Why ZARA Dominate The Fast Fashion World For 40 Years?

We must be called "Internet +" today, and people who have Internet origins seem to have a sense of superiority.

However, data statistics show that the average life expectancy of Internet start-ups is only 32 months, and the traditional business tycoons represented by ZARA can follow the traditional business spirit and values and keep pace with the times, so that they can surpass the time and space and enduring enduring.

ZARA founder Amancio Ortega (Amancio Ortega) exceeds Bill Gates to become the richest person in the world.

In today's era of widespread downturn in the retail industry, the clothing industry has become the hardest hit by the electricity supplier. The electricity supplier has taken up half of the clothing. Therefore, the world's richest man has changed hands. The traditional clothing retail giant has gone beyond the IT technology giant, which has made the world lose its eyeglasses.

Recently, the latest Forbes list announced that ZARA founder Amancio Ortega (Amancio Ortega) has become the richest person in the world than Bill Gates.

In today's era of widespread downturn in the retail industry, the clothing industry has become the hardest hit by the electricity supplier. The electricity supplier has taken up half of the clothing. Therefore, the world's richest man has changed hands. The traditional clothing retail giant has gone beyond the IT technology giant, which has made the world lose its eyeglasses.

In 1975, ZARA has been dominating in the fast fashion of the river and lake for 41 years.

Why does ZARA remain firmly in the throne and respond to the impact of the electricity supplier calmly?

According to the data monitoring report released by Analysys think tank, in 2015 1~12, the scale of clothing and clothing category pactions in China's B2C market reached 654 billion 980 million yuan, an increase of 66.08% over the same period last year.

According to the data of the National Bureau of statistics, the retail sales of clothing, shoes, hats, needles and textiles in the 1~12 months of 2015 were 13484 billion yuan, up 9.8% over the same period last year.

Obviously, clothing business has already taken away half of the clothing retailing industry.

In recent years, under the double blow of the electricity supplier and the economic depression, the offline traditional clothing retailing industry has been throwing away the enemy and throwing away the city.

In the first half of the year, 2016 of the listed apparel companies disclosed their financial reports. Apart from the general decline in revenues and profits, the most shocking thing was the closing of stores.

In the first half of this year, the dress was closed by 29 stores, CABBEEN clothing closed 47 stores, Daphne closed 450 stores, and Hasen closed 156 stores.

These are not bad. From last year to now, some of the top shops were nearly 6000: Bosideng close shop, Lining closed 1800 stores, and Metersbonwe closed 1500 stores.

However, for ZARA, the founder of fast fashion in the world, the growth of performance is still strong.

ZARA's parent company Inditex group's net sales in fiscal year 2015 reached 20 billion 900 million euros, up 15.4% over the same period last year; net profit was 2 billion 880 million euros, up 15% over the same period last year; in the first quarter of 2016, the Inditex group's sales volume reached 4 billion 880 million euros, an increase of 12% over the same period; net profit rose to 554 million euros from 521 million euros in the same period last year, an increase of 6.3% over the same period.

(1) rapid iterative thinking

ZARA tens of thousands of new products are put into the market every year. The frequency of product batch updates is more than 12 seasons per year.

From the concept of popularity to design, to production, to the supply of stores, the response time of the whole process is less than 3 weeks, and the fastest can be less than 7 days.

This product is iterative speed, no matter how traditional it is.

Or clothing electricity providers, it is difficult to do.

The use of the electricity supplier is intensive supply chain, which is much more efficient than the decentralized supply of traditional stores. Even so, the electricity supplier still can hardly surpass ZARA.

Just like half a century ago, the United States achieved its moon landing with primitive mechanical and electrical technology. ZARA also realized the extreme response of design, procurement, production, logistics and sales by means of traditional management and technology before the birth of the Internet.

In June 2001, Madonna went to Spain's Barcelona concert. The 3 day performance was still in progress. It was found that the audience had already worn the clothes worn by Madonna at the concert. After that, there was a fashion craze for Madonna in the streets of Spain, and the costumes came from the local ZARA shop.

It can be seen that the speed of ZARA design and supply chain is unprecedented.

(two) user thinking

40 years ago,

Through popular, civilian and peaceful price positioning, it fully caters to the needs of users, contrary to the elite elitist of Armani and Chanel.

The "masses" here refer to the middle class in developed countries in Europe and America.

The west is a spindle shaped society. The number of people on the upper level and the number of people at the bottom are very small. The largest number is the middle class.

ZARA, by adopting the doctrine of buying and buying, and copying the original style of the original brand in a disguised way, sells it to the public at a low price, which gives ZARA the support of the public.

In Europe, ZARA has become a frequent courtroom in court and is fined tens of millions of euros a year.

However, this will not affect the enthusiasm of ZARA to carry out the doctrine of "bringing the doctrine" to the end, because "users get the world", ZARA has no fear. These fines are still a drop in the bucket compared with the net profit of hundreds of millions of euros per year.

(three) experience thinking

"Customer experience" is the most respected concept of electric providers. It is not a good experience of the electricity supplier, but it is adhering to the principle of "what is missing and what to fill", because the consumer experience is the most lacking in e-commerce products sold in the virtual world.

Obviously, offline retailing is "seeing is real, touch is available", giving customers experience is irreplaceable.

After ZARA landed in mainland China, the experience of clothing store ushered in a new revolution. ZARA used thousands of square meters of storage style clothing supermarket, with distinctive spatial display, perfect application of acoustic and optoelectronic technology, supplemented by various humanized facilities, allowing customers to swim, touch, try, contrast, feel and comment freely.

At the same time, ZARA products will bring new ideas to the consumption experience with a large amount of money and young people who advocate individuality.

Everyone is a unique experience.

(four) platform thinking

At present, "platform strategy" is popular. Many people mistakenly believe that only the Internet age can have platform strategy.

ZARA is it just a clothing store?

ZARA has long been a fast fashion platform in prehistoric Internet era.

Decades ago, it set up a global fashion observer, buyer and designer team, integrating the global production plant and supplier resources, using the global aviation rapid logistics system, and occupying the global market and users.

ZARA launches more than 10000 new products every year, which will capture all the popular culture, fashion trends, popular elements and popular products of the mainstream European and American communities. Even today's Internet platform companies can not afford to do so.

In short, around the great cause of "fast fashion", ZARA has built an unshakeable platform ecosystem.

Moreover, ZARA's platform really exists in reality, not the virtual world constructed by imagination.

With the use of information technology by ZARA, the platform will be more efficient and firm.