ZARA Has A Rich And Powerful Rhythm.

Speaking of fast fashion, you must be very familiar with ZARA, H&M, GAP and UNIQLO. These four fast fashion brands are rising quickly and quickly, almost to the level of non core business circle.

Lots of people who are not good or three or four cities should be prepared to get a knife.

For example, it is not uncommon to patch up three thousand or four thousand or six thousand or seven thousand.

In other words, ZARA is in a fast fashion, the price is more expensive and less popular.

But this did not affect ZARA's triumph. Amancio Ortega, the founder, was happy. The stock price of ZARA's parent company Inditex rose all the way. He also had the addiction of the world's richest man in October.

Under his leadership, Inditex achieved 13 billion 790 million euros in global revenue in the 2011 fiscal year, exceeding the US GAP, Sweden's H&M and Japan's UNIQLO, becoming the number one in the world.

Group.

The group's share price also rose from 23.65 euros in March 2009 to 91.37 euros in August 8th this year, or 286%.

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Spain's headquarters is another scene. The domestic unemployment rate is as high as 20%.

In this era, people do not need products, but are "different" and "unique".

ZARA this "temporary cargo break" just satisfied people's psychology. Because of this subversive practice, ZARA gradually became the spokesman of "unique".

What is more, Oman Theo otjac, who has such a success, is a real self-made man. He has no design talent, nor is he rich in the two generation. He was once described by the media as "a poor boy from a small fishing village".

The 13 year old rich man who went to the clothing store as an apprentice discovered the "hidden rules" of the fashion industry in his work process: a garment from design to production, and then to store shelves.

He dreamed of earning money one day.

So he began to focus on how to skip middlemen and sell products directly to consumers.

Maybe this is ZARA unique.

The source of Vertical Integration (vertical integration mode).

The so-called vertical integration mode, that is, a product from raw materials to finished products, and finally to consumers in many stages, and these are all in the hands of the same company.

In the production process, the ZARA company itself has 9 garment factories, which can be completed within a week from the new planning to the production and production. In order to speed up delivery, all ZARA's long-distance pportation is an aircraft, instead of a cargo ship, willing to pay high freight charges rather than spend advertising and marketing expenses.

ZARA's marketing expenses account for only 0.3%-0.4% of the total cost, while other brands account for about 3%-4%. Even so, gross margin and net interest rate of ZARA are still equal to that of H&M.

ZARA takes a variety of small businesses and does not replenish its goods because of the selling of "explosions". Instead, it launches new products every week. Every 3 weeks, all goods in its clothing store must be renewed.

In ZARA, customers can not spend 1/10 of the top brand price, enjoy the design of top brands, because it can replicate the most popular design in a very short time, and quickly spread to stores around the world. Today, on TV, you can see the latest dress of Milan T season. After 10 days, you can buy similar clothes in ZARA store of Nanjing East Road, Shanghai.