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    Fast Fashion Brands Rely On What Business Mode To Settle Down.

    2016/12/16 14:45:00 72

    ZARAUNIQLOGAPBusiness Model

    The brand competitiveness of ZARA is not imitated by all fashion brands in the world at present.

    Without scale, after all, it is possible for everyone to achieve scale.

    The mode used by ZARA is VerticalIntegration, vertical shipment.

    Greatly shorten the shipment time: an average of 2 weeks, so the fast fashion brand represented by ZARA can have 15-20 Collection a year.

    In comparison, the whole process of ordinary brand shipment takes 4 to 6 months, with only two Collection in a year.

      

    H&M

    H&M, another giant.

    The fastfashion brand, which is also excellent, is more inclined to take account of the shipping time and product cost, so it is not as fast as ZARA. However, it relies on cost leadership to occupy a place in this industry.

    The degree of fashion is not as good as ZARA, after all, ZARA is also a big card, and copied to the essence.

    H&M is the first choice for cock silk youth in Europe. The latest design is on the street, what big prints, cowboys, big letters, big camouflage and so on.

    Product defects are also obvious, the quality is not flattering, the fabric is the worst of the four brands (once I washed it).

    But like ZARA, it is changing the clothing from the consumer durables to the innovators of fast moving consumer goods, so the quality is not so important.

    Among them, the most popular place for H&M is sportswear, which is not sold in China (at least when I was abroad). I guess people do not think Chinese people like sports.

    In fact, H&M's sportswear is very professional, and its classification is very small (running, tennis, and even yoga). The price is cheaper, not cheaper than ADI Nike, so it is popular and sales are very colorful.

    Therefore, it can be said that H&M and ZARA meet their customers' needs in different ways. The former is in daily wear and use, and the latter is in design.

    In operation, H&M pays attention to low cost, and ZARA pays attention to product update speed.

      

    ZARA

    Let's start with ZARA. The four brands are the most powerful and the most successful and the most successful.

    I would like to say that the core competitiveness of ZARA's brand is not currently imitated by all fashion brands in the world.

    Without scale, after all, it is possible for everyone to achieve scale.

    The mode used by ZARA is VerticalIntegration, vertical shipment.

    Greatly shorten the shipment time: an average of 2 weeks, so the fast fashion brand represented by ZARA can have 15-20 Collection a year.

    In comparison, the whole process of ordinary brand shipment takes 4 to 6 months, with only two Collection in a year.

    However, due to the adoption of the VerticalIntergation mode, ZARA can control the whole process better and faster than other fast fashion brands (from market research, design, plate making, sample making, bulk production, pportation, retail) to 5 days faster than H&M, also known as shipping speed.

    In pursuit of speed, ZARA can sacrifice a lot of costs.

    1> in the production process, ZARA relies on the countless handicraft shops and family factories in La Coruna where headquarters are located, and many products are directly produced locally. It has not been outsourced in recent years. However, in the past few years, H&M has made 75% of its products in Asia, and has now outsourced production.

    However, for this reason, the price of H&M is about ZARA 50%-70% (without considering the cost of raw materials).

    2> all long-distance pportation is an aircraft, instead of a cargo ship, willing to pay high freight charges and unwilling to 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%.

    Despite the high cost of pursuing fast, ZARA's gross margins and net interest rates are still comparable to those of H&M, and ZARA is unwilling to save the cost in order to increase profitability.

    Therefore, ZARA has reached an unprecedented height in all fashion brands and retailers. My teachers in Milan never call ZARA brand, because it focuses more on production and retail links, and never uses the design to locate the style of brand products, nor does it have a BrandIdentity that a fashion brand should possess: (1) all clothes in ZARA headquarters warehouse will not stay for more than three days. Stores will order products two times per week to replenish products, and inventory turnover rate is 3-4 times higher than that of other brands. 2. On average, only 15% of the clothes per quarter need to be discounted, while the other brands are 50%.

    3> customers spend an average of ZARA17 times a year, with only 4 other brands.

    At the same time, ZARA's credit is also attributed to their "inverted" design concept.

    When I was in the ZARA interview, HR told us that the core of ZARA is shops, because only when shops can really reach customers can we understand the needs of customers.

    Therefore, stores provide sales data and submit it to storefront managers. The storefront manager collate the results and submit them to the design department. The design part designs the style according to the needs of customers, and then submitting it to the commercial sector to evaluate the cost and price. After that, it starts to plate, sample production, pfer it to the factory production, and finally store it in the ZARA super logistics warehouse (9 times as much as Amazon). There will be countless freight cars on the doorway of the warehouse to pport products to other European areas or airports two times a day.

    In this process, on average, 20 minutes for a design, a garment can be designed, and more than 25 thousand new designs can be designed each year, 4-6 times that of H&M.

    Because customers' demand for fashion is changing, the data collected from shops are timeliness, so fast is the most fundamental and important magic weapon for this model.

    It is precisely because of ZARA's unique mode that the rest of the existing brands can not be emulated, because if they imitate, designers will no longer play a decisive role in the design, or even rebuild the designer team, logistics system, production process and so on.

