In Order To Save Performance, Zara After Logo Changed Its Color In China.

With the sudden change of consumers' structure and habits, Zara, H&M and other fast fashion giants are still struggling to turn around and look for ways to restore the declining trend.

According to the fashion business news, the new beauty make-up series launched by Spain's fast fashion Zara at the end of last year is now exclusively sold on the domestic line. The products cover UlTIMATTE, SHINEBRIGHT, PAINT IT MATTE lipstick and Lip Glaze, priced at RMB 99 yuan, and designed by the British makeup artist, who co worked with luxury products such as Dior and Armani, and created personal brand.

However, in the publicity photo of Zara's new make-up products, Li Jingwen's freckled photos have caused controversy.

Some consumers think that Zara is deliberately vilified Asian women, and some netizens say they are pretty good-looking.

In response, Zara responded by saying that it did not deliberately defame Asian women, and that publicity for the global market was not aimed at the Chinese market. The model was chosen by the Spanish headquarters, and the aesthetic standards were different. Moreover, the photos were taken under natural conditions without any modification.

In December 5th last year, Zara released the first lipstick series ZaraUltimatte on the brand overseas official website, mobile APP and social networking platform. This is also the launch of the double color eye shadow market after the launch of the brand in 2007.

The news of the launch of the Zara series has attracted attention. After all, every move of the brand can hint at the trend of the fast fashion industry.

Some analysts believe that the cosmetic market is becoming a "new draught" in a sense, from luxury high-end to star brand red brand, and then to the overall prosperity of parity brand.

GiovanniBattista Vacchi, partner of Ernst & Young consulting firm, said earlier that the composite growth rate of the cosmetic market will be around 6% from now until 2020, and that all categories will grow.

A notable trend is that the market for cosmetic products has surpassed that of the clothing market.

The PWC research report shows that in 2017, the sales volume of the global cosmetic industry has reached 412 billion euros, the annual compound growth rate from 2012 to 2017 is 3.9%, the compound growth rate will reach 5% in the next year, and the annual sales volume will exceed 500 billion euros by 2021.

More and more brands will naturally aim at the beauty business still in the bonus stage, and expect beauty to become a new growth point.

In addition to the luxury brand that has developed the beauty business earlier, fast fashion is also dressing up, but Zara is even late in this market.

Earlier than Zara, the launch of beauty products included Topshop, which launched the make-up line in 2010, the H&M in 2015, the UrbanOutfitters launched by the beauty makeup brand Ohii in September 2018, and the fast fashion e-commerce brand such as ASOS and Boohoo.

Zara parent Inditex group naturally noticed this trend.

In 2016, Zara brand ZaraHome launched its first perfume series, and Zara also launched a series of cheap perfume.

In mid 2017, Zara sister brand Bershka launched its first beauty series Beauty byBershka.

Unlike Zara's Lip Balm series, which was different from SKU's caution, Bershka launched more than 100 products including make-up, skin care and body care at a time, priced at 2 to 15 euros.

Last November, Inditex announced that it will vigorously develop the perfume market. Its high-end brand Massimo Dutti launched a new perfume series "The Secret ofScents", which has 6 fragrances.

According to CosmeticsEurope data from the personal care association, the value of European perfume industry in 2017 was 11 billion 930 million euros, of which Spain's fragrance and perfume sales increased by 5.42% to 1 billion 310 million euros, which has been increasing for third consecutive years.

There is a view that the Zara entry beauty market is obviously not willing to miss this big cake, and tries to break through the performance dilemma through the beauty business. But in fact, in the most competitive supply chain of Zara, the business mode of the current beauty field has already matured.

Therefore, it is not easy for Zara to have a share in the market where beauty is on the "draught".

Taking the US cosmetic brand E.l.f, which is also a parity brand, its sales in the third quarter dropped by 11% to 63 million 900 thousand US dollars, which was mainly affected by the decrease in discount channel revenue. Net profit was reduced to US $8 million 400 thousand compared with 9 million 600 thousand US dollars in the same period last year.

In the first three quarters of last year, E.l.f. sales increased by US $600 thousand to US $188 million 900 thousand compared to the same period last year, while net profit decreased to US $22 million 400 thousand.

At the same time, more and more beauty brand red brand began to nibble up the parity beauty market.

The beauty makeup net red brand that really relies on the beauty market makeup and the traditional brand is a completely different business mode. The success of the KylieJenner personal makeup brand KylieCosmetics, which is only 21 years old, has provided a new business model for the beauty market, marking the beginning of a new consumption era based on social media, celebrity effect and Z generation psychology.

Unlike a brand that normally seeks to expand and expand, KylieJenner personal beauty brand hardly needs any professional digital marketing efforts, such as search engine optimization and advertising, which are usually conducted by big brands, and the flow that she controls on social media is free.

With the best selling of Kylie Cosmetics, Kylie Jenner successfully accumulated $900 million net assets and landed twenty-seventh in the list of Forbes's "self-made" women rich list.

It is noteworthy that most of the Kylie Cosmetics brands do not carry out independent research and development, but are completely outsourced to Seed Beauty group's SpatzLaboratories.

