Ortega: Courier Boy Has Become The "Fast Fashion King" Of The Top Rich.

The trend of global stock market in 2015 was breathtaking, and many top tycoons were "washed". Even the stock of Buffett of the stock market has shrunk by more than ten billion dollars, while the ranking of Mexico Telecom tycoon Carlos Slim has dropped sharply.

However, the wealth of a rich person has been increasing, or even surpassing Bill Gate. He is now the richest holder in the world. This person is the richest European and Spanish - Oman Theo Ortega.

It may be strange to mention Oman and Theo Ortega, but as long as we talk about ZARA

I believe no one knows, no one knows.

Actually, Amancio Ortega is.

The founder, and is a real from the courier boy against the top rich. "

King!

Express boy counter attack

"Bao Jianfeng has tempered, plum blossoms come from bitter cold", this sentence has produced the capital of thousands of successful people, and so is Oman Theo Ortega.

Amancio Ortega was born in Galicia, a poor country in northwestern Spain in March 28, 1936. His father was a railway worker and his mother was a housewife.

Because of his poor family, he dropped out of school at the age of 12 and worked as a miscellaneous worker in a clothing store. He was mainly responsible for delivery and delivery.

During the work, Ortega found that a piece of clothing from design to production, and then placed on store shelves, this industry chain contains huge profits.

He realized that as long as he worked hard, he could earn money one day.

Therefore, he began to focus on how to skip middlemen and sell products directly to consumers, so as to gain more profits.

A few years later, Ortega went to a more expensive clothing company as a salesperson. With his intelligence and diligence, he soon became a clothing store manager.

In 1963, Ortega, who has a certain management ability, established a garment factory called ConfeccionesGoa by working with his brother through a small loan from the bank.

In 1975, he and his wife created the first ZARA brand clothing store to become the original form of the Inditex group today.

In 1988, he opened his first ZARA overseas branch in Portugal.

Later, he began to expand to other European countries, North America, Latin America, Asia and Africa and expand at the speed of 400 stores a year.

After nearly forty years of development, today's Inditex group has grown to have more than 6900 stores in 88 markets worldwide, eight clothing brands, annual sales of 20 billion dollars, and the world's largest fashion enterprises, and Ortega has become the "fast fashion king".

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Comment on Xiaobian

Although Amancio Ortega was born poor, he was only 12 when he was a courier, he knew how to skip middlemen and sell products directly to consumers, thereby gaining more profits.

From today's point of view, Ortega's way of doing business is called "de intermediation".

For most capital enterprises, "de intermediation" is to eliminate the opaque links of intermediate information, reduce the regional difference in the industrial chain, and shorten the supply chain management process, so as to achieve the purpose of reducing logistics costs, improving operational efficiency and improving service quality.

Although there was no concept of supply chain management and no commercial mode of "de intermediation", Ortega had advanced vision and thought. He knew how to pform and innovate business models, and shortened the supply chain through "de intermediation", thereby making himself the first pot of gold.

However, it is precisely because of his spirit of innovation and change that his entrepreneurial history has been brilliant.

As a "fast fashion king" and "fast growing fast" is an important killer of Amancio Ortega's business strategy.

According to relevant information, a ZARA fashion from design to production, logistics, until entering the sales link, probably takes only 2-3 weeks, which is more than 10 times faster than competitors.

When the new product reaches 50%-60% of the booked production, it will be sent to the store.

If you do not perform well in the first week after you get on the shelves, you will withdraw immediately; if you sell well, you will complete the booking production in the next few weeks.

This enables the company to respond quickly to the needs of consumers.

Even the hot money will not stay in the shop for more than 4 weeks. In this way, shops will always be full of clothes showing the latest fashion trend. On the other hand, they will also create a sense of crisis for consumers who have not passed the village, thus creating the effect of "hunger marketing".

Compared with most other clothing brands, ZARA is more unique in inventory management.

In ZARA, Spain's largest logistics center, each pole represents ZARA's different global stores.

Every week, more than 1800 stores around the world will order 2 times to the headquarters. After these clothes are automatically scanned through the bar code and slide into the pole, the pole will push the clothes into the carton, then the ZARA box will slide into the track automatically and queue up to label the bar code.

