How a brand like Zara owned by Initex with a market cap of 84.87 billion EUR and clocks revenue of Billions even with Anti Marketing Strategy? 😳
Unlike most of its competitors ZARA doesn't rely on promotional marketing or advertising.
Zara only spends about 0.3% of sales on advertising despite earning billions of dollars in revenues each year.
Zara designs produces, distributes and sells its collections within two weeks.
And little inventory means lower storage costs and fewer discounts.
This creates scarcity in the mind of customers to buy their favorite designs quickly as they know they will go out of stock soon.
Most luxury stores tend to locate their stores away from average audience reach, but Zara stores are usually situated in city centres.
In conclusion, we can say ZARA is focused on a "less is more" ideology which creates the Fear Of Missing Out (FOMO).
Comments