The New York Times' November 11th's Sunday Magazine includes and article titled "How Zara Grew Into the World’s Largest Fashion Retailer"
(http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?ref=magazine). After reading the piece and summarizing it in the blog, be ready to discuss the article as well as your views about the topic in class for extra credit points.
The article is about the European fashion company, Inditex and how successful it has become over the last few years. Their profits have increased greatly over the last few years which people find surprising thanks to some of their practices. For starters, the company does not advertise themselves since they want people to talk about them rather than talk about themselves. They also have many different practices such as opening stores in very high end locations,getting customer feedback for the clothes they want to wear, have limited stock, and produce clothes in countries where there is cheap labor available. I think this article is really interesting because it's amazing how this fashion company makes a lot of money despite barely having a marketing department. Their business strategies are also something that caught my attention as well.
ReplyDeleteThis article speaks about how Inditex, a successful fashion company headlined by its oldest and most successful shop, Zara, which was built by Amancio Ortega Gaona. So successful, in fact, that Ortega surpassed Warren Buffet as the world’s third richest man. But as any business, it has its humble beginnings. For Ortega, he had started Zara in 1963 making housecoats and robes (at the time called Zorba). Now, Zara is turning a 2 billion dollar profit a year and operating in an airplane hangar sized headquarters and having their merchandise manufacturing in China, Portugal, etc. They are able to accomplish this because they are very in tuned with the customer wants/needs and only keep the supply for a matter of a couple of days to keep merchandise fresh in order to keep customers interested because most retail stores carry the same merchandise for months at a time. Overall, it was intriguing because of how they are able to succeed pretty much without advertising as well as their how they execute their unique business strategies in order to compete with Gucci, Prada, and other successful fashion companies.
ReplyDeleteThis article is about a fashion company called Inditex and its biggest and oldest brand Zara. It talks about how Amancio Ortega Gaona started off the business by making housecoats and robes. He then opened a store called Zorba. Now Zara is a very fashionable brand and in the last five years overall sales have grown to 13.8 billion euros a year. It also states how Inditex has prospered while Spain has been suffering from a debt crisis. The company doesn't even advertise. The company's marketing department invests heavily in the beauty, historical appeal and location of its shops to make its stores more profitable. It also talks about how half of Inditex's manufacturing comes from Portugal, Morocco, and Turkey which are considered to be costly labor markets. Inditex also doesn't overstock because they like to stay with the latest fashion trend. The trendiest items are made in their factories closet to them because it takes only 2 to 3 weeks to make it. Overall this article talks about how one man made a company from nothing and now it is the worlds largest fashion retailer.
ReplyDeleteThis atricle is about a clothing company that was able to surpass any other regardless of any finacial or economic crisis happening at the time. It originated in a city called Galicia, which is know for its rural poverty, but thats not the only thing its known for now. It is also home to 76 year old Amancio Ortega Gaona, the worlds third richest man. Ortega started out making house coats and robes. This man now has thousands of stores all over the world, without even advertising his clothing lines!His company rather focus on prime locations. Inditex enssentially imitates the lates fashion and speeds their cheaper version into stores. They also try to keep more popular items made closer to home, that way it doesnt take that long to match higher demands. Another tactic is their stores are restocked every two weeks, keeping the store fresh and also forcing costumers hands because if they miss their chance to buy something they like it may not be there when the come back.
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