Business Trends Shaping Fashion

Chapter 1. Introduction

1.1 Introduction:

Fashion trend in the current era is potentially influenced by the mirror chances in the business framework. Today’s business world goes the continuous social, political, financial and technological changes that influence the entire fashion industry. Fashion can be referred as the popular practices and the styles that are developed by people based on current trends and preference. Changing business trend due to the ever-changing customer perception and market demand pose potential impact of today’s fashion industry in terms of offering the huge range of alternative fashion products such as clothing, footwear, accessories and cosmetics. Today’s business perspective completely different from eth viewpoint that only through profit making and quality improvement a brand can grab the customer attention in order to make their rand reputation. Due to the positive revolution of the business trend, today’s customers are highly concern and specific about their fashion. In today’s business world, young population is highly stylish and fashionable who prefers innovative fashion products s well a unique design that will give them a trendy look. In this research, the research has explored the impact of current business trend on the fashion industry with special references to Zara, the famous fashion brand having headquartered ion Spain. In this research, the research has focuses on the different socio economic, technological, economic, social and demographic changes that impact of the current business trend and today’s fashion industry. Moreover this research has also shed light on the impact of current business trend on performance of Zara. The researcher has also discussed the strategies taken by Zara in order to deal with the changing business trend that poses the possible threats on Zara’s marketing strategy and business outlook.

1.2 Background of the company:

Zara, the famous fashion brand of Spain, is one of the most preferred fashion organizations which offer the innovative styles and products to its valuable customer in order to meet their fashion demand. Zara’s specialty is that it designed its own clothes and accessories are based on the current fashion trend and customer preferences. This is why this company is one of the best fashion sellers on the world. Zara owns different other brands such as Oysho, Pull & Bear, Massimo Dutti, Zara Home and Bershika. It has 10,000 stores that are located in different countries across the world. Based on 2018 annual report of Zara it has gained annual revenue of $ 18 billion annually. According to (), the ever-changing business landscape poses potential impact of fashion industry. Due to changing social, technological and economic framework in the world, fashion companies focus making possible effective changes on their business process in order to deal with these changes. In Australia, Zara faces severe changes due to the changing socio-economic, cultural and technological factors that affect the business trend over there. In Australia, there is huge economic growth with 2.8% in 2017. The severe economic growth in Australia, improves the income level of people, which makes them able to spend money in choosing their fashionable brand and product this increases the competition threats for Zara.

1.3 Rationale of the Study

In today’s changing business landscape, fashion industry is one of the important sectors that faces severe challenges and potential impact of current business trend, customer perception and market demand. Zara, the famous Spanish fashion giant also have the potential impact on its business trend and marketing approaches due to the changing social, economic, cultural and behavioral perspective of community. Now the impact of current business trend on the fashion industry is a big concern in today’s highly modern life\styles in which people prefers to be more stylish and trendier. Therefore, it is high time to discuss the important impacts and challenges that the current business trend has on the fashion industry, and how the fashion marketers deal with these changes. The impact of current business trend of the fashion industry is an important issue to be discussed as it compels the fashion marketers to take the new effective strategies and marketing approaches that will assist them to make long terms customer relationship. Moreover, in changing business trend, people are more informed about the product quality, brand image, comparative market price of different fashion product which pose severe competition threats on Zara. Therefore, it sis important to discuss the that how fashion industry can cope with these changed business trend with setting the effective business strategies. In this research study, the research has discussed the overall impact of different factors such as social, cultural, technological and economic on the current business trend. And how these current business trend influence the business activities and performance of fashion\industry. Moreover, in this research, the researcher has also depicted the issues that Zara faces in Australia, due to the changing business trend. Through discussing the strategies and performance agendas set by Zara this research has also discussed that how this fashion brand is going to deal with the challenges faces due to changing business trend

1.5 Research Objectives

To determine the factors that has potential impact on the current market trend

To identify the passive impact if current market trend of fashion industry

To evaluate the potential impact of changing business trend of Zara’s performance

To recommend the effective business strategies and marketing approach for Zara in term of combating the adverse impact of changing business trend

1.3 Research questions:

How do the changes in current social, economic, cultural and technological trend pose potential impact on current business trend?

What the potential impact of the current business trend on Zara’s performance:

How does the change business trend affect the customer buying behavior and choices in case of Zara?

What strategies would Zara set in order to cope with the caging business trend in Australia?

What would be the possible recommendation for Zara in terms of maintaining the long terms customer relationship in the current market trend?

