THE FASHION DISPATCH

THE ZARA CASE AND HOW TO READ THE FINANCIALS

150 150 SUSANNA NICOLETTI
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Are you convinced that Inditex Zara brand is going soon into trouble because it’s shutting down 1.200 stores?

Or do you read between the lines and you analyse what’s going on inside this smart fast fashion company?

Certainly these are very challenging times for the fashion system and anything could happen.

What Zara can teach us is very interesting anyway:

  1. A strong branding does not mean huge investments in advertising nor in press. It means creating a strong relationship with your community through different touch points: the store, the (social) media, the positioning on the market
  2. A strong brand is not rigid: it can re-size its retail network, it has hugely invested in logistics, it has a growth mindset
  3. Pivoting ability is the key success factor. This means leaving behind attachment, nostalgia, accomplishments and being ready to: understand the evolving world, adjusting the strategy and the execution, setting up new business objectives.
  4. A marketing strategy is broader and deeper than press office activities.
  5. As per the slide attached from Statista, the group has grown steady but smartly. It has a high level of cash flow and it’s getting ready for the next chapter.