Essay About Second Central Distribution Center And Sustainable Growth

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The best way for Zara to maintain their sustainable growth is to seek new opportunities in
the apparel market. With changing consumer behaviors as a result of globalization, and U.S.
department stores suffering, there are growth options available for specialty retailers like Zara.
Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen
recently. Zara should most likely develop a second central distribution center in the Americas to
decrease logistics in order to deliver fashionable goods in a faster manner. Their second central
distribution facility should be an expansion of one of their smaller distribution centers located in
Argentina, Brazil or Mexico. The close proximity of the distribution center to the American
market will allow them to effectively interpret the particular American fashion. The distribution
center will also allow them to have additional funds to spend in other areas of business such as
advertisements: a necessary feature to penetrate the American market.
Another market opportunity for Zara is to invest in Internet retailing especially directed
toward the U.S. market. Though Zara is wary of overexposure, Americans like to be able to
purchase all goods including apparel from the comfort of their own homes at any time they chose.
Therefore, since Zara is looking to expand in the U.S. market they could realize the potential for a
direct Internet selling strategy. That form of direct marketing will reach more consumers faster
and easier. Though it may be difficult to display all of Zaras ever-changing fashions online, it
may prove profitable for shoppers to purchase a moderate selection of trendy Zara pieces along
with some of their staple basics.
A final recommendation for Zara is to offer specialized products for different geographic
locations within the same city. Zara already does this to an extent for different international
preferences but more specialization will increase consumer demand and will motivate them to
visit more Zara locations within their own region. In some cities the company is possibly
experiencing