1.4 Research aim:

This research aims to highlight eth impact of current business trend on the fashion industry with special reference to Zara. Moreover, the purpose of this also to highlight the business strategies set by Zara in order to deal with the changing business trend in current situation.

1.5 Summarily:

This chapter has described the clear background if Zara, in order to discuss its financial and marketing position. Moreover, it has also described the aims and objectives of this research based on which the entire research has been conducted. Through setting the relevant research questions, this chapter highlights the fact based on the research finding would be collected and analyzed.

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Chapter 2: Literature review:

2.1. Introduction

With the changing market trend and customer buying preference in today’s business trend, the fashion industry goes through the continuous changes and development. In this chapter research has discussed the concept of current business trend in the fashion industry due to the changing social, economic, technological and cultural trend in the community. Moreover, through using the relevant models and theories this chapter discussed the impact of changing fashion trend on the performance and activities of Zara. In this chapter researcher has used the relevant sources in order to highlight that how the today’s fashion industry deals with special reference to Zara deals with the changing business trend in the fashion market.

2.2. Conceptual Framework:

Conceptual framework is important aspect of any research in which the research highlights the connection among different theories and models in order to define the entire topic. In this research, the conceptual framework highlights the connection among theories and models regarding current business trend and its impact on the today’s fashion industry. Through showing connection among the independent and dependent variables, thus conceptual framework assists the researcher to discuss the impact of the current business on the activities and the performance of the Zara.

2.3 Concept of changes in the current business trend that affect the fashion industry:

Today’s business landscape is highly affected by the current political, economic, cultural, socio-economic and technological trend. This changing business trend has potential impact on current fashion industries. Zara, the famous Spanish fashion brand has to face severe challenges in Australia, due to it changing business trend that is the result if changing political, economic, technological, cultural and financial factors (www.zara.com, 2019). Due to changing culture and technological aspect the current fashion industry has offer innovative product and designs to the customers in order to meet their fashion demand. Current business trend makes the customer more fashionable and trendier who chose the best quality and innovative fashion products by search different brands. In Australia current business trend is highly affected by technological, economical and socio-economic advancement, which assist the customer to get proper knowledge price, quality and usefulness of different fashion products in order to get the best one. On the other hand, these changes pose the direct impact to Zara. As the customers are now able to search the better and low-cost products from the other brand, it poses the severe competition threats to Zara. As stated by (Peng (2017), current business trend is supported but technological advancement, which assist the customers across the world to choose the high quality and best fashion product in low cost. As Zara has its own designs and products, the price set for each product is relatively higher than the other local fashion brand in Australia. This can lead to sever competition threats by the other local and international fashion brand sin Australia.

Concept of factors that affect overall business trend in the fashion industry:

There are different factors such as technical, economic, socio-economic, cultural and behavioral trend that affect the overall business trend in the fashion industry. In Australia Zara faces the both the challenges and opportunities due the changing trend in political, economic, technological, financial and cultural factors.

Impact of current technological trend:

Australia is reported to have high level of technological advancement that assists the marketers in fashion industry to meet ever changing fashion demand of customers. As stated by Strebinger (2014), Australia have talented and innovative fashion designers, who design each product such as cloth, accessories and footwear based on the current fashion trend. With the digitalization of business landscape, today’s fashion industry is full of opportunities and challenges. Zara faces the challenges in Australia regarding the fact that, availability of innovative designer and fashion assistants assist the other brand in Australia to manufacture the high quality and low-price products (www.zara.com, 2019). Moreover, digitalization of fashion industry, assist the customer to gain the proper information regarding price, usefulness and durability of fashion products of different brands. This pose the competition threats to Zara, as majority of the Australian fashion brands are now able to sell the quality product in reasonable price with offering the customer huge alternatives. The Global Technology Revolution 2020 reported that, technological advancement assists the current fashion industry to get the innovative designs, thoughts and ideas in order to meet the current fashion demand of young population. In this aspect Henninger et al. (2015) stated that, with several challenges and adverse effects there are some benefits of technologic changes over current business rend in fashion industry. Zara marketers are now able to collect new ideas and designs by conducting online research on the current fashion designs and crafts (www.zara.com, 2019). Moreover, through using the useful software and application program, fashion designers in Zara can make more innovative and classy designs f clothes, accessories in very less time. This would assist the brand to offer the innovative and trendy products based on the customer demand, moreover, through conducting overall market research inline, Zara marketers and fashion designers can understand the current fashion trend in other countries that are also preferred by the Australian people.