Finally, there are 178 gates on the first floor, each waiting for a truck to deliver products to stores in the world 2 times a day.

The flow of more than 2 million 500 thousand clothes a week has caused all garments in the ZARA warehouse to not stall for more than 2 days.

In the world of ZARA, the meaning of a warehouse is not to "store" things, but to "flow".

In addition, in logistics and distribution, in order to achieve products within 48 hours to ship outside Europe, ort garning is willing to pay 2 above the cost of air freight.

It is reported that ZARA in France, Germany, Italy, Spain and other European Union countries are mainly pported by truck, and can reach chain stores on average 36 hours. Sales in these areas account for 70% of total sales.

The remaining 30% sales volume will be increased at the expense of air pportation and sent to distant countries and regions such as Asia, the United States and Eastern Europe.

Such a distribution service enables every ZARA chain located in China to have an independent right to order, just like any chain store in the world.

Even if a dress is only reserved for one, it can be sold within 48 hours to the store and counter.

Therefore, all new products reach the same frequency in the ZARA global chain store, and the difference is that the different preferences of consumers decide the different styles and styles of ZARA stores around the world.

In short, in the competitive clothing sales market, ZARA is based on the "efficient, small, diversified, and integrated" efficient operation, based on Europe and the world. Its success is worthy of analysis and reference from the industry.

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The reason why ZARA can become the leading brand of fast fashion is not based on discount and advertising, but on the core of collaborative supply chain.

For a long time, the operation mode of ZARA is centered on consumers, shortening lead time, "backlog" time to every link of supply chain, and eliminating possible bottlenecks, so as to reduce or cancel those links that can not bring value added, and create a "sense of scarcity" with "small batch and multiple varieties".

At the same time, cross sectoral communication, collaboration and quick response to meet market demand can also significantly enhance brand value and competitiveness.

With the increasingly fierce market competition, the speed of technological innovation is faster and faster. Nowadays, the competition among modern enterprises has long been reflected in the competition in response to the market and the speed of the market.

Under this background, "speed" has become the basic survival rule of enterprises in the new economic era, and it is also a decisive factor for enterprises to win the market.

Therefore, it is particularly important to establish an efficient operation system of collaborative supply chain with brand operation as the core.

ZARA unique whole supply chain management mode

After such a long time, how can ZARA supply chain achieve rapid response?

By studying the operation mode of ZARA company, Xiaobian found that ZARA's success in providing "affordable fast fashion" strategy for customers was mainly due to the excellent supply chain management of the excellent apparel industry, and the application of IT system to support the rapid response of the supply chain.

First, IT and communications technology make ZARA supply chain faster.

ZARA performs well in information sharing and utilization, which makes ZARA's supply chain have an amazing speed. The operation mode of rapidly collecting market information, making quick decisions, controlling inventory, fast production and fast distribution is realized in ZARA.

Secondly, the IT system enables ZARA's unique supply chain management mode to be better implemented.

Information and communication technology is the core of the operation mode of ZARA supply chain. The application of IT system rapidly integrates ZARA's product design, production, distribution and sales, so that the supply chain of ZARA can be changed faster.

It is precisely because of the excellent performance of information application that ZARA has such an amazing speed.

1, in the process of new product design, pay close attention to the trend and consumer buying behavior, collect the information of customer needs and gather it into the information base of Spanish headquarters, providing a basis for designers to design new styles, so as to respond quickly to market demand.

All kinds of information about fashion trends continue to enter the database of headquarters offices from ZARA stores every day.

Designers, while checking the number of deliveries and daily sales volume, use new information to produce new ideas and improve the existing styles of clothing. Then, together with the production and operation teams, the designer must first access real-time information in the database when deciding on a specific style of cloth, how to tailor and how to price it.

2. In the process of information collection, ZARA's information system emphasizes the standardization of clothing information, and provides decision support for the design and production of new products.

For a typical clothing retailer, different or incomplete size specifications and effective information of different products usually take several weeks to be added to their product design and approval process.

