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    Speed And Profit: Clothing Industry: The Profit And Password Of Fast Fashion Mode

    2011/12/30 9:28:00 12

    Fast and changing is the key word to win in fast fashion.

    The success or failure of operation depends on the actual internal control capability of the enterprise.


    In 2010, the US state revenue amounted to 7 billion 500 million yuan.

    In China, sales of five billion yuan have always been a difficult ceiling for a single leisure brand.

    Equally ambitious is Japan's fast selling company.


    In September 14th, Xun marketing announced that its brand UNIQLO would strive to achieve sales of five trillion yen in 2020, thereby surpassing ZARA and becoming the world's largest apparel retailer.


    In fact, according to the first quarter 2008 earnings report, ZARA parent company Inditex

    Sale

    The amount has reached 2 billion 200 million euros, which has surpassed H&M and GAP, and has become the world's largest apparel retailer.


    Can UNIQLO surpass ZARA?


    In fact, in 2009, she became a Japanese tycoon.

    Top of the list

    The founder of fast marketing, Liu Jing Zheng, and the above

    brand

    The secret is SPA, a private brand clothing professional retailer mode: owning its own brand and implementing its integrated operation from commodity planning, design, production to retail.


    After the GAP was first created, UNIQLO was successfully applied, and the SPA brand with strong strength came on the stage.


    Obviously, UNIQLO once again sees the future of this model.


    "Consumers become smarter, and they start to fashion themselves with cheap clothes."

    Iwasaki Takeno, a famous Japanese clothing consultant, said.


    Similarly, Yang Dayun, President of UTA Fashion Management Group, believes that the purchasing power of the middle class in the post crisis era has been reduced, and more and more consumers are beginning to agree that "fashion is not expensive."


    In fact, luxury brands have long been in the forefront of new luxury, relying on luxury brands to produce cheaper cards to attract consumers.


    "This is not a luxury problem, but a consumption problem."

    COACH, President and chief executive officer of China's second largest luxury handbag manufacturer, said Gao.


    Based on the change of global consumption consciousness, fast fashion brands have become popular.

    For example, Tokyo Ginza, once a luxury, seems to be a fast fashion battleground.


    Buying clothes with the latest fashion elements in the world at a price of several hundred yuan is the temptation of fast fashion brands.


    In order to maintain parity, H&M manufacturing is almost entirely outsourced.


    More importantly, through the parity fashion, H&M gross profit has been around 53% for many years.


    It is also such a high profit that H&M and ZARA have ushered in their own times.


    According to Ming Ming in 2009 (Millward


    Brown) brand value ranking, LV ranks first in luxury goods ranks with us $19 billion 300 million, while H&M and ZARA stand at the top and third in the clothing brand rankings with us $12 billion and US $8 billion 600 million.


    H&M and ZARA rely on SPA for decades, leaving many hundred years of luxury brands behind.


    Quick password


    The essence of SPA is speed and profit.

    Yang Dayun said.


    In fact, H&M and ZARA regard popularity as perishable food and must always be fresh.


    So they speed up the flow from design to sales.

    ZARA takes seven days, usually only twelve days, and H&M is 21 days.


    This completely subverts the traditional concept of launching new products in six months. "The average cycle of Chinese clothing enterprises from product design to shelf shelves is 180 days, and the world famous brands are generally 120 days."

    Chen Guoqiang, deputy director of the China Garment Association Industry Research Institute, said.


    However, "today is the era of speed economy, fierce market competition makes time value content continue to rise."

    Du Yuzhou, President of the China clothing association, said: "fast fish eat slow fish become a prominent feature of survival of the fittest."


    Therefore, "China's apparel industry chain should be linked up quickly to meet the needs of consumers at the" first speed ".

    Chen Dapeng, executive vice president of China Apparel Association, said.


    This requires, "from design to sales, self control, product products can be listed quickly, and continuous supply of fresh goods."

    Marketing management expert Wang Xiangsheng said.


    This is well verified in ZARA.


