Zara's Marketing and E-Commerce Strategy Explained

Introduction

Zhenxiang and Lijie pointed out that "the traditional marketing and management of the fast fashion industry is experiencing a revolution because of the emergence of e-commerce" (2011, p. 1). Today, all industries — including the fashion industry — are using the internet and the latest technology to reduce costs in purchasing, managing, supplying, and marketing products. Like several other sectors, e-commerce has re-engineered the fashion industry, allowing retailers to improve management, communications, and processing, while also creating opportunities for competitive advantage. Looking at the success of several retailers using e-commerce in the fashion industry, Zara jumped into the world of information technology in order to market its products using emerging techniques and remain competitive.

Zara is a major name in the fashion industry, famous for making clothing for men, women, and children. It carries a wide range of upper garments, lower garments, shoes, cosmetics, and other fashion accessories. With more than 5,000 stores in 78 countries, Zara operates under its parent company, Inditex Corporation, headquartered at "The Cube" in La Coruña, Northern Spain. All programs, proposals, plans, goals, and strategies are formulated at the headquarters and then implemented across Zara's global stores. Among Inditex's eight brands, Zara holds the place of crown jewel and growth engine due to its remarkable performance (Murphy, 2008).

Inditex has a long history of outpacing its competitors. It has overtaken H&M to claim the title of Europe's largest retailer, and it has expanded rapidly into new markets worldwide. The company opened 150 Zara outlets in China alone over six years, a push that increased sales by 53% over the same period. Having achieved significant physical expansion, Inditex now leverages its online network and the latest business techniques to reach its target market.

Zara began selling products online in 2010. Initially targeting Europe and achieving tremendous success, it expanded online sales to the United States in 2011. The company had estimated $84.13 million in online sales from Europe in 2010; actual sales came in 13.9% above expectations at $95.77 million (Kenna, 2011). The sections below discuss in detail how Zara is using e-commerce and the latest marketing techniques to spread its brand across the globe.

References

Deatsch, K. (2012). Zara will add home goods to its U.S. e-retail ensemble. Internet Retailer: Portal to E-Commerce Intelligence. Published September 28, 2012. Retrieved December 5, 2012, from http://www.internetretailer.com/2012/09/28/zara-will-add-home-goods-its-us-e-retail-ensemble

Dishman, L. (2011). H&M and Zara duke it out for U.S. online sales while Urban Outfitters moves on Facebook. Forbes. Published August 31, 2011. Retrieved December 5, 2012, from http://www.forbes.com/sites/lydiadishman/2011/08/31/hm-and-zara-duke-it-out-for-u-s-online-sales-while-urban-outfitters-moves-on-facebook/

Jing Daily. (2011). Zara jumps on China's e-commerce bandwagon. The Business of Luxury and Culture in China. Published September 4, 2012. Retrieved December 5, 2012, from

Kenna, A. (2011). Zara plays catch-up with online shoppers. Bloomberg Businessweek. Published August 25, 2011. Retrieved December 5, 2012, from http://www.businessweek.com/magazine/zara-plays-catchup-with-online-shoppers-08252011.html

Lopez, C., & Fan, Y. (2009). Internationalization of the Spanish fashion brand Zara. Journal of Fashion Marketing and Management, 13(2), 279–296.

Murphy, R. (2008). Expansion boosts Inditex net. Women's Wear Daily, April 1.

Zhenxiang, W., & Lijie, Z. (2011). Case study of online retailing fast fashion industry. International Journal of e-Education, e-Business, e-Management and e-Learning, 1(3).