HIGH (STREET) EXPECTATIONS – HOW ZARA IS REFASHIONING ITS BUSINESS MODEL, TURNING THE TIDES FOR INNOVATION.

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Image Credit: ZARA

In an ever evolving fashion ecosystem fast-fashion giant Zara owned by Inditex refuses to stick to the known, creating, most actively in recent years, game-changing strategies via buzzy brand marketing campaigns that seem to not only reshape fashion but also tackle the macroeconomic problem of the industry. It does this whilst taking advantage of the fact that demand for luxury goods has significantly plunged - with the SS25 fashion weeks reaffirming this sentiment. 

Success does not nor it ever will reside in the “playing it safe” minefield, it is rooted in creative risk-taking. In this light the Spanish fashion chain has been constantly tailoring operations to fit the ever-changing interplay between the new wants and the new needs of shoppers, whilst taking action on its ongoing commitment towards a more sustainable model.

Case in point: In October of 2022 prior the luxury resale company Vestiaire fast-fashion ban (which included Zara), it launched an integrated program, as part of Inditex’s approach to circularity with a commitment to achieving climate neutrality by 2040, via an innovative platform to help customers extend the life of their Ζara clothing. The pre-owned initiative, joined a number of retailers dabbling with rental, resale and repair, as the industry faced criticism over its high carbon footprint and shoppers opted for more sustainability-focused options. That same year it joined a group of investors backing textile-to-textile recycling company Circ's Series B funding round, which raised more than $30 million – with which it also later teamed up to launch a recycled fibre collection. These shifts towards sustainability to curb fashion's environmental impact, were just one example in which Spain’s most successful brand sought to create disruptive innovations in order to drive long-term growth. 

To further navigate the complexities of the modern landscape and, hopefully achieve sustained competitive advantage whilst help sales soar, Zara applied one more principle to its strategy – that of high-end collaborations - to expand influence. It proved, how powerful the right cross-functional link-up between brands, designers, photographers and supermodels can be.

Image Credit: ZARA

In 2022 the high-street hero had iconic supermodel Kate Moss design a party-wear capsule collection inspired by nights out in Paris. Then followed Natalia Vodianova who starred in the exclusive Narciso Rodriguez x Zara collection by the minimalist American designer, as well as Irina Shayk who designed a capsule collection entitled “A New Sensuality” that same year. Notably, Lila Moss also starred in Zara’s denim collection for summer 2024, whilst fashion icons Cindy Crawford and Kaia Gerber (mother and daughter power duo), just this week ago, were the hosts for the inaugural event of Zara Streaming - a shopping broadcast of a special collection styled by Carlyne Cerf de Dudzeele featuring modern versatile pieces to build a fall wardrobe.

More recently, Zara has also collaborated with Italian designer Stefano Pilati for a coed capsule collection bringing his “fearless, intuitive elegance” to the most globally relevant fashion brand. The collection of clothes and accessories for women and men was shot by iconic photographer and a Zara favourite, Steven Meisel starring Gisele Bundchen and Pilati himself - creating a huge buzz in the fashion world (prices for the collection range from $17.90 to $399). Even more recently, it announced that the shape-shifting creative director Samuel Ross, the Virgil Abloh protégé, will be designing, under a unified vision, bi-annual menswear collections under the label SR_A Engineered by Zara - coming early 2025.

Image Credit: ZARA

It is safe to say that Zara, in recent years is showing us all the ways in which fast-fashion can deliver high fashion and at an affordable price. But Zara’s innovative fast-fashion approach, is also about forcing change in the industry and re-evaluating the shape of things to come. Sticking to the known is no longer the safest approach. At the same time, the changing market is forcing brands - luxury and high street - to consolidate in order to navigate the competitive landscape. Getting it right is far from easy, but Zara’s success is here to underscore the importance of speed and flexibility in the fashion industry. Businesses should prioritize agility and adaptability to stay competitive in dynamic markets. 

In terms of fashion, it is also a positive shift to see the throwing of certain taken-for-granted assumptions into question, via the merging of sectors. With societal norms and values, as well as regulations changing in a direction clearly not favourable towards the luxury vs fast-fashion conundrum, there is a clear window of opportunity for brands to change and adapt. As Stefano Pilati put it, investing in high street might even be elevating for a change: “Working on Zara made me feel that perhaps I miss something that is a bit more elevated, you know […] it made me feel how much I enjoy to do a collection.” 


ABOUT THE AUTHOR

NICOLE ZENIOU

Nicole Zeniou is a Contributing Fashion Features Editor at Bungalow 28, joining in 2024. Previously the Fashion Features Editor at Madame Figaro Cyprus, she has contributed to titles like Marie Claire Greece, Cosmopolitan Cyprus, and The Cyprus Weekly. Founder of the online interview magazine The Éditor, Nicole is passionate about blending creative disciplines and supporting international talent. She has interviewed leading fashion figures such as LaQuan Smith, David Koma, Casey Cadwallader, Lorenzo Serafini, and Mary Katrantzou.



Bungalow 28 is a tech and creative agency dedicated to fashion, luxury and cultural brands worldwide.

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