ZARA Case Study

WHAT STRATEGIES IS ZARA UNDERTAKING AS A
PREMIUM BRAND TO SURVIVE DURING THE COVID

CRISIS?
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Abstract
The fashion industry of the UK has been discussed with the essential information and current data
of the industry. The “The theory of Strategic Management” and “Basic strategic planning process
model” have also been discussed in this study as these theories and models have similar theoretical
concepts with the concerning topic. An academic context has been provided in the study where the
importance and impacts of “COVID-19” have been discussed. The study has selected the
positivism research philosophy to relate major factors of the study to make the meaningful
conclusion. Data collection has been done by following different steps. Specific keywords have
been chosen for the study and then the appropriate articles have been selected from the authentic
databases to collect the qualitative data. Inclusion exclusion criteria have been implemented to
discard the unauthentic and incorrect articles. The last chapter highlights the conclusion and
recommendations of the research. It is concluded that the “COVID-19 crisis” led several fashion
retailers in the UK market to face financial crisis and increase in debt up to 75%. This resulted in
Zara facing challenges of finance along with a disrupted supply chain and decline in brand value
by 5.2 billion USD. The company applied social media strategy for experiencing increased online
sales. It was further recommended to implement a strategic alliance with the suppliers along with
a differentiation strategy for improving the brand value of the company and increasing chances of
survival in the economy.
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Acknowledgement
I am thankful to my friends and colleagues for supporting me and providing me with relevant
information regarding the study. I am also grateful to my parents for providing the chance to do
the course. I am also thankful to my supervisor to help to complete the dissertation successfully.
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Table of Contents
Chapter1: Introduction 8
1.1 Introduction 8
1.2 Background 8
1.3 Problem statement 9_Toc100159343
1.4 Aims and objectives 12
1.5 Research questions 13
1.6 Research significance 14
1.7 Structure of dissertation 14
1.8 Summary 14
Chapter 2: Literature review 16
2.1. Introduction 16
2.2. Conceptual Framework 17
2.3 COVID-19 Crisis 17
2.4 Fashion Industry of UK 19
2.5 Significance of addressing the COVID-19 crisis for the fashion industry in the UK 21
2.6 Strategies for the fashion industry to address COVID-19 22
2.7 Impacts of the COVID-19 crisis on the UK fashion Industry 23
2.8 Theoretical Concepts 25
2.8.1 Theory 25
2.8.2 Model 27
2.9 Literature gap 28
2.10 Summary 28
Chapter 3: Methodology 29
3.1 Introduction 29
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3.2 Research philosophy 29
3.3 Research design 30
3.4 Research strategy 32
3.5 Data collection method 33
3.5.1 Search Strategy 33
3.5.2 Keywords 33
3.5.3 Boolean Search table 33
3.5.4 Databases 36
3.5.5 Inclusion and Exclusion Criteria 36
3.5.6. Screening Framework (PRISMA) 37
3.6 Research analysis method 38
3.7 Research limitation 38
3.8 Ethical Considerations 39
3.9 Conclusion 39
Chapter 4: Findings and analysis 40
4.1 Findings 40
4.2 Analysis 50
Chapter 5: Conclusion and Recommendations 55
5.1 Conclusion 55
5.2 Linking with Objectives 55
5.2.1 Present condition of the fashion retail market in COVID-19 55
5.2.2 Importance of Brand Value for Zara 56
5.2.3 Challenges and issues faced by Zara in the COVID crisis 56
5.2.4 Strategies implemented for survival during a pandemic by Zara 56
5.3 Recommendation 57
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5.3.1 Recommendation 1: Introduce a new web page to gather customer feedback 57
5.3.2 Recommendation 2: Differentiation strategy 60
5.3.3 Recommendation 3: Developing supply chain 62
5.4 Limitation of the Study 64
5.5 Future scope 64
Reference List 65
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List of Figures
Figure 1.1: Financial report of the online sales of Zara in 2019 and 2020 9
Figure 1.2: Global brand value of Zara from 2016 to 2021 10
Figure 1.3: Financial figures for Zara group 11
Figure 1.4: COVID Accelerates Declining Retail Industry 12
Figure 1.5: Structure of dissertation 14
Figure 2.1: Conceptual framework 17
Figure 2.3: Impact of coronavirus on consumer’s attitude 19
Figure 2.2: Overview of Strategic management 26
Figure 2.3: A basic strategic planning process model 27
Figure 3.1: Types of research philosophy 30
Figure 3.2: Types of Research design 31
Figure 3.3: Inclusion and exclusion criteria 36
Figure 3.4: Prisma flowchart 37
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List of Tables
Table 3.1: Boolean Table 35
Table 4.1: Findings of Theme 1 41
Table 5:1: Recommendation 1 57
Table 5.2: Recommendation 2 58
Table 5.3: Recommendation 3 59
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Chapter1: Introduction
1.1 Introduction
The study is based on e-business strategies implemented by the fashion brand, Zara of the UK to
survive the difficult situation of the pandemic. Zara is one of the largest fashion companies in UK
(United Kingdom) fashion industry with significantly high revenue rates and customer base. The
pandemic period was a challenge to businesses like Zara and this study highlights the method used
by the company to mitigate these challenges and maintain its position in the UK markets. The
context of the study included the different issues faced by the company along with the factors that
were responsible for the issues. The aim and objectives of the research are mentioned with the
main problem that is focused on in the study.
1.2 Background
The business model that is generally used by Zara for operating their business activities in the
markets of the UK is the brick-and-mortar retaining model. This model was found to be
disadvantageous for the company while operating the business during the “Covid-19” situation.
The lockdown during the pandemic was one of the most important factors that led to the decline
of the business performance of the firm (Alanezi, 2021). The brick and mortar retailing business
model lost interest as the e-retaining process was common and trending in the market. Zara faced
this issue of business management in all its locations including the UK (Adisa et al. 2021). The
study is an outline of the impact of the pandemic situation on the performance of Zara along with
the strategies used by the company to mitigate the issues. It was found that the performance of
Zara was affected by the change in the purchasing behaviour of the customers and their preferences
(Bryson and Vanchan, 2020). This was due to various factors such as the income level of the
customers and their confinement at their residence. The revenue rate of the company in the
pandemic year 2020 was about 1,570.54 million with a net profit of 1.27 billion (Alanezi, 2021).
The company was found to face a loss of 195 million Euros in the first six months of 2020 (Shabir
and AlBishri, 2021). This loss faced by Zara was met with effective business strategies and the
revenue grew by about 7% in the second quarter of the year. The business operation was separated
into types which were offline and online. The online sector of the company had grown during the
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pandemic with increased sales than the offline stores. As per Bryson and Vanchan (2020), almost
95% of the sales were earned from online stores. ZARA invested a huge amount of financial
support to Inditex in order to make its products available to customers internationally. Different
fashion companies like Zara, Mango and Massimo Dutti. Figure 1.1 is the financial report of the
company which shows the increase in online sales of the company. The sales were higher than in
2019 by about 94% (Shabir and AlBishri, 2021). Therefore, it was evident that digitalisation and
sustainability were the main strategies that helped the company to overcome the decline in sales.
Figure 1.1: Financial report of the online sales of Zara in 2019 and 2020
(Source: Shabir and AlBishri, 2021)
1.3 Problem statement
The main problem that the study highlights is the business impact of the pandemic on Zara’s
business performance (López et al. 2021). The main focus of the research is to identify the stages
the company has introduced and implemented in resolving the issues faced by the company and
gain good annual revenue even during the lockdown period of the “Covid-19” crisis (Alanezi,
2021). Zara had an impressive brand value in the global markets. Figure 1.2 states that the brand
value was found to be declined in 2020 and 2021. The brand value of the company was about 18.2
million pounds in 2019 which fell in 2021 to 13.2 million pounds (Bryson and Vanchan, 2020).
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Customer preferences were found to be the main issues leading to the decline in firm performance
in Zara along with the buying behaviour of the consumers.
Figure 1.2: Global brand value of Zara from 2016 to 2021
(Sabanoglu, 2021)
The fashion company faced a huge loss during the pandemic period which was easily met with the
next year of the business operation. The strategies that the company has implemented to resolve
the losses faced by the company were effective as in the previous studies (Duoyan, 2021). The
discussed business strategies can help both the organisation and the industry to gather a better
profit range. Therefore, the study can highlight the effective methods for other business firms to
help them develop their business (Tomaszewska, 2021). Figure 1.3 states the financial report of
online sales of Zara in the first quarters of 2019 and 2020 (Smith, 2021). The sales were quite
lower in 2020 than in 2019. The most important strategy implemented by Zara was the
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digitalisation of its business operation which helped the company to increase its revenue rate and
sales effectively.
Figure 1.3: Financial figures for Zara group
(Source: Smith, 2021)
The retail sector was found to be affected by the pandemic and it has impacted the profit and
revenue rate of the retailing companies in the industry. This sector was found to be the most
impacted sector during the period including all types of business such as clothing, sports goods,
electronics, auto parts and home improvements (Ha, 2021). This period led to the closure of a
huge number of businesses affecting economic growth. Figure 1.4 shows that the clothing business
can have a closure of about 20% and it can be assumed that there is going to be 80% of the business
remaining by 2025 (Statista, 2020). The organisational businesses had a maximum closure of about
50% during the pandemic. Therefore, these issues can be mitigated by the reference of the methods
used by Zara (statista, 2020).
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Figure 1.4: COVID Accelerates Declining Retail Industry
(Source: statista, 2020)
Zara was found to resolve the issue of loss and decline in net profit in the first quarters of 2020
within just six months. This was a revolution for the company in comparison with other businesses
in the retail industry (Duoyan, 2021). The strategies that the company used were mainly
digitalisation and sustainability to improve their business performance. Therefore, Zara was the
