Zara

Recommendations

The best way for Zara to maintain their sustainable growth is to seek new opportunities in

the apparel market. With changing consumer behaviors as a result of globalization, and U.S.

department stores suffering, there are growth options available for specialty retailers like Zara.

Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen

recently. Zara should most likely develop a second central distribution center in the Americas to

decrease logistics in order to deliver fashionable goods in a faster manner. Their second central

distribution facility should be an expansion of one of their smaller distribution centers located in

Argentina, Brazil or Mexico. The close proximity of the distribution center to the American

market will allow them to effectively interpret the particular American fashion. The distribution

center will also allow them to have additional funds to spend in other areas of business such as

advertisements: a necessary feature to penetrate the American market.

Another market opportunity for Zara is to invest in Internet retailing especially directed

toward the U.S. market. Though Zara is wary of overexposure, Americans like to be able to

purchase all goods including apparel from the comfort of their own homes at any time they chose.

Therefore, since Zara is looking to expand in the U.S. market they could realize the potential for a

direct Internet selling strategy. That form of direct marketing will reach more consumers faster

and easier. Though it may be difficult to display all of Zara's ever-changing fashions online, it

may prove profitable for shoppers to purchase a moderate selection of trendy Zara pieces along

with some of their staple basics.

A final recommendation for Zara is to offer specialized products for different geographic

locations within the same city. Zara already does this to an extent for different international

preferences but more specialization will increase consumer demand and will motivate them to

visit more Zara locations within their own region. In some cities the company is possibly

experiencing