INNOVATION AND ZARA

The Role of Innovation in Zara's Success in Retailing



The Role of Innovation in Zara's Success in Retailing

Introduction

Zara is one of the largest and most popular retailers of the world. It is known as the major retailer that trades a variety of merchandise range under their brand (money.cnn.com). They are situated in more than thirty countries. They have a strong consumer following and have created a strong brand image over the years. The consumers have confidence and reliability in the Zara's products. As per the market research, Zara leads the over a majority of its competitors in terms of customer service, variety, belief, quality, reliability and value chain.

This paper aims at providing a brief profile of the company's most distinguished features and characteristics, along with a detailed description of the innovations that the company has adopted over the years. The work also details the significance of the mentioned changes with special reference to the innovations observed in Zara's global value chains.

Company Background for Zara

A very popular retail brand from Spain, Zara boasts of thirty six years of excellence when it comes to innovation and creativity. Britain itself hosts 68 and more Zara outlets that a staff which measures close to 65,000 in number (Piotrowski & Armstrong, 2005, 86). This company is not just a big brand in England but is also known as an upcoming brand in other countries outside of Britain including Hong Kong. Off lately, the retail business in Britain has gotten more aggressive with consumers getting spoilt for choice.

The consumers have indeed become much smarter in making a choice of the place and the way, in which they desire to buy a product, so much so that they are pretty sure about their expectations when they venture out to buy (Luciano et.al, 2002, 11). This has clearly resulted in a cut throat competition, in the retail business. Precisely because of this reason Zara chose to figure out a fresh commercially viable policy.

Significance of innovation for Zara

Increase in the global competition has become the major point of concern for companies in the modern era (Gary, 2002, 37). Zara has also been facing the problem of international competition over the years. However, the brand is often described as the most successful one in resisting to the changes that have been occurring around it through its creativity and innovation in its management decisions and practices. The company has paid particular focus on its global value chain, while not adopting an approach the blindly follows the strategic choices of other participants in the industry.

Most importantly, not only has Zara been able to persist with its approach successfully, but this has also brought great admiration to it by both the experts, as well as, other market members including Zara's own competitors. The brand's ability to come out with new ideas and products in the shortest time puts it in a different league, with the company launching about 10000 new products and designs every ...