The Secret Of Zara - How Did The Tailor Sit On The Costume Empire?

This year, the fast fashion brand Forever 21 announced its announcement on its China official website, Tmall and Jingdong flagship store. It announced that it was suspended from April 29th, and offline stores were closed. Forever21, once popular fashion brand, announced its withdrawal from the Chinese market.

The other small brand, originally a remote town in northwestern Spain, has now become the world's fastest fashion brand.

In October 23, 2015, Ortega, Zara boss, surpassed Bill Gate for the first time in net assets of $78 billion 900 million, making the title of the world's richest man short changed. Ortega only founded Zara when he was forty years old. From a poor boy from a fishing village to the richest man in Spain, he seems to be a real "cock wire counterattack".

The Spanish businessman who founded Zara.

Ortega was born in the poor Galicia area of northwest Spain in March 28, 1936. His father is a railway maintenance worker. His salary is only 300 pexas a month, and it is difficult for a family to eat five meals. This is one of the poorest parts of Spain. Most of the economically healthy residents move to other provinces or emigrate overseas.

At the age of 8, Ortega's family moved to La Coruna for his father's work. This remote tiny place has become the cause for Ortega's career to start and take off. Ortega has neither design talent nor "rich two generation", and the media once described him as "a poor boy from a small fishing village".

An ordinary afternoon in 1948, mother went to school to pick up Ortega. On the way home, he bought candy at a shop, but the shopkeeper refused to give it to him again. At that time, Ortega thought that he had to earn money, which could never happen to his mother. Ortega was sensitive and shy in childhood, but at the same time he had a haughty attitude. He was afraid of being looked down upon by others. His mother was treated more like this than he was humiliated.

So at the age of 13, Ortega dropped out and went to a clothing store as an apprentice. He began to work as an assistant for the tailor and gradually came into contact with the core area of costume design. In the process of working, he discovered the "hidden rules" in the fashion industry, a garment from design to production, and then to store shelves, this process contains huge profits. He dreamed that he could make money from it one day, so he began to focus on how to skip middlemen and sell products directly to consumers.

In 1963, he founded the ConfeccionesGoa clothing factory, specializing in producing cheap and cheap nightgowns and selling them to local stores. He was 27 years old. In the 10 years, ConfeccionesGoa expanded from three small family workshops to more than 500 large garment factories, and also had its own design team. At this point, what Ortega lacks is just a retail channel.

The oil crisis in the 70s of last century swept the European business. In 1975, a German company temporarily cancelled a large order. Ortega, who is on the verge of bankruptcy, decided to save himself, and temporarily set up a Zara brand to produce and sell himself. This year, he opened the world's first Zara store in the most prosperous business district of La Coruna. The site was directly opposite the most famous store on central street. Zara soon won the attention of young European consumers for its fashionable designs and approachable prices.

Since then, Ortega has embarked on the crazy development road known as "fast fashion" and founded his own fashion empire Inditex group.

Zara entered China in 2006 and plans to slow down its expansion after breaking through 500 stores in China. 2011 is the peak of Zara expansion in China. It opened more than 150 stores throughout the year, and added 121 in 2012. In 2013, its pace began to slow down to 61, and in 2014 it was around 40.

Before 1999, the media could never capture a picture of him. It was not until the first publication of the annual report after Inditex was published in 2001 that he had his first official portrait. The more low-key Ortega is, the more insane the media is. After all, in a country dominated by the old family business in Spain, the story of a small tailor from scratch to become the richest man in Europe is really fascinating.

It is said that the inspiration for the name Zara came from the movie "the Greek left," because a bar used the name "Zorba" and had to replace it with Zara. I didn't expect this brand of mistake and collision to finally be able to take pride in the apparel retailing industry.

Let her daughter hide her name.