Changes in social and demographic trend:

Social and demographic trend changes continually in Australia that affect the current business trend in terms of changing the consumer buying behavior and preferences. As stated by Strebinger (2014), with changing traits in demographic and social context, the behavior, activities, performance of potential customer also change. Due to the technological advancement, and economic growth in Australia, there is further ramification of the society, culture, customer behavior and consumer preferences. Moreover, the socio-economic growth and political stability in Australia leads to positive transition of the social perspectives such as education, ideas and social thoughts. Zara focuses on its pricing, product development and placing strategy rather than focusing on the changing social trend in Australia. On the other hand, from 1960, Australia has faced the severe transition in the social and demographic context, that changes the perspectives of the fashion designer and purchaser (www.zara.com, 2019). Therefore, Zara can face potential challenges in Australia, in order to provide the relevant product and designed in order to meet the current fashion trend, as they brand in unable to make proper research in changing social and demographic trend in Australia. Moreover, the development of education, opportunities, skill development for both the males and females, makes the people able to choose the innovative styles and smart outlook rather that the traditional fashion items. Therefore, it is important for Zara to also focus on the social and demographic changes in Australia along with the buying behavior and changing reference of customer in order to make the long terms customer relationship.

Change in the economic trend:

Australia experience the high-level economic growth that assist all the businesses operating in this country to expand its market boundaries, due to the economic boom, the per capita income and job opportunities of people In Australia also increases. Zara believes on the logistics that their designers and marketers would offer the customer innovative designs and products within each two weeks. Zara put new products with innovative design and looks, which maintain the uniqueness of this rand. For maintaining the uniqueness and creativity of this rand Zara never compromise with the quality and price of products. Continuous economic growth in Australia assists people in this country to choose the best product and to meet their fashion demand. Although Zara has innovative products and unique designs, it is failed to compete with potential rivals in Australia such as Coles and Woolworths, due to its poor marketing and p promotional strategies. According to Henninger et al. (2015), if people have proper money to meet their demand, they would definitely choose the company which provide the quality product in less price. As Zara sells it own designed and manufactured product, the product is more costly than the other brands. On the other hand, Australia people can find out the attractive fashion product from Coles and Wool world in relatively lower price than Zara which pose the severe rivalry threats to Zara (www.zara.com, 2019).

Concept of current trend of fashion industry:

Fashion industry goes through the unprecedented growth with sharp transition of the market outlooks and customer perception. In today’s business trend, customer has digital centric perspectives that focus on the innovation, creativity and uniqueness. Zara is one of most famous fashion brands in Australia that focuses on maintaining the uniqueness and creativity in deigns and styles in order to meet the fashion demand of people (www.zara.com, 2019). Due to the technological; advancement, people especially the young generation are concerned and specific about their styles and fashion. Moreover, the financial development in current business trend assists marketers to offer huge range of high-quality products to the customer which can satisfy their needs. As stated by Henninger et al. (2015), majority of the Australian people are now more fascinated towards the ecofriendly products. Current business trend shifts the fashion preference of people from the luxurious products towards the ecofriendly products. This trend poses severe challenges on marketing approaches of Zara. Zara uses the traditional and dyes in order to stain the clothes for giving it the trendy look. However, this process of designing and manufacturing the innovation designer clothes and accessories leads to yield different waste [products that can enhance pollution in the environment. Australian government now focuses on reducing the pollution by imposing the regulation on the business in order to manufacture the eco-friendly products that can be recycles easily. This pose huge challenges on the designer and the marketers if Zara in order to set the new strategies in order to meet the governmental regulation. Moreover, managing waste and manufacturing the eco-friendly designer clothes would enhance the overall manufacturing cost that will also raise the market price of each fashion products.

Theories regarding the changing business trend in Fashion industry that alters the buying perception of customer:

EKB model:

