Why Is The Overall Downturn In The Apparel Industry Leading To ZARA?

In the case of electricity and the overall market is not optimistic, the Spanish brand ZARA performance has been rising, according to ZARA parent company Inditex released the first half of 2015 earnings report, its total profit reached 10 billion 600 million U.S. dollars, an increase of 17% over the same period.

ZARA involves men's wear, women's wear, children's wear and other brands. In 2006, it entered China and opened 166 shops, covering most of the cities.

One, the unique character of ZARA

1, vertically integrated supply chain, product update speed.

ZARA is a vertically integrated brand retailer, whose design, manufacturing, logistics and distribution are controlled by itself.

Every new product of ZARA will be completed within a week from design to production.

According to data, ZARA can design more than 12000 new products in one year.

Each product will not be sold for more than 4-5 weeks in the store. The new product can replace the old product store every 2 weeks.

Data show that in Spain, every person will visit ZARA17 every year, while ordinary stores only have 3 times.

Billion Europe Network understands

The distribution of factories is: 50% in Spain, 26% in Europe, 24% in Asia and the rest of the world.

The construction and production base near the market area of ZARA helps to reduce its logistics costs and rapidly update store goods.

2, user demand oriented production mode.

ZARA takes user demand as the guide to produce products. This makes the acceptance of products higher and attracts more consumers.

ZARA uses JIT system to produce and distribute goods; the demand for orders in JIT system is driven by the needs of users, which is conducive to the timely response of the supply chain to the needs of users and at the same time reducing the risk of inventory.

In addition, ZARA also implements the way of logistics. The material, manufacture and completion of the product can only be completed in a few days.

Each store in ZARA has real-time connection with the company headquarters based on IT technology and information system. It can input every customer's information into the system in time to analyze the customers' preferences and needs quickly, and design, produce and sell their products according to their needs and preferences.

3, store design style shows brand characteristics.

Shop design and ZARA

It also has its own unique characteristics.

ZARA shops are usually located at the bottom of the street, setting up huge windows to form a natural billboard to attract people crossing the road.

Store merchandising is done with related accessories, writing, clothes and bags together, and the optional mode is adopted to facilitate customers to choose the commodities they need comfortably.

4, a clear brand positioning and product design.

ZARA has always been adhering to the concept of low price fashion, targeting urban white-collar workers as a target group, and incorporating fashionable elements and designs in the design to quickly catch the target audience.

ZARA takes fast fashion as its brand positioning, and combines the fashionable and fast characteristics of its products to provide customers with the products they need.

ZARA has always used "fashion" as a benchmark, focusing on product design. Its headquarters has nearly 400 design teams, shuttling through fashion conferences and fashion events every day, collecting information for their own design.

The design team is relatively young with an average age of 26 years.

But the design of products is strictly checked, and ZARA's own brand clothing characteristics are maintained.

5, information technology throughout the supply chain.

The effective application of information technology is of great significance to the development of ZARA. The whole supply chain can not be separated from information technology from design, production to logistics distribution.

In the early days of ZARA, customer information was collected mainly by telephone and e-mail, and the information was pmitted to various departments to facilitate the rapid pmission of information to every corner of the supply chain.

Designers shuttle daily to various conferences.

Collect data.

When the designer collects the information quickly and collects it into the data center, the store salesman collects the consumer preference information to the data center, then designs and produces it according to it, and delivers goods through the data pmitted by the store. Every detail is implemented on the information and data, which is the reason for its success.

Two, the unique way of marketing ZARA

ZARA can develop from a small workshop on the street to today's global chain store. Apart from its integrated supply chain and complete information system, it can not do without its special marketing mode.

1, "less quantity and more money".

ZARA's design team can design 400 million new products every year, of which 1/3 is chosen to be listed.

ZARA products in the store can be updated two times a week, increasing the style of products and reducing the number of single parts, "hunger" marketing way, giving consumers a sense of crisis, prompting consumers to quickly consume.

2, establish online shopping mall to help brand penetration.

In 2010, ZARA launched the online shopping mall and began trial in Europe, England, Italy, France, Germany and Portugal. After that, it began to enter Asian countries such as the United States and Japan in 2011, and entered the Chinese market in 2012.

Billion European Network understands that ZARA's online platform uses the same system as offline stores, offering products that share the same price with offline stores. Users can choose to pay online or to store goods on their own.

ZARA online brand implementation and the same price under the same price way mainly want to build the online mall into its product display station, to spread its brand more.

3, fans social marketing mode

According to the European network, ZARA aims to build homepages in social media such as Facebook and instergram. Its main purpose is to understand users' needs and disseminate their brands in time, so that more people can know their products and promotional information ahead of time, and attract consumers' consumption.

It is reported that ZARA has more than 6 million 200 thousand fans on instergram, and the number of Facebook fans has exceeded 4 million 400 thousand in 2013.

The development of ZARA has benefited from its excellent supply chain integration and unique marketing mode.

ZARA is a garment enterprise that has developed for a long time and has developed smoothly. Its early emphasis on information base and timely involvement in the Internet field make it much more comfortable today than other brands.

Billion European Network believes that many domestic clothing brand enterprises are now facing pformation, and the experience of ZARA is still worth learning.