Under The Upgrading Of Consumption, Can ZARA Still Look Like This?

According to the world clothing and shoe net, in 1975, Amancio Ortega, an apprenticeship, opened a remote town in northwestern Spain.

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ZARA then opened its branches from Spain to major cities around the world.

In 2006, ZARA opened its first store in Shanghai.

Today, the

The brand has landed in mainland China for 10 years.

In 2016, with Amancio Ortega becoming the new richest man in the world, in September 9, 2016, according to Forbes's list of the world's richest men, Amancio Ortega, who was second in the long term, once again surpassed Bill Gates to become the richest man in the new world.

The secret of success of ZARA and its parent company Inditex group has always attracted the attention of the outside world.

Especially for the Chinese market, the growth of domestic clothing brands has slowed down. The fast fashion brands represented by ZARA and UNIQLO are growing rapidly.

According to the world clothing and shoe net, mainland China has become the largest overseas market of ZARA and UNIQLO, and H&M's largest overseas market in Asia.

"Fast, small and varied"

The mode represented by ZARA is from the fashion brand clothing and the public dress. It is called the Fast Fashion mode, also called fast fashion. The outstanding feature is "fashion design, high quality parity, limited sale and fast circulation".

But with other fast fashion brands, ZARA has shown a steady growth as compared with several other companies whose performance growth has dropped sharply.

According to the earnings data released by ZARA parent company Inditex, as of July 31, 2016, the total sales volume of the first half of Inditex reached about 105 billion euros, an increase of 11% over the same period last year, with net profit of 1 billion 260 million euros, an increase of 8% compared to the same period last year. ZARA contributed 66.5% of the total sales volume of 8 brands of Inditex.

The most famous ZARA mode is the "15 day myth" (extreme speed supply chain): a garment from design to store takes about 2 weeks on average, reducing the supply chain to 15 days, while the general clothing brand generally takes 6-9 months.

Moreover, the new frequency on the ZARA is also maintained two times a week, updating the iteration quickly.

The most new design is to capture the latest trends on the T, or two designs.

The goal is not to create the trend, but to follow the trend.

Gradually, drawing inspiration from the high-end brand, magazines, fashionable passers-by or anywhere else, has become the unique survival mode of fast fashion brand.

For ZARA, only pop is not classic.

This fast fashion mode can help brands cope with market demand flexibly, design and manufacture, and reduce inventory.

In it, we can also see the shadow of today's Internet products - constantly rapid iteration, add or delete or optimize itself at any time, and react quickly to the market.

Fast and real-time fashion meets the needs of most Chinese consumers.

The ZARA mode, in the Chinese consumer market, is also aimed at most consumers' preferences.

China's clothing market is very large, and consumers are growing fast. The demand for fashion products is getting higher and higher. This brings great opportunities to the development of ZARA.

The fast fashion questionnaire released by the questionnaire shows that among the consumer groups who buy fast fashion products, young white-collar consumers are the majority, and most of the income is 5000-8000 yuan, and consumers who frequently buy fast fashion products occupy 41%.

"Fast fashion women's brand image research project report" pointed out that young people under 35 become the main force of consumption, and 77% of consumers prefer to buy fast fashion women's clothing in the store's exclusive stores.

Among them, UNIQLO consumers are mostly 26~30 years old, ZARA consumers are 31~35 years old, and GAP consumers are mostly 31~35 years old.

Besides, in the second tier cities, the coverage of fast fashion brands such as ZARA is enough, but the layout of the three or four tier cities is not perfect enough.

In recent years, China's three or four tier cities are rapidly rising, and consumers' fashion outlook is also rising.

The distribution of some fast fashion brands through online channels, or physical stores, has reached consumers in three or four line cities. Compared with a second-line group, consumers in the three or four tier cities also have great potential for growth.

Under the upgrading of consumption, how long can fast fashion appeal last?

It is worth noting that the fast fashion brands represented by ZARA are not famous for their product quality and originality. They are more popular because they create "affordable fashion" and "fast fashion big consumption with civilian prices".

This just satisfies the preferences of most middle end consumers who are fashionable but with low consumption power.

"Fast fashion women's brand image research project report" pointed out that consumers because of their favorite style or price to buy fast fashion clothing, rather than buying a good brand.

Fast fashion clothing is faced with young new generation consumers. With the increase of their consumption power and weaker brand loyalty, consumers are easy to lose and sticky.

This leads to fast fashion brands easy to get up quickly.

Under the characteristics of "fast, ruthless and accurate", when facing high-end users, "cheap", "imitating big cards" and "quality worrying" also become a stumbling block for fast fashion development.

According to data monitoring, the price of clothes sold by the ZARA in the Chinese market has fallen by 10% to 15% since this year. This may reflect that in the domestic clothing market, ZARA began to feel the competitive pressure from its peers.

In addition, as users pay more attention to fashion brands and purchasing power, they begin to focus on overseas brands. Some designer brands from the United States, Spain, Italy, Germany, the United Kingdom, Sweden, Denmark, Australia and other countries are quietly popular.

According to Amazon China data, in 2015, more than 600 international brands accounted for nearly 80% of the total local fashion sales, and the number of imported direct and exclusive brands increased by nearly two times compared with last year.

Consumption upgrading is a process. Fast fashion will gradually enter the adjustment period. When the consumption upgrade is maturing, can ZARA still look like this?

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