premium brand for reference to other businesses and to study.
1.4 Aims and objectives
The main aim of the study is to identify the different strategies used by a premium brand like Zara
to mitigate the issues and survive the Covid-19 crisis.
Objectives
● “To analyse the present condition of fashion retail market in the Covid situation”
❖To evaluate the mentioned business environment at the time of the “COVID” situation.
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❖To analyse business situations of fashion retailers like Zara in the Covid 19 situation
● “To understand the importance of brand value for a premium brand like Zara”
❖ “Analysing the importance of brand value”
❖ “Identifying key reasons of the importance of Zara’s brand value”
● “To evaluate the challenges and issues faced by Zara in the Covid crisis 6”
❖ “Highlighting challenges faced in retail sectors”
❖ “Evaluating issues, the fashion retail sector faced”
● “To investigate various strategies implemented by Zara for effective survival”
❖ “Identify Zara’s effective strategies implemented for survival”
❖ “Recommended strategies to implement for survival”
1.5 Research questions
● What is the current situation of the retail sector during the pandemic period?
● What is the present condition of the fashion retail industry during the Covid situation?
● What is the importance of brand value?
● What is the importance of the brand value of Zara?
● What are the challenges faced by the fusion retail sector during the Covid-19 pandemic?
● What are the strategies that Zara implemented in their business to survive the pandemic
crisis?
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1.6 Research significance
The study is significant for all the retail businesses to develop their business with proper strategies
and business models. The research highlights the factors that were responsible for the closure and
decline of the different businesses including the fashion sector during the pandemic. This can help
the new start-up retailers to plan their business model effectively by referring to the operational
strategies of Zara. The study is also significant for Zara to follow their progress and performance
for future planning. The changes of the customer preferences can be recorded from this study.
1.7 Structure of dissertation
Introduction
Literature review
Research methodology
Findings and analysis
Conclusion
Figure 1.5: Structure of dissertation
(Source: Self-created)
1.8 Summary
It can be summarised from the first chapter of the dissertation as it discusses the background of
the study which includes the mitigation strategies applied by Zara to resolve the issues of downfall
in the net profit of the company. The chapter includes the objectives and aim of the research along
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with the research questions. The problem statement of the study highlights the issues that the study
works on with the reason for selecting Zara as its main brand for the study. The significance of the
study is mentioned in the chapter.
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Chapter 2: Literature review
2.1. Introduction
The study has been concerned with measuring the strategies of a renowned UK fashion company
that has successfully survived its premium brands in the market even in the crisis of “COVID-19”.
The literature review chapter holds special importance in a dissertation as it allows the study to
discuss the information on the concerning topic obtained through journals and websites. This helps
the study to analyse which type of data would be suitable for the research as well. In this study,
this particular chapter would discuss a brief analysis of the before and after of the “COVID-19
pandemic” in the UK fashion industry along with a discussion on the strategies implemented by
the UK fashion companies during the pandemic.
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2.2. Conceptual Framework
Figure 2.1: Conceptual framework
(Source: Developed by Author)
2.3 COVID-19 Crisis
The emergence of the “Covid pandemic” was uncertain and that has left a deep impact on the
financial transaction of each industry. Due to the locked-down condition of over two hundred
countries of the world the economy of each country has faced a drastic fall. As per the view of
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Nakat and Bou-Mitri (2021), the hardest hit of the “Covid pandemic” has closed many
governmental and non-governmental businesses. The governmental guidelines have restricted the
movement of vehicles therefore that has a great impact on the supply chain management. As stated
by Goddard (2020), the drastic fall of 30% in the retail market of the UK has been found after the
emergence of the “Covid pandemic”. The retail industry has got a major hit in its approaches due
to the rules imposed by the government. As per the view of Haneesh and Venkteshwar (2021), the
transaction in the automotive industry has got stuck by the end of the year 2019. The drastic fall
in the sales of the automotive industry has been found after the emergence of pandemics.
Like the other industries, the fashion industry has also faced a major imbalance in its business
during the month of in the year 2020 and following (Brydges et al. 2021). The sales of the clothing
industry in the UK have been decreased by 6.2% in the year 2020. The increase in the price of
sales has been observed after the occurrence of pandemic. Due to the reduction in the production
rate the increase of the rate of threads has been found as a great problem to the fashion houses of
the UK. As per the view of Brydges and Hanlon (2020), after the period of locked down, there is
a huge change in the approach of the consumers of the UK. It has been seen that the customers
have the tendency of having better and sustainable clothes as compared to the past customer
preferences. The fashion firms are now investigating the demand of customers as their perspective
has almost changed in the current situation. In the changed situation, people try to keep a higher
level of protection and therefore they are washing their clothes on a daily basis. According to the
view of Cvik and Pelikánová (2021) the customers reduces their shopping budgets to buy luxury
items and put their focus on buying the necessary products.
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Figure 2.3: Impact of corona virus on consumer’s attitude
(Source: Statista. com, 2022)
From a survey among the consumers of the fashion industry of the UK, it has been understood that
the consumer’s demand has totally changed after the occurrence of a pandemic (Statista. com,
2022). Customers have been observed with more online product buying behaviour compared to
offline buying behaviour in recent years. Most people in the changing environment think that
fashion companies need to make sustainable and eco-friendly products. The impacts of the
pandemic have affected the customer's buying behaviour which has demonstrated that customers
have decreased percentages of visiting physical stores and buying products. People also think that
the government has to make effective rules for the fashion houses to use sustainable threads and
the raw materials that could reduce the environmental impact.
2.4 Fashion Industry of UK
The current data regarding the UK fashion industry has represented that near about 65.12 million
populations are associated with this industry through retaining, manufacturing, exporting or any
other operations. As per the analysis of the data of the UK fashion industry per the current year of
2022, the industry has been associating 33.0 million individuals of the labour force which has been
providing 4.8% of employment of the total population of the country. The data also represents that
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the GDP of the current of this industry has been identified as 46,297 dollars. Further, currently,
the industry has been associated with 555,000 employees. The industry has been comprised of
414,000 retail sales of clothing items, 59,000 retail sales of leather and footwear goods, 43,000
wholesale of footwear and clothing items, 34000 manufacturers of wearing appeals and 5,000
manufacturers of footwear items (fashionunited.uk, 2022).
The largest company in the UK fashion industry has been identified as “Burberry Group plc”,
which has been acquiring the largest capitalization in the UK market of Fashion items and goods.
The current value of this company has been calculated as 10 billion dollars with revenue of 3.8
billion dollars in the previous year. The company has been focusing on selling its products through
wholesale channels and retailing and the revenue and sales report has also analysed that retail sale
is larger in amount than the wholesaling of the products. The company has been earning 77% of
the total revenues from retail sales of the company whereas from the wholesaling of the products
and items, the company has been able to accumulate 22% of the total revenues (Britishcouncil.org,
2021). Therefore, it can be stated that the retailing of the products and goods has been a beneficial
strategy for the company.
Through analysing the international context of the current market situation of wearing goods, it
has been analysed that fashion retailers have suffered severely of economical downfall in recent
years due to COVID-19. As per the perspective of the journal published by Decals et al. (2019),
the factors associated with the organizational context in the fashion industry have been identified
as operational decisions, supply chain management, geographical location, and quality
management of the products. In the context of focusing the operational decision in the organisation
of the fashion industry, they need to focus on developing good operation management in the
organization that would lead the company the opportunities for enhancement of its productivity
rate. The operational decisions have been also been identified to be beneficial for streamlining the
procedures of the business. With the objective of understanding and coping with the diverse
consumer preferences of this industry, companies have been focused to develop an optimised
supply chain that would help the organizations to become more flexible and responsive to their
customer demands.
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The companies can also be benefited through competitive advantage in their respective markets
by developing a good supply chain management as in the fashion industry supply chain
management plays a vital function. As per the perspective of Zhang et al. (2021), the behaviour
of consumers of the fashion industry is closely associated with the sustainability maintenance of
the organisations which can be analysed better through behavioural, affective and cognitive effects
on organisations. From obtaining resources and raw materials from suppliers and delivering
manufactured products to their customers. It has been highly dependent on the supply chain of
organisations. The location has been identified as another factor that can help the organizations in
achieving the required competitive advantage in the market, as the localization of the company
ensures its target population and also helps them in assessing the customer demands and
understanding their perspectives through analysis of their cultural backgrounds. Quality
management has been identified as essential concerning criteria that need to be focused on by
companies as it allows the company to develop more specified and consistent products for its
