Zara is a well renowned apparel brand in the international market. It is famous for its trendy apparels, superior quality and affordable prices in the fashion Industry. It was established in Galicia, Spain in the year 1975. This company is owned by Amancio Ortega, who is the richest person in Spain. In the year 2023, it recorded the growth of 40.42 % in India which amounted to Rs 2,562.50 crore. Zara has 3000 stores, which are in 96 countries all over the world. Spain is the biggest market where Zara products are sold. The parent company of Zara is Inditex. It is recognised as the ecofriendly company as it uses Solar panels to produce energy in the company. Zara sells women, men, kids apparels and beauty products like perfumes, make-up, nail polish, shade -finder and other beauty products. Zara develops new designs within every two weeks. This company sales mainly depends on word of mouth.
Many awards has been won by Zara Brands like
- America’s Best Employers by State (2023)
- Best Employers for New Grads (2023)
- Best Employers for Women (2023)
- World’s Most Valuable Brands (2020)
Zara company pays huge interest on swot Analysis of the company. Swot Analysis is a tool where their company comes to know about its strength, weakness, opportunity, and threat. Zara from time to time does swot analysis of the company, so that it can make improvement in the company on time, as fashion industry considered as the most eye catching industry for the customers, if not done they will be out of the market.
Zara Company Profile
| Name | Zara |
| Founded | 1975 |
| Founders | Amancio Ortega, Rosalía Mera |
| Headquarters | Arteixo, Galicia, Spain |
| Area served | Worldwide |
| Stores | 3000 |
| Employee | 1 Lakh + |
| Primary Industry | Fashion & Textile |
| Website | zara.com |
Swot Analysis of Zara Company
Strength
- Eye Catching apparels to the customers– Zara launches its new designs in every two weeks. It keeps changing with trendy fashion and produce products at affordable prices.
- Globally present all over the world– Zara is present all over the world. It is present in 36 countries of the world.
- Customizes itself according to customers need– Zara customizes its products according to the needs of the customers and the changing fashion trend in the market.
- Economical prices– The company keeps the prices of the product keeping in mind the prices that the customer pocket allows. It also sometimes gives huge discounts to the customers on their products.
- Financially strong– Zara is financially strong company owned by the richest person of Spain.
- Supported by the government– The government of Spain is in the favour of this company. It is favoured economically and politically. Thus, this company enjoys a large market in Spain.
- Socially Responsible– This company looks after the welfare of employees and motivates them and sees that they get good environment to work into the company.
- Timely delivery and manufacturing of products– This company tries to do timely delivery of product and manufacturing so it cannot lag in the market.
Weakness
- Does not have wide area of network– This company does not have wide area of network. Many people in India still does not know about the product. They have not reached in the villages yet.
- Limited advertisement– They barely advertise their products on TV and any social platforms.
- No customer service department– They barely have any customer service department. The product once sold cannot be returned, if found defective.
- Word of mouth– The company’s sales is limited as it depends only on word of mouth.
- Have very limited data– The company depends only on the data of those customers who have brought their products
- Wide communication Gap– There is a wide communication Gap between the customers and the company, as Zara do not have customer support department.
Opportunity
- Digital marketing– The company can expand itself and increase its sales by aggressively advertising itself on social media platforms like Tv and in local languages of different countries.
- Widen their Network– As Zara has not been able to reach many parts of the country, it should try to expand its network.
- Widen their product line– Zara should also widen their product line.
Threats
- Competitors- The major threat to the company is from its competitors. Its main competitors are:
- H&M
- Mango
- ASOS
- FOREVER 21
- UNIQLO and many others
- Constant changing fashion demand in the market– There is constant change in taste and preferences of the customers which makes the company fail in meeting the everchanging demand of customers on time.
- Fluctuations in exchange rate of currency– There is constant fluctuations in exchange rate of currency which impacts the profit of the company.
SWOT Analysis of Zara from time to time to check its performance. This tool helps the company in the taking the major steps to overcome its weakness and explore its opportunity. The company has recently now only its customer service department which calls the people who have already brought the product of their company and ask about their feedback .
It keeps changing with trendy fashion and produce products at affordable prices.It introduces new designs into the market every two week.