Among the 3 children of Ortega, he liked Marta, the youngest daughter, because he thought the little girl was most like herself, low-key and steadfast. In 2002, he asked Marta to work in her own retail store, asking her to use alias and work in the most ordinary employee status. In this way, Marta has been buried in name for 4 years. At the end of 2006, Ortega appointed Marta as vice president of two subsidiaries. Just when everyone thought that the "little princess" was going to be in full swing, Ortega arranged for Marta to start a long journey abroad in 2011. Starting from the retail stores in London and Paris, it is possible to go to Shanghai, China.

Ortega's success has attracted the attention of the world's clothing industry and provided employment opportunities for 500 thousand people. In the eyes of Spaniards, he was a self-made business hero.

The company's employees broke the news, Ortega not only dedicated, but also very frugal. His lunch is always settled in the company's staff restaurant, and his favorite food is cheap potatoes. The European richest man began to implement the CD program very early. Every time he ate, he would eat all the food on the plate and never waste it.

Zara business secrets

1. "fast"

"Fast" is an important killer of Ortega's management strategy. A Zara fashion from design to production, logistics, and finally into the sales link, on average, takes only 2 to 3 weeks, 10 times faster than competitors.

When the new product reaches 50% to 60% of the production, it will be sent to the store. If it fails to perform well in the first week after the shelves, it will be withdrawn immediately and will not be added to the production. If the sale is good, then the predetermined output will be completed in the next few weeks.

However, even the hot money will not stay in the shop for more than 4 weeks, which makes the customers dare not hesitate too much when they look at some clothes, because they may not see it in a few days. Three weeks is the time to update all the clothes styles of Zara stores.

2. "vanity"

Ortega also caught the consumer's showing off mentality and always chose the most expensive place to open a shop. In New York, he set up shop in Fifth Avenue; in Paris, he chose Champs Elysees street; in Shanghai, he aimed at Nanjing road.

Therefore, Zara's neighbors are all luxury giants such as LV and Chanel. Zara's models are also the best. The most popular models in the world have appeared on the poster of Zara. This greatly satisfies the consumer's vanity: shopping on Champs Elysees street is no better than spending the money on the most fashionable models.

3. "Shanzhai"

The word "Shanzhai", which is exclusively made in China, seems to have been used flexibly by Ortega.

Milan, Paris, New York and other major fashion week, bright lights, brand models, and Zara designers are shuttling in a fashion show, looking for inspiration.

Collect fresh and fashionable information and pick out styles that may be welcomed by customers. After that, the revised design will quickly put new products into production and sale.

Thus, Ortega got a title: Fashion terminator, and others said he was "the first copy in the world".

4. "more money, less quantity".

The fashion brands launched in the year range from 2000 to 4000, and the styles may be smaller for brands that focus on basic design such as GAP and UNIQLO.

Zara will launch more than 12000 new products every year, and these new products are selected from its design team's annual design of over 40 thousand items.

Usually there are only two pieces in one store, and they are sold out and not replenished. Even the hot money will not stay in the store for more than 4 weeks. Through this "manufacturing shortage" way, a large number of loyal followers have been trained.

This "hunger marketing" has produced an effect in ZARA, forcing or stimulating people to spend their pockets in different ways.

In short, in ZARA, every purchase is a impulsive consumption, because the clothes placed in the ZARA window will soon be replaced and will not be there again.

This impulse buying represents that the clothes you buy are not because you like them very much, but because you will feel that they are worth the money.

　 5. "oil pollution mode marketing"

Unlike many fashion brands, Zara hardly advertises. In Oman and Theo's view, the store is the most important marketing tool for Zara, the best advertisement.

Zara develops almost every week by opening a new store. Now Zara has opened nearly 5000 stores in more than 70 countries and regions around the world.

Shop in the most prosperous section of the central area of the big city, then extend the tentacles to the smaller cities around the country, and let the brand influence radiate across the country without advertising.

This "oil pollution" marketing strategy makes Zara considered by Harvard Business School to be the most worthwhile brand in Europe. Walton business school regards it as a classic research case in the future manufacturing industry.