The World'S First Fast Fashion ZARA Is The Most Worried Opponent In China Except UNIQLO And Han Du House.

From offline to online brand strategy, is ZARA a pain or a crisis?

The growth rate slowed down, stock prices plummeted, CEO closed, and global stores closed. Although ZARA and its parent group INDITEX reported in 2017 that they were still the most popular fast fashion brands on the planet, but in the face of doubts from the capital market, ZARA did not produce enough convincing responses in 2018.

For them, the greatest opportunities and threats come from the Chinese market. According to the financial report, as of the end of fiscal year 2017, INDITEX group opened 593 stores in China, behind the group's total number of shops in Spain. In recent years, in the face of the difficult offline market, ZARA has not only slowed down the pace of opening stores, but also turned off the largest flagship store and first image store in Chunxi Road, Chengdu.

In the unfamiliar China online market, competitors are more than UNIQLO. ZARA is most worried about the fast fashion brand growing up in the Internet. It has already surpassed ZARA in its style and speed, and has become the first fast fashion brand in the Internet. Compared with the traditional giants such as ZARA and H&M, Han Du Yi house is more familiar with the Chinese Internet market trained by Ali, and according to the strategy of big fans and big data in recent years, we can see that they are good at selling goods on the Internet, but they also know more about the consumption psychology of young people in this country.

The most horrible thing in the world is not the other person in the mirror, but the person in the mirror is brighter than himself.

In May 3, 2018, when ZARA was still thinking about the relationship between online and offline with channel thinking, Han Du Yi house and Tmall gathering day held the banner of "fast fashion new retail brand" and came to Hangzhou, the base of China's Internet market, and opened the first brand experience shop.

In addition to the young people around 25 years old, there are still many media. By this time, many people just began to realize that the "new retail" put forward by Ma Yun at the cloud habitat conference in 2016 was no longer a concept, but an irreversible trend in the retail industry.

So, how far is ZARA's online strategy far from the "new retail" of Ali and South Korea's clothes, and how has this distance been pulled away?

First, who made ZARA the representative of "slow fashion"?

Before the rise of the global Internet brand, no one thought that ZARA would also be troubled by the speed of renewal.

In the Han Dynasty, the overseas Korean clothing houses, by virtue of the natural speed advantage of the Internet, took the H&M and ZARA off guard by surprise in 2017. Boohoo.com, ASOS and Missguided have been referred to by foreign media as the representatives of UltrafastFashion. They respond to consumers' demand for timeliness and freshness in a more crazy rhythm, and reduce the production cycle to 2-4 weeks.

In the official website of the Korean home, you can also see the "100 new daily" slogan. Internet brands have become the latest subversion of fast fashion. And this location once belonged to ZARA. Their vertical shipment mode has greatly shortened the shipment time: average 3 to 4 weeks, so there are 13-18 Collection in a year. The whole process of shipping more traditional brands takes 4 to 6 months, with only two Collection in a year.

ZARA was proud of the fact that it was 5 days faster than H&M, also known for its shipping speed. And such advantages have disappeared in front of the Korean clothing houses. Compared with "vertical shipment", capital market The preferred type of concept is the "flexible supply chain", which is described by Han Du Yi she.

For ZARA, who has not yet responded to the plan, losing fast is just losing a ACE, which may really lose them. It is a new retail which is represented by Ali and Han Du Yi she.

Two, the dispute of the channel has been dispersed. What is left behind the meaning of the line?

At the scene of this wonderful animal Festival, the brand leader of Han Du Yi house put forward a slightly more radical view: in the current retail market, the value of being offline is merely a consumer experience. This includes consumer experience and brand experience.

So, will the flash stores like GUCCI, CHANNEL and Han Du Yi become a normal retail business? Although this is a time - to - date test, traditional fast fashion brands are using action to prove the cost of ignoring or misestimating the consumer experience.

As we all know, in order to ensure fast spanportation, ZARA is not willing to pay high freight and not spend advertising and marketing costs. Marketing costs account for only 0.3%-0.4% of the total cost. But without advertisements, they do not represent brand experience.

ZARA has been doing experience with stores. Vanity is their most important insight into the public. In New York, they shop in Fifth Avenue; in Paris, Champs Elysees street; in Shanghai, Nanjing road. Therefore, ZARA's neighbors are all luxury giants such as Louis Widen and Chanel. The media summed up the opening strategy of ZARA as the oil pollution theory. It will open the shop to the most prosperous area of the city, and slowly extend its tentacles to the smaller business areas along the periphery, just like the "oil pollution", which starts with a big drop and then extends slowly.

