It is no secret that brands are built on focussed campaigns and my earlier posts on marketing and advertising strategies have revealed that marketing professionals use a wide spectrum of ideas from the downright simple to the outright absurd. The bigger the brand the bigger is their marketing/advertising budgets is also anybody’s guess. As consumers too we love to be wooed by brands and the brands too dig deep to impress the consumers. The subject is really fascinating and keeps on throwing surprises.
The post today is one such surprise and a complete deviation from the rules of the game. ZARA, the world’s largest fashion retailer has no advertising budget. They just do not advertise or have any marketing campaign running for them. They don’t even have a logo or a tag line as so many of the other brands do. But still ZARA dominates the retail fashion industry worldwide and is a highly successful brand. So what do they do makes not only for some interesting reading but also has lots of learning embedded in it.
ZARA was founded in 1975 by Amancio Ortega and is headquartered in Galicia, Spain. From a solitary store then, ZARA has more than 2200 stores in 96 countries across the world. It has been real hardwork for them and on the basis of what I have been able to understand, they have a simple three pronged strategy.
1. From the Lips to the shelf in quick time : ZARA has nailed this. A suggestion or a new requirement from a customer is out on the shelf for sale at lightning speed. Before the others can react, ZARA is able to do it. Their response mechanism is truly seamless which helps them hold their customers and make further inroads. Another important part of this strategy is that ZARA always produces limited additions which help develop a sense of urgency and therefore help push sales. And all this comes at an affordable price, which is such an attractive feature in any market.
2. Retail Store Locations : This is a critical strategy of ZARA. They spend a lot on their location and more often than not open a store next to the store of a Luxury Apparel Brand like Gucci or Prada. There is a deep thought to it and the idea is to be identified in the same vein by the consumer as Gucci and Prada. However the difference is that ZARA makes much cheaper clothes and hence with this strategy ZARA has been able to establish itself as an affordable luxury brand in the minds of the consumer. Wearing a ZARA is therefore prestigious and lighter on the pocket at the same time. Its like having the best of both worlds.
3. The Word of Mouth : Apart from the two strategies mentioned above, ZARA banks heavily on the good old Word of Mouth. Therefore they do their best to make the customer experience in their store an exhilarating one. Coupled this with fine affordable clothing, makes ZARA an impressive deal and since they are deliberately stationed in profoundly populated urban communities, the Word of Mouth brings in lots of customers and that too free of cost.
ZARA has given another dimension to marketing or advertising strategies. They have worked more on their product keeping it attractive to a large section of the retail fashion market, they have quickened their response to customer requirements by investing and strengthening their supply chain and have very smartly managed to be identified with Luxury. These are the lessons learnt. And yes not to forget ‘ the word of mouth ‘.
ZARA does not have a tag line so I thought of giving it one in today’s backdrop…’ ZARA – The Humble Luxury Apparel ‘