the zara formula for retail success

7% sales growth and 56.8% margin growth – How does this compare to your business? In 2019, fashion chain Zara reported a US$1.71 billion profit on the back of a 7% rise in sales and a 56.8% boost in margins. I can’t speak for your business – but mine was not in the same league […]

7% sales growth and 56.8% margin growth – How does this compare to your business? In 2019, fashion chain Zara reported a US$1.71 billion profit on the back of a 7% rise in sales and a 56.8% boost in margins. I can’t speak for your business – but mine was not in the same league on any of these criteria. Some would be surprised to learn that this was achieved with an advertising budget of $0. In 2019, as in previous years, Zara had no advertising budget. Instead, their focus was on being truly customer-centric and maximising the lifetime value of each customer. This was demonstrated by:   Leveraging customer data Selecting the best locations Leading the market in range Zara has built a market on the back of a great product – and so can you! RECOMMENDATION – Use advertising if you like, but don’t rely on it. First,…

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Five Tips For Reducing
The Cost Of Branding.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

1. Get out of the boardroom.

Perhaps the two most concerning issues about branding are the lack of understanding about what brand and branding are and the propensity to develop brands in the boardroom, perhaps with the help of a consultant.....

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