customers.
2.5 Significance of addressing the COVID-19 crisis for the fashion industry in the UK
The pandemic period has impacted the total retail industry with the highest impact in the fashion
sector. The pandemic period led to the announcement of the huge lockdown which resulted in the
closure of a huge number of businesses. The population was found to suffer from an economic
crisis. This crisis affected the fashion industry immensely as it was of less importance to the
consumers in that situation. The preferences of the consumers were found to have shifted from
fashion to utility goods. As per Brydges et al. (2020), the customers of the fashion sector were
more interested in their daily requirements than their fascinations like clothing and jewellery.
According to McIntosh (2020), there was a decline of 34% recorded in the industry due to a lack
of sales and lack of production. The manufacturing of the garments by the fashion brands like
Gucci and Zara was also an issue that needed to be addressed during the crisis of the industry
during the pandemic. Supporting this fact, Dörrenbächer et al. (2021), stated that the premium
brands like Zara needed to modify their business model to survive the crisis and boost their
performance. For example, Zara used the brick and mortar model for their business and planned
the strategies. The revised business model of the company was e-commerce which was termed
“click and confirm”. As mentioned by Brydges et al. (2020), sustainability in the fashion industry
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was found to be effective for the development of business performance and surviving the crisis
during a pandemic. The green clothing strategy included the production, supply and usage of the
product in a sustainable process. As per McMaster et al. (2020), the perceptions of the customers
and the change in their buying behaviour were another important issue that was addressed as a
factor for the decline of the industry. Supporting this fact, Graham stated that the fashion retailing
industry was totally dependent on physical operation. The manufacturing of the garments was
partially or totally dependent on physical power (Ozuem et al. 2021). Therefore, the lockdown
during the pandemic led to the closure of the production department and thus there was a huge gap
in the market due to the lack of products (McIntosh, 2020). At the time before the pandemic
represented that almost 80% of the total sales in the fashion industry accounted for the physical or
offline stores. Customers preferred purchasing the garments from the physical stores. Although,
McIntosh (2020), stated that during the “Covid-19” crisis sales were reduced due to this reason
and digitalization was badly needed in this crisis to overcome the decline in sales. Therefore, these
are the main issues that were needed to be addressed as the factors for the development of the
issues of loss experienced by the fashion industry during the adverse situation of pandemics. These
included the lack of products, lack of manufacturing and change in preferences of the consumers.
2.6 Strategies for the fashion industry to address COVID-19
Developing an efficient supply chain management
The companies have been more emphasized the creation of their value proportion by developing
a good supply chain procedure and connecting the supply chain with the backwards of their
customers. As per the perspective of Wang et al. (2020), the usage of logistics in the supply chain
management among the organizations in the UK fashion industry has increased in recent decades.
The usage of logistics deals with taking operational decisions, designing brew products, and
integrating information systems. Through good supply chain management, the organization are
able to gain a competitive advantage in the market as well, as supply chain deals with various
corporations such as designing of products, production., development and delivery of the items.
Taking sustainable objectives
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Managing sustainability in the fashion business across the world has been identified as a major
issue due to the “COVID-19 pandemic”. According to Glowered et al. (2020), decisions taken by
the companies during procedures of new product development have significant impacts on the
sustainability and longevity of the products. Fashion has been identified as a major factor in the
clothing sector that has been associated with the retailing sector in the UK. It is therefore evident
that fashion organisations are contributing to technological aspects that are effectively supporting
product development, organisational operations and infrastructural longevity.
Utilization of various digital marketing strategies
In COVID-19 the major issue has been faced by the customers has been identified as unable in
visiting the stores which has caused low sales of the products of the companies. Zara has adopted
professional digital marketing strategies to reach international customers. As per the perspective
of the journal published by Wang et al. (2019), digital marketing came into the business field with
the objective of marketing and promoting products in virtual stores. In this procedure, several
social media platforms have been utilized as marketing tools. The IT department of the companies
has been especially emphasised for developing websites where the customers have been able to
connect with the brands. This strategy has helped the companies to lessen the severity of the
impacts of this “pandemic”.
Maintaining good quality management of products
Quality management has been identified as the key issue in the fashion industry, as customers are
always expected the best quality of products they have been purchasing and the main objective of
companies has also been to provide satisfactory or expected quality of products to their customers.
As per the perspective of Umam et al. (2021), due to the “COVID-19 pandemic,” the companies
have been facing issues of obtaining resources along with employment issues which have
decreased the productivity rate as well. The companies have been emphasising strategic and
manufacturing flexibility in order to increase quality management and organisational performance.
2.7 Impacts of the COVID-19 crisis on the UK fashion Industry
The impact of “COVID” has affected several industries in ways that impose issues with recovering
based on different operational and financial aspects. One of the most affected business industries
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during the pandemic is fashion and clothing. It has been seen that before the pandemic customers
often visited the local outlets of the brands. However, due to the pandemic situation, the stores
were compelled to be discontinued stimulating online business and sales for fashion companies.
Manufacturing Issues
The pandemic situation has affected fashion manufacturing companies as an impact of raw textile
material importing issues. In addition to this order cancellations are also identified to be
significantly affecting the fashion developing companies in the Covid 19 period. Some brands
that have faced these issues through storing the necessary raw materials and fabrics have benefited
them severely in this course of the crisis. Brydges et al. (2020), has stated in their journal that
COVID-19 has supported the fashion industry in developing a more sustainable fashion industry
as due to this crisis the organizations have come learn about the necessity of raw materials of the
products. Therefore, in near future, the companies would also be focused on developing strategies
that would help them to utilise their resources without wastage.
Identified issues and challenges
Due to the issues developed because of the pandemic fashion companies were forced to introduce
digital commerce and online sales as consumers were not able to visit stores physically. Zhao and
Kim (2021), have stated in their journal that usage of social commerce has increased severely in
the past decade of pandemics and the usage of digital solutions has also been increased in the due
time course. In the fashion industry, the news channel of clothing has been introduced widely that
have been identified as masks.
Decrease in Sales
The pandemic has impacted global economical sustainability which has severely impacted the UK
fashion industry. McMaster et al. (2020) has represented in their journal that the economical
instability worldwide has caused an increase in the cost of transport which has increased the cost
of supply chain management and due to this, the clothing sector has to increase its cost of products
which has been analysed as a major cause of the sale decrement in fashion brands. Another cause
of sales decrement has been identified as less social connectivity among the population due to the
“COVID-19 pandemic”.
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Evaluation of new marketing strategies
The pandemic effect has taken companies to adopt new market strategies as a result of having low
business profit. The evolution has encouraged organizations to develop and innovate new
marketing strategies in regard to digitalizing their marketing procedures. Pelikánová et al. (2021),
has stated in their study that the percentage of social media marketing from their marketing budgets
has increased in due time of course. After the pandemic situation, it has been seen that the
companies have started developing their market approach with new strategies. Companies have
been seen adopting social media marketing strategies that can help organisations to create visible
identities for their customers.
Sustainability maintenance
It has been reported that the textile production process emits pollutants that are capable to bring
both water pollution and increasing greenhouse gases. The environment fact is one of the most
important aspects that need to be evaluated properly to bring sustainability to the business
(European Parliament. 2022). Gregurec et al. (2021), has stated in their studies that big and small
enterprises have been emphasizing their business models and innovating them in order to cope
with the new business markets and situations.
2.8 Theoretical Concepts
2.8.1 Theory
The theory of Strategic Management
“The theory of Strategic Management” has been providing special emphasis on implementing
strategic management in organisations. As per the perspective of the journal published by Ethiraj
et al. (2018), strategic management has been providing special emphasis on analysis of the current
business contexts to provide a base for new research works. Strategic management has been
described as the approach and procedure that helps in specifying the objectives of an organization,
programmes, developing policies, plans and paradigms to reach the developed objectives through
the allocation of the resources and implementation of paradigms, policies, plans and programmes.
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Figure 2.2: Overview of Strategic management
(Source: Influenced from Ethiraj et al. 2018)
The above figure has represented the overview of strategic management in which the vision and
strategy of organizations for the implementation of strategic management in their organizations
have been stated. The visions of the organizations have been identified as high efficiency in
internal business procedures, profitable financial performance, providing satisfactory services to