Based on this theory, customer in the fashion industry would go through the five steps in order to purchase a product. In the first step, the customer would analyse the characteristics of products and service by gathering proper information about each product from television, media and newspaper. As stated by Valeiras et al. (2015), information gathering system through the media and other sources assist customer in order to gain proper knowledge about product durability, price, reviews, usefulness and speciality. Second stage in customer buying process is information processing, in which customer compare their past experience and all the inputs of their expectations. In case of Zara customer can gather proper information regarding each of their products from the official websites and social media. However, in the second stage, the information processing system, customers of Zara can face severe challenges as Zara focuses on the fast fashion and innovation design (www.zara.com, 2019). In this aspect the customers are not able to have proper time to compare their previous experiences regarding the quality and price of products. In third step, customers pass through the decision-making process and on the fourth stage customer analyse or judge whether the products is useful in terms of meeting their expectations. In the fifth and final stage, customer ultimately decides to buy the products. In case of Zara, the marketers use the poor promotional processes that can pose the potential challenges on this brand. Due to poor promotional through social media and official page of Zara, customer can decide to choose the fashion products from other brands. Moreover, Zara fixes the price of each designer clothes and accessories higher than the market price due to their innovative designer and unique outlook. This can make customer to choose the other brand such as Woolworths and Coles, in order to get the variety of fashion products at the lower price.

Motivation needs theory:

According to Brydges & Pugh (2017), people can meet their expectation and needs by passing through the five part of systems such as esteem, love, safety, self-actualisation and psychological comfort. Australian people are highly fascinated about their clothes, footwear and accessories. However, the designers and fashion artists of Zara cab faces severe competition threats from other rivals such as Woolworths, Coles, BHP and West farmers, due to its poor approach towards the customers. Zara have poor marketing and promotional strategy that cannot approach the customer in better way as compared to the rivals. Moreover, customer in Australia can get variety of fashion products from the other brands such as Woolworths, Coles, West farmers and BHP, at lower price that the Zara. As Zara believes in the innovative designs and creative fashion segments, it has limited number of products and accessorised on its self, which cannot offer the customer with huge ranges of products. Therefore, Zara is unable to meet the fashion demand of majority of the customer as compared to the other grand. On the other hand, Zara never compromise with the quality and price of products, which enhance the market price if each fashion products that compels the majority of the customers to spend their money into the other brand in order to get different fashion product at the lower price (www.zara.com, 2019).

Theory of Reasoned Action:

Based on this theory, the attitudes and decision-making process of the customer allow them to decide which products would meet their expectation. Customers have the perspectives that, brand that can provide the positive response before and after the product purchasing would be the better choice for them over the other grand. In this aspect, Zara marketers needs to focus on maintaining the good and heathy relationship with its customer by making positive response to each of their queries and needs (www.zara.com, 2019). Based on the current business trend, customer is more conscious\s about their fashion, designs and outlook, which enable them to choose the best product in market at the affordable price. In Australia, customer is smart enough to analyse the proper details if each fashion product before buying them from any reputed brand. In this context, Woolworths, Coles are the reputed brand that have string marketing and promotional system, which assist customer to gain proper knowledge regarding the products and services produces by these companies. This can also compel the customers to set the decision that they can easily get the fashionable products at lower price than Zara from the other Australian brand such as Woolworths and Cole, in order to meet their fashion brand.

Theories regarding the changing fashion trend due to the changes in the current trend:

IDIC model:

This model focuses on maintaining proper customer relations management in an organisation in order to maintaining long terms customer relationship. Zara marketers can use this model in order to implement the four types of processes such as identify, differentiation interact and customise, in order to deal with each customer in order to understand his or her individual needs. Zara needs to make proper interaction with the customer through social media and online prices in order to access proper information regarding their presence, needs and fashion sense. As stead by Brydges & Pugh (2017), after analysing the needs of customer, it is important for customer to differentiate customer expectations. In this aspect, Zara, needs to conduct roper market research on the current business trend and how it impacts if he social, behavioural and attitude values of customers, Moreover, Zara can link the customer expectation and needs with the current market trend in order to differentiate between the needs and preference of customers. for example, some of Australian people are fascinated about the innovative clothes and designees which give them unique look. On the other hand, some of the people believe in wearing the traditional but trendy clothes and jewelleries. In case of Zara, it has new product in its self for the two weeks, which makes it impossible for the customer to get the previous products that they want. In this aspect, some of the traditional people moves towards the other brand such as Woolworths and BHP, in order to get the variety if trendy and classy products. In this aspect, Zara needs to enhance its online presence over the media, through which it can interact with customer in order to get [roper information about the needs and preference of the customer. In additional to that, through product customisation and standardisation, Zara can also keep the pervious products on their self in order to grab attention of the customer who prefers the pervious products.