    After the design is confirmed, production plan and purchasing personnel begin to make plans. 50% of them are produced at ZARA factory in Spain, and the rest are arranged in Spain and Portugal to ensure quick response.


    At this point, ZARA cut the raw materials through CAD and handed them to the supplier for sewing.

    The subcontractor will sew the clothes and send them back to the factory.

    Finally, the product is pported to the distribution center by twenty kilometers underground pmission.

    The distribution center will be sent to the railway station or the air pport base within eight hours.


    In the storefront, it can also distribute according to one demand, adjust the breed plan in time, and form the pattern of more consumers, more stores, less inventory and the most cost saving.


    "The core factor of rapid response is information technology," Chen Dapeng said. "It integrates production, marketing and management into a unified and efficient business process, so as to create higher value."


    In fact, Chinese enterprises began to catch up with the pace of ZARA and H&M.

    The "Me&City" brand from the United States has only twenty to thirty days to go from the factory to the store, and from the planning to production for the shortest week, the products can be delivered to any store in the country within five days.


    So fast, natural needs more support, and the core of fast fashion management is "fast, small and diverse", for example, ZARA launches 12000 models every year.


    Fast and changing is the key word to win in fast fashion.

    The success or failure of operations depends on the internal control capability of enterprises.

    Each year, there are nearly five thousand styles released by the United States, and there are more than 3000 colors of the men's clothing accessories every year.

    In the face of rapid change, ESPRIT, once popular in the market, has recently reported news of a sharp fall in net profit because of hibernation for many years.


    However, "fast" is not blind, otherwise it will be faced with the danger of instant collapse, just like PPG.


    The key to this is how to ensure that many varieties and small quantities of products are listed in the market.


    This requires that SPA focus on commodity planning.


    "Commodity planning determines the direction of commodity design," Yang Dayun said. Originality of design should be subordinated to the mainstream of the market, so Market Research and analysis should be carried out first.


    ZARA designers often travel around the world to understand the market dynamics, then analyze and sort out the information, and sketch out the sketches.

    Finally, designers and market experts, purchase experts to discuss "finalization" to keep all products "ZARA style".


    This is the typical buyer model of ZARA.


    Brand rule


    In fact, H&M, ZARA and UNIQLO are all retail brands.


    "Shops are our best advertisements. We spend the savings on the top location."

    ZARA President Isla said.


    Indeed, ZARA shops are basically open to famous streets around the world, such as New York Fifth Avenue, Tokyo Ginza and Paris Champs Elysees street, and are adjacent to the international luxury brands.


    At the same time, "we are very concerned about studying the store image," said ZARA founder Ortega Gaona. They hope that when consumers enter a beautiful shop, the most fashionable products are waiting for them.


    The scarcity of small batch purchases has attracted consumers to patronize many times.


    In fact, ZARA relies not only on "fast" and "fashionable".

    Their success is based on a strong brand foundation and brand culture.


    For example, when some Japanese consumers first bought UNIQLO, they put their clothes in the GAP bag.

    "Consumers may have accepted UNIQLO at the product level, but they are not fully accepted at the brand level."

    Li Kailuo, President of the blue international investment consultancy company, said.

    So in 1998, UNIQLO began to open UNIQLO store in Harbin, Tokyo, and changed its image through media publicity.

    As a result, UNIQLO brand is being accepted by Japanese consumers step by step.


    Brands must be developed around consumers.


    In the early days of the venture, he developed membership.

    They collect the basic data of the members and complete the analysis, then analyze the consumption behavior and submit the analysis report. On the basis of this, combined with the popular Chinese and foreign information, the product plan is worked out.

    As a result, the Northwestern University was compiled into EMBA teaching material as a teaching case and became a Chinese SPA sample.


    And the United States embedded in Transformers 3, and the introduction of Kung Fu Panda, Sun Wukong and other cartoon characters, has made a good market reaction, "we are going to learn the speed of ZARA and the star effect of H&M."

    Zhou Chengjian, chairman of the US state.


    Personalized operation is the direction of all SPA brands.


    As Du Yuzhou said, "innovation is the soul of a brand."

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