the stakeholders and customers and developing an organisational capacity where employees would
acquire sufficient knowledge and would provide innovative ideas to the company. The major
objective of strategic management is measuring and targeting the performance of employees,
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developing a strategic map that would help to implement the sequential procedures in the business
and taking strategic initiatives (Ethiraj et al. (2018).
2.8.2 Model
Basic strategic planning process model
“Basic strategic planning process model” deals with taking strategies and creating plans with the
objective of implementing of the operations to reach the organizational goals. According to Abdel-
Basset et al. (2018), there is a strong necessity to set strategies for the organisations for its growth
and development and analysis of the factors that can affect the failure of the business.
Figure 2.3: A basic strategic planning process model
(Source: Abdel-Basset et al. 2018)
The above figure has represented “a basic strategic planning process model” where the various
factors have been analysed that need to be focused on for the strategic planning procedure of an
organization. There are two systematically factor analysis that impacts the growth and performance
of the organisation that has been identified internal factor analysis system and external factor
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analysis systems. The external analysis system has been comprised of opportunities and threats of
the organisation, whereas the internal factor analysis system has been comprised of weaknesses
and strengths of the organization. The threats and weaknesses have been identified as the harmful
factors that develop difficulties for the organizations in the pathway of achieving their goals. The
opportunities and strengths have been identified as the harmful factors that are helpful for
organizations in the pathway of achieving their goals.
2.9 Literature gap
Due to the current context of the “COVID-19 pandemic”, there are fewer journals on the identified
theories and models that can describe the relevance of the model and theory within the topic of
context. Therefore, in the journals published by Abdel-Basset et al. (2018) and Ethiraj et al. (2018),
the context journals fail to provide any relevant information about the company Zara or the UK
fashion industry. Thus, the journals have created a major literature gap in the study.
2.10 Summary
The chapter has discussed a brief analysis of the before and after of the “COVID-19 pandemic” of
the UK fashion industry along with a discussion on the strategies implemented by the UK fashion
companies during the pandemic. A conceptual framework has been provided in this chapter that
would help to understand the objectives of the study. The current crisis and situation of “COVID-
19” around the works have been discussed in this chapter as well. The fashion industry of the UK
has been discussed with the essential information and current data of the industry. Strategies for
the fashion industry to address “COVID-19” have also been discussed where the strategies
implemented by the organizations of the UK fashion industry for coping with the issues have been
briefed. An academic context has been provided in the study where the importance and impacts of
“COVID-19” have been discussed. The “The theory of Strategic Management” and “Basic
strategic planning process model” have also been discussed in this study as these theories and
models have similar theortiti8cal concepts with the concerning topic.
28
Chapter 3: Methodology
3.1 Introduction
The methodology chapter discusses different methods that are mostly used by the researchers and
chooses the appropriate method for the collection of data and for future proceedings of the study.
The study will choose the appropriate research philosophy and the research design for getting an
idea of the framework of the study. Further, the study will discuss the research strategy for
choosing the data collection method and sources for this research. Data collection methods involve
the selection of search strategy, findings of keywords, and setting inclusion-exclusion criteria.
Research limitations and ethical considerations that will be followed throughout the study have
been mentioned in this chapter.
3.2 Research philosophy
Is helpful in discussing the context of the study in great detail and therefore it shows a specific
way to develop knowledge. Among the different types of research philosophy, interpretivism
philosophy has a significant impact on the positioning of idealism (Marsonet, 2019). This
philosophy is helpful in the identification of issues and assessing different aspects of the issues.
On the other hand, the positivism research philosophy assesses the quantifiable factors and
concludes the result of the research. This research philosophy follows the statistical method to
make the conclusion. Positivism research philosophy is also helpful in examining discrete and
observable elements of the major factors of the study (research-methodology.net, 2022). Realism
research philosophy helps in determining the real issues involved with the study. This philosophy
focuses on the real problems of society and helps in making conclusions. On the other hand,
Simpson (2018), stated that pragmatism research philosophy provides importance in the formation
of research questions
29
Pragmatism
Resaer
Interpretivism
ch Positivism
philoshil
osophy
Realism
Figure 3.1: Types of research philosophy
Justification
Positivism research philosophy has been chosen in the study as this philosophy is effective in
relating the major factors of the study. Simpson (2018) stated that this philosophy is also useful in
assessing the data and making the conclusion depending on the statistical analysis. As this research
philosophy helps in measuring the data whether it is quantitative or qualitative therefore this
philosophy is significant for the study. This research philosophy is helpful in combining both types
of philosophies and increasing the scope of the research after assessing the nature of the research
questions.
3.3 Research design
According to the view of Atmowardoyo (2018), descriptive research design access different types
of research methods to examine one or more factors that are associated with the study. This
research method does not manipulate the variables, however with the help of this research design
the observations can be measured properly. This research method is applicable in case the study is
30
going to identify the characteristics, frequencies, and categories. However, this research method is
not applicable in the studies where the research problems have not been identified. On the other
hand, an exploratory research design is helpful in addressing the uninvented factors of the study
(Biotype and Ilesanmi, 2019). The variables that have not been overviewed in previous years or in
another journal of the researchers have been explored with the help of the exploratory research
design. As per the view of Afiani (2021), an explanatory research design takes a major role in
explaining the context of the study. The deep analysis of the concept of the study can be addressed
with the help of this research design
Descriptive
ersaerch
design
Research
design
Explanatory exploratory
resaerch resaerch
design design
Figure 3.2: Types of Research design
Justification
A descriptive research design has been chosen for the study. As per the view of Onuko and
Onyango (2020), the descriptive research design is helpful in measuring the issues of the study.
This research design explores the problems and helps in the formation of results for the identified
31
issues. Therefore it can be stated that this research design is appropriate in the study to assess the
problems that arise in the fashion industry after the emergence of pandemics. The strategies that
can help the company to revive from the crisis can be understood with the implementation of this
research strategy.
3.4 Research strategy
Quantitative research strategy can be defined as the method of collection of quantitative data with
the help of surveys and interviews (Bleiker et al. 2019). In the way to conduct a survey the selection
of the sample population and the formation of the questionnaire are the essential steps. Choosing
the population is necessary for the collection of reliable data. In case the quality of the population
is not standard then problems may arise in the way to form the results. On the other hand, a
qualitative research strategy is the collection of non-numeric data from secondary sources.
Previous articles on the context of the fashion industry and regarding the sales of fashion in the
industry in the UK can be considered secondary sources. The collection of data is easier in
comparison to the quantitative research strategy. This research strategy helps in the exploration of
a diverse range of data. As per the view of Basias and Pollalis (2018), qualitative research strategy
is a time taking process though it provides in-depth knowledge of the study. On the other hand,
there are many websites that provide an immense range of data on the context of the study.
Therefore these websites can be stated as the source of secondary qualitative data.
Justification
A qualitative strategy has been taken into consideration in the study as there is an immense range
of secondary data can be available from reliable sources (Basias and Pollalis, 2018). Conducting
a survey among the employees of Zara is not possible in the post-pandemic situation. Therefore,
the secondary method of data collection is more appropriate for the study. Secondary data on the
strategies taken by Zara can also be collected from their official websites and other portals.
Therefore qualitative research strategy is significant for the study to collect a diverse range of data
and to make conclusions depending on the collected data.
32
3.5 Data collection method
3.5.1 Search Strategy
As the study is following the qualitative research strategy, therefore, selection of appropriate
articles on the fashion industry of the UK is necessary for the collection of reliable and correct
data. Different factors that have been associated with the study have been considered important
factors during the selection of the articles. The journals and the websites that do not have such
related information according to the context of the study have been discarded at the preliminary
phase. Only the recent articles on the fashion industry that provides information on the rate of
growth or reduction of sales after the pandemic have been chosen for the study. On the other hand,
the articles that also provide information on the fashion houses and the strategies taken by the
fashion firms to cope with the crisis have been taken into consideration in the study.
3.5.2 Keywords
In the way to select the articles, a few key wards have been employed. These are “survival
strategies taken by Zara after the Covid pandemic, “Crisis of the fashion industry” of the UK,
“strategies taken by different fashion houses of the UK to survive after the pandemic”,
“Productivity of fashion houses”, “Profit of fashion industry after pandemic”, “Challenges faced
by Zara after pandemic”,” reduction in sales of the fashion industry of the UK”. These keywords
have been used to get access to the correct set of articles to collect the data.
3.5.3 Boolean Search table
33
Themes Keywords Boolean Searches Hits
operators
COVID 19 1. “COVID 19”, AND Keyword 1