Value chain Model:

This model is based on the inbound logistic of company in order to marinating the primary activities in term of delivering the value service and products to customers. Australia fashion industry is going though severe technological, social and economic development that assist the people residing there have potential it chose the best fashion brand in order to get the best quality of products. According to Kapur (2016), in order to maintain proper in bound logistics organisational needs to maintain right movements of products and raw material and develop the strong as well as healthy relations with suppliers. Zara has its own fashion designers and artist who work hard to make the classy products that can meet the exoneration of customer. In order to maintaining proper in bund logistics, Zara needs to maintaining the strong collaboration with suppliers in order to ensure the timely delivery of high-quality raw materials. Moreover, Zara needs to select the raw material based in the current fashion trends which would assist the designers and the artist to manufacture the products that are preferred by the current fashion industry.

Dow Theory: The Three-Trend Market:

This theory is based on the three major trend of marketing such as primary, secondary and minor. As stated by Kuldova (2014), primary trend is important for organisation to introduce the effective as well as long terms changes in the industry, that can assist marketers to meet customer demand. Now, Zara always focuses on maintaining the fast fashion framework, which assists designers and markets if this brand to make the frequent launching of products. the ever-changing trend if technological, social and economic context, Zara designers and marketers can face the severe overriding process in stick process, as stated by, primary market trend dominated overall the secondary and minor. For example, of the primary market trend goes upwards, then secondary and minor market trend would leads to the downward direction, in this context, Zara needs to focuses on the economic and socioeconomic trend in Australia, in order to understand the per capita income and purchasing of households. Moreover, through analysing the primary market trend such as stock price, commodity price, Zara designers can fix price of their designer products in such a way that wide range if people can afford the brand.

Planed behavior Theory:

This theory is based on the behaviour and attitude if the consumers that leads them towards particular brand or product. Zara has completely different market strategy and customer approaching process and compared to the other brand in Australia. Zara has its own designs and fashion products that are specially made by talented designers and fashion artists. Moreover, products of Zara come only in 3 to 4 colours and pattern as compared to the wide ranges of coloured products and fashion outfits in the other Australian brand which is based Woolworths, Coles and BHP. As stated by Oh & Jeong (2014), in order to make string customer relationship it is important for organisation to focus on what customer actually want from them. In this aspect Zara marketers needs to analyse current fashion trends in Australia, which would assist the marketers to manufacture such style of products and design that would easily attract the customers. Moreover Zara, needs to fix the behavioural shift if Australian people due to changing business trend, in order to customise and standardise the products and service.

Relationship between the changing current trend and today’s fashion industry:

Today business world is full of advantages, opportunities and development (Oh & Jeong, 2014). Due to the rapid changes in technological, social and financial framework of world, business trend also changes in continuous manner. In this context, Zara have also experienced several opportunities as well as challenges due to the changing business rend. One of the most common opportunity and advantage that Zara experiences is changing behaviour and buying capacity of customers, which assist the people to afford this brand. As Zara, has its own fashion clothes and jewelleries which are manufactured by talented designers and manufacturers, the price of each products is relatively higher due to material quality and creative outlook. Due to the economic and socio-economic development in Australia and other developed countries, majority of eth people can afford the products of Zara easily. Moreover, technological advancement, assist the talented designers and fashion artist in Zara to collect innovative ideas and through by conducting proper research on internet in order to make the innovative designs. On the contrary Pan et al. (2015) argued that, although the technological, social and economic development assist marketers to grand customer attentions through customisation of their products, there are several challenges that most of the markers have to face. In Australia, the cultural, economic, social and behavioural changes bring about the shift into customer buying behaviour and attitude. Majority of the customer completely to choose Woolworths and BHP over Zara due to its limited stock and higher stock. Moreover, majority if the customer gets the proper information regarding each fashion product before buying this, which assist them to select the brand that can provide them wide range of collection at affordable price. This poses the severe competition towards Zara.

Strategies taken by Zara to deal with the changing business trend in fashion industry:

Changing business trend have potential impact on fashion industry. As stead by Brun et al. (2017), due to technological, social, cultural and economic development across the world, businesses are able to have new thoughts, innovation framework and highly creative and relevant market approaches. In today’s, business world, marketers and the client interact with each through using the digital medium such as internet, email, online feedback process and social networking sites. In this aspect, Zara has its own marketing strategies and approaches that can be irrelevant to the changing market trend and business processes in the fashion industry. This is why Zara faces severe challenges due to the changing business trend. In order to deal with the changing business trend and changing behaviour and buying pattern of customer, Zara marketers needs to customise and restructure their product development process. in order to grab attention of new as well as exiting customer Zara have to offer wide variety of products with different colour and styles to its customers, so that customer can get different variety of products from this brand. Moreover, Zara focuses on the fast fashion trend, which allows the marketers and designers in the brand to change the product in frequent manner with enlisting nr\w products. This process would make customer able to get the previous products that they prefer most that the new products. In this aspect Zara, needs to offer all the previous and new products, to customer, so that customer can access the wide ranges of products. Moreover, Zara needs to focus more on their promotion and marketing policies rather than focusing only in the quality and innovating design. Through using advertisement on television, media and newspaper Zara can approach customers in better manner in order to inform them about the innovative designs, quality and uniqueness of this brand.

