Selling the Zara Way.

Selling the Zara way. Over the last 12 months  there has been a lot of talk about Amazon and its threat to retailers and business owners here in New Zealand and in Australia.

This follows the possibility that it may establish a direct presence in both countries following a clamp down on tax free overseas internet shopping

I believe that the death of bricks and mortar is exaggerated. The problem, I wager, is that marketers have become (or perhaps have always been) shopkeepers.

One of the richest men in the world, Amancio Ortega, is worth around $80 billion.  An article in the  Renegade Millionaire System newsletter talks about what made him so wealthy … and, guess what? He is a retailer!

Here are a few extracts from that article.

Small beginnings

Dropping out of school at about 13 years old, Ortega got a job making shirts and other clothing items. Over several years he turned that role into a profit sharing cooperative with a workforce of 600 people over a ten year period. He then opened his first retail store.

Today he owns 2,100 Zara stores in 88 countries and his approach is revolutionary. He makes what he sells; more than one billion pieces a year – fast fashion clothes not made to last, bought for immediate gratification (often a night out) then on to the next thing.

Speed to market

Ortega’s stores carry little inventory and he ships newly created fashion every week so customers always have something new to get excited about. By creating a production cycle that is much faster than the industry norm, everything in store is trendy.

This supports full price selling because once an item is gone you can’t get it again and it costs significantly less than some of the designer brands that Zara is positioned alongside.

Modest Billionaire next door

The article continues to say that Ortega is famous for striving not to be famous.  He avoids being photographed and agrees to very few interviews.

Commuting to work every day he dresses down; usually not wearing a tie nor clothes made by his own firm. He continues his modest approach by eating in the company cafeteria with his employees so he can stay hands-on with every aspect of the business.

This inspirational success story shows a company that has a hands-on owner, great systems, and an approach that is so different from others.

Selling a product like Zara is more about the need to have a mindset that is different from other retailers.

Different ways to approach the selling process is critical to the ongoing success of any business.

Mike

Startup? Set for growth? Talk to Mike about how he can help you grow your business fast.

Call him for a FREE 15 minute consultation call on +64 21 434 791