and its effects AND Key word
2. “Effects on
on UK fashion 2
UK fashion
Organisation Keyword 2 AND
Organisation”
Keyword 3
3. “Fashion Keyword 3 AND
industry” Keyword 1
Impacts of 1. “Online AND/OR Keyword 1

online media media campaign AND Key word
campaigns on ” 2
the
2. “Fashion Keyword 1 AND
development
organization” Keyword 2
of fashion
organisation 3. “Zara” Keyword 2 OR
Zara Keyword 3 AND
Keyword 1
34
Challenges 1. “Online AND/OR Keyword 1 OR
faced by fashion” Keyword 2 AND
online fashion Keyword 4
2. “Online
companies
Fashion Keyword 1 AND
during the
Industry” Key word 3
COVID
situation 3. “Covid-19 Keyword 2 AND
Situation” Keyword 3 AND
4. “Challenges Keyword 2 AND

of Fashion keyword 4
Organisation”
Strategies 1. “Fashion AND/OR Keyword 1

and factors Organisation AND Key word
that contribute Strategies” 2
to successful Keyword 2 AND
2. “Successful
marketing and Keyword 3
marketing”
business for Keyword 3 AND
fashion 3. “Business for Keyword 1
organisations fashion
organization”
Total:
Table 3.1: Boolean Table
35
3.5.4 Databases
In the qualitative research strategy collection of reliable articles is considered to be the most
important step in the study. Therefore the articles need to be selected from reliable databases.
Google Scholar is the chosen reliable database that provides appropriate articles for this study.
3.5.5 Inclusion and Exclusion Criteria
Data
extraction
Inclusion Exclusion
criteria criteria
In the year language different

Before the
and after must be in languages
year 2018
2018 english than english
Peer Not taken if

