Zara uses the strategy of Market orientation. This plan is employed for creating customer value by the focusing on the customer throughout the vertical company of the business. The whole business design of Inditex (its father or mother brand) is characterized by a high degree of vertical integration and incredibly short business lead times.
It rarely uses advertising and spends just 0. 3% of its revenues in advertising and marketing. This is significantly less compared to the industry average of 3-4%. Instead of spending on advertising, Zara positions itself in major locations, invests more on store designs and shortens its lead-time. All its stores are also found in excellent locations in big city districts. The average store size is 1, 376 square meters and makeover of old stores is done every 3-4 years.
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