ZARA Follows Traditional Retail

Fast fashion is being proven to be a successful fashion industry.

The secret told analysts that the brand is following ZARA to speed up its design and delivery process.

"Now, all of our underwear is undergoing some kind of rapid process," CEO Sharen Turney said in a conference call.

"This will shorten the filling time to 15 to 25 days."

At the same time, the brand is still trying to reduce the time from product design to store.

"Our product development time has been reduced by four months, and I believe it is possible to reduce another two months in the future."

Turney said.

When other independent retailers are worried about attracting customers, fast fashion brands such as Zara are expanding rapidly.

A report from Goldman Sachs concluded.

The reason for subverting traditional retailers.

"Fast fashion retailers have specialized buying groups to purchase seasonal popular products from third party suppliers, while traditional retailers use design teams to produce goods that they think will be popular in 12 months."

The report reads.

ZARA is built on an unconventional philosophy: speed and responsiveness are more important than cost.

It is famous for small batch and quick release of new products in stores.

Store management orders are placed two times a week, and new clothes are delivered to stores two times a week.

To achieve this, Zara controls more production processes than most retailers: about half of their garments are produced in Spain or neighboring countries.

For Zara, the supply chain is its competitive advantage.

According to Goldman Sachs report, trying to predict the risk of fashion trend in advance one year is attacking fashion giants, such as Gap, Abercrombie & Fitch, Ann Taylor, American Eagle and so on.

If these retailers' forecasts fail, they will need to sell at a reduced price, which will damage profits.

Zara's non-traditional retail business model clearly circumvented the risk.

Zara's strategy is to reduce inventories and speed up new businesses.

It is reported that different brands are updated once a season, and Zara's products are updated two times a week.

Hansen points out that the strategy has two advantages: first, it encourages customers to frequent patronage.

It also means that if a customer wants to buy something, he or she will feel that it must buy now to make sure that it will not be sold out.

Zara has changed the fashion industry.

"They broke the fashion cycle that lasted for a century," the analyst told Hansen.

"Now, almost half of the high-end fashion companies, such as Prada and Louis Weedon," publish 4-6 new products every year, not 2.

This is absolutely because the pressure of Zara is forcing them to do so.

The fast fashion mode has become more and more popular. Before the fashion headline report, Esprit has completely modeled the Zara business model in order to pform the company.

Although the secret of Vitoria, which occupies the 35% underwear market in the US, is almost no competitor, it has begun to look for new growth points in the face of danger.

Fast fashion mode.

Goldman Sachs report that apparel independent retailers need to emulate the fast fashion mode to succeed.

Xiaobian believes that this kind of practice of weir underwear has to be said to be a "foresight". After all, the market initiative can be grasped in its own hands.

If we wait for the fast fashion, we can see that the effect of self rescue may be greatly reduced.