Market Segmentation Of Zara

Founded in 1975 in Spain, the clothing company Ezra owns over 2000 stores in 88 countries. Its parent company, Inedited, one of the world’s biggest fashion retailers with eight brands and more than 6390 stores worldwide, made a net profit of over 2. 3 billion euros last year. Ezra builds its global success on speed, which allows it to deliver the new designed product to different stores around the world within fourteen days. Ezra strategically opened its stores in leading cities with high population. Obviously it is related to Sara’s market segment.

Essay Example on Segmentation Zara

Though Inedited designs various similar fashion clothing brands like Pull&Bear, Shoo and Strabismus, their targeted customers and market segments are not the same, but complementary. Ezra targets its own market segment and accordingly has separate design, production and positioning strategy. Demographic segmentation plays a vital role. Sara’s market segment focuses on women rather than men. Specifically, its targeted customers are between 18-40 with mid-range income.

Most of them are interested in fashion and hold a hectic lifestyle.

Though they are fashion freaks they might not be affordable to the luxury couture and they may not focus on the quality. Based on this, what they expect particularly from the market is the fancy and trendy clothing with medium-priced and rapid replacement, which means the speed of design, producing and delivery is crucial. In order to satisfy their needs, Sara’s designers get their inspiration and design and then stylish clothes can be presented in every Ezra store only fourteen days later, whilst, most fashion brands sell their clothes in four seasons.

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Lower price, moderate quality, fast and reliable delivery, wide range of fashionable products are the competitive factors of Ezra. Such competitive advantages rely on the continuous creation and fast speed of shipping new products. To achieve these, Sara’s young designers design around 40000 new clothes per year and launch 10000 of them. Most new designs are the latest trend but with a lower price, which helps Ezra beat its luxury fashion brands who provide the similar design products. Thus, lower cost, fast speed and reliable delivery are all order winners.