zara. Marketing91. [...]
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