ZARA chooses to use high rent to spanform the experience of advanced shopping center into its own brand experience. But the number is losing its speed. In fact, it is well understood that when luxury goods such as GUCCI and CHANNEL go further and further away from the road of cross boundary, spoof and flash shop, how can the "fake high-end" brand strategy of ZARA achieve the previous effect when it tries to save itself with "populace"?

When H&M entered Tmall in 3, new retail was also mentioned. But the problems they face, like ZARA, can not only reverse the decline, but also do not really "new retail". As for consumer experience, they still haven't come up with a good way to compete with new retail brands.

The strategy of fans adopted by Han Du Yi house has helped them accumulate a total of 60 million fans in the whole network. This amazing number, coupled with the mobile and content environment, has left the distance between them and the latecomers far away.

When Han Du clothes house went into the line, trying to interact with fans in depth, the brand experience left ZARA behind. During the "wonderful animal Festival", the fan meeting held by Han Du Yi house was hot. The famous red net and fashion blogger in South Korea carried out the first close contact with fans from all over the country in the name of the brand.

In order to expand the electricity business, ZARA's parent company came to the news of selling 16 real estate in the world by the end of 2017. Unfortunately, the market still can't see what kind of brand experience they will use to give up the rushing attack of Korean clothing houses in China.

Three, data Subversion: ZARA's sales forecast is no longer magical.

"Consumer experience centered online data driven, offline experience integration." Ali is the core spirit of new retail.

In addition to the experience, Han Du Yi house on the scene of this wonderful animal Festival, when confronted with the media, repeatedly stressed that they developed the C2B system from 2012. Their brand leader introduced that the mature system can analyze the most popular elements such as fashion, flower color and material in the season through open data, so as to decide the operation strategy of each style in a short time.

After hearing the news, many media people said that the system made them think of the sales forecast of ZARA -- an artificial data collection system like "seabed".

As mentioned above, the core of ZARA is shops. There was a widespread rumor that when you walked into the shop, cameras were installed in every corner of the counters and shops, and the store manager took PDA with him. When you reflect to the salesperson: "this collar is very beautiful", "I don't like the zipper of pocket," these fine details, the salesperson reports to the branch manager, the manager passes the ZARA internal global information network at least two times a day to deliver the information to the headquarters designer, after the headquarters makes the decision, immediately sends to the production line, changes the product pattern.

After closing the store, the sales staff settle the bill, check the daily shelves up and down, and make statistics on the customer's purchase and return rate. Combined with the counter cash information, the spanaction system made the analysis report of the day spanaction, and analyzed the hot sale ranking of the product. Then, the data went directly to the ZARA storage system.

Collecting large quantities of customers' opinions to make production and sales decisions greatly reduces the inventory rate. At the same time, according to these telephone and computer data, ZARA analyzed similar "regional popularity", and made the closest market segmentation in color and version production.

This rigorous system was regarded as a standard before fashion circles. But when the Internet brand like South Korea's clothes house begins to rely on the more complex Internet data, can the ZARA system work?

According to the relevant person in charge, the system of Han Du Yi house aims at analyzing the dynamic ranking of goods according to a certain algorithm according to the various operational indicators (single product sales, gross profit, conversion rate, consumer evaluation, shopping cart number, remaining stock, etc.) after the commodity shelves. After 3-5 days, the operator can quickly judge whether the product needs to take part in the activity. What kind of exhibition location should be arranged in the store, whether to promote sales, whether to adjust the price, and so on. It runs through all the links of Han Du Yi house. Through the digital decision of business intelligence, the operational risks caused by people's perceptual decision-making are greatly reduced, so the operation efficiency of Korean capital has been greatly improved.

With the help of this system, the sale rate of Han dresses is usually over 95%, while the garments are sold. industry The average selling out rate is only 60%. No matter from which point of view, the two sides' respective rhetoric are all more attractive than Korean clothes houses. All this comes from the high efficiency of the Internet and the accuracy of Internet data.

Four, summary

It is still the world's fastest. fashion Brand ZARA, whether in China or internationally. market All of them are facing the sharp impact of Internet brands. And when China becomes the second largest market in the world after Spain, ZARA will go all out to keep up with the trend of "new retail".

The Han Du Yi house, once known as the "Internet version of ZARA," is completing the upgrading and spanformation of the past mode. If ZARA's future development priorities really need to be spanferred to the online market, it will be indispensable for the competitors who have been fighting against the Japanese market in the domestic market, except for UNIQLO, which has been on the battlefield for 12 years.