This supplier is a typical self owned brand manufacturer who has been providing cosmetics research, manufacture and packaging services for various personal brands for a long time. It has factories in California Ornard and China.

In addition to KylieCosmetics, SeedBeauty is also manufacturing for another amazing Internet beauty brand Colourpop. Colourpop currently has 5 million 900 thousand fans on Instagram.

Spatz Laboratories has arranged 500 workers for Kylie Cosmetics.

At the same time, SpatzLaborartories's long term experience in cosmetics production and R & D has provided ready technology for Kylie Cosmetics, eliminating the past 6 months of R & D cycle, so that KylieCosmetics can keep up with the new speed.

KylieCosmetics also outsourced online business and services to carrier Shopify, which undertakes all sales, after sales and logistics services of its products.

To some extent, Zara can not replicate the success of fast fashion in the field of beauty makeup, because in the most competitive supply chain of Zara, the current fast fashion mode in the beauty field has already matured, and the Seed Beauty behind KylieCosmetics is the fast fashion in the beauty field.

As the net red economy intensified, such manufacturers began to increase.

From product design to production, it can not be more than a week at most, and all the workflow of private brand manufacturers have a ready model to grasp the current trend of beauty.

And in the sales and distribution links, these net red brands have chosen to sell online from the very beginning, with the help of e-commerce providers to achieve high efficiency.

People in the industry pointed out that nowadays consumers have too many choices, and Zara is almost distributed in the second tier cities. The acceptance of high-end cosmetics is very high in these markets.

Without the stimulus of star goods effect, the survival of parity and beauty will be more and more difficult. Unless the cooperation with stars, Internet users or bloggers who can bring more value added, Zara's brand power can hardly arouse consumers' interest.

Zara, which has always been sensitive to market trends, can not have failed to predict the above problems. The choice of the Zara lipstick series with British makeup artist PatMcGrath is probably the same consideration.

But with PatMcGrath's reputation in the industry and its insight into consumer preferences through the success of its personal brands, Zara can guarantee the quality of its products, but it still leaves little room for attention.

The purpose of this series is probably to create new topics and enhance the sense of freshness, and the combination effect of sales. The scenario of buying is that when consumers buy clothes online, they will try a cheap lipstick. Behind this is the fast fashion people represented by Zara are losing momentum.

In addition to the introduction of the beauty make-up series, the Inditex group has launched a series of actions since last year in order to adapt to the rapidly changing market.

To enrich the consumer's sense of physical store experience, the brand launched AR experience equipment in stores last April, and then quickly distributed the online market in 106 countries and regions to accelerate the digitalization and globalization.

The brand also opened its first concept store in Shanghai, China, and invited 90 star Dongyu Zhou and Wu Lei to be the brand ambassadors.

At the beginning of this year, Zara replaced the brand new Logo when it released the 2019 spring summer series.

It is understood that Zara retained the original Serif serif font, but the letter became more slender and compact. This is the second time since the brand was founded in 2011, it has changed Logo.

In this regard, the evaluation of consumers in social media is mixed. Some consumers think this change is meaningless. Some netizens believe that Zara is a signal that the brand will pform to a more high-end market.

Some analysts believe that the brand changes to Logo or to cater to the current consumption main force of the millennial generation and Z generation of aesthetics, and strive to catch up with the trend of youth.

Bloomberg research and analysis pointed out earlier that Inditex group's success is mainly due to the flat management structure and the importance of big data.

Compared with other fashion brands, the advantage of Zara lies in its emphasis on products and supply chain, and the corporate culture is not so easily copied as the latest fashion trend. This is also the key to Inditex's continuous success.

Besides, the younger generation and the change of concept of fashion consumers are also the key reasons for Zara and other brands to encounter Waterloo.

InsightRooms, a consumer analysis agency, discovered a year ago that Zara's original target audience, that is, women over the age of 33, is losing interest. The highest participation rate is among women aged 23 to 27.

As for the most high-profile consumers of "Z generation", there are reports that they value the product more than the style, and believe that value is more important than price.

In 2015, 72% of the Z generation expressed willingness to spend more money on products that could be produced in a sustainable way, which is a sad news for the "notorious" fast fashion in environmental protection.

In addition, the Internet and technology changed the fashion retail ecology and the overall twisting of consumer groups. In the first half of last fiscal year, the Group recorded its worst performance in three years, net profit increased by only 3%, while Zara sales increased 2.2% to 7 billion 910 million euro yuan compared with 11% in 2017.

In the 9 months ended last October 31st, the Inditex group's revenue rose by only 3% to 18 billion 400 million euros, which has slowed down sharply, and recorded a 10% growth in the same period in 2017. Net profit also increased by only 4% to 2 billion 400 million euros, and 6% in 2017.

Zara used to be an excellent agile supply chain mode to become a big winner of the fashion industry for many years, and even disdain to use star marketing. But now the new generation is in charge. Zara has obviously been familiar with and used to shopping online and keen to find KOL and star recommendation.

No matter what industry, once the structure of consumers is irreversible, all past experience may be cumbersome.

Zara wants to save performance, and more importantly, it will introduce more innovation after Logo.