Deconstructing Zara's strategy

Zara is building a hybrid business model, where it combines fast fashion with cues of luxury (curated capsules, art direction, photography, model selection, styling). Zara is still in the business of the mass consumption of standardized products, but now it’s also in the business of considered consumption of signaling products (Peter Lindbergh merc... See more

Summary: Size inclusivity is impeding Zara’s faster growth in the US market, a challenge that they are likely aware of. As of September 2021, Zara’s reported revenue is 11.84 BN euros in the first half of the year. This represents 49 percent YoY growth. Net profit for the same period was 1.27 BN euros. Zara’s estimated web sales are $5-$10BN, with ... See more

It still services the core Zara customer (trend-chasing, deal-seeking), but it adds aspirational dimension to their consumption. Getting a $9 turtleneck feels more aspiring with Sasha Pivovarova’s editorial next to it.