High street stores are collapsing, but Zara is thriving – what’s the secret to its success?

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High street stores are collapsing, but Zara is thriving – what’s the secret to its success?


Amber Valetta for Zara
Amber Valetta for Zara
Queen Letizia of Spain in Zara
Pedestrians pass by a ZARA Textiles shop on January 8, 2018 in Berlin, Germany

In the never-ending coverage of doom and gloom coverage, there has emerged one positive retail story.

On Wednesday, Inditex, the Spanish retail giant which owns, Zara, announced profit growth of 3%, which, 10 years ago, would hardly make headline news, but in 2019, when retailers are crashing at an alarming rate, it prompts think pieces such as this. Inditex owns Pull & Bear, Bershka and Massimo Dutti, among others, but the undoubted jewel in its crown is Zara.

Its attainability has long been at the core of its long-standing dominance in the cutthroat retail market and its styles transfer universally, attracting shoppers in everyone from royals like Kate Middleton and Spain’s Queen Letizia to the literal girl next door. As Instagram tightens its grip on the youth market, which expects teenagers and younger women in particular to embrace a copycat culture, Zara is using this practice to its advantage.

Last year, Zara significantly overhauled its digital department, putting more of a focus on online sales, while simultaneously investing heavily in their brick and mortar stores. In 210 of its biggest selling stores, mostly in the US and continental Europe, they launched augmented reality experiences allowing customers to see models wearing the clothes they’ve chosen via sensors. It was a dream marriage of the appealing ease of online shopping with a modernised in-store experience.

Shopping patterns are changing – as we see with the near-monthly announcement of former retail behemoths being forced into administration – but Zara is a business which places the customer at its core.  Its products are appealing, yes, but they are no better or worse than competitors like H&M, Marks & Spencer or Mango. They are, however offering a fast, quantity rich response to trends dictated by the big fashion houses and they have it down to an art.

Last year, they released a near-identical version of Hermes’ tan leather sandals for €29.99 (in comparison to Hermes’ €480) which resulted in a near-instant sell-out and enough buzz for them to repeat the style again this spring/summer. Unsurprisingly, there’s already a waiting list for the next delivery.



High street: Kate Middleton keeps it classic in a navy blazer from ZaraHigh street: Kate Middleton keeps it classic in a navy blazer from Zara

High street: Kate Middleton keeps it classic in a navy blazer from Zara

They are particularly adept at their marketing strategy, carefully choosing which hero pieces which could be easily traced back to a runway show during Fashion Week (like the feather embellished robe first seen in Prada last summer) instead of adopting a one-trend-fits-all model and rolling out duplicate after duplicate.

While fast fashion brands like Boohoo and Missguided react to Kim Kardashian-inspired looks within a few days; Zara will roll outs inspired looks a full season later, like a ‘real’ designer. Their customers are part of the experience and building brand loyalty through these tactics is a key to its endurance as a market leader. Considerable thought and care goes into replicating Balenciaga and Yeezy runners, which are done so effectively, few care about the fact they are not the real deal.

And unlike smaller designers like Issa, which crumbled under the weight of trying to cope with global demand after Kate Middleton wore their royal blue wrap dress announcing her engagement in 2011, Zara thrives in this type of reactive environment.

On social media, bloggers and fashion influencers are also taking a step back to evaluate their #OOTD strategy. On the one hand, they want to showcase – or at the least the appearance of – their frugality with designer dupes; on the other, they require cheaper clothing in order to allow their black Givenchy Antigona tote to be the focal point of a picture. Both of these are opportunities for Zara to shine.

A bargain in Zara is one which is shouted from the rooftops and their response to sell-out stock in the form of waiting lists and email sign-ups allows the pattern to continue. It doesn’t have quite the same effect as, “Thanks hun Penneys”, but it’s not far off.

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It retains its identity as a mid-scale store with designer look-a-likes aplenty mixed with respectable basics for reasonable prices. These days, simple, solid colour tops are hard to come by. These days, labels prefer signature designs, fabrics and styles to stand out on social media and in real life, but Zara understands that no day is the same for any woman, who requires an arsenal of clothing hanging in her wardrobe.

It sells two collections: TRF, its low-priced basics line, which is aimed at younger women, while the more expensive Women’s range is for when you’ve ‘grown up’, thus allowing a built-in customer experience to last years. It also has men’s, children’s and a homewares range.

Last year, I was on holidays in Istanbul and I was wearing a black floral bomber jacket I bought in Zara back in 2016. As I walked past a restaurant, a man asked confidently, ‘Zara?’ He said he used to work as a designer there and seemed genuinely thrilled to see it in real life, two years after it was on the market. That same jacket is one I joined two different waiting lists to get my hands on after seeing someone share it on Instagram. Such is the cult of Zara, that more than one colleague of mine owns it as well and we have been to known to double up on it in the office.



Queen Letizia of Spain in ZaraQueen Letizia of Spain in Zara

Queen Letizia of Spain in Zara

So, what’s the secret to its success? The effective model they’ve built over the last 44 years. It’s just that now the rest of the world is noticing.

Online Editors


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