But in ZARA's warehouse, product information is universal and standardized. This enables ZARA to prepare the design quickly and accurately, and to produce clear production instructions for clipping.

3, in the supply chain of ZARA, we use ZARA to manage product information and inventory information with independent development information system, control the stock of raw materials, and provide decision information for product design.

The excellent product information and inventory management system enables ZARA teams to manage thousands of fabrics, all kinds of decorations, design lists and inventory items.

ZARA's team can also use the information provided by the system to design a garment with existing inventory instead of ordering raw materials and waiting for it to arrive.

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conclusion

Generally speaking, the key to the success of ZARA's application of IT to support the whole supply chain management mode can be roughly summed up in five aspects.

1, IT can only help people to make judgments, and can not replace people.

Instead of making decisions, the ZARA shop manager decides what to order.

Computers help them to process information, but do not provide any advice or even make any decisions.

2, informatization must be standardized and staged, and there will be a focus.

The company's IT principle should be: "do the most you have to do, and do the least you can do."

For example, storefronts must be able to store performance data and send them back to headquarters.

Therefore, a set of POS systems and the ability to return to headquarters are very important functions.

In addition, we must resist the temptation to expand other functions.

3, technical solutions should start from inside.

It should be the goal of the enterprise to decide the use of IT, rather than to let the company be taken away by IT.

It is not the information department that suggests what the company should buy and what benefits it will bring to the company. Instead, it is the discussion between the information personnel and the straight line supervisor to understand what the company needs and see what solutions the market can offer to help solve the problem.

The reason seems to be very plain, but many companies do the opposite. The so-called IT experts outside tell the company what they must have.

4, process optimization is the key.

Although ZARA sells products that are constantly changing, its operation is very simple: sending sales data, ordering goods, and delivering two times a week.

Some places are very elastic, but some can not be changed. For example, a store manager can decide what to order, but absolutely can not change the price.

5, business processes must be effectively integrated with IT.

ZARA's shop manager feels like IT, but IT is like a salesperson.

We all agree that IT is very important, but we all agree that we must focus on the process, and we should consider it from an inside to outside perspective.

Reading extension

[Oman and Theo Ortega's Five Secrets]

1, Ortega had no office. He usually had lunch with his employees in the cafeteria of the company, and often shared a table with some designers, fabric experts and buyers in the factory.

2, Ortega spent most of his life in LaCoru a, a small town in Spain, and he met with unexpected villagers.

Since he left office as chairman of the Inditex in 2012, he has visited the headquarters near Arteixo city 10 kilometers away, and goes to the same coffee shop, and often walks in the Plaza MariaPita square.

3, although Ortega's wealth comes from clothing, it is strange that he is not interested in fashion at all and is not very loyal to his brand.

Most of the time, he was wearing the same suit -- blue suit, white shirt and grey trousers, and none of these clothes came from ZARA or other brands.

4, since the company went public in 2001, Ortega's ZARA parent company's Inditex share has basically maintained at 60%, which is currently worth 71 billion 500 million US dollars. This may be one of the reasons for his simple life because he basically doesn't sell shares in his hands, and he can not cash in to improve his life.

5, his hobby: raising chickens in the Grange.

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1. The parent company of ZARA is Inditex, the largest clothing retailer in the world.

2. ZARA has 50% of its products in Spain.

3, the original name of ZARA is "Zorba", because it is the same name as a bar, so it changed its name to "ZARA".

4. The warehouse of ZARA occupies 5 million square feet, about 9 times that of Amazon;

5, ZARA does not have a chief designer. The brand has only one designer team, who is responsible for constantly modifying the product design according to the guests' opinions.

6, ZARA products from design, production, to the store, the fastest can be completed within 1-2 weeks.

7, ZARA never discounts, and spends less on advertising. Instead, it spends all of its expenses on the location of shops and stores in the vicinity of some high-end brands.

8, the ZARA brand will launch about 12000 new designs every year.

9, in addition to clothing, ZARA also launched a family product series called "Zara Home" in 2003. There is also one in Hongkong, located in Harbour City, Tsim Sha Tsui.

10, the British Princess Kate Middleton will wear civilian brand ZARA!