Wednesday, July 17, 2019

Customer and Zara Essay

First of all, Inditex tries to tackle cannibalization by differentiating the brands mainly through the crossway, target markets (customer groups and countries), parentage presentation and retail image. And in 2008, the division of the growth in sales compared to 2007 is 9%, it means that Zara has been prospered by confluence the risk of cannibalization.Compare with the other competitors, Inditex has slightly advantages. For example, the first one is the seize visits. An fair(a) high-street store in Spain expects customers to visit 3 times a year, but that figure will be up to 17 times for Zara. And Zara can offer wholesome more products than similar companies. It launches about 30,000 gravel items .annually compared with 10,000 items for its key competitors. Zara is also good at the speed. The company can human body a unused product and have finish goods in its stores in four to tail fin weeks it can modify existing items in as little as 2 weeks.In my opinion, the key point of them is making more repeat visits. For achieve this purpose, ZARA uses cardinal methods- Shortening the product life cycle, much pretense and less quantity. Shortening the product life cycle means greater success in meeting consumer preferences. If a design doesnt sell well within a week it is draw back from shops, further orders are cancelled and a new design is pursued. No design stays on the shop coldcock for more than four weeks, which encourages Zara fans to make repeat visits. As you know, we can usually break that there are only deuce or three pieces of each model in Zaras shops. And they wont replenish when its sold out. Like the hold in release of stamp increase its value. It has increase more fans of Zara by this way.The most beta is that Zara has the tycoon to recognize and assimilate the unceasing changes in fashion, rapidly designing new models that respond to customer needs and wants. Zara uses its malleable business model to adapt to changes occurr ing during a season, reacting to them by bringing new products to the stores in a short time. For Zara the keys to global competitiveness are the time factor and the ability to adapt the offer precisely and rapidly to the customer desires.I think this is the lawsuit why Zara can be successful by meeting the risk of cannibalization.

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