ZARA China Pricing Is 78% Higher Than Spain And Third Quarter Profit Is 2 Billion 20 Million Euros.

Recently, the fast fashion brand led by ZARA has gained more attention in the fashion circle. ZARA mode is popular all the time.

Under this mode, the supply chain with solid internal operation and quick response has become the benchmark for many brands to emulate.

Good news is that High, the fast fashion brand ZARA that encourages people to embrace Fashion at a low price.

The parent company Inditex group released its third quarter earnings in 2015, and its net profit in the first 9 months was 2 billion 20 million euros, up 20% over the same period last year.

From February 1st to October 31st, the net sales of Inditex group increased 16% from last year to 14 billion 700 million euros.

Inditex group was founded in 1975. It operates women's wear, men's wear,

Shoes, hats, scarves and other products, with ZARA, Pull and Bear, Kiddy 's Class, ZARA Home, Massimo Dutti and other eight brands.

A few days ago, Inditex group president Amancio Ortega first surpassed Bill Gates, who was promoted to the world's richest man briefly.

From the analysis of earnings reports, Inditex group not only gets beautiful figures in sales, but also flexibly mobilized in the global market layout, seize the trend of rapid development of electricity providers, and constantly try new technologies.

The key to winning applause.

Confidence in the Chinese market

Luxury goods in the Chinese market encountered cold winter, the fast fashion brand with ZARA as the main brand has been applauded continuously.

Inditex Group CEO Pablo Isla has confidence in the Chinese market in interpreting earnings reports. "Chinese appetite for fashion is becoming bigger and bigger. The brand of the group is becoming more and more famous, and we are very optimistic about the Chinese market."

Although the financial report did not put the Chinese market as the main developing country alone, but around the important industrial layout and change of ZARA and other brands, such as new stores, new flagship stores or shop renovation, we can always see the Chinese market.

Today, Inditex group has 514 stores in China, and sales in China occupy 7% of the group's total sales.

A case in point is that the Inditex group has 6913 stores in 88 countries, including 1824 stores in Spain and China and Russia.

In addition, according to the survey published in the El Confidencial newspaper, the exchange rate factors considered in the study are compared with the price of Zara Zara in the Spanish market.

Prices in France, Italy and Germany are higher than 22%-24%.

The market price in Mexico and the UK is 50% higher.

The highest price is in the Korean market (96% higher than the Spanish market price).

Followed by the US market (92% higher);

Next comes the Chinese market (78% higher).

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Taking ZARA as an example, the three characteristics of the Chinese market can be seen from the performance of physical shops.

1, the important position of the Chinese market is stable.

Although ZARA's offline stores account for only 1/3 of the total number of Inditex stores, its sales account for about 70% of total sales.

ZARA is the first brand in the Inditex group to enter the Chinese market. In February 2006, it opened its first flagship store in Nanjing West Road, Shanghai. At present, the number of stores in China has reached 166, and has entered more than 60 cities.

Subsequently, China became one of the three main investment destinations of the company.

In 2014, the number of Inditex employed in China reached 8584, second only to Spain and Russia.

2, the store sinks, hoping to close to the three or four line city.

Beginning in 2013, ZARA plans to sink to the three or four tier cities. In the current layout, 85% of the stores are still in the second tier cities, and the three or four tier cities are mainly cities with more developed economies such as Ningbo and Suzhou.

The layout of the three or four tier cities still takes time.

3, consumers' awareness is deepened and consumers are more precise.

The rise of China's emerging consumer class has increased consumer acceptance of the ZARA of big design and price friendly.

As we all know, ZARA is famous for its fast response supply chain. It usually takes 3 weeks from design to store sales.

When consumers just saw the new model from model street, ZARA has already put up new products at the store, and needs to rush to buy.

An example shows that ZARA has completed its reopening business in Beijing's store in Xidan's Joy City, and is trying to expand sales after facing "90's" and "00 after".

At the store level, the door is placed in a fashionable fashion that meets the needs of the young customer group, and the price is relatively low.

Fast fashion is the trend trend

Fast fashion in the fashion circle has already started to billows, and they have changed from the followers of the trend to a fashion maker.

Interbrand, the world's largest brand consultancy, released a report in July that ZARA's brand value was 8 billion 664 million euros, up 14% over the same period last year, ranking second in Spain's most valuable brand list.

As a trend maker, ZARA is playing a big role in designing, playing fast response and low inventory supply chain. In marketing, ZARA is catching up with the business trend and applying E-commerce to it.

According to the official website of ZARA, ZARA's online retail business has extended to Taiwan, Hongkong and Macao.

At the same time, Inditex group also launched online retail business in the southern hemisphere. In December 3rd, the Zara home website was established in Australia, and the official website of Zara home was also available in Japan.

ZARA's online business is full of firepower.

At present, ZARA has independent operation platform, Tmall flagship store and other online business layout, forming a multi-channel sales mode.

Online multi-channel layout not only broadens consumer choice space in consumer channels, but also creates closed loop experience for browsing, return, or even payment, and extends service to stores.

Judging from the current online platform performance, the new rhythm of ZARA's online business is consistent with that of the offline. Monday and Thursday are the fixed replenishment dates for ZARA.

If consumers buy products on the official website, they can find out the stocking situation of the nearest stores, and stores support the replacement and fitting service.

It is reported that Inditex group and Alipay have carried out in-depth cooperation. The group's brands are ZARA, Massimo Dutti, PULL&BEAR, Bershka, Stradivarius, OYSHO and ZARA HOME, and nearly 500 stores in China have access to Alipay.

ZARA also recently launched a pilot store with IPad to enhance its shopping experience. According to the no fashion Chinese network, consumers can scan products selected by iPad. If the color and size are different, customers can be notified by iPad, and the clerk will bring new sizes and color products that consumers need.

However, it is said that the strategy is currently limited to Spain and will decide whether to implement it globally.

The above is based on the new technology of the existing technology.

In this earnings report, Inditex group's brand has tried in RFID technology, which is a RFID based electronic tag system (RFID). It can easily trace the whole chain dynamics of goods from factories to retail stores, and make the operation efficiency higher.

At present, it has been applied to 1417 shops in 64 countries.