The apparel industry faces numerous challenges which are reflective of different consumer behaviors and habits. It is important for organizations to recognize these factors and to integrate them into their store fronts and models to improve customer satisfaction rates. Since apparel is a high-risk venture in many ways, it is necessary to develop a greater understanding of the key issues which impact the industry and how companies such as Zara can manage these risks effectively. The industry is largely affected by how the global economy is performing; therefore, it is important for competitors to take the steps that are required to meet challenging and finicky customer demands (Doiron, 2015). For retailers, “fashion misses,” which are characterized by poorly received apparel which leads to discounts and markdowns of up to 60 percent of up to 40 percent of inventory (Doiron, 2015). Therefore, mitigating this risk requires extensive advertising, as noted by Gap, Inc. whose advertising budget in 2013 was $637 million to achieve sales of $16.148 billion (Doiron, 2015). From this perspective, it was inevitable that retailers could significantly benefit from extensive advertising campaigns if they were well-received and supported by a framework which positively impacted the diverse customer base (Doiron, 2015).

There was an increased demand for unique clothing in some markets; therefore, Zara took advantage of this offering by creating an environment which it could manufacture products in smaller quantities to mitigate risk and introduce new items to customers without much difficulty (Doiron, 2015). From this perspective, Zara could also create new stores at a rapid pace but with a unique flair for the customers who shopped in the surrounding areas (Doiron, 2015). From this perspective, it was evident that the organization was in a position for continued growth by opening new stores, while other companies reflected on the need for expanded marketing in other ways (Doiron, 2015). Furthermore, the company established prices for its clothing that were approximately 15 percent lower than the competitors but could deliver clothing that was high quality and in high demand (Doiron, 2015).

Gap was in direct contrast to Zara because its clothing lines were introduced during spring and fall, with comprehensive planning, marketing, and production strategies leading up to these introductions (Doiron, 2015). Furthermore, manufacturing was performed at a very low cost per unit in Third World countries, but created a higher risk of misses and discounts (Doiron, 2015). Furthermore, Gap, Inc. carried several brands, including Old Navy and Banana Republic, with multiple retail outlets, many within close quarters (Doiron, 2015). This approach to doing business requires an effective understanding of the key factors which impact the brand and the business, and how Gap, Inc. could be effective going forward with competing business models in tow, such as Zara, Uniqlo, and Topshop (Doiron, 2015). It was important for these companies to assume new approaches to business to stand out from the rest and to take the steps that were required to facilitate positive experiences within the retail industry, along with understanding how to expand its market presence in different areas that would have a lasting impact on performance outcomes for these retailers.

It was likely that Zara and other retailers could have a positive and lasting presence by creating unique value for the customer and providing attractive apparel in unique ways that were different from the competition. This was an important step for retailers to take to create an environment whereby exclusivity and value go hand in hand and create an environment in which retailers could thrive and be successful in a highly competitive marketplace with a unique business model and framework in tow.