Why Did ZARA Fail To Make Money?

< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > ZARA < /a > annual production of about 12000 clothes, 52 weeks a year, an average of about 23 per week.

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< p > but all styles will not be on every franchised store, and each shop will have two new models every week, probably 50 times a week.

In general, clothing enterprises do not talk about one week, but they can not get so many new ones in a month.

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< p > ZARA is not a designer in real sense. It relies on the "buyer" to copy the latest fashion style.

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< p > as we all know, the biggest feature of fashion is changeful. A movie and a MV may subvert the current fashion elements.

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< p > when these fashionable elements appear, ZARA's < a href= "//www.sjfzxm.com/news/index_c.asp" > buyer "/a" takes only a few days to complete the imitation of the trend of the world's top fashion show, to ensure that these styles are very close to the latest trend.

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< p > in the design process, the risk of ZARA is greatly reduced.

ZARA is very accurate in the distribution of stores, or very conservative.

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"P >" based on the information feedback system currently available in ZARA, headquarters can check the sales status and current inventory of each single store and each garment at any time.

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< p > two new products per week.

No matter the style of the new shelves or the two supplement, the number of headquarters will not be too large.

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< p > from the description of the Deputy store manager, ZARA is different from the order system adopted by most traditional clothing enterprises, but the headquarters actively distribute the goods according to the sales situation of each store.

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< p > the design team at headquarters can see clearly what styles, colors and sizes of each store, city and region need to be replenish.

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< p > if we look at the order system, ZARA is like a regular order meeting every three or four days.

This ensures that ZARA has a basis in production quantity and will not blindly press goods into stores.

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< p > "clothes that have been determined to be on the shelf, even if there is stock in the store, consumers will not buy it if they want to buy it.

This gives consumers a sense of scarcity, so that they feel that ZARA's clothing is not the shop after the village.

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< p >, it can be seen that under the principle of low quantity and quantity, ZARA also uses the marketing strategy of "scarce marketing" to lift the appetite of consumers.

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< p > from the operation of a ZARA store, it can be seen that the distribution of ZARA in more than 2000 clothing chains all over the world is basically in line with the principle of "frequent sales and quick sales".

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< p > the best way to prevent inventory in a retail store is to rush into quick sales, especially fast fashion clothes, which can not be sold in a short time, not only occupying capital, occupying shelves, but also devaluing easily.

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< p > > therefore, ZARA firmly controls the inherent risk of < a href= "//www.sjfzxm.com/news/index_c.asp > > < /a > through four links: < /p >

< p > 1. buyer buy large scale copy; < /p >

< p > 2. is designed to be on the shelf for 12 days for the fast loading cycle and try not to replenish the goods; < /p >

< p > 3., small quantity, scarce marketing, not greedy for sales on a single item; < /p >

< p > 4. timely feedback of terminal sales information.

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The above four points fully display the top-level design of ZARA business mode, namely, "P", "go in and sell quickly", do not pursue the amount of exploding money, and flatten the fluctuation of sales volume and profit.

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< p > even so, ZARA is not without inventory, but it is more effective to share the risk of the clothing industry, not to overstock a large number of stocks.

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< p > there is no doubt that these brands have learned ZARA to a certain extent in recent years, improving the reaction speed of the supply chain.

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< p > < --EndFragment-- > we can simply separate the following processes: design, trial loading, finalization, sample making, this is the process before ordering, then the order will be made; volume statistics, mass production and logistics distribution are the processes after ordering the meeting.

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< p >, how can we continue to shorten the production cycle? The answer is No.

Because many companies can't cut the order link like ZARA.

When ZARA develops products, the following outlets must be sold unconditionally, while most brands can not do so.

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< p > because the right to order is in the hands of franchisees. The bearer of inventory risk is also a franchisee. Franchisees must recognize products.

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< p > and this recognition is complicated. We must invite people to come to see the goods, to read the plates, to place the orders, to buy the materials, and then to reproduce them. Such cumbersome procedures consume a lot of time. How can we produce the so-called fast fashion clothes? < /p >

Such a fast fashion has been produced, has the market weathervane changed long ago, and how can these fast fashion clothes be pushed to their dealers? These are big problems. P

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< p > joining agent system can not learn ZARA's fast fashion at all.

Because the initiative of ordering system is in the hands of a large number of affiliate agents, a bottom-up group system is actually formed.

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< p > each agent franchisee is not consistent with the understanding of goods and styles. The leading role of enterprises in product development has been weakened imperceptibly, so that they can easily be traced by the so-called "burst payment" which everyone favours, so as to obtain substantial profits and hedge operational risks.

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< p > under the order system, franchisees are eager to get more money into the market, and companies are eager to produce more goods for franchisees.

At the beginning of the new shelves, whether they are franchised stores or direct stores, they will adopt the strategy of skimming sales, make the price set high, earn almost the same price, and then sell them at a discount price.

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< p > if the stock is too large, it will need deep discounts, and the loss profits will be compensated by the profits from the pre premium sales and the selling of the positive price.

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< p >, so there is a saying in the clothing circle: "the money earned first is the paper, and then the money earned is the money."

And this is the inevitable result of not doing the "retail sales principle", but also a helpless alternative.

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< p > ZARA is not "zero inventory". It also has the style of not selling. It can not be 100% sure that a certain garment must have sales. Instead, it adopts a strategy of large quantity and little quantity, effectively decomposing the inventory risk, even if it is an item that can not be sold, it will not cause too much backlog.

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< p > instead, even if the prospect is better, it is better not to make money from that burst, nor to produce a large quantity of replenishment, so as to prevent a backlog of backlog.

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< p > it can be seen that ZARA control risk method is not to pursue big gains in some styles, but to make every effort to be "quick in progress and quick sale" in all styles.

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"P > domestic fast fashion clothing enterprises are quite different from this. Under the ordering system, clothing retailers can not do" advance frequently and sell quickly ". It is expected that a certain number of advance orders can gain large profits in the selling season and hedge market risks.

When the explosion is no longer "exploded", the risk of inventory will inevitably come.

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< p > it seems that learning ZARA is simply not enough to learn the speed of the supply chain. How to learn ZARA's idea of sharing risks and profits in the industry may be a serious consideration.

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