Literature gap:

Although this research has successfully discussed impact of changes in the current business trend on today’s fashion industry, this research papers is unable to highlight the proper reason behind the changes in the current business trend. This research has highlighted the social, cultural, economic and socio-economic changes in the society that leads to changes in the current business rend. However, his research is unable to demonstrate that how these changes in the social, technological and financial trend can alter each aspects of current business trend such as marketers’ approach, marketing strategies, customer viewpoint and growth of new businesses. Moreover, in spite of discussing the strategies that Zara is going to take in order to deal with the current marketer trend, the research paper is unable to highlight the important effect of the strategies on the overall business process and outcomes of the strategies terms of changing the customer perception.

Summary:

The literature review concludes that technological social, economic and cultural changes in society ideas to sever changes in the current business trend in fashion industry. Due to the changing business trend, customer buying behaviour and purchasing has also been changed which pose the severe challenges on Zara. In Australia market, the changing customer perspectives affect the behaviour and attitude of customer. In order to deaf with changing business trend, Zara and the other fashion brand need to set proper strategies in order to apoarich the customer in better way to make the long terms customer relationship.

Chapter 3: Research methodology

3.1 Introduction:

In this chapter researcher has described the detailed process of the entire research, different methods that are used in this research are described in this chapter. By discussing the research onion, philosophy, research design and data collection method, research has described the entire process in which the the research has been conducted. Moreover, in this chapter research has also discussed the ethical consideration that the research followed during conducting the research. This chapter also described the research limitations that the researcher has to face in order to complete the research in well-organised manner.

3.2 Method outline

3.3 Research onion:

Research onion describes the important stapes hat required in order to complete the research in well-organized manner. Research onion has assisted the researcher in order to describe the different important stages such as research philosophies, design, strategies, choices, approaches, techniques and time horizons. Research onion consist of several layers, each of which describes the one important process that is important for conducting this research.

3.4 Research philosophy:

Research philosophy describes the main purpose of the entire research. There are different types of research philosophy such as interpritivism, ontology, epistemology, positivism and realism. In this research researcher has used positivism philosophy, in order to use the real database and evidences about current business trend and its effect of the today’s fashion industry. Through using the positivism, philosophy, researcher is able to evaluate different models and theories that are used in this research in order to meet the research objectives. In the other hand interpretivism is based on focusing on analyzing the result of the observation. On the other ontology is based on the reality, objectivism and subjectivism. The epistemology is based on the proper knowledge f particular area which cannot be used in this research as researches have to make the overall analysis of the entire topic. In case on realism the face and database would scientific in order to make the proper judgment at the end of the research. Realism cannot be applied in this research, as this process would focuses on providing the scientific database rather than implementing the relevant theories and models.

3.5 Research approach:

There are two types of research approaches such as inductive and deductive. In this research, the researcher has used the deductive approaches, which assist the researcher to use the exiting theories and modes in order to meet the expected outcomes. In the other hand, inductive approaches are based on the new theories and hypothesis that cannot be applied in this research.

3.6 Research design:

There are three types of research designs in each research such as exploratory, explanatory and descriptive. In this research researcher has used the descriptive research design which assist the research to make proper interpretation of the research outcomes and objectives. Through making proper interpretation of the database and research questions, researcher is able to meet the research objectives in proper manner. On the other hand, explanatory research designs focuses on the research question rather than emphasizing on getting the expected results. Exploratory design is used in case in which the research questions and objectives are not clearly discussed.

3.7 Data collection method:

Each research consists of two data collection method such as primary and secondary. In this research, researcher has used the primary data collection methods. Primary data collection method is the process in which the database is collected directly from the participants and organization in order to make the proper analysis of database. On the other hand, in secondary data collection process, the database is collected through the secondary resources such as magazine, books and articles.

