Fast Fashion Head Card ZARA'S Way To Make Money, Just One Word.

"The martial arts of the world will not break quickly."

This is the golden sentence in the movie Kung Fu.

His "quick" can even play with bare handed cartridges.

So here comes the question...,

In real life, is there really a legend that only fast does not break?

Yes.

And you may contribute half a month's salary to it - ZARA.

Talking about the most successful brands in the world.

ZARA from Spain is among the best.

Founded in 1975,

Forty years,

At present, it has become the third ranking clothing manufacturer in Spain.

At the same time, Harvard Business School has been rated as the most valuable brand in Europe.

The founder of his self-made business was once more than Buffett.

Become the third richest in the world.

ZARA has 2259 direct outlets in 96 countries and regions around the world.

LV was once called "the most innovative and scary" fashion dealer in the world.

What terror?

The horror of speed!

　 PART.1

How fast is ZARA with fast fashion labels?

There is a story that describes the speed of ZARA:

In 2015,

A woman named Miko wants to buy a pink scarf.

So he walked into the ZARA store in Tokyo.

But unfortunately,

ZARA store is full of T's latest trend scarf.

There is no pink that Miko wants.

Similar cases occur almost simultaneously in ZARA stores such as Toronto and San Francisco.

Guess what happened at the end of the story?

Only 7 days later.

More than 2000 ZARA stores in the world are all dressed up with pink scarves and sold out in 3 days.

And the other story goes like this:

A ZARA factory in Tunisia, North Africa can produce 1200 shirts a day.

There is a supervisor with stopwatch in the workshop.

To ensure that each worker's workload can be accurately "one minute".

What's more interesting is that

The time to complete a shirt must be strictly controlled within 38 minutes.

Once this time is exceeded, the factory will lose money.

It's horrible,

Mao Mao's 100 kinds of positions to go fishing at work can't be deployed here.

Maybe these stories are not enough.

The netizen who opened the brain hole simply named a creature called "ZARA boy".

It means that girls around are new.

Several times a quarter.

But there is data.

ZARA new products that are rapidly designed each year can achieve an astonishing 25 thousand.

On average, new models are released every 2 weeks.

This is a far cry from the new rhythm of 6 months and 9 months.

Customer's favorite dress on the T stage of fashion week.

It usually takes several months to get to department stores.

But in ZARA, you will find a similar design in less than two weeks.

This extraordinary speed.

It is ZARA who does not advertise without discount.

Still can take up the fast track of the fashion market.

PART.2

How did ZARA drive himself crazy for the sake of speed?

As we all know, the latest trend of fashion is from T to consumers.

There is always a long time lag.

Almost no clothing brand in the market can solve this problem effectively.

ZARA, the smart guy, fought the bad idea.

Began to feed the masses of consumers with the latest trend + big design + low price.

　 1 self built "lightning" supply chain

Unlike H&M, Gap and other fast fashion tycoons, outsourcing most of their production to low cost countries in order to reduce costs.

ZARA actually dares to do the opposite.

The focus of production is on the Spanish mainland, which is 5-7 times more expensive than the developing countries.

About 50% of the products are completed each year through their own production base in Spain.

In the 200 mile production base in Spain,

ZARA has focused on 20 highly automated cloth cutting and printing centers.

And 500 manpower intensive foundry terminal factories.

Competitors are forced to place orders at least 6 months in advance, compared with competitors.

ZARA's own supply chain.

From every aspect of market research, design, layout, clothing, mass production, transportation and retailing,

They can be flexible and flexible.

ZARA even hollowed out the production base.

Ensure that the established underground conveyor network can always deliver the most fashionable fabric to the terminal plant on time according to the new order.

Guaranteed from new planning to production and shipment.

The fastest time is only a week's devil speed.

In terms of logistics and distribution,

ZARA uses trucks to land in nearby European countries.

Average 36 hours to shop.

In order to ensure that garments can be shipped to Eastern Europe, the United States and Asia within 48 hours,

ZARA even wants to spend huge sums of money on establishing air cargo distribution companies.

The average annual use of the aircraft is 2000 shifts.

Charter flights send goods to stores around the world.

The most frightening thing is any ZARA chain store anywhere in the world.

Almost all have the same independent right to order.