    But there are drawbacks to this pattern:

    1> because of the control of the whole process, the operational risk is increased. If there is economic decline or industry downturn, pressure can not be pferred to suppliers (such as requiring suppliers to reduce prices).

    2> can not integrate the advantages of all countries and achieve maximum benefits.

    3> shops are directly managed by brands, unable to expand rapidly through proxy and other forms (such as Benetton in Italy), and some of the property also needs to invest in new shops and renovation of existing shops, which reduces the turnover rate of assets (ZARA's AssetsTurnover is 1.4, GAP is 1.8, H&M is 2.4).

    As we all know, plagiarism, ZARA has been clearly copied for many years, you told me to sue, the lawsuit lost the loss of your money, anyway, I can get back (unlike the U. S. Forever21 was accused after being accused of boiling) in a word, ZARA is a brand new business model, a completely based on customer demand business model.

    Therefore, ZARA's current enemy is only itself.

    Only by fully recognizing and controlling the pros and cons can we achieve long-term, stable and sustainable development.

      

    GAP

    GAP, I just want to use one sentence to describe its present situation: the thin camel is bigger than the horse.

    As a former sales leader of the fashion industry, GAP was rated by Forbes as one of the ten fashion brands that might disappear in the next ten years in 2014. GAP has just found us this year to help them make a project and make brand promotion in Italy. After receiving this project, they also consulted much information about GAP.

    Now that we ask about competitive advantage, we don't need to mention business models, but we also save a lot of nonsense.

    From the design point of view, when it comes to GAP, you often think of those simple styles, jeans and LOGO tops.

    But this year's GAP advertisement fully demonstrates the tenet of GAP in order to remain unchanged. When GAP's MarketingDepartmentManager is doing presentation, she says that GAP hopes to create a style that belongs to everyone with simple style.

    But if you look at the Facebook and instagram of GAP, you will find that it is a small refreshing route, many of which are in line with the simple fashion in the trend forecast of WGSN.

    Although GAP has been unable to satisfy young consumers in recent years due to the lack of a fixed style, it has won many loyal customers because of its simple design and high quality fabrics and its version (especially trousers). With the simplicity of the functional style, the design has barely found a soul destination.

    In addition, it seems that ZARA and H&M have been accused of environmental pollution. GAP's co founders Doris and DonFisher have launched the "DOMORETHANSELLCLOTHES" initiative. It seems that organic cotton should be promoted to promote sustainable agricultural production, hoping to arouse people's brand awareness and brand image with the social mission of brand.

      

    UNIQLO

    The last one, UNIQLO.

    This is my favorite brand in China, cheap, comfortable, high quality fabric, simple and easy to match. Later, I added UT series. I once bought 13 T-shirts of their family one summer, which is for different artists' designs, some of which are not even willing to wear.

    The first thing I thought of doing CompetitorAnalysis for GAP was UNIQLO.

    I once bought two books of Ryui Masa from UNIQLO and the books of Japanese management and economist Kenichi Ohmae recommended by him.

    If you want to talk about the core competitiveness of UNIQLO, there are several things to mention:

    1> fabric: this has something to do with the history of UNIQLO, which has been popular all over Japan. And now, every year, autumn and winter will introduce a new style of fleece jacket to make UNIQLO taste the sweetness of fabrics. Since then, UNIQLO has been constantly innovating in the use and development of fabrics, such as a sheep ranch specially bred in Inner Mongolia to provide fabrics for UNIQLO, and a lightweight Heattech series thermal underwear, which are the products of UNIQLO's constant pursuit of high-quality fabrics.

    2> service: it doesn't need to be said much. A friend of mine once worked in UNIQLO, and all the customers who passed by you have to say hello, and the whole day is dry and dry.

    The requirement for greeting customers is not comparable to other brands. Other services can also be appreciated.

    3> details: as with Muji, shop details are extremely demanding. All clothes are stacked in a very particular way. For example, it is easy for customers to see the stacking of trouser legs.

    Another detail I have to say is that many people have ignored the mirror.

    In China, the mirror from UNIQLO's mirror and GAP, H&M and ZARA mirror have different effects.

    Some of them are for mirrors and the other for lighting.

    Because the profile of the yellow race, especially the contour of the face is not deep, it is even more "flat" than that of the Europeans and Americans. In fact, the yellow race is not suitable for the direct effect of the light directly from the top, which will completely show the defect of the facial contour through the shadow. However, the deeper profile of the European and American people can show the three-dimensional skeleton outline.

    Therefore, it is more suitable for yellow people to look at the light from the front or rear when looking at the mirror.

    At the same time, the choice of lighting is also right, not yellow, not dazzling, soft light, can foil or even beautify the skin.

    4> Technology: I have carefully observed the craft of UNIQLO's shirt, and the sewing stitch of the chest pocket is completely the technical requirement of Western-style clothes. This detail has been asked. What other reasons are there to query the craft of UNIQLO?

    5>UT series: T-shirt is the simplest and direct way to convey culture and art. UT is a collaboration with artists. The art patterns are directly displayed on T-shirts, restoring the original role of T-shirts, and selling a cheap product with a touch of art.

    For more information, please pay attention to the world clothing shoes and hats net report.


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