There are few key takeaways from Zara’s success that Filipino retailers can incorporate into their business.
The first thing to note is that electronic commerce is rapidly gaining traction among consumers in the Philippines.
Thus traditional brick-and-mortar retailers are in the best position to take advantage of this revolution, according to the Philippine Retailers Association.
However, with e-commerce providing readily available product information, from price to reviews, this could prove challenging for physical retailers to remain competitive.
So, what can Filipino retailers do to remain their foothold?
One great way is to learn from one of the world’s largest fashion retailer, Zara!
Zara has 2,200 stores in 96 countries. They are known for developing new products and releasing it to stores within two weeks. The usual product-to-store period for retailers is six months.
What is the secret behind their success? And how can Filipino retailers benefit from it?
Here are 3 takeaways from Zara’s success that will surely help you with your business!
1. Focus Less on Stock Volume and More on Style Variability
Zara does not stock a lot of clothes, only allowing its designs to remain on the shop floor for three to four weeks hence, causing the brand to gain in two ways.
One, it does not have to hold excess sales to get rid of inventory. Instead of having constant markdowns, Zara organises two time bound sales annually. Moreover, their discounted pricing only entails a small proportion of their products, half to be exact, compared to their competitors.
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