reviewd PDF format not peer Other format
journal reviewd
Figure 3.3: Inclusion and exclusion criteria
36
3.5.6. Screening Framework (PRISMA)
Figure 3.4: Prisma flowchart
(Source: Created by the learner)
After searching the databases with the help of the above-mentioned keywords few articles have
been chosen for the study. In addition to these other articles have also been chosen from the
37
databases. In the next step, the duplicate articles have been discarded from the total selected
articles. After the screening procedures twenty-three articles have been chosen for further steps.
In this step, a few articles have been discarded as those articles have not been focused on the issues
related to the study. After that again three articles have been excluded as the full texts have not
been found of these articles. At the end of this exclusion of articles, the correct set of sixteen
articles has been chosen for the study. A Prisma flow chart has been addressed in the study to
explain the exclusion criteria properly.
3.6 Research analysis method
The non-numeric data has been collected from the study from reliable databases. In the case of
assessing the secondary data thematic method of data analysis can be employed in the study. In a
thematic analysis of the keywords of the study, the codes have been formed. After the formation
of codes, the themes are be generated. The thematic analysis has been done with the help of the
previous articles in the context of the study (Sandberg and Abrahamsson, 2022). The themes
generated from different articles help in assessing the result of the study and the conclusion from
the findings can be done easily with the help of this.
3.7 Research limitation
The study has failed to conduct a survey among the managers or the employees of Zara to get
information on the strategies that have been taken by them after the pandemic to overcome the
crisis. Getting access to them is not possible in this situation, therefore, failing to conduct a survey
or conduction of the primary research strategy in the study has been considered to be the greatest
limitation of the study. On the other hand, the study has followed the positivism research
philosophy in the study. In case the realism philosophy can be considered in the study as the study
deals with the real issues of the fashion industry (Ki, Chong and Brookshire, 2020). This
philosophy could assess the problem of the fashion industry in an elaborate manner. On the other
hand, another limitation of the study is that the secondary data has not been validated in the study
(Pelikánová, Němečková and MacGregor, 2021).
38
3.8 Ethical Considerations
Consent
The consent of the authors has been taken before accessing the articles that have been selected for
the study to collect the data. After getting the permission of the authors the data has been
incorporated into the study. Following ethical behaviour is essential for the success of the study as
without concern with the author's problems may arise during the period of publication of the
research paper.
Confidentiality
As per the “Data Protection Act 2018”, the data collected from the sources has been protected and
guidelines have been strictly maintained concerning the reuse of data (legislation.gov.uk 2022).
The assurance of data protection has been given and the information that has been collected from
different sources has not been violated in anyways in the way of the research.
3.9 Conclusion
The study has selected the positivism research philosophy to relate major factors of the study to
make a meaningful conclusion. On the other hand, the study has selected the descriptive research
design to assess the issues of the study and to provide a deep analysis of each factor of the study.
Further, the study has chosen the qualitative research method to collect the data for the study. Data
collection has been done by following different steps. Specific keywords have been chosen for the
study and then the appropriate articles have been selected from the authentic databases to collect
the qualitative data. Inclusion exclusion criteria have been implemented to discard the unauthentic
and incorrect articles. The thematic analysis method has been employed to analyze the data set.
Ethical behaviours have been followed during the phases of the study to give it a proper
completion.
39
Chapter 4: Findings and analysis
4.1 Findings
The findings have been analyzed and described with the thematic analysis aligning with the topic.
Theme 1: COVID 19 and its effects on UK fashion Organisation
40
Author Study Methodology Findings Limitations
Alhomaid, The journal has This journal has The findings of This research has
(2021) studied the followed a the research not elaborated
aspects of secondary have discovered the
consumer research method the aspects of organisational
behaviour with which has helped consumer profit range of
better the researcher to behaviour. the the individual
elaboration have much better researcher has companies
information on observed that
the study object. there is a mass
growth of online
shopping during
the pandemic
Gardner et al. This journal has The author has The journal has The researcher
(2021) studied the followed discovered the has not discussed
aspects of online secondary issues and the the multiple
business research to have problems of the aspects of
organisations much better community- community
that struggled to information on based business business.
retain their the level of the of the UK.
business during study object.
the pandemic
situation.
Aulia and The journal has The secondary The journal has The research has
Soetjipto, (2021) researched the research process shed light on the avoided the
aspects of has helped the aspects of aspects of the
Marketing author to have gradual issues while
innovation for such a better and marketing applying
the international cleared vision development innovative
business about the with innovative business ideas
companies such research subject. business ideas. for the respected
as Zara industries during
the pandemic
situation.
41
Ozuem et al. This Journal has The journal has The research has The research has
(2021) elaborated on the followed a discovered that not elaborated on
aspects of the secondary online business the reasons for
responses to research process companies have customer service
online customer to gather failed to fulfil failures within
service failures authentic the customer's the organisation
during the information. demand with the
pandemic lack of proper
situation. services
Table 4.1: Findings of Theme 1
(Source: Developed by the learner)
The attached journal table includes the journals which have been chosen over the aspect of
pandemic effect on the fashion industries. The journals have discussed multiple business issues
observed through the market analysis during the COVID. It has been seen that the pandemic
situation has affected the business companies with consumer behaviour which has also affected
organisational marketing development. According to the author Aulia and Soetjipto (2021), the
business loss related to customer management can be developed by adopting new business
strategies.
Theme 2: Impacts of online media campaigns on the development of fashion organisation Zara
42
Helal and The journal has As the research The findings of The journal has
Ozuem, (2018) researched the is based on the the research have not elaborated on
results of social aspects of social indicated that individual social
media media marketing individual media marketing
campaigns campaigns, the business strategies of
which have researcher has organisations companies
served such followed the have
positive impacts secondary accumulated
for the individual research method. better business
companies. outcomes with
managing social
media
marketing.
Iqbal and Khan, This journal has This journal has The journal has The journal has
(2021) focused on the followed the discovered elaborated
aspects of secondary various ways of limited business
building research method. developing an planning
company brand individual accordingly with
image which can business brand the business
help develop fame such as development.
individual Zara
business.
Islam, Perry and The journal has Secondary The findings of Author of this
Gill, (2020) elaborated the research method this journal journal has not
facts related to has been advised the stated individual
the aspects of followed by the management organisation
online business author to have process for the based
sustainability. much better companies to sustainability
information. bring planning’s.
sustainability to
the business.
43
Bizhanova et al. This journal The research Findings of this It has been seen
(2019) study has topic is based on research have that there can be
elaborated the digital discovered such few stepping
facts of business marketing; the wide business stones on the
development researcher has scopes that can path of business
with the help of followed the be accumulated development for
applying digital secondary with the help of individual
marketing in research method. digital businesses while
business. marketing. managing
business with
digital
marketing.
(Source: Developed by Lerner)
The above table includes the journals which have firmly based on the information about business
development with the help of online media business management. It has been seen that modern
business organization has followed modern business strategies which include social media
campaigns. According to the author Bizhanova et al. (2019), digital marketing can help
companies and organisations to bring significant business development.
Theme 3: Challenges faced by online fashion companies during the COVID situation
44
McMaster et al. This journal has This research has The journal The researchers
(2020). discussed ways been conducted included theories have discussed
that can be by evaluating and methods that limited supply
followed by the both primary and can be evaluated chain
companies to secondary data to craft fresh and management
create a better collection new supply theories in this
supply chain for process. chain journal.
the companies. management for
the companies.
Through which
the companies
can have better
product supply
during tough
business times.
Rodríguez et al. The study has This research has Findings from The journal has
(2021). described the evaluated this journal described the
facts related to primary data create an image conditions of the
the mental collection to about the fashion industry
pressure of the collect relevant conditions of the workers in
fashion industry information. fashion industry pressure more
workers workers who has than giving
faced immense solutions.
psychological
pain.
Zhao and Kim, This journal has The research has The research has The journal has
(2021). elaborated followed pointed to such focused on the
upgraded secondary data business aspects of the
marketing evaluation. strategies which global textile
strategies that can be helpful value chain
can help the for tee rather than
companies to organisations pointing straight
find a better way to business
to reach the strategies.
customers.
45
Kaushik and This journal has Secondary This journal has The impacts of
Guleria, (2020). elaborated the information highlighted the the pandemic
overall facts evaluation the impacts of the have been
regarding the process has been pandemic in the elaborated more
pandemic that followed by the several in the document
has affected author to workspaces. rather than point
multiple describe the facts solutions.
business
industries.
(Source: Developed by the learner)
The above table contains journals that are focused on the aspects of the challenges faced by the
companies during the pandemic situation. It has been seen that during the calamity the fashion
industry is one of the most affected businesses which has faced huge loss (Kaushik and Guleria,
2020).
Theme 4: Strategies and factors that contribute to successful marketing and business for fashion
organisations
46
Guercini et al. E-commerce has Qualitative data The e-commerce The journal has
(2018) been recognized analysis has been business is not done the
as the new done in the study flourishing after primary survey
marketing to make the pandemic. and at the same
method for conclusions. Consumers are time, this survey
business preferring online has not explored
organizations. purchasing a diverse range
methods and also of secondary
need the fastest data.
delivery. Mobile
technology has
helped to
increase the
accessibility to
online services
in the present
day.
47
Jung et al. The major The study have The company The sample size
(2020) strategies the followed which follows to of the survey is
companies are primary research the aim to very small.
following in strategy and produce the
present days is conducted a sustainable
sustainability survey to collect product and
the data. 300 reduces the
responses have environmental
been collected impact has
for the study. achieved success
in the market.
Noris et al. Digital platforms Secondary data Digital platforms The study has
(2021) increase collection are the newest not explored
communication method has been media that enough
with the followed in the connects the databases for the
customers and study. customers with study.
have a great the organization.
impact on The customers
business can provide their
feedback to the
company with
the help of
emails.
48
Thorisdottir and Sustainability in Secondary After the Only one data
JohannsdottirL, the fashion research method emergence of the base ProQuest
(2019) houses have been pandemic has been
followed in the customers are followed in the
study now worried study.
about the
environmental
factors. The
companies that
use sustainable
raw materials
can increase
their sales.
(Source: Developed by Lerner)
According to the view of Guercini et al. (2018) consumers are now preferring the online portals
and websites of the companies to order their products. Placing orders in online media is the new
trend that has been identified among customers. Therefore from the analysis, it can be stated that
the companies which are having their own online portals can increase their sales and demands
among customers. On the other hand, Jung et al. (2020) stated that reaching sustainability by
altering the organizational process is the easiest way to increase sales. Customers nowadays are
worried about the environmental impact of industrial effluents. The companies which are acting
on the raw materials and using eco-friendly products are getting priority from the customers. In
the opinion of Thorisdottir and JohannsdottirL (2019), the companies follow the strategy of
sustainability is preferred by the customers. Therefore from these discussions, it can be stated that
“Sustainability” is the major approach that can be taken by the companies to get their sales back.
On the other hand, Noris et al. (2021) state that online digital media is the most effective way to
49
communicate with customers. The companies can engage more customers with their activities by
using o online portals.
4.2 Analysis
Analysis of Theme 1: “COVID 19” and its effects on UK fashion Organisation
The fashion industry in the UK has gathered significant profit by providing authentic products for
the customers. However, the unexpected pandemic situation has affected the fashion industries of
the UK in a big way. The customer percentage has decreased due to the effects of “COVID”. The
customers have been seen with the interest in online product purchases rather than visiting outlets.
Here the organisation Zara which is a fashion and clothing brand also got affected by the pandemic.
The pandemic effect has also impacted customers psychologically which is one of the reasons for
decreasing business profit. The fashion industry is such a business that needs people's
psychological stability.
In business, the aspects of consumer behaviour are the most important thing which plays such a
significant role for the business analysers to have customers buying activities. The pandemic has
been seen with affected consumer behaviour which has also affected the business analysers'
strategies (Helal and Ozuem, 2018). The aspect of developing the business of fashion industries is
depending upon the aspects of customers and their choices. Similarly, such customers with other
backgrounds have different buying tendencies. In this context, the pandemic has totally blocked
ways for customers and they stopped buying cultural relevant products. Similarly, there are Social,
personal, and psychological aspects of the customers which also got affected by the pandemic.
The overall market of the products depends upon the customers; the pandemic has affected
people’s minds in such a way that people started buying such products which will protect them
more rather than showing fashion. From the discussion, it can be seen that dealing with the
customer choices with providing the best available products for them can bring better development
for the companies. It has been seen that the company used clothing textiles which are recyclable
and can be used multiple times. During the “Covid” period the company has recycled less than 1%
of the used clothing. The manufacturing unit of the company has 10% of the carbon emission
(Iqbal and Khan, 2021). That can be seen after the pandemic situation. Though the pandemic has
affected the overall fashion industry the company Zara can change their business strategies to bring
50
development. The fact of overall business flow that can be the scene and observed after the
pandemic can be judged as a result of affected customer buying behaviour.
Analysis of Theme 2: Impacts of online media campaigns on the development of fashion

