When we look at the current market scenario, where jobs are at a premium and the economy is in a downward spiral, there is a lot of cause for concern. Therefore, it is of utmost importance that we meticulously plan our future well in advance. For a middle class person like me, owning a business is a dream and ZARA Franchise gives you that rare opportunity. It is a business model that produces relatively high returns with a low to medium investment. ZARA is a well-known and respected brand throughout the world. The opportunity to partner with the ZARA franchise would give you an entry into and understanding of the ever-growing and extremely lucrative industry of apparel retailing.
Franchise ZARA was founded by Amancio Ortega and Rosalía Mera in A Coruña, Galicia, Spain in 1975. However, it was opened out of desperation and as a last resort, when a wholesaler canceled a large order in which all of Ortega’s capital was invested. So he decided to sell the merchandise himself and opened the first ZARA store. The first store also featured low-priced knockoffs of popular high-end brands and proved to be a huge success.
As the ZARA franchise grew in popularity, Ortega began the brand’s global expansion in 1980, entering the US in 1989. ZARA is controlled by the parent company called the Inditex group, which also owns companies like Massimo Dutti , Bershka, Oysho, Pull and Bear. , Stradivarius and Uterque. As of January 31, 2012, ZARA has more than 1,631 points of sale in around 82 countries and has more than 42 stores in the US with the US contribution being marginal at this time to earnings of $ 2.5 billion registered by Inditex, the growth opportunities for the ZARA franchise in America are immense and with ZARA planning to open multiple outlets in major US cities, the future of the brand is looking very bright.
The business model of the ZARA franchise is based on the motto “High fashion at an affordable price”. ZARA stores carry both men’s and women’s clothing and are subdivided into bottoms and tops, accessories, shoes and cosmetics. ZARA boasts low prices on fashionable elegant clothes. ZARA takes two weeks to develop and display the products in its stores. ZARA Franchise launches more than 10,000 different designs in a year, well above the industry average. ZARA has more than 200 designers who design new products taking into account current trends. They also take into account the feedback received from various store managers around the world and thus keep abreast of the likes and dislikes of the consumers and design their products accordingly. They produce in small batches per product with an extensive variety.
The other unique factor in ZARA Franchise’s business model is that it is a vertically integrated retailer unlike other clothing retailers. This gives them tremendous control over all aspects of production such as the supply chain, design, manufacturing, and distribution of their product. This makes the business more profitable since they do not have to outsource the different processes. ZARA also boasts of “word of mouth marketing” as it believes that if the product is good, it will sell. Shop windows also play an important role in promoting products.
ZARA offers its franchisees full access to corporate services, such as human resources, training and logistics at no additional cost. They also allow stores to give back up to 10% of merchandise purchased, which is a higher level than many other franchises. The ZARA Franchise generally makes a profit at the end of the first year and if there is any debt on the initial cost, it would be recovered at the end of the third year. All you have to do is contact the corporate office and depending on the city you live in, you can apply for the ZARA Franchise.
