ZARA Tide: The Flow of Wealth Brought by "Fast Fashion"

For ZARA, fashion is speed, which is to cater to consumers' preferences.

In ZARA a new dress on shelves is not the end of the design but the beginning

On the weekend, Ms. Wu is often shopping for a family of three in ZARA. Although I can also pick myself up on the LV bag, let her husband put on BOSS clothing, but this family is less than 10,000 yuan monthly income, so Ms. Wu finally chose to wear decent, the price is relatively affordable ZARA.

High-quality, good-feeling goods and services are more than happy for consumers to spend as much as they can within the price range of “adding some money at your fingertips”. In the book “The M-Shaped Society, Crisis and Business Opportunity for the Middle Class Disappearance” written by the Global Management Masters Institute, it is mentioned that as the income gap widens, the polarization of income grows, especially the income of the middle and lower income groups. More and more. ZARA wins because it occupies the middle and lower income market.

"Although it feels a bit expensive, I can only buy a coat like GUGUI and PRADA for 1,000 yuan. In these luxury stores, they have to sell 10,000 yuan, why not?" Ms. Wu said: "Of course, in the low-end clothing store, I can buy cheaper clothes. ZARA attracts me is closely following the fashion design and relatively high quality."

For the middle and lower income customers, the feelings and the prices of the upper and middle tier products are provided. The focus of the increase in revenue is to gain the favor of the largest customer group in the market, the middle and lower tier customers. This point ZARA has done.

Diligently research popular styles, and also completely streamline the manufacturing process. ZARA can be shipped in as short as 12 days. The renewal speed of the goods is very fast. It may take as short as 3 weeks. All the goods in the store are eliminated and updated. From distant Spain to China, ZARA has maintained its mythology of only 15 days from design to sale. Commercial technology has helped it continue its legendary supply chain. In China, Metersbonwe Group Co., Ltd., known for its fast supply chain speed, currently takes 80 days to complete this process.

Every day, customer information and fashion intelligence from all over the world continues to flow into the database of ZARA's Spanish headquarters office. The main sources of information for ZARA are designers and more than 800 stores worldwide. It is not so much a "designer" as it is a copywriter. They are typical “flyers” and often appear in various fashion venues held by fashion centers in Milan, Paris, and New York to observe and summarize the latest design concepts and trends. Some of the latest designs from some of the top brands have just come out in less than 10 days. ZARA will release fashions that are very similar to these designs. This design method ensures that ZARA follows fashion trends. It is said that in Europe, ZARA will pay a fine of several thousand euros to top brands each year. However, ZARA did not abandon this design model because the profit earned from it is much higher than the fine.

Sales and inventory information from Lisa and other ZARA stores is important to the Spanish headquarters. It can be used by the headquarters to analyze the style, color, size, etc. of best-selling or unsalable products, and can be used as a reference for the design of new products.

Every day, when the ZARA headquarters in La Couni, northwestern Spain receives data from China, each department will decompose this information according to their own needs in order to make judgments on the Chinese market. This data is a large amount of original information, meticulous to each product sold a few orders, size, color, quantity, selling time, payment methods, discount information, price adjustments, etc., almost every country's stores will be headquartered in Spain every day The sales data is transmitted, so the information platform of ZARA's headquarters is extremely powerful. It can not only process data from various countries and make analysis, but also supports the high-speed operation of ZARA's global business.

In ZARA's design team, the introduction of a new costume is not the end of the design, but the beginning. The design team will continue to draw customer feedback based on the sales performance and store manager information displayed by the POS system, adjusting the color, tailoring, etc., which will help them design for the Asian market. Unlike other foreign brands entering China, all ZARA designs are currently concentrated in Spain.