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ZARA Was Severely Challenged By China'S Recruitment Of "Authorized" Discount Stores.

2013/3/12 8:48:00 121

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ZARA ZARA Discount Store Fast Fashion Brand

the fast fashion giant known as "a small number of varieties", "a href=" http://sjfzxm.com/news/index_f.asp "ZARA" /a ", has recently been recruited in China to recruit" authorized "discount stores to digest inventory. ZARA, which has been well behaved in inventory, still has hidden worries behind China's huge expansion. 
Before and after the Chinese new year, ZARA, a fast fashion giant in China, has been exposed to the "authorized" discount store in China to digest its inventory before and after the Lunar New Year (P). The news of the recruitment of ZARA regional discount franchisees in China by the international trade (Hongkong) Co. Ltd. has rapidly increased in the Internet. According to the news disclosed today, the authorized ZARA discount shop in China is not one, and Mario, the brand agent in Italy, also claims to be authorized. 
The rapid supply chain mode of ZARA "small amount of money" has always been the concern of the industry. With the increase of ZARA stores in China, there will be more and more slowly digested products. Therefore, a new inventory clearing channel is needed. This low-key inventory behavior is likely to become a long-term inventory mode in China. 
 discount shop shall not hang ZARA door > /strong > /p >
 a company named Chi Ji international trade (Hongkong) Co., Ltd. claims to cooperate with ZARA headquarters in Spain to open discount stores in China. Reporters learned from relevant channels that the recruitment of franchisees is not directly related to ZARA China. It is a direct contact between ZARA headquarters in Spain and Italy international headquarters, aiming to clean up inventory business in China. According to the news, Mario is not the only one authorized to open ZA R A in China. Italy's brand agent also claims to be authorized. 
 Mario, a brand agent from Italy, said that the Spanish parent Office of ZARA parent INDITEX authorized it to open ZARA discount stores in China. However, the reporter called INDITEX China to verify that it had no knowledge of the matter and has been referred to the legal department of the company to follow up. ZARA China responsible person in the interview with reporters also had a clear relationship with the company. Moreover, INDITEX and ZARA China emphasize that stores in China are direct outlets and do not accept any form of affiliate or agency. 
 > a href= "http://sjfzxm.com/news/index_s.asp" > ZARA < /a > strong > a href= "http://sjfzxm.com/news/index_s.asp" > discount shop "/a" must be 70 kilometers away from the genuine shop, and can not be hung up. .
 "ZARA has always been low-key, so there is not much action for discount shops." According to the person in charge of Mario company, all the licensing matters of discount stores are responsible for the INDITEX headquarters. The "authorized" discount store will be parallel to ZARA's direct outlets in China. It said that the Milan headquarters of the company received authorization from INDITEX headquarters in October last year, and has launched the ZARA China regional "authorized" discount store cooperation program. At present, a cooperation agreement has been signed with merchants in Guangxi, Zhejiang, Zhoushan and Shandong Yantai. 
 reporter learned from Mario company that the merchant can pay 50 thousand euro deposit to get the exclusive authorization from the region, and the branch can be opened in the contract area. At the same time, authorized partners will receive the brand protection of Mario limited, ensuring that ZARA will not set up a price store in the region, and other businesses will not open discount stores. After obtaining the "authorization", ZARA will sell the inventory products to the partners at a low price. 
 Mario company's "ZARA licensing discount store rules" shows that the discount shop must not be suspended from the ZARA shop gate from the ZARA genuine shop 70 kilometers away, but the store layout can be exactly the same as that of the ZARA store, or the LOGO of the INDITEX group corresponding to the commodity. At the same time, all discount products can not be sold on the Internet. This condition makes its discount stores generally only open in two or three line cities. 
 the above Mario company official said that the Licensor can sell the mixed inventory of ZARA and INDITEX's Massimo Dutti, Pull and Bear, BERSHKA and other brands in discount stores. The wholesale prices of these brands are 45 yuan / piece. It is understood that Massimo Dutti is the high-end sister brand of ZARA, priced at around 1000 yuan. BERSHKA and Pull and Bear also belong to INDITEX, and the price of the single product is around 100 yuan. 
 according to the prediction of Mario company's leader, if INDITEX's inventory is sold in China, there should be no problem opening more than 20 discount stores. 
 copy Europe Qing > a href= "http://sjfzxm.com/news/index_f.asp" > inventory < /a > business /p >
 in the international investment promotion information entitled "ZARA invites the authorized discount shop partners in China", it is pointed out that at the end of each quarter, ZARA will sell all the stocks at the lowest price, and the partners will have the right to operate the official licensed discount stores as the selling point. At the same time, it is emphasized that discount stores should be 70 kilometers away from the ZARA shop, and can not hang ZARA doors, but the store layout can be exactly the same as that of ZARA stores. All discount commodities are strictly prohibited to sell and advertise on the Internet. 
The renewal period of goods with ZARA is usually more than 10 days, and the fastest time can be up to once a week, but most ZARA stores in China are unable to do so. 
 for this reason, ZARA China has not responded positively to whether its Spanish headquarters has been authorized to open up discount stores in China with the above companies, only stressed that "Inditex China does not accept any form of affiliate and agency, and Inditex has its own stores in China." 
"P" to the international staff told reporters that this is the Italy headquarters and ZARA headquarters in Spain to cooperate with the domestic inventory clearing business, and ZARA China has nothing to do with. And the investment they mentioned is also signed with the international contract, which gives them the sales authorization of the ZARA stock, and the sale authorization means that the products sold in ZARA in China are legitimate. 
 the above staff also said, "ZARA has been cleaning up inventory in Europe all the time, and the stock in China is spanported back to headquarters. Our Italian company and ZARA have done many years of inventory clearing in Europe. It was only in 2012 that it got its inventory clearance business in China. Without authorization, it is impossible to purchase large quantities of goods, and there are already customers doing discount business in Nanjing area. We can ship three stocks from all over the world, and we can't do without regular channels. 
