Fast-fashion retailer

Speaking of high fashion into my head come names of such brands like Celine, Dolce&Gabbana, Chanel and Louis Vuitton. All products that they manufacture can be boldly considered as works of art. Take a look at their bags and tell me you do not want any of them.

BeFunky Collage

Really? That’s what I thought! And although most of them look heavenly and there are great reasons why spending $1,000 or More on a Bag is Totally Worth It I am sure a lot of people will strongly disagree. How do you think how many of us can afford to throw $7000 on a handbag? Probably, not everyone. And this is the moment when on the scene appears such fast-fashion retailer as ZARA.

Luxury garments are priced higher

People that are interested in fashion perhaps know that ZARA takes ideas for their collections from fashion shows of famous designers (Doran 2014).


And this is a moment when the competition starts. Of course, the quality of the clothes produced by ZARA and Dolce&Gabbana cannot be compared due to the technologies and superior materials that are used by the second brand. But it is all about the price and quality ratio. And the willingness of a consumer to pay more and get better sewed suit or pay less and get quit similar quality. What is more important for you? Will you buy a jumpsuit from Stella McCartney or a similar one that will retail for €59.95 in one of Zara’s 5,900 stores in 85 countries?

Demand for ZARA

Brand is opening more and more stores around the world. Just check their website , choose your country and language, and start your online shopping. Everything is made for the consumer – quick and convenient. The retailer opens hundreds of new stores in Hong Kong, Taiwan and Macau to satisfy the buyer and prove its loyalty (Lutz 2015). “The store design’s primary emphasizes simplicity as part of the retailer’s on-going mission to facilitate direct contact with customers” (Ozler 2012).


“It is all about the money”

Chanel, Dolce&Gabbana and Celine are raising their prices with every year. Despite this consumers are still buying their garments and are lining up for a new bag from Chanel. You will ask ‘Why?’ if they can by a similar one from ZARA. The answer is simple – EXCLUSIVENESS. For a certain group of people with a high income this is a decisive moment. BUT when it comes to price-to-value correlation ZARA occurs as a real rival. Garments that are provided by brand are ‘affordable luxury’. Moreover, a wide range of consumers can afford them without the wallet emptying. And this is where luxury brands can lose.

Price sensitivity

ZARA has chosen a strategy of everyday low prices. This means that stores promise seven days a week low prices, so the buyer does not need to wait for the promotion or look for a comparison store (Iacobucci 2014). ZARA is a perfect brand for people with a limited income, but a huge desire to match fashion. How do you find the fact that person can purchase a blouse from ZARA and people would think that it is from Dolce&Gabbana? If you are not the most loyal buyer of Dolce&Gabbana that has a strong brand loyalty and prefers only luxury brands – than the idea of ZARA is just brilliant! Compare prices of these two brands, check the latest collection and you will see that this brand can become a perfect substitute for few of the leading brands in fashion.

Financial Crisis

Not less important the reality of a huge wave of financial crisis that spread around the world. The critical moment has made its own contribution and has predicted consumers’ choice.

images0C1NF05HToday more people before purchasing a bag from Chanel will ask themselves a question “Which value does it brings?” or “Does this handbag makes my life luxurious?”. Today more people while doing their shopping will compare prices and look for discounts or promotions. And this is a moment when ZARA shines – ZARAs finest hour.


Reference List

Doran, S 2014, Is Zara The Newest Luxury Fashion Competitor?, Luxury Society: A Division of digital luxury group, retrieved 27 April 2016, < >.

Iacobucci, D 2014, Marketing Management (MM), 4th Edition, South-Western, Cenage Learning, Mason.

Lutz, A 2015, This clothing company whose CEO is richer than Warren Buffett is blowing the competition out of the water, Business Insider Australia, retrieved 29 April 2016, < >.

Mull, A 2014, 8 Reasons Spending $1,000 or More on a Bag is Totally Worth It, PurseBlog, retrieved 28 April 2016, < >.

Ozler, L 2012, Zara Opens Its New Global Concept Store on Fifth Avenue, Dexigner, retrieved 30 April 2016, < >.



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