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    European Clothing Giant ZARA And H&M Landed In Shanghai.

    2013/5/3 20:19:00 131

    European ClothingEuropean MarketClothing

    < p > in China, Europe's < a target= "_blank" href= "http://www.91se91.com/" > clothing > /a > giant ZARA and H&M have landed in Shanghai, from ZARA single store opening day turnover to H&M single store daily sales of 2 million, with a envy of the industry to promote the performance of the country's clothing field admiration.

    Perhaps this kind of performance can be regarded as a myth in the country, and perhaps many people in the industry will comfort themselves by saying, "is an international brand comparable to us?" of course, more people will think about this phenomenon.

    A brief look at the history of ZARA and H&M.

    < /p >


    Inditex, the parent company of P ZARA, is the world's leading fashion merchandiser. The group now has eight major international brands and has more than 2700 shops in 62 countries and regions.

    In 2004, its total sales amounted to more than 5 billion 670 million euros, and its total capital exceeded 17 billion euros. At present, the group has more than 50 thousand employees, and is one of the largest fashion companies in the world.

    ZARA was founded in 1985. The brand has more than 850 stores in 60 countries and regions. The global operating income of 4 billion 600 million euros in 2004, and its profit margin is 440 million euros, and the interest rate is 9.7%. It is better than the first 6.4% a target= "_blank" href= "http://www.91se91.com/", "dress less than /a", 6.4% of chain brand GAP.

    < /p >


    < p > Hennes&MauritzAB (referred to as H&M) was founded in Sweden in 1947 by ErlingPersson. It now sells clothing and cosmetics in 24 countries and employs more than 50000 people.

    What is unusual is that H&M does not have a factory of its own. He maintains cooperation with more than 700 independent suppliers in Asia and Europe.

    < /p >


    < p > H&M is headquartered in Stockholm. The important functional departments of the company, such as design purchasing department, finance department, finance department, development department, exhibition design department, advertising department, public relations department, personnel department, logistics department, IT and customer service department, are all located in the headquarters.

    At the same time, the company has 15 offices worldwide, and 22 production offices are responsible for communicating with about 700 suppliers. Among these 22 production offices, 9 are in Europe, 11 in Asia, 1 in Central America, and 1 in Africa.

    < /p >


    < p > < strong > one or two big tycoons tell us what is "real OEM" < /strong > /p >


    < p > although ZARA has its own factories, the vast majority of products still make OEM production through collaborative manufacturers. In fact, ZARA has surpassed the concept of OEM in a strict sense, mainly in the form of cooperative participation in manufacturers all over the world, but none of H&M's own factories are produced entirely by manufacturers distributing around the world.

    But they have one thing in common, for the quality of OEM's products, the ability to control, the ability to carry out the design to the finished products, the fast shipping capacity, etc., so that the two giants can improve the replacement rate in the fastest time, that is, increase the popularity of the products.

    Such "OEM" production capacity tells us what is the highest level of "OEM".

    < /p >


    < p > in contrast, most OEM enterprises in China are far from a low level OEM state in terms of design capability, quality control and production cycle.

    Many domestic enterprises in the early days of the founding, the product quality is very good, but after the scale expansion, more is through the OEM to achieve their own capacity, however, the lack of control ability of the producers, resulting in frequent product quality problems in the later stage, this is the gap.

    The design ability and the ability to carry out the design style are also poor.

    The resource integration capabilities of producers and collaborators are at a relatively low level.

    < /p >


    < p > < strong > two, design ability is the capital of controlling the fashion of parity. < /strong > /p >


    < p > ZARA has more than 400 outstanding a target= "_blank" href= "http://www.91se91.com/" > designer "/a", the same H&M also has a large number of designers, they are concerned about the trend of the world, run around the world fashion show, after absorbing the trend of the world, design similar products.

    By absorbing the trend of fashion, they create their own understanding of the concept of fashion trend, produce the corresponding products quickly, and bring the world's fashion trend to the consumers around the world in the shortest time.

    Undoubtedly, design capability has become one of the magic weapons for ZARA and H&M to control the fashion of parity.

    Without the support of design capability, ZARA and H&M will not be able to create fast fashion capabilities, nor can they occupy the market through the fast fashion of parity. They combine the fashion, the price and the quality very well, of course the price is parity.

    < /p >


    < p > < strong > three, production and supply chain is the pillar of success of the two giants: < /strong > /p >


    < p > ZARA invested heavily in establishing its own a target= "_blank" href= "http://www.91se91.com/" > textile > /a > factory and garment processing plant, and established independent logistics and pportation enterprises in some major European regions.

