Zara produces in small batches which creates a culture of scarcity with customers. The production of small batch sizes has pivotal implications in retail creating a culture of scarcity. Due to small batch size, most styles aren't replicated - they're new, not homogenous - but replaced with entirely new styles twice each week. Traditional retailing dictates if something is selling well, you make more of them to continue making money but Zara does none of that which begs the question: How does the cycle of internally produced scarcity affect retail margins? As with anything, people are willing to pay more for a product of limited supply; it's a scarce. It may seem counterproductive to run a chain of stores on scarcity but as mentioned in the Economist:

"Shoppers cannot be sure that something that has caught their eye will appear in the store again - or can be found at another Zara store, even in the city. On the other hand, they also know that everyone they meet will not be wearing it."



...just an extract. haha.
ok i'm done with this project!!!! PENAT ARH!!!!



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