How Zara is Taking Over The Retail IndustryZara implements an agile management structure that is gaining traction and beginning to overcome other retail brands like H&M, Abercrombie and Fitch, Uniqlo, and Topshop. With this agile management structure, Zara has been able to cut discount percentages, which, competitors numbers range from 40-70%, to 15-30%.
Agile management is a cyclical process that allows Zara to speed up production times and release lines in stores globally just 15 days after their design. American retail has nicknamed this style of management ‘fast fashion’ and it not only gets items into stores faster, but is capable of staying on top of trends and cater to customers more accurately. By judging what sells well, Zara is able to match current trends and make a quick turn with little to no stockouts (price reductions from unmovable merchandise).
Instead of spending months on planning and showcasing seasonal collections, Zara doesn’t do runway shows. Their promotion is direct, as they recognize customers aren’t searching for catwalks or high profile celebrities wearing exact garments they sell. Zara has recognized their audience that is interested in looking fashionable, but not needing a name attached to the look. With the agile management structure Zara is able to emulate high fashion at a pace that cannot be caught.