The retail success story just does not happen overnight. There are basic features yet something subtle and also intelligent implementations associated with it. To comprehend the aspects of retail success secrets, the company that came to my mind first, was Zara.
Zara doesn’t initiate much on flashy websites, marketing campaigns, and large-scale influencer campaigns. The customer feedback loop as well as responsive supply chains are key aspects of their business mechanism.
Get Store Basics Right
They have a signature black-and-white color mechanism!
They use mannequins and dress them accurately. The designs and the layouts of the stores are important for them. every 18 to 20 days, the display gets changed.
The stores have a clean-sleek image which lets the clothes speak for Zara. On the other hand, AR-enabled shop windows are their cunning pull marketing strategy. This Curiosity-driven implementation is a real game changer.
The newer items are generally put closer to the entrance of the store. Obviously, this is done to grab the attention of customers. Moreover, selling newness is their main agenda.
They update their stores regularly…..
Every two weeks, Zara delivers new items to its stores. Hence, it can be stated that the design and inventory of its stores are changing persistently.
With local commercial teams, Store managers of Zara work to discuss necessary changes of layout to cater to different local tastes and seasons. In Asia, Zara modifies the store layout to be more appealing to a younger crowd. This is because their primary customers of them are younger people there.
The brains behind all of the details in the store are the team of 31 architects.
Customer orientedness
Zara makes the product that their consumers really want and they can do so by the use of information technology. This is the technology they use to know the ongoing trends. Moreover, they use groups of designers instead of individuals. Zara targets younger customers more than anything else.
So who is your customer and what do they really want from you?
Don’t Hit The Discount Button Too Soon
Hitting the discount button can be helpful on a short-term basis but in the long run, it can quickly devalue your brand and product. This is because customers quickly come to the stores with the expectations of discount prices.
Not chasing sales sounds weird but it is vital for long-term success.
Zara follows the 4 Es of marketing strategy
Experience replaces product
Exchange is the new price
Evangelism is new promotion
Every place is new place
Focus on designs
Zara has initiated creativity-driven designs. They only have a few items in the stores to create scarcity-driven marketing. Customers feel that the item is less in number and due to this fear they end up purchasing the item. Zara is also known for getting the latest designs into the marketplace before anyone else. They emphasize on rapid product development and design and outsource the manufacture in small batch sizes to a network of dedicated suppliers. Moreover, the secret of their success lies in their high-speed and flexible business model.
Zara’s popularly well-honed system for apparel manufacturing comprises nine distribution centers and nine factories in Spain. Moreover, they also have another distribution center in the Netherlands. At the same time, across locations in Morocco, India, Turkey and China, they have 2,000 vendors and suppliers.
They keep the inventory low and design timelines short.
Per year, Zara sells more than 450 million items from the domain of womenswear alone.
The new items emerge twice a week at Zara stores and online which comprises menswear and children’s clothing, a dizzying carousel of bags, shoes, perfume, lingerie, home goods, and Zara’s recently launched cosmetics lines and bridal wear.
The other lines: Woman; TRF, targets trend-driven shoppers and younger people. On the other hand, diverse offerings made them attractive. Focus on print advertising instead of depending on its stores and social media for marketing has been the key strategic goal of them. By focusing on attractive and large stores, they put a great impression on the minds of the customers. This experience-driven marketing generally makes the customer purchase later on through their smartphones.
