ZARA: Breaking the Rules and Breaking China

"Fast fashion", "the best interpreter of the different"..., there are too many rings that can be wrapped around the ZARA fashion brand; ZARA doesn't actively jump out to receive these rings, but is busy letting others continue There is reason to add more rings to your head

“Welcome to Inditex China!” I doubt that I made the wrong call. What is Inditex? It is the owner of the brand ZARA, known as "fast fashion," the Spanish retail giant.

For the nine months ended October 31 last year, Inditex’s net profit was 520.5 million euros ($621 million), which was higher than the 407.4 million euros in the same period of last year. Inditex's boss, Amancio Ortega, ranked 23rd in the 2006 Forbes Global Rich List and second only to Bernard Arnault of the LVMH Group in fashion.

The famous ZARA belongs to Inditex with such a brilliant performance. However, due to the low-key style of Ortega, few people in Spain know that he is the richest man in the country, and ZARA has cast some mystery.

ZARA's first store in Nanjing West Road, Shanghai, has an area of ​​about 1,500 square meters. ZARA, which does not advertise, believes "the store is the best advertisement." However, it does not allow any media to shoot inside the store! All this makes this interview more like an adventure.

PDA in the hands of the manager

It was only for the first time in 2005 that ZARA had reached the world's best brand ranking released by Interbrand. In 2006, it ranked second only to Adidas, with a brand value of 4.235 billion US dollars.

The first stop of “Expedition” is the store on Nanjing West Road. When you enter the ZARA store, you will find that the manager Devina has an HP PDA in his hand. Maybe you will say: PDA is not unusual, and many restaurant waiters also have it. However, Devina's PDA is a direct contact with the Spanish headquarters rather than the restaurant's chef.

It is this small PDA that opened the corner of ZARA's mystery: ZARA can be designed, produced and delivered within 15 days. Every ZARA store manager has a specially-designed PDA. With this connected PDA, they can directly place orders with the headquarters, and the headquarters can directly grasp the sales of each store, and store managers can also Headquarters product managers communicate in a timely manner.

What are the benefits of doing so? For the simplest example: A colleague had a trench coat in the ZARA store a few months ago, but since the ZARA number is more suitable for Europeans and Americans, the S number for Asians will soon be sold out. And go. This time in ZARA I easily find my own number, whether it is S or XS. The Spanish headquarters can quickly react to the situation of the Chinese market.

Orders sent from Devina will be delivered within 3 days as soon as possible. After the order arrives at the headquarters, the international transfer will be realized without the shortage of goods at the headquarters. The customer's special order service for Devina is completely free of charge.

The Harvard Business Review stated that ZARA has established a communication supply chain that is different from traditional industries. It is this supply chain that helps ZARA complete its 15-day myth.

In ZARA you can always find new products and they are limited supply. Most of these items will be placed on special shelves. In the store, I saw a young white-collar worker holding a limited supply shirt and said to her partner: "I still buy it. This is a limited supply. If you do not buy it, you may be bought by others. of."

This temporary out of stock strategy is too bold in many people's eyes! But think about the limited supply of goods in the market after the pursuit of it, people need is not a product but "unique" and "unique." The temporary out-of-stock of ZARA is satisfying people's psychology. ZARA gradually became a “unique” spokesperson due to this subversive practice.

You will never wear the same clothes as others

Don't be surprised if the clerk shows you a piece of wrinkled clothes. Maybe this dress was just arrived from Spain by night. Take the latest clothing and put an end to the "Zhuangshan" phenomenon. Think about it. This is a privilege that only stars can enjoy. All this allows the ZARA believers to not care whether the clothes are crumpled or not.

Dior's chief designer is John Galliano, GUCCI's former head designer is talented Tom Ford, and Dolce & Gabbana's designers needless to say. Who is the ZARA designer who feels unique to the champions?

Let's look at the first ZARA store in Nanjing West Road. Ironically, the former Spanish Consulate’s ZARA store is opposite to the Plaza 66, known as China’s first luxury goods distribution center. Sue is my friend and one of the white-collar workers in Shanghai who is chasing fashion. She told me that going to Hang Lung is simply a waste. In ZARA I can definitely discover the shadow of new products released by major brands this autumn and winter! The price is less than one-tenth of the international brands, but the design elements are not inferior.

ZARA does not intend to be the creator of the trend and decided to act as a fast follower of the trend?

The second stop for the expedition was ZARA's only centralized design center and product production center, Arteixo in Galicia, a poor town in northern Spain. Nearly 400 designers from ZARA work here: The entire center consists of three beautifully-looking halls dedicated to women's, men's and children's clothing production lines.

In each hall, there are spacious and bright floor-to-ceiling windows, which not only provide an unobstructed view of the Spanish countryside, but also create a pleasant, informal and open atmosphere. Most companies put the design department in a hidden place, and ZARA's nearly 200 key designers are integrated into the entire production process. They are assigned to three production lines.

In addition, there are other passionate and talented designers. Working with these designers are market experts and people who can get product information at any time. They work together around a big round table and can hold an impromptu at any time. Meetings and roundtable discussions. Next to the shelf is a list of the latest fashion magazines, and magazine catalogs are plastered on the wall. Each corner of the hall is equipped with a simulated store. ZARA encourages everyone to comment on the clothing placed in the simulated store and improve it in a timely manner. It is this team that creates nearly 40,000 new designs each year, and selects 10,000 of them for production. This creates the myth that “the purchase of clothes in ZARA will never be the same as others”.

Regarding how to treat the statement that “ZARA has modeled itself on the design of international brands and quickly introduced some modified clothing”, the CEO of Inditex china did not answer. In fact, this answer is not so crucial, the key is that ZARA has its own brand advocates, and has created a proud sales record.

"Fast fashion" fast breaks China

"Fast fashion" was brought by ZARA. According to a survey by Britain's Verdict research, the average price of clothing has fallen by 34% since 1995, but the number of clothes purchased by women has doubled over the same period. This trend confirms once again that ZARA is able to become popular in Europe because it has a good grasp of consumer demand and reflects it quickly.

Unlike most fashion chains that outsource the production of garments, ZARA insists that 50% of the apparel must be produced on its own, and that it reflects the latest popular apparel designs on the market, resulting in a rapid expansion of the brand image. At the same time, in order to maintain the speed of response, they also adhered to exclusive retail store strategies and did not cooperate with any department stores, stores, and franchise stores to maintain their brand style.

According to Kurt Salmon Associates, an apparel retail consultant, China's casual wear market will grow at an annual rate of 10%, and by 2010 it will reach RMB 468 billion. Kurt Salmon's analyst Jill said that casual wear is the fastest growing field in the apparel industry. There is still a lot of room for growth in this area. At present, no one can dominate the market.

The ZARA entered the Chinese market with low productivity and raw materials, and still insisted that 50% of its products come from Europe and only 12% from China. As of now, ZARA has two stores in Shanghai and plans to open one or two stores in Beijing in the future.

Inditex’s CEO Isla hopes to open more than one store every day for the next few years. By 2009, the number of stores will increase from the current 2,800 to 4,000. Is ZARA's expansion rate too fast? Does insisting on a production base limit the expansion of ZARA? Facing the profits from rapid expansion, will ZARA give up its 50% principle?

Isla thinks these need not worry: “We think we can maintain this kind of expansion speed under the condition of guaranteeing profits.” But with ZARA entering the US, China and other markets, its Spanish production capacity will be greatly challenged by scholars. Think that "the further away from Spain, the less competitive ZARA." ZARA has always been out of the limelight in the face of this problem will come up with what a different solution?