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Have you heard of Amancio Ortega? He established Zara, a well-known international Spanish clothing brand, which makes his fortune reach over $65billion. As a clothing brand, Zara is like no other. People across the world from teenagers to recent retirees love to shop there. So what’s their secret?Do they operate like other popular clothing retailers (零售商)?
It turns out that Zara operates in a completely different way from other clothing companies. Normally, clothing brands try to predict fashion trends in a year in advance and release the same collections in one year: one for spring/summer and another for fall/winter. Unfortunately, if the designs appeal to buyers, then sales go up, or else it means markdowns and cutting profits for the season. Zara avoids this risk with its approach. Zara designs, produces,distributes and sells its collection in only four weeks. This also means updating the stores with two new designs a week and keeping low stock levels. As a result, less clothing in stock means lower storage costs and fewer markdowns. Shoppers will frequently stop by Zara to see fresh designs.
Most clothing brands operate using a top down approach, where their designs are based on what they predict will become popular in the next season. However, Zara constantly collects information about consumers. Its staff go onto the streets and in the malls of cities to see what people are wearing. Store managers take note on what customers’ tastes are like, which are reported back to headquarters that will then make their decisions. So the decisions are based on immediate feedback. This bottom up approach has allowed the brand to become popular worldwide and cater directly to what people want.
Their growth strategy (策略) and success has offered a few lessons. For example, Zara collects much consumer data from different places: streets, malls and customers. Not all of it will be useful, of course, but the data lets them know what people like and dislike, and how Zara can cater to their needs. Similarly, anything you’ll do will result in feedback. When you deliver a service, people’s responses and behavior provide useful information for improvement. It lets us know how we’re doing and whether adjustment is needed.
Zara studies consumers continuously to decide which direction its designs should take before starting the process.
Getting goods as close as possible to current trends means sales will likely increase. Similarly, whenever you need to make a decision, you have to consider the information at hand. Before making big decisions, it’s best to learn more from different sources to reduce what you aren’t certain about. Moreover, sometimes our environment changes faster than our plans. So it’s also important to stay flexible and be willing to reassess the situation frequently.
| Learn from Zara | |
| An entrepreneur’s success | As the 37 of Zara,Amancio Ortega is one of the richest people around the word. |
| 38 for Zara’s success | Zara 39 their designs quickly and continuously,which lowers stock levels and 40 customers. Zara bases the designs of their goods on their survey about the customers rather than the 41 about the market. Their decisions about designs are dependent on instant 42 . |
| Lesson’s from Zara’s success | We should collect more useful information because it can make us have a good 43 of the true situation and help us know whether it is necessary to 44 . Gather enough information to reduce the 45 before making big decisions. Learn to make regular 46 of the situation because the environment changes faster than our plans. |
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