3.9 Data analysis:

Data analysis process is of two types such as qualitative and quantitative database analysis. In qualitative data analysis process, research analyze the database that are collected from the interview of managers of organization, qualitative analysis is based on the analysis of the theoretical database. On the quantitative data analysis is associated with the analyzing statistical database that are collected from the participants. In this research, research has conducted both the qualitative and quantitative analyses process. In qualitative analysis process the 4 managers of Zara are interviewed. In order to collect the theoretical information. in case of quantitative database collection process, 65 customers of Zara has been provided with sets of \questions in order to get their numeric answers for analyzing th result.

3.10 Sampling method:

In this research, research has used the random sampling process, in which 65 customers of Zara have been randomly selected in order to get their proper response. In this random sampling process, each participant has been provided with close ended question sets in order to get their answer.

3.11 Population and sample size:

In this research, 65 customers of Zara have been selected from Australia in order to conduct the survey and 4 managers are selected for conducting the interview.

3.13 Ethical consideration:

In this research, researcher has ensured that all the participants are well-informed about the purpose and objectives of this research. Researcher has also ensured that all the database that are collected through the qualitative and quantitative methods, would not be used for any commercial purpose. In order to develop this research, researcher has maintained the confidentiality of database under the Data Protection Act (1998). Full conformation has been taken from each participant before joining this research process. Researcher ensured that all participants voluntarily participates in this research and they are not forced.

3.14 Research limitation:

In order to conduct this research, researcher has faced some imitation such as short time, low budget and issues regarding authentication of collected database. The time allocated for this research was to short to make further investigation on research topic. Moreover, due to the limited budget for this research, researcher has to confined this research int a small geographic range, which made it difficult for the researcher in order to get sufficient database.

3.15 Conclusion:

this chapter has represented the overall research methods in which the entire research has been conducted. It has discussed the research design, philosophy, approach and research onion. Moreover, in this chapter the research has also described the entire data collection process and data analysis process, based on the that are collected and evaluated. This chapter has discussed the ethical consideration that research has maintained and follows in terms of conducting this research in effective manner.

Chapter 4: Findings and analysis

4.1 Introduction:

This chapter has analysed the qualitative and quantitative database. All the database is presented in graphical formal in order to analyse the response of Zara’s customers about impact of current business trend on fashion industry. Moreover, this chapter has analysed the qualitative information that is collected from Zara’s mangers by asking them the open ended question about research topic.

4.2 Quantitative data collection (Survey of Customers):

4.2.1. How long you are the potential customer of Zara?

Analysis:

From the analysis it is clear that majority of the respondents (35%) are Zara’s customers for more than 5 years, this is positive feedback from the customers which proves that Zara is one of the reputed and trustworthy brands that is able to meet the demand of most of the customers. Moreover, the innovative designs of clothes is potential; reason behind attracting most of the customers.

4.2.2. Are you satisfied customer of this brand?

Analysis:

Majority of respondents (35%) are strongly agreed with the fact that they are satisfied customer of Zara. Only 8% of the respondents are strongly disagreed with the fact that they are potential customer of Zara. It means majority of the people like Zara’s products and service; Zara is able to provide high quality product and convenient service that assist the marketers to satisfy customer needs.

4.2.3. Are you agreed that there is ever changing technological, demographic and cultural trend changes the overall business pattern?

Analysis:

Majority of the respondents agreed with the fact that changes in cultural, technological and demographic trend has potential impact on current business pattern. Due to technological advancement, business in fashion industry has become faster and improved. Moreover, the culture; and demographic trend also pose potential impact n the marketing strategies and management process in business. Zara needs to take different marketing strategies for urban and rural areas in Australia.

4.2.4 Do you agree that current business trend has potential impact on changing customer perception in fashion industry?

Analysis:

Majority of respondents (34%) are strongly agreed with the fact that , current bsiness trend has potential impact on customer perception and buyinh behaviour. This analysis leads to the fact that, due to innovative technologies, cultural improvement and economic boom in the community, people are more informed and concerned about choosing the product and service of particular brand. In Fashion industry, people focus on selecting the best product and brand that can meet their demand. Therefore, the changing pattern of business also changes the overall buying behaviour and perception of potential customers of Zara.

4.2.5. Do you think that current business trend has potential impact on Zara’s performance?

Analysis:

Majority of the respondents (69%) are strongly agreed with the fact that current business trend pose potential impact on Zara’s performance. It can be stated that, due to the technological advancement, cultural development and demographic opportunities business is diversified into several sections, with huge number of employees and customers. With these changing business trend, there is ever increasing demand of customers. This compels Zara’s designers to select smart outlooks and designs that will meet customer expectations.

