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    ZARA Is Very Pragmatic. The Traditional Giants Will Further Update Themselves.

    2016/9/21 16:07:00 27

    ZARAPragmatismBrand Strategy

    ZARA as a traditional clothing chain retail brand, its business mode and management concept far surpass the times and even lose the Internet era.

    Moreover, its brand value and supply chain efficiency far outstrip all the current clothing business operators, and of course it surpasses all kinds of competing brands under all lines.

    ZARA has maintained the pragmatic spirit of traditional commerce and avoided the bubble in the Internet age.

    ZARA brand value is not a castle in the air and a mirror. They are built on the strong supply chain behind them.

    If yes

    ZARA

    The decomposition of supporting system can be summarized as four pillars.

    (1) free and flexible design process

    ZARA's product design process is different. The general brands are top-down. Designers analyze products and trends, design products, and then make products reach stores and customers through production and logistics. While ZARA is bottom-up, through a large number of "fashion observers", it is spread in bars, social and other fashion venues, and attend the conference of top brands to collect the latest fashion information.

    At the same time, stores will collect information such as customers' tastes and preferences at any time. These information will be collected in time to headquarters, and the headquarters will quickly design the latest products through comprehensive analysis.

    There are no advanced designers in ZARA's huge designers. They are all "copy workers".

    At the same time, ZARA's peak production accounts for only 15% of the total sales in the peak season. That is to say, 85% of the products are designed and produced at any time and freely according to the trend.

    Other competitive brands usually pre design and produce more than 60% of the products before the peak season. Less than 40% of the products are temporarily adjusted according to the prevailing trend of the season.

    The traditional clothing brands in China usually carry out garment ordering in the two seasons of spring, summer, autumn and winter. Almost all products are pre designed and produced before the peak season.

      

    (two) tightly organized

    Production system

    ZRAR has 22 large factories in science and technology and more than 500 small factories in Spain.

    The 22 big factories only do dyeing and cutting, because mechanized large factories do this most efficiently.

    And 500 small factories only make style, and one factory produces one style, so that the opportunity of sewing on foot is especially effective.

    In addition, ZARA has established strategic alliances with other more than 1200 manufacturing companies through overseas acquisitions, but overseas factories generally only produce basic styles.

    Going to the ZARA store to see the signs of clothing will find that "origin" is all kinds of things.

    This global production system is tightly organized and is controlled by headquarters at speed, efficiency and quality to meet the needs of fast fashion.

    (three) rapid response logistics system

    Through the powerful IT technology, ZARA headquarters knows the sales volume and inventory of all the stores, and stores sell the sales data and order information everyday. On this basis, the stores command the whole logistics system to run at high speed.

    ZRAR's clothing has been distributed to many stores around the world by air, which has left many competitors unable to catch up.

    What is even more surprising is that between the 22 big factories and more than 500 small factories in Spain, and between small factories and logistics centers, logistics and distribution have been excavated by more than 200 tunnels.

    As a result, logistics distribution is not restricted by land traffic, and can be operated unimpeded and efficiently at any time.

      

    (four) a large number of

    Store scale

    Supporting ZARA parity and high supply chain costs is based on economies of scale.

    At present, ZARA's INDITEX group has annual sales of over 20 billion euros, becoming the world's leading apparel retailer.

    Among them, ZARA contributed 70% to the group.

    ZARA has opened more than 2020 stores in more than 60 countries, of which 90% are self owned shops, the rest are joint ventures and franchised stores.

    Moreover, ZARA stores are large stores to meet one-stop shopping needs. Location is located in the bustling business circle of big cities, with huge traffic volume and huge sales volume.

    ZARA gives us three enlightenments: first, the Internet and electric business enterprises are careful to say "subverting traditional industries". Traditional enterprises are still the main creators of social material wealth and spiritual wealth, and every industry has excellent leading enterprises. They are always worth learning and respectful.

    The Internet upstarts who often shout "subversion" do not see who really subverts, but they are often subverted.

    Two, the Internet and e-commerce enterprises must abide by the basic laws and values of business. Many Internet Co do not create new value. They only move the traditional market to the Internet, and carry out the pformation of the surface business mode, so as to increase the quality of the business instead of creating the brand value.

    Three is the traditional enterprise + the Internet is the trend of the times. The strong industrial foundation is plugged into the wings of the Internet, and they are the real subversive.


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