Zara’s Business With Artificial Intelligence Technology Innovation

Technology innovation can help fashion business industry to increase productivity and profitably. The retailers can give consumer a personalized experience so that retailers can eliminate inefficiencies and cut down on cost. Zara is one of the fashion company retailers that using the artificial intelligence technology for its business too.

Company Profile

Zara is one of the biggest international fashion companies that owned by Inditex. Inditex is a global largest special retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children.

The company founded in 1975 by Amancio Ortega Gaona, opened the first store name Zobra in La Coruna, Spain. Then changed the name as Zara, it is the world favourite fashion brand of today. The four keywords that Zara has remained faithful to define their retails stores are beautiful, clarity, functionality and sustainability. Zara have been in the business for 43 years and the company operates over 2,220 stores and is present in 88 countries around the world.

Zara slowly expanded domestic business in Spain at first between 1975 and 1988, then expanded to international market in Portugal because Portugal country has similar market due to geographical and proximity to Spain.

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Zara continues expanded stores between 1989 and 1996, during this stage Zara expanded into market with minimum level of socioeconomic development, adding one or two countries per year to their market. These statistics shows that Zara did not have a big data of their consumer shopping behaviour yet back in that time.

Technology Innovation

Artificial intelligence or AI is the concept of computer systems that are capable of performing tasks that usually only human can do, such as decision-making and visual perception.

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Zara is using artificial intelligence technology corrected consumer shopping behaviour into big data and analytics into its business strategy. The technology helps Zara forecast consumer behaviour platform and stay ahead in the race of competition. Artificial intelligence also helps suggest items to online shoppers and easy to find the right fit for them. The technology makes Zara understanding the taste and references of customer; therefore, attracting customer attention to buy products more often and shorter processing time.

Zara’s business model built by Ortega, the core concept business model is offering medium quality fashion clothing affordable prices and vertical integration and quick-response is key to Zara’s business model. Zara’s stores around will receive deliveries twice a week and products designed at headquarters in Artexio. The company can be designing, sourcing and manufacturing, distribution and retailing in a short cycle time. This process will be finish within five weeks.

After using artificial intelligence technology, Zara was aggressively expanding stores worldwide since 2000. By the end of 2004, Zara has sales more than $7 billion and on June 13th, 2005, the company announced net profit up by 21% of the first quarter. Artificial Intelligence was founded in 1956, at a conference at Darmouth College, Hanover, New Hampshire. The beginning of the technology is to describe human thinking as a symbolic system. Then IBM company use the technology in Deep Blue became the first computer to beat a chess champion in 1997. Since then, the artificial intelligence continues developing and using in the retail business today.

Business Advantages

Artificial intelligence changed Zara’s business into extremely well, it is save time and money by automating routine processes and tasks, increase productivity and operation efficiencies, make faster business decisions and avoid mistakes. Zara uses insight data to predict customer preferences and offer them better and mine vast amount of data to generate quality leads and grow the customer base. Lastly, increasing revenue by identifying and maximizing sales opportunities.

The technology cost cannot determine in exactly numbers yet because it depends on the project scope and complexity, customer and system requirements and other factors mentions before. However, there is an example artificial intelligence prices on “Azati Software webpage” for a fraud detection insurance-case, the price range between $100K and $300K USD.


Artificial intelligence software is helping business stay in the right tract and the right time. Zara making more and more benefits each year. Base on the company big data, Zara can forecast trend and know how to organize the all the processes in the business. The technology also experience consumer to a better way to shop. They can find the right fit and see the similar style of products easier. In the future, people may do not need to carry any credit card and spend less time for shopping. They may just walk into a retail store, scan their face or fingers then go direct to the style that they like or interest section. Grapping the items that they are prefer and then do self-check-out at the store by using the face identification or fingers print. This should be the next step for Zara to increase sales. Sum up, the technology is benefit to business and customer, however, there are some disadvantages that the business owner and consumer needs to consider.

Updated: Feb 02, 2024
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Zara’s Business With Artificial Intelligence Technology Innovation. (2024, Feb 06). Retrieved from

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