Qualitative data collection (For Managers)::

1.According to you what are the possible factors affecting the current fashion trend as well as marketing outlook of Zara?

In response to this question first and second manager of Zara stated that possible factors that impact on the current fashion trend of Zara are changes in the technological, economic and cultural trend. They stated that these factors bring about changes in buying behavior and preference of customers, which makes Zara to make possible changes in deigns and products to deal with the changing demand of customers. The other two mangers stated that, possible factors that impact on Zara’s marketing outlook is changing perception, preference and buying pattern of customers, that compel the marketers to provide the innovative clothes and jewelries with new outlook that can impress the new generation.

2. What are the possible impact of current business trend on Zara’s performance?

First and third manger have stated that current business trend deals with innovative technologies, increased purchasing power of consumers and cultural improvement. These changes in business rend makes todays customers more informed and concerned abut product quality, price and durability. Todays generation believes in digitalization and smart outlook. Therefore, Zara’s designers have to focus on selecting the innovative designs and raw material that can give the product trendy and smart look. On the other hand, the second and fourth manger focus more on the change customer perception that impact on marketing strategies of Zara. Cultural shift makes people to transform their preference from luxurious product to ecofriendly products. Therefore, Zara marketers needs to standardize their marketing strategies to reorganize their product list in order to meet this demand.

3. What strategies Zara would make to deal with these challenges:

Thee mangers of Zara have stated that, Zara is has already taken important strategies that will help its designers, marketers and manufacturer to understand and meet customer demand. Zara has changed its product range in order to enlist more trendy and smart outlook products. Moreover, Zara’s designers as work on eco-friendly clothes and jewelries to meet customer demand. The fourth manger stated that one of the strategies that Zara has taken is to increased its product range with different color, size and deigns. Previously, customers complained that Zara offers limited number of products that come with only two or three colors which provides very small variety to customers. In order to deal with this situation Zara’s designers designs the clothes in different looks and designs that will come with ore than 7 to 8 colors.

Conclusion:

This chapter has represented analysis of qualitative and quantitative database that are collected through survey and interview. By analyzing the finding, researcher has represented the research objectives and aims.

Chapter 5: Conclusion and Recommendations

5.1 Liking with the objectives:

Linking objective 1: To determine the factors that has potential impact on the current market trend

From above-mentioned qualitative questions 1 and quantitative questions 4.2.3 and 4.2.4 , it is clear that, the factors that have potential impact on current business trend changing technological, economic and cultural aspects. Moreover, response from the mangers and customer of Zara, shows that, these factors makes potential changes in buying behavior and customer perception that that compel the Zara’s marketers to change the overall marketing outlook, therefore it can be stated that researcher is able to link the first objectives with the responses and to meet this objective in proper manner.

Linking objectives 2: To identify the passive impact of current market trend of fashion industry

Response from quantitative question 4.2.5 and qualitative question 2, it is clear that current market trend has potential impact on fashion industry. With innovative technologies and economic boom, customers are now able to buy their preferred products. Moreover, today customers are more informed about product quality, price and durability that assist them to select the best brand. In this aspect, Zara’s marketers are compelled to focus on current demand and preference of customers to provide the best product and service. From this analysis it can be stated that researcher is able to achieve the second objective through analysing the results.

Linking objectives 3 To evaluate the potential impact of changing business trend of Zara’s performance

From qualitative questions 1 & 2 and quantitative question 4.2.5, it can be stated that current business trend compels Zara’s marketers to enhance the product range. Zara’s designers focus on innovative and trendy designs that can meet demand of current generation, moreover Zara’s marketers also focus on launching products with more variety and colors so it can meet the customer needs. From this analysis it can be stated that researcher is able to meet the third research objectives.

Linking objectives 4: To recommend the effective business strategies and marketing approach for Zara in term of combating the adverse impact of changing business trend

From qualitative questions 3 & 4, it is clear that, Zara is going to take effective strategies in order to deal with the challenges posed by changing business pattern. Zara’s designers focus on enlisting trendier and smarter outlook product in their shelves. Moreover, marketers focus on string promotional strategies. they focus on maintaining strong communication with suppliers to get the high-quality raw material in order to provide the best clothes and jewelries to customers.

Future scope of this research:

This research, has established the scope for future researcher in order to get authentic database about current business trend and its impact on fashion industry. Moreover, it will assist researcher in order to conduct future study n the research topic.

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