Retail Theory and Practice - Zara

RETAIL THEORY AND PRACTICE- ZARA Name Course Professor’s Name Institution Location of Institution Date Retail Theory and Practice- Zara Retail is a practice that has been in play for years. Retailing allows goods and services to move from the manufacturers and reach the consumers. Retailers, thus, facilitate the distribution process by purchasing products from manufacturers in large quantities and selling them to consumers in small quantities, at a profit (McCormick et al. 2014, p.6). Retail is, thus, an essential part of the economy because it acts as the go-between manufacturers and consumers. Consequently, fashion retail involves a retailer-based market system that is focused on fashion products such as accessories, clothes, and footwear. Retailers in the fashion industry ensure that products and fashion-related information move from their point of conception to their consumption point (Choi 2014, p.1). Fashion retailers can have physical or online stores where they display their products for the convenience of the customers. In the UK, fashion retail has been the backbone of the fashion industry (McCormick et al. 2014, p.7). This is because it ensures that the needs of consumers are met conveniently. Introduction to Zara Zara is one of the largest and well-known brands in the fashion industry, with footprints in many countries across the globe. Zara’s parent company, Inditex, is also one of the largest fashion retailers globally. Zara was first established in 1975 in Spain and have since become a global sensation (Inditex, n.d.). Zara has seen considerable growth in the UK market, and as revealed by Jahshan (2018), it registered a 17% increase in sales in the year 2018. Zara operates 64 stores in the UK, out of the 2,251 global stores (Inditex 2017, p.16). This forms about 2.8% of the total number of Zara stores in the world. In terms of market shares in the UK, Zara has been ranked at 19 in the top 20 category by GlobalData, and has a market share of 1.5% (Wood, 2017). Zara’s largest competitors in the UK include Primark, Next, and Marks & Spencer. Zara is likely to increase its markets shares in the UK, first given its increase in sales over the last year, and second, given that it has refurbished some stores and opened bigger ones in the UK, such as the recently opened Zara Westfield Stratford flagship. Not only is this store bigger than the one formerly in East London shopping centre, but it also has automated online order points which allow UK customers to purchase Zara products online (Street, 2018). The success of Zara, not only in the UK but also globally, is attributed to its core values and the intimate relationship the brand has created with its customers. The four main core values behind Zara’s success are functionality, clarity, sustainability, and beauty (Inditex, n.d.). In addition, Zara is continuously utilizing technology and social sites to attract more customers and facilitate convenience. Current Trends in the Fashion Industry The fashion industry has experienced enormous changes in the last decade, thanks to technology. Some of the major trends in this industry are, thus, related to technology and social media. The first trend is a growing awareness among consumers. Consumers are aware of...