Evaluate Zara’s relationship with its global customers.

What does this imply about

Zara potential support to its customer’s requirements in an intensifying price sensitive
global market?

The clothing and manufacturing sector has always been under constant pressure to fulfil the
needs and demands of the market. The study herewith show the expansion, growth, client
management of a large group called Zara based in Spain. Relation building has been the key
concept in the study to maximise profit margins but also new way of thinking and
productivity.

Firstly Zara, as a solid manufacturing and distribution industry has surpassed all its other
competitors like GAP or H&M. The secret behind this success is that every team member is a
star and work acknowledgement is also a key element for future focus. The enterprise opted
for a balanced mixture of standardization and customermization. It followed a procedure in
selecting and entering a market which makes scaling operations more easier (Flagship Store,
Market test for the 4P’s,expanding into countries with similar culture- favourable micro and
macro economic conditions, backward market – based pricing , reporting and ordering
procedures. The main concern to build this long lasting relationship resumes in this phrase
quoted below:

“Offering clothing line for women, men and children, legions of fans eagerly await “Z-
day”, each Zara location twice weekly inventory that brings the latest designs”.

The above quote shows clearly the market relationship that Zara has built itself from the start
little by little but surely a long lasting relationship with a much demanding “clientele”. On the
other hand there has been mentioned that trademarks like GAP/ H/M are on the verge of
losing clients due to the uprising of Zara. The influx of new clients in Zara stores is
increasing yearly and the product offering also is typically matching ZARA customer’s
needs.

Well how these customer familiarities developed in the DNA of the company through exigent
workforce in terms of customer follow ups, taking up customer complaints and requests and
turn them into the company force to rule over the market. What is the difference between
ZARA and the other competitors in the market? Zara store managers have established an
intelligence gathering process whereby inventory system is digitalised and every item on the
store’s rack has a reason to be. Furthermore, the saying goes, “the customer is the king” , and
each customer is handle as a new customer at ZARA. Each customer notifications are taken
right away on PDA’s which has been seen as a major networking tool, for information
gathering, recording customer needs to improve designs of clothing and sending them
immediately to the design studio for analysis. This cut cost edge has provided ZARA with a
demarcation line for improvement in product quality but also in customer case retention and
care. There has been mention that the inventory process is a crucial point at ZARA stores
whereby intelligence gathering efforts ultimately determines what should be on the rack.
There is also the intuitive nature of the managers at ZARA stores whereby they proactively
think how to better sell off a product next time to a client. In the case study there has been
quote of the following facts- “what if the skirts are longer in strength, what would it look in a
different colour, what if this v-neck blouse were available in round neck”. As investigators
the staffs of ZARA have the customer requests and demands at heart, thus here the use of
meticulous investigation methods. Technology is not left astray concerning matters relating to
customer care as the PDA’s are directly linked with the POS system showing the selling of
clothes via the stores. This gives avant gout of the market preferences of clients and thus
enables ZARA to prepare its future designs. The main objective behind this data gathering
has been for planning process, but also to avoid losing money over useless manufacturing.
The main goal is to improve the frequency of sense making for design and planning teams.

The buzz that ZARA has created is that it can adapt to customer demand in stores in the
shortest time possible offering a significant advantage over competitors. The fact that the
turnaround time for bringing new designs to the stores is two weeks, which benefits ZARA in
terms of up selling compared to other competitors who receive the products at the end of each
season. Most importantly ZARA marketing style is developed in such a way that it
encourages the customer to come back regularly. Small batches production creates a scarcity
premium and encourages impulse purchase. The business environment that ZARA has
created matches the long term goal of the company that is to be a leader in the market but
also accept the demands and supply of the market. The sell out concept at ZARA for its
customers is also attractive which intensifies the relationship with its global customers is the
sold out concept , whereby each product has a limited lifetime on the shelves. For example a
Barcelona shopper experience at ZARA clearly states that when a new product comes at the
store it is sure that it will be sold in a day or a week, but if you delay to buy it be sure that you
will not have the product sight again as new ones will have already replaced it.
Coming to the proximity of clients ZARA prones the quick delivery of stocks in its sales
outlets so as to reduce the waiting time of its clients , thus more merchandising. The delivery
system of ZARA has been moulded in such a way that it proves efficient but also less costly
for distribution though having one large stock centre in Spain. It should be also noted that the
ZARA culture has widespread not just in Spain but countries like Greece, USA or Asia. This
prove that ZARA is making the fashion world become a global village through its s brand
image and trade mark.

Critically examine ZARA supply chain management?

One of the success factors of Zara being the leader in the market is having the total control of
its supply chain management of its 650 stores around 50 countries. Here in the case study we
can see that ZARA has axed its principal success around its people, products but also its
clients. As a result of this the Spanish organization can boast an unprecedented capacity for
quick response in an industry that doesn’t remain constant. One of the critical success factors
of Zara has been that it has maximised on the concept that it should be responsible for its
products all the way from initial conception till to the customer.