Zara Fall For The First Time In Beijing, With A Fall Of 34%

Last year, 699 yuan of women's coat was priced at 499 yuan this year, and the men's suit coat was reduced from 899 yuan to 699 yuan. In the past year, 299 yuan children's jeans were only 199 yuan this year, the highest drop was 34%.

The first price cut since entering the Chinese mainland market has been quietly launched in this new season.

In September, the new fast fashion brand's new autumn clothing group was put on the shelves.

Zara's loyal fans will find that this season's Zara unexpectedly plain and low-key, black and white instead of bright eye-catching collision, simple basic funds quietly occupied a large part of the shelf.

There has been a slight decrease in the price. Many new products are about 100 yuan lower than the old ones in previous years.

The magic of Zara is to enable civilians to embrace High Fashion. The reason why it can do this is to imitate the latest and most fashionable design in the fashion industry.

Zara has over 400 young professionals.

They have been shuttling away to the most fashionable places in Milan, Paris, Tokyo, New York and other fashionable towns, and have introduced the new products with the fastest speed.

Looking back at the fashion trends of the 2012 autumn and winter series, cutting hollow design, chain metal element design, brocade pattern, retro Gothic style and knight costume, uniform wind are all shining low profile, though not as high and bright as the previous popular color strikes, but they are also complicated and eye-catching.

This autumn's Zara did not follow the trend in the past.

In fact, the reasons for this are not hard to guess.

The weakness of the economic environment and the expansion of similar brands have made the world's fast fashion brand's life difficult.

Zara parent company Inditex achieved net profit of 432 million euros in the first quarter of this year, an increase of 30% over the same period last year.

Its sales increased by 15% compared with the same period last year, reaching 3 billion 420 million euros.

However, the generation of this beautiful figure benefits from the emerging Zara.

The expansion and expansion of stores.

In the home of Zara, the impact of the European debt crisis is still undiminished, especially the decline of Spain's domestic economy, which is more obvious for Zara.

In July, the Spanish government increased the value added tax point of Inditex group by 3%.

Faced with cost pressures arising from the rise in value added tax, Inditex said it would not raise its prices.

In response, Inditex group's response is to improve operational efficiency.

In addition, competitors are also expanding frequently in the Chinese market.

Forever21 has entered the mainland market in a high-profile manner. The H&M sub brand Monki and COS have decided to set up stores in the mainland of China. Topshop has also explored the mainland market in cooperation with fashion boutiques.

Whether it is used to deal with the impact of economic chill or counter attack on competitors, a large number of relatively inexpensive basic funds can give Zara a temporary breath.

First of all, the basic price of cost-effective will bring more customers to Zara, because the economic downturn makes people more willing to spend money on practical clothing.

At the same time, the new price below Zara's previous price has lowered the price difference with the same brand. Now the original price is close to the discount price of the Zara discount season. Customers will no longer wait until the discount comes before, and the quantity of goods will go faster.

Until the discount season of January next year, the stock of these basic stocks has been running short, reducing the inventory pressure. Zara can also reduce the corresponding cost and make the capital flow achieve a virtuous cycle.

However, the strategy of using the basic funds to capture customers and achieve profits in a short time should be a stalling tactic for Zara.

The basic fund has always been a field of H&M, UNIQLO and GAP. Compared with the Zara that has always focused on High Fashion, the three brands have a good foundation in basic design, price and word of mouth.

Besides, Forever21, C&A and so on are more delicious.

Brands also have their own basic series, and the pricing of these brands is also attractive to consumers.

No matter whether it is consistent with the basic product or the full bloom of the product line, since we all want more or less to get a slice of the basic fund, it is hard to avoid this market becoming saturated.

In addition, if Zara increases the proportion of the basic funds too much or extends the strategy for a long time, it will lose a lot of fans who are accustomed to pursuing High Fashion or prefer Zara's fashionable style.