Zara on the Web: Will it succeed?

Because of Zara’s “fast fashion” approach to the apparel business, managing inventories online in a nimble fashion will be a key to the website. Forecasting demand — and, more importantly, running out of product “just in time” instead of too early or too late — will go a long way toward a profitable business model for Zara. But if H&M can figure this out, so should Zara, especially with its more limited footprint in big markets like the U.S. A viable website gives Zara a lot of cross-marketing opportunity as it works toward higher brand recognition in new markets.

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