ZARA's Brand Culture
ZARA Founded in 1975, it is Spain Inditex group A subsidiary of the company, which is both a clothing brand and a franchise. ZARA brand clothing Chain retail brand.
Brand history
In 1975, Amancio Ortega, an apprenticeship, opened a remote town in northwestern Spain. ZARA A small clothing store. Today, the unknown ZARA has grown into a leading brand of fashion apparel worldwide, with more than 2000 stores in over 60 countries and regions.
ZARA brand It can be said that fashion is an alternative to the fashion industry. It has created a new Fast Fashion mode among the traditional top clothing brands and public clothing. With Fast Fashion becoming a mainstream format of fashion apparel industry, ZARA brand is also highly praised. Some people call it DELL computer in fashion industry, and some people comment on it as Swatch watch in fashion industry. In 2005, ZARA Among the 100 most valuable brands in the world, the 77 place is Harvard Business School. ZARA brand It is rated the most valuable brand in Europe. Walton business school will brand ZARA It is regarded as a model for studying the future manufacturing industry. ZARA, as a leading company in the future, has become the benchmark of fashion apparel industry.
ZARA brand There are too many halos on top of the head, but they are not empty names. The beautiful financial figures behind them are the best annotations. In 2005, ZARA's global operating income reached 4 billion 400 million euros, and its pre tax profit was 712 million euros. In a research report, Morgan Stanley predicted that by 2014, the annual growth rate of ZARA EPS was 10.9%, while the annual growth rate of the five luxury goods groups such as Burberry was only 7.7%.
The history of the rise and fall of the great brands in different economic times tells us that the rise of a great brand often lies in the high conjunction between its brand spirit and the spirit of the whole age and the deep needs of consumers. ZARA is the best explanation for the success of the profitable brand model in the world.
Sensitive supply chain system
ZARA Spend huge sums of money to design their own sensitive supply chain. Production base in Spain, only the most basic style of clothing in Asia and other low-cost areas production. ZARA has set up 20 highly automated dyeing and cutting centers, and has outsourced human intensive work to 500 small factories or even family workshops around the world. The logistics system linking these 20 dyeing and cutting centers with surrounding small factories is a must. At the 200 mile production base in Spain, there are 20 cloth cutting and dyeing centers and 500 foundry terminal factories. ZARA hollows up the 200 miles of underground and sets up the underground conveyor network. Every day, according to the new order, the most fashionable fabric is delivered to the terminal plant on time, ensuring the overall leading time requirement. The construction of such a production base requires billions of euros in investment. Many brands of clothing want to imitate ZARA, but they do not have such a huge investment base. Finished garments are guaranteed to arrive in Europe within two days, while for the US and Japanese markets, ZARA even uses air to speed up the cost. This kind of mass production thinking makes ZARA brand ride.
ZARA's sensitive supply chain system has greatly improved the lead time of ZARA. The leading time is from design to the time of selling clothes on the counter. Generally, international brands can reach 120 days, while the shortest ZARA is the shortest, only 7 days, usually 12 days.
"Manufacturing shortage" business mode
ZARA About 12000 kinds of fashions are introduced in a year, and the amount of each fashion is generally not large. Even the best selling style. ZARA It also supplies only a limited quantity, often only two pieces in one store, sold out and not replenished. Just as the limited issuance of stamps has increased the value of philatelic products, ZARA has trained a large number of loyal followers through this "manufacturing shortage". "Multi style, small batch", ZARA achieved a breakthrough in economic scale. "Small variety, large volume" is the traditional manufacturing industry's heaven, and in the "long tail market", "many small quantities" has become a popular business mode. ZARA has created a new model for the long tail market.
Its 400 names Designer
ZARA has nearly 400 designers, all of whom are typically flying trapeze. They often travel by airplanes to various fashion shows or frequently enter various fashion venues. Usually the latest designs of some top brands are just on the counter, and ZARA will quickly release the fashion that is very similar to those designs. This way of design ensures that ZARA keeps pace with fashion trends. It is reported that in Europe, ZARA pays tens of millions of euros to the top brands every year. But ZARA did not give up this design pattern. Obviously, the profits earned from it were much higher than the amount of fines.
Specially customized PDA system
Every store manager of ZARA owns a specially customized PDA. Through this networking PDA, they can place orders directly to the headquarters, and headquarters can directly grasp the sales situation of each store, and the store manager can also communicate with headquarters product manager in time. In this way, ZARA can accomplish design, production and delivery within 15 days. The Harvard Business Review said that ZARA established a communication supply chain different from traditional industries, which helped ZARA complete its 12 day myth.
You will never be dressed like anyone else.
In ZARA, you can always find new products and offer them in limited supply. Most of these goods will be placed on special shelves. This temporary break strategy is too bold in many people's eyes. But think about the popularity of all limited supply commodities in the market. What people need is not products but "difference" and "uniqueness". ZARA's temporary discounting is satisfying people's mentality. ZARA has become a "unique" spokesperson because of this subversive practice.
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