Even if a dress is reserved for only one item,

They are also sold to stores and outlets within 36 to 48 hours.

Don't think clothes are on the shelf.

In the first week of ZARA's new shelves,

If some styles are not as popular as freshly baked cakes,

Then it will disappear in the store in second weeks.

Orders on the production line will also be halted immediately.

So that we can make way for the new season's garments.

It runs out of every 3 weeks, and all products can be replaced completely.

"ZARA shelves are always new trends," the image of differentiation.

It can also be implanted in the subconscious of consumers.

What's interesting is that

This "fast, diverse, small" business has led to a sense of urgency of scarcity.

To put it simply,

That is, once the customer sees the heartbeat, the clothes will not be put into the shopping cart immediately.

Probably two weeks later, and will not replenish the goods.

In fact, the number of customers coming to stores and buying opportunities are increased.

In the apparel industry,

If the same customer returns 3 times a year,

It's a great thing for any fashion shop.

But in ZARA, this number can go to 17!

2 customer oriented design system

Zara no speed in the industry.

In addition to the self built "lightning" supply chain,

Another secret lies in its customer oriented design system.

Comparing cost saving to the general practice of designing a burden on a designer.

ZARA is more willing to spend money to build a strong design team with 400 designers.

Discard the industry trend of forecasting fashion trends and shipments.

This amazing teacher is more focused on the instant realization of the current fashion demand of customers.

One side,

The design team is always on the front line of fashionable cities like New York, London, Paris, Milan and Tokyo.

To understand the latest trends and consumption trends.

On the other hand, it is connected with global stores in real time.

When customers are buying,

The team has immediately grasped the first-hand information of merchandise sales and customer preferences through the shop data network.

And sketch out the sketches.

Then the business team will carry out the feasibility assessment for the sketch.

And cost, material, quantity and other production refinement.

After that, they began to board and make samples.

Finally, it is transferred to factory production simultaneously.

Every step is seamless.

This customer oriented extreme speed design system,

Not only has accelerated customer door-to-door rate,

It also effectively reduces inventory backlog.

The industry has "clothing industry to see who can make money, that is to see whose inventory is cleaner."

Compare the 52-94 days of inventory turnover in the industry.

ZARA can do incredible 6 days.

So it is very difficult for you to find any excess stock or dead cargo in ZARA warehouse.

There is a question on it:

As an internationally famous brand, why does ZARA never advertise or even have marketing? Without advertising and marketing, will it limit its development?

You bet,

ZARA is almost insulated from traditional advertising and marketing.

Traditional fast fashion brands spend about 3-4% a year on advertising.

ZARA can only ignore 0-0.3% almost.

All the money coming out of the province has gone to the airbags of their own clothes.

Let me put it another way,

When competitors' new products are still floating in the Pacific Ocean,

ZARA new products have already arrived in stores all over the world.

Preempting the money from customers' pocket into their pocket.

And it is different from the fast fashion brand that has been discounted almost every year.

ZARA on average, only 15% of the clothes are sold at a discount each season.

Far from 60% to 70% of the industry average.

In other words,

Quickly meet the extra labor and transportation costs required by customers.

It will soon come back from customers.

At the other end,

ZARA is more interested in spending money on opening stores (not franchising).

Its stores are almost concentrated in places with high human consumption and high consumption worldwide.

Moreover, the area of each shop is 1500 square meters.

Its expenditure on shop location, window design and shop interior decoration.

The meaning is not inferior to that of other companies in advertising.

In ZARA's view,

Only shops can really reach customers.

And only shops.

Only in time can we get first-hand information on customer needs.

Such a factory must be able to touch customers.

Is the ultimate way to make money.

Admittedly, customers' demand for fashion can not escape the word "timeliness" three words.

"Fast" is the magic weapon for ZARA to transform itself from a street store to a leader in the world's fast fashion brand.

It is also the core competitiveness that rivals can not easily replicate.

After all, in the fast fashion world,

Clothing has the same shelf life as yogurt and bread.

Most people like to wear fashionable clothes faster than others.

Then turn around and throw away to catch up with the new trend.

Instead of putting them in the closet.

This point,

ZARA is more clear than anyone who has created the myth of "fast and not broken".