Zara: a fast fashion company

by Claire McKenna

The idea of “fast fashion” in the fashion industry is taking off. This new type of fashion is based off the idea of stores bringing in new trends and styles in shorter amounts of time. Companies design clothing and get it into their “shops” within the three weeks. This attracts many customers due to the fast pace and the new clothing that comes in very quickly. Fast fashion also contributes to “retail therapy,” which is when people shop to avert their attention from the problems they are facing in real life. People are able to find new clothing from their favorite stores within short spans of time. Customers are also attracted to the knock-off high fashion styles that are often used. These clothes are also not as expensive as high fashion clothing, and enables them to buy cheaper clothing. Surprisingly, these fast fashion stores are helping to lower the average debt in this country even though people are buying more clothing. The fast-fashion industry is booming due to this new epidemic.

Zara is one of the leading companies in the fast fashion market. It is a company that sells fashionable clothing for an affordable price. The man that owns this company is Amancio Ortega. He was named the richest man in Spain in the last few weeks due to his success from switching into the fast fashion industry. His company started as just a dress making company. However, it developed over the years and when they switched into this industry it began to be a booming business. Due to Zara being part of fast fashion, it is no surprise that their profits were up 6% in the last year. They get new clothing items in every two weeks, which enables shoppers to keep returning for the new looks. However, this market is expanding and many other companies such as H&M are rivals. These new big companies that have managed to bring many new clothes in every few weeks have put pressure on other companies to preform in similar ways. However, some companies have not been able to keep up, for example, Gap. Gap feel 4% in only one month. I think that it will be critical for companies to be able to keep up with fast-paced companies such as Zara in the future.

Sources:

http://www.marketwatch.com/story/gap-july-comparable-sales-fall-more-than-expected-2016-08-08

https://www.businessoffashion.com/articles/news-analysis/inditex-profit-beats-estimates-outpacing-main-fashion-rival-hm

https://smartasset.com/credit-cards/the-economics-of-fast-fashion

http://www.cnbc.com/2016/09/16/5-secrets-for-success-from-zara-billionaire-amancio-ortega.html

http://www.forbes.com/profile/amancio-ortega/