The international P said that the reason why ZARA China did not know about the matter was that the share of the inventory processing business was rather small and would not be notified to the Chinese side. In the case of "a target=" _blank "href=" http://www.91se91.com/ "> clothing" /a ", industry independent commentator Ma Gang, although ZARA did not give an exact response to the matter, the above situation is still possible. 
"P >" it is said that the international Italian company and ZARA have many years of cooperation in clearing inventory in Europe. It was not until 2012 that we got the inventory clearing business in China. " An investor who has contacted with extreme international has revealed that at the end of each season, ZARA will sell all the goods at the lowest price. The authorized discount outlets can be arranged exactly as the ZARA store. But the ZARA door must not be suspended from 70 km away from the ZARA shop. All discount items are strictly prohibited from selling and advertising on the Internet. "Start-up capital is about 5 million yuan, and there are other security deposits, which also require monthly purchase volume." 
 although compared with other domestic brands, ZARA has been doing better in inventory, but with the increase of stores in China, the slow digestion of goods will also increase, and only by virtue of the positive price shops can not digest well. ZARA price stores will also have some discount promotions, but less frequently, and less discount. 
 if the investment situation is true, ZARA is to digest inventory in a low profile, and the follow-up may become a long-term inventory mode in China. In the industry view, with the increase of ZARA stores in China, there will be more and more slowly digested products, so it is necessary to clean up inventory channels. 
 a person close to ZARA has revealed that the renewal cycle of ZARA is usually more than 10 days, and even the fastest one can be achieved once a week, but most of the ZARA stores in China are unable to do so. 
 three or four line market or under impact 
 earlier, ZARA just handed in a beautiful report. Inditex's latest earnings report shows that it has created a miracle in the European economic downturn. Its sales grew 17% in the first 9 months of fiscal year 2012, and its profits increased by 27%. 3 years ago, ZARA's Inditex group's first sales surpassed Gap, the largest US apparel retailer in the world. It surpassed H&M group two years ago and became the top player in the fashion retail market. 
 sell your goods through other people's channels. You want to build a long-term business model to make it a solid storage channel. 
Thanks to the growth of new market shops and the drive of online stores, Inditex has created a miracle in the European economic downturn. The net income of the company rose 27% to 1 billion 660 million euros in the first three quarters of October 2012, especially in the third quarter, with net profit rising 21.7%. In contrast, GAP grew by 3% in the same store last November, while H&M sales in the same store dropped by 1%. 
 but even so, ZARA still has stock problems. It has been learned that ZARA has been cleaning up its inventory in Europe, and the stock in China has been spanported back to headquarters. 
 independent commentator Ma Gang of garment industry said that judging from the number of ZARA stores in China, it is not very realistic if the inventory is spanported back to headquarters for cleaning up, so local digestion channels are needed. More than 200 This can be regarded as a local digestion strategy at headquarters. From the feedback from the international community, they copied the practices of ZARA in other regions and countries and made an attempt in the mainland of China. The conditions seem to be relatively high, which determines his identification and selection of partners. 
 "every garment enterprise must face the choice of inventory clearing channels. ZARA is now outsourcing the discount products to the channels, while the local brands themselves also have discount stores, but only the same brand discount or factory stores. ZARA intends to weaken the impression of discount stores, which is based on the positive brand image that protects the brand's positive sales. " 
 "compared with your LOGO discount store, this is selling your own goods through other people's channels. We want to build a long lasting business model to make it a solid storage channel." Ma Gang pointed out that, if the situation is true, ZARA is in the low inventory, and this also ensures the image of the store. 
 according to the introduction, ZARA's inventory in foreign countries is mainly cleaned up by Lefties, a discount store opened by Inditex. There are stores in Spain, Mexico, Paris and Oporto, but not in mainland China. 
 ZARA is different from the general store that stores its stock in its own outlet, and sells it in Lefties. Lefties's first store was opened in Spain in 1995, and Inditex sold outlet's inventory and some of the less well sold products in Lefties in the form of ZARA. Compared with ZARA, Lefties is more Spanish style, Logo is red bottom, with white characters on it. Unlike ZARA's shopping bags, Lefties is made of plastic (10550,5.00,0.05%) bags. 
 following the opening of shops in Portugal and Mexico, Lefties was also very successful in France because of its geographical and cultural proximity. Lefties has two new stores in France, one in Paris and the other in Oporto. Paris store is located in the Maine-Montparnasse shopping center. The price of the products is very cheap, T-shirt is only 7 euros, and clothes like dresses are only priced at 19.99 euros. 
 a analyst who does not want to be named pointed out that the investment information is a relatively harsh condition from 70 kilometers away from the direct shop. "The existing channel of ZARA is basically in a second tier city. The implication of this regulation is that it can only open stores in three or four line cities." 
 Inditex opened 132 new stores in China in 2011 alone. By the end of the year, it had 275 stores, but basically concentrated in the second tier cities. There is no real brand that can compete with ZARA in China. Most of the main brands of domestic leisure brands represented by the United States and Semir have moved to the three or four tier cities with relatively lagging brand awareness and relatively moderate competition. 
 "whether it is a price store or a discount store," shows that ZARA has been expanding in China and constantly strengthening the retail terminal. Zhou Ting, director of the Institute of wealth quality, said that this will definitely squeeze the development of competitors and local fashion brands.