organisation Zara
The social media campaign is one of the most effective ways that can be used by the business
developer to make better development for their business. Before the development, the business
developers have followed such management methods which also served as opportunities for the
business holders to bring changes to the business. In today's world, technological development has
helped companies to have much better development. Social media has the power to reach
customers faster (Helal and Ozuem, 2018). There are the components of social media business
management that can be used y companies to bring development. The company Zara has also made
itself popular and famous through the process of representing the company to the customers in a
better way. In this context, social media plays a significant role to make the business-wide and
famous to the customers. With the help of social media, the companies are able to read the
customer's favours which can help the companies to have a better view of the customer choices
(Huang, 2019).
The aspects of consumer behaviour can also be managed by evaluating the customer's online
product buying strategies. The company Zara has represented their products through social media.
The company has maintained the business strategy of advertising its unique products randomly to
the customers. The online campaign strategy has also helped the company to reach international
customers (Fung et al. 2021). The company has also created a customer engagement strategy with
the help of social media management has also attracted customers. With the help of social media
campaigns, the companies have collected such information about the customer culture and ethics
which has also helped the organisation to reach the respective customers in a short span of time
(Thorisdottir and Johannsdottir, 2019). There are aspects of customer culture which has been
described in consumer behaviour has such important role to the business developers. The fashion
designers can make such better products for the customers with evaluating the customer's ethics.
In the different corners of world there are different kinds of the customers with different choices
that need to be addressed by the organisation to have international customer reach (Putri et al.
51
2021). In this context, the company Zara has also followed the aspects of customer ethics and
delivered the most authentic products for the customers. The social media has helped both
customers and the companies to get connected with each other (Goworek et al. 2020). Before the
development the customers often failed to buy their choices product. The age of AI has contributed
both customers and the companies with providing opportunities to have the necessary consultancy
(Vynogradova et al. 2021).
The aspect of creating a better brand image to the customers can be managed with the help of
social media. Advertising for the company fame with such better commercial designs can deal
such better and positive business background for the companies (Fernandes et al. 2018). The more
the companies can make themselves available to the customers the more the companies can have
such better profit level. Before the developed era rose the organisations or the companies were
quite unable to reach the customers. However the companies and the organisations now have the
ability to reach the customers faster. Zara has followed the management theories with addressing
customers through such professional commercials.
Analysis of Theme 3: Challenges faced by online fashion companies during the “COVID”
situation
During the pandemic situation company’s organisation has faced many issues that have affected
the company's annual profit. Many of the issues have been described below.
Affected supply chain: According to Sari and Asad (2018), for such an international business
supply chain management is one of the most important things that need to be managed well. After
the pandemic situation, the companies have faced issues with supply. The urban products that used
to be imported for the different cultural customers got affected. There are such products which are
being imported from other countries which got stopped as the government of the related country
took such crucial steps to maintain the safety.
Psychological pressure on the workers: the manufacturer of the products or the workers has faced
mental stress as a result of the affected business economy of the respected companies. Of the
unexpected business down flow, the worker's productivity got lowered which has also affected the
52
future of the business. Psychological well-being is the most important thing which may affect
creativity (Rodríguez et al. 2021).
Developed Marketing strategies crafted by the companies: During the pandemic situation, the
companies have faced huge business issues that cannot be recovered through the existing
marketing strategies. The marketing developers has developed and researched new business
strategies through which the companies can recover the business loss for the companies. The
organisations can serve the customer's products with providing such compulsory medical
components free of cost with the products (Guercini, Bernal and Prentice, 2018). Zara has faced
such huge loss after the pandemic situation which can only be recovered by adopting new
marketing strategies. For example, the company has offered season sell for the customers through
which the company has started selling the stocks at a very low price tag. It has been seen that the
fact of price is the most important aspect that runs in the customer's mind. In this context, the
fashion brands have developed product pricing with an acceptable price range for the customers
(Weber, 2018).
Regional customers got affected by “COVID”: The regional target customers got infected with
the pandemic which has also affected the company's target market stocks with huge loss.
Analysis of Theme 4: Strategies and factors that contribute to successful marketing and
business for fashion organisations
There are multiple business strategies that can be helpful for the organisation many of the
developed marketing strategies have been described below.
E-commerce: Managing business with the guidelines of e-commerce can be helpful for modern
business companies such as Zara. E-commerce can provide companies with a better management
on the level of customer addressing (Guercini et al. 2018). Customers prefer online purchases more
than buying products from any physical store. The aspects of online product purchasing have
helped customers around the world to choose the desired products and get them delivered.
Sustainable business management: one of the most followed business strategies in today’s world
is the aspect of sustainable business management. In every business, there should be sustainability
managed for the companies (Jung et al.2020). The fact of maintaining sustainability in every
53
business needs to be managed well by the companies. The more there will be better sustainability
planning the more the business can have better future scopes. There are peoples and customers
also who has paid attention to the aspects of sustainability and the fact of sustainability is a matter
of concern for them.
Better visibility through social media platforms: Modern business management depends on social
media more than any other means of digital marketing for companies. Social media is maintaining
a communication chain between the customers and the sellers (Noris et al. 2021). Digital platforms
included many corners that can be used by the customers to have recommendations also. Online
product guidelines have also helped inexperienced customers to buy their desired products. The
communication process between customers and companies has been firmly managed with the help
of digital marketing.
Sustainability in the manufacturer department: In today’s world wearable products is being

manufactured with textiles which is negative in nature and accelerates the Carbone emission in
nature. In this context to bring sustainability to the manufacturer house, the departments should
use such elements and textiles which is eco friendly in nature (Thoris and Johanns, 2019). The
pandemic and its effect have proved negative in nature and effect on human life. After the
pandemic, a huge number of customers have started paying attention to the aspects of sustainability
in every aspect.
From the above discussion, it can be assured that the business management process for the
companies needs to be developed in such a way that both customers and sellers can have a better
future together with the help of maintaining sustainability.
54
Chapter 5: Conclusion and Recommendations
5.1 Conclusion
It is understood from the study that the fashion company of Zara is significantly impacted by the
“COVID-19 pandemic”. It is understood from the research that the brand value of Zara has
decreased during the pandemic. This resulted in the sales of the company falling to 14,000 million
GBP (Statista.com, 2021). It is further inferred from the research that Zara experienced a decline
in the number of physical stores. The decrease in the number of stores resulted in a fall in sales.
Moreover, the lack of demand for luxurious clothing resulted in a decrease in the brand value of
the firm. As a result, the brand value of Zara decreased from 18.4 billion USD in 2019 to 13.2
billion USD in 2020 (Sabanoglu, 2021).
A decrease in the brand value of the company resulted in Zara facing financial and economic
survival issues in the economy. Zara was noted to experience a decline in sales due to the disrupted
supply chain network. This challenge of a disrupted supply chain and declining sales resulted in
Zara experiencing a financial risk of increasing debts in its business. Before the crisis, its net debt
value was 30%. However, the COVID-19 crisis resulted in the company facing the shutting down
of stores. This shutting down of brick-and-mortar outlets along with the contracting economy
created due to the pandemic led to an increase in debt value to 75% (Tariq, 2021). This increasing
debt value resulted in the company experiencing not only the challenge of declining brand value
but even facing challenges of increasing preference for online shopping, financial risks due to
increasing debts and risks to the economic sustainability of the firm. Therefore, the company used
the opportunity of online shopping for increasing its sales and brand value. This resulted in a 76%
increase in group sales in the “post-pandemic” scenario.
5.2 Linking with Objectives
5.2.1 Present condition of the fashion retail market in COVID-19
It is understood from the study that the fashion retail market was not faring well during the
COVID-19 crisis. Most fashion retail brands including Zara were found to experience an
55
increasing preference for online sales from consumers. This resulted in the overall debt value
increasing from 30% to 75% in three months (Tariq, 2021).
5.2.2 Importance of Brand Value for Zara
Zara is noted to be a luxurious fashion brand that had a brand value of 18.4 billion USD in 2019.
According to the themes analysed, not much information is obtained concerning the brand value
and its importance for Zara. However, the literature reviewed indicates that the company
experienced a significant decline in brand value. This decline in the brand value of Zara by 5.2
billion USD negatively impacted Zara, leading the sales of the company to decline from about
18,000 million GBP to about 14,000 million GBP (Sabanoglu, 2021).
5.2.3 Challenges and issues faced by Zara in the COVID crisis
It is concluded that Zara faced issues concerning the economic survival of the company. The
decline in the number of stores along with the increasing preference for online shopping among
consumers resulted in the company facing the challenge of disrupted supply along with increasing
debt up to 75% in three months since the onset of the crisis (Tariq, 2021).
5.2.4 Strategies implemented for survival during a pandemic by Zara
Zara was noted to implement social media online campaigns as a strategy to survive during the
pandemic. The firm utilised the opportunity of the online shopping preference of consumers to
experience an increase in online sales by 76% (Shabir and Al Bishri, 2021).
56
5.3 Recommendation
5.3.1 Recommendation 1: Introduce a new web page to gather customer feedback
57
Specific “Zara” is recommended to use a new webpage to overcome the current
issues that have affected their brand value. Zara’s webpage can
contribute to necessary product information sales and organisational
information for customers based on internet and online measures.
Developing a webpage will help the company to collect the data directly
from their customer. It will help to gather information while
maintaining the physical distance due to the spread of “Covid-19” in
the country of the UK.
Measurable This technique will help to measure the customer satisfaction level by
collecting raw data from the market. This strategy will help to increase
the flow of information that will allow setting the future strategy of the
company. This technique will also help to measure the sales rate of
“Zara”.
Attainable This kind of improvement can be attained by introducing an

