How does Zara dominate the Fashion Industry? (Lessons we can learn from Zara)


How does Zara dominate the Fashion Industry? (Lessons we can learn from Zara)


One fascinating thing about Zara is that it spends less than 0.5% of its annual revenue on advertising while it's known to be worth over $13 billion according to Forbes

Zara, one of the world's largest fashion companies, also has the busiest stores around.

Today, we are going to talk about lessons you can learn from the fast fashion giant.

1. The Customer is the Principal Designer

Zara’s unrelenting focus on the customer is the core of the brand’s success and the heights it has achieved today

There is an interesting story about how Zara co-creates its products leveraging its customers’ insights.

In 2015, a lady named Miko walked into a Zara store in Tokyo and asked the store assistant for a pink scarf, but the store did not have any pink scarves. 

The same happened almost simultaneously in Zara stores in Toronto, San Francisco, and Frankfurt. Those who all walked into those Zara stores asked for pink scarves and all left without any scarves

Guess what happened next? 

7 days later, more than 2,000 Zara stores started selling pink scarves globally. 500,000 pink scarves were dispatched – to be exact. They sold out in 3 days

Zara knows that the more companies know about their customers, the better they can innovate and compete

Therefore, Zara employees are trained to listen and be attentive to the smallest details about its customer's needs and wants

This gives Zara two basic rules: “to give customers what they want”, and “get it to them faster than anyone else”.

2. Exclusivity, Urgency, and Scarcity

Unlike most fashion retailers, Zara limits the number of products it manufactures (knowing that what’s currently in style will soon be yesterday’s news).

Basically, when a given product sells out, it’s gone until the company decides to manufacture more – which may or may not be anytime soon.

With this sense of scarcity comes a sense of urgency. Because Zara’s customers know that a certain item will only be around for as long as it takes to sell out, they know they either need to buy it now, or risk never seeing it on shelves again.

This sense of scarcity also gives customers a sense of exclusivity and a fear of missing out.

3. Leveraging on Social Proof

According to an article by, Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead.

Zara relies heavily on social proof and word-of-mouth to generate visibility for its brand.

Many individuals take it upon themselves to create social media posts – then tag Zara in them. In turn, anyone who follows these posts on Instagram will be exposed to Zara as a fashion brand – without the company having to do anything aside from creating an attractive, high-quality product.

Zara also uses its store location and store displays as key elements of its marketing strategy. By choosing to be in the most prominent locations in a city,

These good locations ensure very high customer traffic for its stores.

Zara also partners with influencers to create content and generate exposure among new audiences

In Conclusion, these little details on how Zara are principles that would work for all store sizes if well utilized.

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