ZARA – an international success story
Zara, part of Inditex group (one of the world’s largest retailers) are Spanish set up and owned stores (now globally present). That is the main reason why I was surprised to see that their Christmas windows looked like this:
It just seemed strange that a Spanish store, in the capital city of Spain, chose to wish ‘Merry Christmas’ in stead of ‘Feliz Navidad’. Talking to my Spanish friends, it seems that Zara, in the early days, was seen as ‘unattractive’ by many Spanish people (cheap and local) when compared to maybe similar price range yet, international brands. As a result, the company seems to want to establish/has established itself as equal to an international brand (increasing its price range, quality etc., wishing its customers ‘Merry Christmas’.)
However, I believe the reason for the ‘Merry Christmas’ is also linked to the company’s business strategy, including its advertising strategy. It is widely known that Zara spends a lot less (0.3% of revenue) than other fashion retailers (3.5% of revenue) on fashion.
For its product promotion, Zara uses its windows (the contents of which are decided in La Coruna, the HQ). “Both interior and exterior store design are given the highest priority. Shop windows play a major role acting as an advertising vehicle for our concepts in the world’s major shopping streets.” The result – Zara windows are all the same.
Just like the Starbucks customer, that knows he will find the same products, interior design and music, in all Starbucks coffee shops around the world, the Zara customer can recognise the retail giant by its window style and content.
Borderless fashion: 1.603 shops, in 78 countries, million of shoppers; the Zara customer (as they very well put it themselves): “a wide range of people, cultures and generations, who, despite their differences, all share a special fondness for fashion”.