Augmented Reality to Improve Zara’s Operations

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Table of Contents

Introduction
Company’s Background
Operations
Current Problem
Technology
Components
Solution
Benefits for End Users
Conclusion
References

Introduction

The modern business environment can be described as a highly digitalized one. Companies use various technologies and innovations to provide clients with outstanding services and products and generate a competitive advantage. At the same time, they use new approaches and devices to resolve complex issues or problems that might threaten the firm’s evolution. It means that innovations possess the high potential to be one of the most significant facilitators of the business world’s development and transformation. Science and technology can help companies improve their work and increase clients’ satisfaction levels. For instance, Zara, a subsidiary of Inditex, the world’s biggest fast fashion group, can use Augmented reality (AR) technology to enhance online shopping experiences.

Company’s Background

Currently, Zara is one of the leading international fashion companies working in various countries. It provides clients with clothing, accessories, shoes, beauty products, and perfumes (Inditex, 2021). It was founded in 1975 as a family business and managed to transform into a global corporation with a unique business model (Inditex, 2021). It implies designing, producing, distributing, and selling products using the developed retail network (“Company,” 2019). As a result, the customer is the heart of the model, contributing to introducing new design elements and new offerings (“Company,” 2019). The success of the model is evidenced by the fact that Zara holds strong positions in Europe and continues to evolve in other regions.

Operations

The company is also characterized by the diversity of operations it performs to guarantee the high quality of products and clients’ satisfaction. First of all, it designs clothes, shoes, and other elements to meet clients’ demands (Inditex, 2021). Second, it produces and sells them by using its retail shops. Moreover, it provides clients with an opportunity to shop online (Inditex, 2021). The company delivers products following the clients’ requests (Inditex, 2021). It means that the operations focus on building an outstanding customer experience and ensuring they remain loyal and continue cooperating with Zara. At the same time, the diversity and complexity of operations mean there is a place for the emergence of specific problems and the necessity to resolve them.

Current Problem

The identified problem is linked to operations, including online shopping and associated activities. Zara guarantees clients can be provided with the requested clothes or shoes, or accessories and can try them on to ensure they suit and create a particular image (Inditex, 2021). At the same time, customers can return products if they are not satisfied with their design or how they look in them (Inditex, 2021). Zara faces specific logistics and management challenges because of the need to control these activities (Inditex, 2021). The delivery and reverse logistics costs might be high and require additional investment.

The importance of the identified problem comes from Zara and Inditex’s plans to continue their growth and expansion. The increase in the number of clients is followed by the corresponding growth in the number of online sales and orders. It also means that the number of returns will rise, which will cause additional pressure on logistics operations, delivery, and supply chain management. In such a way, if left unresolved, the problem might become a severe challenge to Zara and slow down the speed of its development and transformation. For this reason, it is vital to address the issue and find the most effective solution.

Technology

The identified problem can be resolved using innovative technology, such as Augmented reality (AR). It can be defined as a system combining real and virtual worlds and real-time interaction to create an enhanced reality that a user can modify. Previously, Zara made some attempts to use the technology as its clients had a chance to use Zara AR app to see real models, Lea Julian and Fran Summers, in selected clothes (Kollinger, 2018). However, AR can be used in more effective and complex ways to resolve the outlined problem. The innovative approach implies using AR to create unique experiences when clients can try selected clothes and accessories online and decide whether to buy them or not.

Components

The given technology has several specific components necessary to create an unusual buyer experience. First, it requires artificial intelligence to allow users to interact with objects using voice or other sensory signals (Hoffmann & Mai, 2022). Second, it requires specific software, such as applications used by Zara previously, to access AR and use it. The company should also use specific hardware to process all information and generate an enhanced reality (result (“What is augmented reality or AR?” n.d.). Finally, users should have sensors and lenses, such as smart glasses, to interact with the augmented reality and see the final result (“What is augmented reality or AR?” n.d.). By aligning the work of all these components, it is possible to integrate AR technology into the work of the company and ensure it helps to resolve current issues.

Solution

Thus, for Zara, the employment of AR can be an effective solution to the problem of product returns. It implies the creation of a specific application that can be used by customers to see how they look in the clothes they select. They should download their photos or scan their figures to ensure the application can create a 3D image and an augmented reality (Hoffmann & Mai, 2022). The model can be altered by selecting clothes, sizes, and colors. Using smart glasses or smartphones, customers will enjoy a unique experience and demonstrate higher satisfaction levels.

Benefits for End Users

The solution will benefit the end user because of the numerous advantages it offers. First, they will acquire the chance to try on the clothes they want immediately and avoid the necessity of returning them if the size or color does not fit. Second, they can create new looks and images by combining various clothes, which is also essential for users and increases their satisfaction levels (Hoffmann & Mai, 2022). At the same time, it will help Zara reduce delivery costs and reverse logistics, which is also vital for the company’s growth and further development. In such a way, it can be viewed as a practical solution that will satisfy all stakeholders’ interests.

Conclusion

Altogether, innovations are the core component of the business world nowadays. They help to resolve existing problems and attain higher performance levels. For instance, Zara, one of the global leaders in fast fashion, offers individuals an opportunity to shop online. It can be improved by using AR technology. It will allow clients to select their clothes, combine them, and try them before making a purchase. For Zara, it will also mean a reduction in spending because of fewer returns. In such a way, AR is one of the innovations that might be useful for Zara and create the basis for its further improvement. It might also make Zara one of the global leaders in the discussed sphere.

References

Company. (2019). Web.

Hoffmann, S., & Mai, R. (2022). Consumer behavior in augmented shopping reality. A review, synthesis, and research agenda. Frontiers in Virtual Reality. Web.

Inditex. (2021). Inditex annual report 2021. Web.

Kollinger, S. (2018). Zara is changing how we shop trough augmented reality. Refinery. Web.

What is augmented reality or AR?(n.d.). Microsoft. Web.

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