7% sales growth and 56.8% margin growth – How does this compare to your business? In 2019, fashion chain Zara reported a US$1.71 billion profit on the back of a 7% rise in sales and a 56.8% boost in margins. I can’t speak for your business – but mine was not in the same league […]

7% sales growth and 56.8% margin growth – How does this compare to your business? In 2019, fashion chain Zara reported a US$1.71 billion profit on the back of a 7% rise in sales and a 56.8% boost in margins. I can’t speak for your business – but mine was not in the same league on any of these criteria. Some would be surprised to learn that this was achieved with an advertising budget of $0. In 2019, as in previous years, Zara had no advertising budget. Instead, their focus was on being truly customer-centric and maximising the lifetime value of each customer. This was demonstrated by:   Leveraging customer data Selecting the best locations Leading the market in range Zara has built a market on the back of a great product – and so can you! RECOMMENDATION – Use advertising if you like, but don’t rely on it. First,…