Perspectives from ISB

A recent New York Times article describes Zara’s strategy in retailing fashion goods in the global marketplace. Zara has invented a new form of forecasting fashion. Prior to the Internet word of mouth was perhaps the best way to identify trends. Zara added a quick response system to this and made that a profitable combination. What is fascinating is Zara’s rate of expansion into China. It suggests Zara is trying to reach customers of a certain demographic segment. Other retailers should be watching these moves closely and trying to understand beyond the strategy how China has become a huge and profitable market. It is also some what intimidating to think about the head start Zara has in collecting information about customers.