Zara and Online Transformation

Zara and Online Transformation
Zara is among the companies encountering challenges in the digital space after the COVID-19 pandemic effects. Zara is a Spanish company that has a high affinity for fast fashion. It is the largest among the Inditex group and focuses on perfumes, beauty, swimwear, accessories, shoes, and clothing (ZARA United Kingdom | New Collection Online, 2022). The company has focused on new technologies to design, manufacture, and distribute its products, thus reducing lead times and gaining a high competitive advantage over other companies. However, regardless of such effort, the company was heavily impacted by COVID-19 and has established a digital footprint to transform into an online business (Company + Info + Info | ZARA, 2022). The paper analyses Zara's current digital footprint and proposes effective strategies from existing opportunities.
Analysis of Current Digital Footprint
Assessment of Prominence and Extent of Digital Presence
Due to the impacts of the COVID-19 pandemic, Zara's digital presence has been rampant. The company has established online sales and a high-quality strategic commitment to service standards, store space, product, and design (TechnologyHQ, 2022). Zara has also integrated online stores using different technologies and promoting digital transformation. Besides, the company has focused on integrated stock management, open platforms, and propriety software. Zara is continuously opening larger online stores equipped with high-level and advanced technology globally. The company has also executed the online transformation to 85 markets in different countries. Therefore, its digital presence is improving at a significant rate. The digital strategies have successfully been established in more than 6000 stores and offer quality service to customers (Yin, 2022). However, the company heavily faces digital transformation challenges, including data loss, intense competition, customer loyalty issues, and agility issues. Therefore, it is vital to compare Zara with other companies to understand its level of digital presence and transformation.
Comparison with Others
Zara's digital footprint is unique from other companies; however, they focus on similar markets worldwide. Uniqlo, Zara, and H&M are some of the largest retail companies, with more than 2000 stores globally (Yin, 2022). Their digital strategies vary from each other; for instance, H&M majorly focuses on the US online market and is more prolific than Zara (Kim and Woo, 2021). The company also rapidly opens more stores to exhaust the online market than Zara. H&M uses the e-commerce model to exhaust the online market. Therefore it is unique from Zara.
On the other hand, Uniqlo transforms to online sales by adapting private-label apparel. The company creates a unique clothing line and sells them on its website (Uniqlo, 2022). It is also confined to brick-and-motor stores. The company also uses online techniques to appeal to consumers, especially in sport wears. Zara is unique from the two listed companies and others since it focuses on upper and lower garments during online transformation. The flagship and online stores are also strategically located. However, it faces online adaptation challenges from online-based companies such as Uniqlo and old companies with strong online-based customers such as H&M and Nike.
SWOT of the Current Digital Footprint
Strengths
Zara constitutes different strengths for its digital footprint, including effective research and development, digitally-equipped employees, and adequate resources for digital transformation. The company focuses on research and development, thus increasing its capacity for innovation in the online market (Chen, n.d.). Besides, it also has digitally trained employees, which allows it to transform into an online transformation. Zara has adequate revenues and resources for an effective digital footprint. The identified strengths boost its online presence and transformation.
Weaknesses