    The 14 factories are connected to a super large automated distribution warehouse, which is completely self-made and sold. Although the production cost is increased by 15% to 20% than that of the outsourcing production, efficient operation management improves production speed and reduces the cost of stagnant pressure brought by inventory, thus maintaining a steady 10% profit.

    When ZARA's stores moved away from Europe to America and Asia, in order to solve the same problem and reduce the investment in fixed assets, they adopted the way of share participation, and established cooperative relationship with some productive enterprises which had strong production capacity and had certain assurance in management and product quality. The logistics system was settled by professional pportation companies in the sales area.

    That is why we have formed a rapid supply system for today's product from design to material selection, dyeing and finishing, tailoring, sewing, ironing, pportation and even finished product shelf up to 3 weeks.

    What ZARA is proud of is the fast supply chain. Even if it opened stores in Spain far away from Spain, it also miraculously maintained its speed for 15 days.

    < /p >


    < p > H&M believes that the three in one H&M, "time, quality and price", adopts two supply chains, strive to find a profit balance between efficiency and cost.

    Considering the cost of procurement, H&M put 60% of its production in Asia and the rest in Europe.

    Generally speaking, regular fashion and children's wear are small and popular garments produced in Asia, usually to European suppliers.

    So H&M designed two supply chains: the efficient supply chain that controls production in Asia, and the fast response supply chain that controls European production.

    Compared with ZARA, H&M's fastest lead time was 5 days late.

    However, the cost of these 5 days has earned H&M a cost advantage - its clothing price is 30%-50% less than that of ZARA.

    < /p >


    < p > < strong > four, two big products six words policy < /strong > < /p >


    < p > six words policy "small, multiple, parity".

    Adopting the concept of "small amount, multiple prices and parity" to react quickly to fashion is the common ground between ZARA and H&M.

    < /p >


    < p > because to ensure low inventory rate, high turnover rate and fast fashion, it is necessary to follow a small number of product strategies. Of course, based on product market positioning, parity is the most important feature of its distinction and high-end fashion products.

    Keeping up with fashion trends, frequent updates and more choices has created the unique attraction of ZARA and H&M to customers, thus greatly increasing customer preferences and loyalty.

    At the same time, it can be considered that the creation of a scarcity, thereby inducing the attractiveness of the intangible purchase of customers, the more difficult it is to get, the more it can stimulate people's desire to buy.

    For the same style of clothing, retail stores usually have only a few stocks. Perhaps because of your hesitation, you may miss the chance to finally own it, because you may see a new shelf tomorrow.

    This initial chagrin comes from the decisive buying speed of customers when they patronize again, and has trained a large number of loyal followers.

    Small volume supply and forecast of tight supply have stimulated the frequency of customers visiting shops.

    < /p >


    < p > strong > five, diversified products can also be fashionable < /strong > < /p >.


    < p > for ZARA and H&M, between all their line products, ZARA and H&M range from basic clothing to classic style to fashion front, from young people to teenagers, to children and pregnant women. They cover a wide range of colors, and all of the basic colors have different colors to choose from.

    Diversified product lines make their consumer groups huge, but ZARA and H&M diversified products also achieve a fast parity fashion.

    This is also a commendable place for their success. They are synonymous with parity.

    < /p >


    < p > < strong > six, "waiting" marketing strategy < /strong > < /p >


    < p > in fact, ZARA and H&M both follow the "waiting" marketing strategy, which is driven by the first-class brand, the second class product and the three price.

    This strategy is undoubtedly successful. Queuing from practice to the long front of the fitting room can fully reflect their "waiting" strategy.

    This kind of culture enables consumers to understand that it is not easy to buy a a target= "_blank" href= "http://www.91se91.com/" > clothes < /a > and take a few more tests together at once. The result is obvious that the probability of buying more naturally is more.

    Of course, H&M also restricts the maximum number of 7 items to be tried out at one time. This restriction is also a comprehensive reflection of waiting strategies and high turnover rates.

    It is necessary to let consumers buy more than one item at a time, and limit it to 7 pieces from the heart, thus increasing the frequency of its entry.

    Of course, this waiting culture needs to be built on the basis of "first-class brand, second rate product and three price".

    < /p >


    < p > in short, no matter what the essence behind the phenomenon of ZARA and H&M, the two giants' ability to control themselves and the market is worth studying seriously in China's clothing industry.

    No matter what career is needed, it will need to be flexible in the competitive environment. Without flexibility, there will be no "DELL" in today's IT industry, nor will there be today's ZARA, H&M and C&A to be stationed in Shanghai.

    < /p >

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