Research on ZARA’s Business Environment and Marketing Strategies in China

Abstract

Zara, as the leader among fast fashion brands, is deeply loved by Chinese consumers for its different styles, fashionable design, and rapid renewal speed. Therefore, the objective of this article is to understand the current situation of such a favorite brand in today's fast fashion industry. The paper explores three models to analyze ZARA from macro and micro perspectives, namely the PEST Model, Porter's Five Forces Model and 7p Model. Firstly, through the analysis of PEST Model and Porter's Five Forces Model, on the one hand, it is found that ZARA's early development in China market cannot be achieved without the help of external environment, such as political and economic factors. On the other hand, it is seen that ZARA has strong bargaining power in facing both suppliers and consumers, while its substitute and competitor threat are relatively weak. Secondly, the business process of ZARA in China is introduced using many graphs and charts, including the regional distribution of expansion and the opening of online stores. Thirdly, with the help of the 7p Model, the internal marketing strategies of ZARA, such as price setting and product features, are understood. Finally, the process of ZARA's sustainability and the social news caused by ZARA are also discussed. In conclusion, this study hopes to bring some reference to the growing local fast fashion brands through the specific analysis of ZARA, and to find out a unique path after learning the factors of ZARA's success to promote the development of China's apparel industry.