Analysis Of Competitive Advantages Of Fast Fashion Brands Such As ZARA, H&M And GAP

[ZARA]

I just went.

The company is very impressed by the interview. It believes that the competitive advantage of ZARA lies in the "Vertical Integration" Chinese should be called the "vertical merger" mode, which integrates all aspects of market research, design, plate making, sample making, mass production, pportation and retail.

Under this mode, ZARA can shorten the average shipment time to 2 weeks, 5 days faster than H&M (the average brand is 4~6 months), and can produce 15~20 Collection per year (the average brand is only 2 Collection).

In terms of cost, ZARA does not have advantages. There are two main reasons:

1. production: ZARA relies on the countless handicraft shops in La Coruna where headquarters are located, and home factories start, and many products are directly produced locally, only in recent years have they gradually been outsourced.

By contrast, H&M has outsourced production, so it has a price advantage.

2. pport: aircraft, not most brands.

It can be said that ZARA is the definition of "fast fashion".

All the clothes in the 1.ZARA headquarters warehouse will not stay for more than 3 days. The store will order products to the headquarters 2 times a week to replenish products, and the inventory turnover rate is 3-4 times higher than that of other brands.

2., on average, only 15% of the clothes per quarter need to be discounted, while the other brands are 50%.

3. the average customer goes to ZARA17 times a year, and the other brands only have 4 times.

4.ZARA super large logistics warehouse (9 times Amazon), there will be countless trucks at the door of the truck 2 times a day to pport products to other parts of Europe or the airport.

5. as far as design is concerned, an average of 20 minutes is required to design a garment, and more than 25 thousand new designs can be designed each year, 4-6 times of H&M.

At the same time, the author also summarizes some drawbacks of the ZARA model:

1. controlling the whole process mode also increases operational risk.

2., it is impossible to integrate national advantages and maximize benefits.

3. direct camp mode, it is difficult to expand rapidly.

4. because of "fast", it brings plagiarism.

To sum up, ZARA is built on the "quick response" business model based on customer demand. At present, it is still in a stable development period, and there is no rival.

The author summed up GAP in a sentence: the thin camel is bigger than the horse.

GAP, even unfortunately, was named Forbes as one of the ten fashion brands most likely to disappear in the next ten years, together with A&F.

It also makes me wonder about the long queue in front of the A&F store which just opened in Shanghai.

Relatively speaking, if GAP can be called an advantage, it may be its simple and relatively stylish design, such as jeans and LOGO tops.

This simple and versatile design and high quality fabric and version are also a double-edged sword, which can gain the favor of loyal consumers and lose the new generation of consumers.

In the field of new media promotion (Facebook, Instagram, etc.), GAP is more inclined to "small refreshing" style, and its brand culture and positioning are basically consistent.

Finally, paying attention to establishing brand image through environmental protection is also one of its leading brands such as ZARA and H&M.

[H&M]

By comparing the above with ZARA, it is easy to see that H&M focuses on shipping time and production costs.

Therefore, "low cost" and "high degree of time" have become their competitive advantages.

The result is that H&M will attract large numbers of joint design funds every year, while the quality can not be flattered.

The author mentioned more about the brand's sports series in Europe. The series has not yet been introduced, but H&M's sportswear is very professional, with a very fine classification (running, tennis, and even yoga), which is cheap, far below the professional brands such as Adidas and NIKE.

The replenishment rate of sportswear reached 36% in 2013, and only 10.4% of discounted sales at last. So sportswear is definitely a highlight of H&M.

In addition, the size is also a major advantage of H&M, and even for mothers to customize.

The following is a comparison of H&M's additional size statistics in the UK and the main competitive brands in the UK:

In general, in the daily wear, I wait for the more easy to buy the good goods in H&M, which is the most concise to reflect the advantages of the brand.