Information technology team that will help to develop a new web page.
This webpage will have to launch on different social media platforms
to spear it among the people (Dougan et al. 2020). This strategy will be
completed by taking help from the influencers. That will help the
management to reach the people and it will help to maintain laws or
implemented due to the spreading of “Covid-19”.
Realistic This kind of strategy will help to gather information on the basis of
market data. That will help the management to set their future strategy
to overcome this kind of issue. This will also allow the management to
identify customer satisfaction.
58
Time Introduction of a web page can be completed within a time period of 3
months.
Table 5:1: Recommendation 1
(Source: Created by Learner)
59
5.3.2 Recommendation 2: Differentiation strategy
Specific The fashion company is recommended to use differentiation strategy in

order to overcome the issues that affected the brand value of “Zara”.
This strategy will help to set better guidelines in their company to
reduce conflicts. This strategy will allow maintain the uniqueness of
their products while dealing with the impact of “Covid-19”.
Measurable This strategy will help to measure the quality of the products as well as
the profit level of “Zara”. At the same time, it also allows maintaining
the loyalty of the customers in this pandemic situation (Li et al. 2019).
This will help to measure the added value that allows the brand to
increase its profit level.
Attainable This strategy will be completed by developing a management team.

“Zara” can change their plan in order to develop a “differentiation
strategic” that will help the management to differentiate the market
values.
Realistic This strategy can be implemented by changing the management strategy

of the organization. This kind of change also can be done by increasing
the skills of the employees. In order to overcome market conflicts
management of “Zara” will implement this kind of strategy in order to
overcome those issues.
Time This strategy will take a time period of 1 to 2 years.
60
Table 5.2: Recommendation 2
61
5.3.3 Recommendation 3: Developing supply chain
62
Specific The concerned company is also suggested to improve its "supply chain
management" in order to make a better connection with local, regional
and global suppliers. In this pandemic era, 1200 stores across the globe
were closed due to improper management of the supply chain. In this
regard, a strong relationship with the local, regional and internal
suppliers can improve the fluency of the supply management of this
company.
Measurable Developing supply chain management will help to identify the barriers
of the supply chain. This also allows measuring the loss and profit of
“Zara”. At the same time, it will help to measure the excess cost of the
supply line (Reddy et al. 2021). This kind of development will help to
reduce the conflicts in the supply chain. This will help to find the
conflicts and cost of the supply line.
Attainable This strategy will be completed by developing a management system

that allows reducing conflicts. The supply chain can be developed by
the implementation of digital technology and data transparency. This
kind of development will help to reduce time-related issues. At the same
time, this will be done by increasing the skills of the workers (Gligor et
al. 2020). That will help done by the implementation of new
development technology.
Realistic This kind of strategy will be done to improve the brand value of “Zara”
that will help to achieve profit while dealing with the impact of “Covid-
19”. At the same time providing skills to the employees allow
developing this strategy.
63
Time It will take a time period of 1 year.
Table 5.3: Recommendation 3
5.4 Limitation of the Study
This study is done by implementing secondary resources and implementing a focus on the impact
of Zara in the “COVID-19 pandemic”. Since the pandemic hit the UK at the beginning of 2020,
resources for studying the topic were limited. Moreover, the extent to which the brand value was
impacted is not highlighted in detail. Apart from this, the study focuses on the challenges of the
supply chain and the financial negative implications created due to decreased brand value of Zara.
5.5 Future scope
The study can be carried out for another fashion luxury brand in the UK. Further research can be
done by researching the brand value and its impact on the consumer loyalty of Zara. This would
help to relate brand value and consumer experience and loyalty challenges during the “COVID-19
crisis”. The organisation ZARA has crafted their business management by adopting new market
strategies which have helped the organisation to perform better in its organisational development.
The study can be further evaluated based on research conduction including more interactive data
analysis and data collection processes. The future scopes based on this research topic could also
include aspects of the development of the fashion industry of the UK addressing changes in
specific financial and respective organisational operations.
64
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What are the aims and objectives of the study?

WHAT STRATEGIES IS ZARA UNDERTAKING AS A

PREMIUM BRAND TO SURVIVE DURING THE COVID

1.3 Problem statement 9_Toc100159343

1.4 Aims and objectives 12

1.5 Research questions 13

1.6 Research significance 14

1.7 Structure of dissertation 14

Chapter 2: Literature review 16

2.2. Conceptual Framework 17

2.3 COVID-19 Crisis 17

2.4 Fashion Industry of UK 19

2.6 Strategies for the fashion industry to address COVID-19 22

2.7 Impacts of the COVID-19 crisis on the UK fashion Industry 23

2.8 Theoretical Concepts 25

2.9 Literature gap 28

3.3 Research design 30

3.4 Research strategy 32

3.5 Data collection method 33

3.5.1 Search Strategy 33

3.5.3 Boolean Search table 33

3.5.5 Inclusion and Exclusion Criteria 36

3.5.6. Screening Framework (PRISMA) 37

3.6 Research analysis method 38

3.7 Research limitation 38

3.8 Ethical Considerations 39

Chapter 4: Findings and analysis 40

Chapter 5: Conclusion and Recommendations 55

5.2 Linking with Objectives 55

5.2.1 Present condition of the fashion retail market in COVID-19 55

5.2.2 Importance of Brand Value for Zara 56

5.2.3 Challenges and issues faced by Zara in the COVID crisis 56

5.2.4 Strategies implemented for survival during a pandemic by Zara 56

5.3.2 Recommendation 2: Differentiation strategy 60

5.3.3 Recommendation 3: Developing supply chain 62

5.4 Limitation of the Study 64

5.5 Future scope 64

Figure 1.2: Global brand value of Zara from 2016 to 2021 10

Figure 1.3: Financial figures for Zara group 11

Figure 1.4: COVID Accelerates Declining Retail Industry 12

Figure 1.5: Structure of dissertation 14

Figure 2.1: Conceptual framework 17

Figure 2.3: Impact of coronavirus on consumer’s attitude 19

Figure 2.2: Overview of Strategic management 26

Figure 2.3: A basic strategic planning process model 27

Figure 3.1: Types of research philosophy 30

Figure 3.2: Types of Research design 31

Figure 3.3: Inclusion and exclusion criteria 36

Figure 3.4: Prisma flowchart 37

Table 3.1: Boolean Table 35

Table 4.1: Findings of Theme 1 41

Table 4.2: Findings of Theme 2 43

Table 4.3: Findings of Theme 3 45

Table 4.2: Findings of Theme 4 48

Table 5:1: Recommendation 1 57

Table 5.2: Recommendation 2 58