10 Reasons Why Zara Ecommerce Is Rising in 2018 Amid The Retail Apocalypse

Will the retail industry survive?

There is not a day that goes by when there is no article about the retail apocalypse. In the same time, I also read success stories about other retailers rather than Amazon.

Why are some retailers prospering while many retailers from the old generation are dying?

The truth is much simpler: the old way of how people shopped have evolved. The retailers that have changed are doing fine, even great and those who are still stuck in the past will remain there forever.

I picked Zara as a retailer to learn from by two reasons: first, I like my personal experience as a customer of this brand, and second, the company demonstrates an excellent sales performance in the last few years, which we consider as the period of the retail apocalypse.

Brief facts about Zara

Today, Inditex – which also owns Zara Home and Zara Kids as well as fashion labels Bershka, Massimo Dutti, Oysho, Stradivarius, Pull&Bear, and Uterque – makes more than one billion garments annually and has 7,292 stores in 93 markets around the world. Last year alone, net sales reached €23.3 billion (S$36.2 billion), up 12 percent from the year before. (1)

• None of this breakneck growth can be attributed to advertising though, given that Zara rarely advertises.
• Zara has 21 day policy of getting new fashion to market. It means that Zara is able to design and stock an outfit in its international stores in about 20 days.
• Zara is a rapidly advancing into the online space, with its e-commerce arm now operating in 41 countries, including Singapore as of March this year.
• By having a unique fashion design process, Zara can also utilize the online channel by having one of the best online stores in the fashion business to get their products to the customers faster.

What are the 10 reasons that make Zara eCommerce successful?

Below we listed the 10 things, which we believe Zara eCommerce site (2) does right. The screenshot examples provide decent visual illustrations for each point.

1. Great Product Selection

2. Excellent Mobile site

Zara offers the mobile site that is fast and easy to use

3. Exceptional Size Guide

The size guide is really helpful and works well in mobile

4. Fast delivery

You can order and get the item in just two days if you pay the $10

5. Easy returns

Zara e-commerce offers a very easy process of returns. You receive an email with instruction and labels.

6. High-grade Search

It is effortless to use search to find products that you are looking for

7. Relevant and timely  Email notifications

Zara sends their customers appropriate order status updates all the way through.

8. Payment Options

The online store offers various options to pay for your product.

9. Lots of Product Pics

The product detail pages present shoppers with several shots of the products from various angles.  The high-quality merchandise photos get buyers excited about the product and reduce returns due to inconsistencies between customers expectations and the final product received.

10. In Stock Notifications

If item is not in stock, you can subscribe to receiving a notification when it will be available

Conclusions

You don’t need to be Amazon or a new generation start-up retailer to be successful today. Zara had been founded over 40 years ago in 1975. The key to success is the ability to innovate regardless of age. By combining active internal company communication with the latest big data technologies, Zara can learn the consumers demand and react fast. Zara spends over 20% of its capital investments on technology. Its e-commerce operation provides superior shopping and user experience.

We hope that other apparel retailers can learn lessons from Zara e-commerce.

References

1. Zara’s secret to success lies in big data and an agile supply chain, http://www.straitstimes.com/lifestyle/fashion/zaras-secret-to-success-lies-in-big-data-and-an-agile-supply-chain
2. ZARA Official Website, https://www.zara.com