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Zara Home is a subsidiary of the Inditex group, which manufactures and sells clothing and home textiles. The company was founded in 2003 and currently operates 408 retail stores in 44 countries. The company is known for selling various kinds of housewares at an affordable price. Despite its affordable prices, the brand does not compromise on quality. It follows the fashion calendar and offers high-quality pieces at a low price.
Inditex Group’s Flagship Fashion Retailer
Inditex group, the owners of the world-famous Zara brand, has been creating stylish clothing for decades. The Inditex group has a unique way of creating brands and differentiating them from one another. The group follows fashion weeks closely and invests in the historical appeal, beauty, and location of its stores. This approach enables them to reach consumers from all demographics and creates a diversified product offering.
While Inditex has an impressive portfolio of brands, Zara has taken a beating in the global retail market. Its sales declined 44% year on year during the first quarter of 2020, and the group posted a net loss of USD 482 million. However, the company’s flagship brand, Zara, remains the basis of the Inditex group’s expansion into home furnishings and decor. Its sales in home furnishings and decor were up 50% in Q1 2020, and its online business is on the rise.
In the past decade, Zara’s business model has largely been focused on providing affordable, stylish clothing. The company employs around 200 designers and produces approximately 11,000 items annually. It also uses recycled, low-priced materials whenever possible. In addition to providing fashionable clothes at competitive prices, Zara has a strong commitment to environmental responsibility. Its commitment to sustainability is now a must-have hygiene factor for companies.
In addition to sustainable practices, Zara also produces more than 450 million items each year, and it can update its store inventory quickly with new products. As a result, it can offer customers a wider selection and a higher chance of finding what they’re looking for. In addition to its eco-friendly business model, the Inditex group’s flagship fashion retailer is aiming to become 100% eco-efficient by 2020.
It Follows the Fashion Calendar
The way Zara Home follows the fashion calendar is simple: it adds new items to its website every month and plans capsule collections in line with the season. You’ll notice that the website has an envelope next to sold-out sizes so that you can sign up for email alerts. Added bonus: Zara Home isn’t cheap! Even though it’s not cheap, you can find some really great pieces for under PS30!
The new flagship store is a 1,000 square-meter space and will feature the SS21 collection. You can browse decorative items, kitchenware, dining room ware, and tableware, as well as home fragrances and bedding. It’s like a curated shopping experience for the home, with pieces designed for the kitchen, bedroom, and bathroom. The store will also be a hub for home decor and decorating ideas.
The company plans to integrate the brand’s home decor and homeware into the Zara website and expand to new markets. This move will allow the company to test new consumer behavior and take advantage of operational synergies. The company plans to incorporate online and store management to create a truly omnichannel experience. Zara Home follows the fashion calendar and is launching its first home-decor line in the US this summer.
The company’s success in the Philippines is due in part to its distribution in the country. The brand is distributed by International Specialty Concepts, Inc., a member of the SSI Group. It operates in Ayala Center Cebu, Glorietta 3, and Mega Fashion Hall in Manila. Zara Home also rolls out its products in selected Zara stores. In the future, it plans to launch a homeware and home decor section in select Zara stores.
It Discounts More Often Than Its Competitors
While Ikea does not offer discounts as frequently as Zara Home, it does offer more frequently. This makes it an attractive competitor because it places itself on par with the latter. Its home division follows the fashion calendar and has two major collections a year. But its strategy differs from that of Ikea and other home furniture brands. Both brands are known for having excellent stock management and offer discounts more frequently. But Zara’s discount policy is somewhat counterproductive.
As a result, Zara’s home department has more inventory. The company produces approximately 12,000 new styles a year. Because of this, there is more variety and a better chance to find the style you want. The brand’s sales staff also works hard to offer discounts. It also offers free shipping on orders over €200. With so many products, Zara’s home department also offers more frequent discounts than its competitors.
By focusing on production in-house, Zara produces more products than any other brand in the world. The company also launches new designs quicker than its rivals. It has fewer unsold inventory and offers steep discounts more often than any other retailer. As a result, consumers save more and retailers pay less. That’s how Zara differentiates itself from other fashion retailers. So, why does it have a better supply chain than most of its rivals?
Because Zara is more focused on the Home Textile department than the apparel line, it can leverage synergies between the two lines. Its apparel line tends to offer lower discounts than its home department. The strategy of Zara Home is to focus on the home department and to follow the fashion calendar, which means it has fewer discounted articles than its competitors. The same can be said of its home textile department.
It Offers High-Quality Pieces at A Comparatively Affordable Price
Zara home carries classic home decor pieces at affordable prices. Some of its more notable items include a duvet cover with an embroidered band around the edge and a patchwork rug with multiple square and rectangular shapes and fringe details. While these pieces might be inexpensive, they look like they’re made from high-quality materials. Zara home prices are lower than many other brands and are comparable to those found in department stores.
Zara home is a recent addition to the fashion line. The pieces reflect the same sleek, sophisticated tastes as Zara’s apparel. Most of the pieces incorporate art-deco-style designs with a modern minimalistic appeal. While some people might not appreciate this style, it can work well with a modern or minimalistic decor style. There are several styles to choose from, and you can even find pieces that blend vintage and contemporary designs.
Although Zara home is a relatively new brand, it has already generated revenue of nearly EUR19 billion in 2019. The company focuses its efforts on the Home Textile department and aims to maximize synergies with the apparel line. Because of this, it follows the fashion calendar and uses low discount levels. Its share of discounted articles is lower than that of its apparel line, which is a major selling point.
It Teamed Up with British Interior Designer Rosie Seabrook
For the AW20 campaign, Zara Home has partnered with British interior designer Rosie Seabrook. The collection features serene spaces inspired by Belgian design. The new campaign highlights the homes of Belgian architect Benoit Viaene and vintage store owner Ann-Sohpie De Stoop. The brand focuses on the importance of simplicity in home design. Seabrook’s signature style has been a popular trend in interior design since the 1990s, but the collection is not limited to Belgian style.