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The Brand Culture Of "Cheap" Luxury Goods ZARA

2011/5/9 10:07:00 51

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ZARA, founded in 1975, is a subsidiary of Spain's Inditex group. It is both a clothing brand and a chain store brand specializing in ZARA brand clothing.

Brand history

In 1975, Amancio Ortega, an apprentice, opened a small clothing store called ZARA in a remote town in northwestern Spain.

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 can be said to be an alternative to the fashion industry.

Top clothing brands

In the middle of public clothing, we created a new Fast Fashion mode.

With Fast Fashion becoming a mainstream format in fashion apparel industry, ZARA brand is also highly praised. Some people call it DELL computer in fashion industry, and some people call it Swatch watch in fashion industry.

In 2005, ZARA ranked 77 among the 100 most valuable brands in the world. Harvard Business School ranked ZARA as the most valuable brand in Europe. Walton Business School regarded ZARA brand as a model for future manufacturing.

ZARA, as a leading company in the future, has become the benchmark of fashion apparel industry.

There are too many halos on top of the ZARA brand, but it is by no means nominal. The beautiful financial figures behind it 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 the average annual growth rate of EPS for ZARA was 10.9% by 2014.

Burberry

The average annual growth rate of the five luxury goods groups is only 7.7%.

Taking history as a mirror, we can know the vicissitudes, and the history of the rise and fall of great brands in different economic times tells us that the rise of a great brand often lies in the high conjunction of 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 spends huge sums to design its own sensitive supply chain.

Production base is located in

Spain

Only the most basic styles of clothing are produced in low cost areas like Asia.

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.