Zara Is 2 Times The Sales Volume Of AGG, And Has Surpassed It Completely.

In 2014, Zara, who entered China for only 8 years, stepped down to rival China's fast fashion champion for 20 years in a gesture of two times sales.

Establish a big image in the minds of consumers.

Despite sales of only 180 stores in the mainland, sales surged to 800 million yuan.

In 2013, the store had more than 2800 stores, but it lost about 80000000 yuan.

In order to reduce the deficit, IgG cut 117 stores.

Foreshadowing 2013 - lit stock

Iger also wants to keep up with the speed of Zara, as well as the competitors, but with a quick replacement strategy for every quantity of products, but it has a large number of counters and a large backlog of risks. That is to say, one shop only sends 5 pieces, and a new product has more than 10000 pieces. With the attack of the trend guide created by the Zara model line-up, the goods of IgG begin to be unsalable, and soon the stock exceeds the 20% safety line, and the capital chain is also beginning to tighten.

In July 2013, Fu Sen asked suppliers to give 2% of the last year's settlement amount as business support to IgG.

If successful, he will get nearly about 60000000 yuan of working capital.

Generally speaking, suppliers are relatively weak in the face of manufacturers. In order to maintain long-term cooperation with IgG, they can only "support" work.

However, some suppliers are reluctant to swallow. Labor costs in the mainland processing enterprises are getting higher and higher, and profits are getting thinner and thinner.

Some suppliers who are unwilling to cash in on their money have left.

It is not known how the new policy is effective. In order to eliminate inventory, Fu Sen decided to sell at a low price, and expected that Zara would not follow up.

Who knows that Fu Sen miscalculated the accounts.

Zara's inventories also increased, but because of the continuous invitation of world-class models, as well as the management and operation of big stores were all self run, the cost of sales increased by 37%, and management costs soared to 146%.

Zara also followed up the discount and withdrawal of funds.

Unlike AGG, the Zara price cuts are more planned.

For example, first the original price of 859 yuan coat, the first week discount for 799 yuan, second weeks discount for 499 yuan, third weeks discount for 399 yuan is the lowest price.

Meanwhile, Zara has vigorously promoted the art of dress matching while offering a substantial discount.

Customers only buy one piece, and the sales volume can be increased by more than 1000 yuan by a salesman.

In the promotion campaign of Zara, the sales of Iger in 2013 suddenly dropped by 2.5%, and sales remained at only 2 billion 500 million yuan, while Zara's sales surpassed Edgar in one go.

The price war has started, but it has broken its own feet.

What is more important is the fact that more changes and sources of chaos occurred after the battle.

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Blood cleaning 2014 - who has chosen the market?

It will continue to offer special sales, group buying, VIP sale, issuance of coupons, time rush, holiday promotions, and so on. The sales front will also be extended to the Internet.

But consumers found that the price system began to mess up when IgG started from the discount.

For example, the counter sells 50 percent off and sells 80 percent off online.

Even this store 50 percent off, that store 70 percent off.

The confusion of online prices is due to the fact that IgG has allowed franchisees to join the e-commerce channel in addition to their flagship stores in order to get more online shares.

Franchisees fight against each other, they are no longer soft on the discount of oversold or overloaded products. On the other hand, they have to talk about suppliers who have been displeased with them.

For a while, the price is more chaotic.

Online discount has a direct impact on offline sales.

Many agate sales counters declined, and they had to follow up discounts and sales.

In addition, the sales of these counters will follow the overall sales promotion plan of the shopping mall. The shopping center is focused on the flat effect, that is, the overall sales volume, and does not care about the gains and losses of the single brand.

The overall sales volume of AGG is increasing, but the brand is sinking to the bottom.

Zara is also discounted. Why can't we see this chaos?

Because Zara only has its own big store, the shipment port is single and convenient to control.

Another important reason is that Zara has many styles of clothing launched every year, but there are few quantities.

There are only a few pieces in each store, and the number of stores is not large enough to be sold out in less than two weeks.

If a discount is not available, it will be sent back to Spain by air and sent to the special discount shop by headquarters.

This ensures that there is a backlog of goods and the brand is not damaged by discounts.

In the first half of 2014, many stores began to lose substantially.

Depending on the size of the more than 2000 stores, it has kept fifteen or six hundred million yuan in sales.

At this time, only more than 180 shops Zara half a year.

It suddenly increased to nearly 3 billion 500 million yuan, almost 2 times that of Igor.