School of Economics, Shanghai University, Shanghai, China
“Less variety, large batch" belongs to the conventional manufacturing industry, but for the "long-tail market" nowadays, "more styles and small quantity" has become a common business model. Zara, with its "multiple styles and small quantities", has already been a fresh model in the long-tail market, which consciously "creates shortages" in production. Even though it can produce almost tens of thousands of items per year, the number of item is quite small. Zara only sells a limited number of items, even for popular items, which is a way for the company to get consumers into the habit of coming back regularly. Just as the limited editions of stamps increase the value of stamp products, Zara in this way satisfies a large number of personalized needs and cultivates a large number of loyal fans. "Multiple styles, small batch" enables Zara to achieve a breakthrough in the business model of clothing enterprises.
Value Creation, ZARA, Business Model
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