Unique Style Of Dress

　 　 Isla Global layout plan

Today, Isla, 42, hopes to open more than one branch every day in the next few years, so that by 2009, the number of branches will increase from 4000 to 4000 in 2800. From Bangkok to Tokyo, Zara has opened about 40 branches, and the first shop in Shanghai opened early this year.

In the US, Zara plans to double the number of franchised stores by 2009, more than 50, and is concentrated in coastal areas. "Pushing too fast?" Isla thought it was sheer nonsense. "We believe that such a pace can be maintained in the context of ensuring profits."

One thing is certain: the company's performance has left a deep impression on people. Since 2000, sales and profits of Inditex have increased to three times, and the number of eight brand chain stores has doubled. Among them, Zara is the largest, accounting for 2/3 of total profits. )

With its extremely dangerous expansion activities, Zara has increasingly threatened its competitors, such as Gap (NYSE Code: GPS) and Sweden H&M Hennes&Mauritz.Gap, which have more stores and higher sales - US $16 billion, but the profit margin of Zara16.2% is far higher than that of Gap's 10.9%..

Although H&M's sales and revenues slightly win and its profit margin is higher (21.5%), it only involves 22 countries, and can not match Zara's response to the latest trend. "No one can match the speed of Zara." Creadon, chairman of London brand consultancy, said.

　　 Zara We must keep pace with the changing supply of new fashions, which means an impact on the proper balance between mobility and cost. So when competitors bought in Asia, Zara produced 12 of its most fashionable items in its own Spanish factories, accounting for half of all the goods. The longer shelf life such as T-shirts is exported to low-end manufacturers, mainly in Asia and Turkey.

　　 Create uniqueness

Zara is successful by breaking all retail rules. For most clothing stores, the worst selling goods mean a disaster, but Zara encourages temporary shortages so that their products are unique.

"We don't want everyone to wear the same clothes." Isla said. With two replenishment of new products a week, the company makes the habit of visiting customers frequently. "If you see a garment but don't buy it, forget it. Don't expect to come back later, because you can't buy it later." Cueto, a 23 year old student in Barcelona, said.

In addition, abandoned guidance. Trend The idea is that Zara prefers to follow the trend. Its goal is to enable customers to buy multiple garments at affordable prices. Zara launched 20000 single products last year, about three times that of Gap. Dana Catok, 25, an executive assistant at the Zara store in Fifth Avenue, New York, said: "in Gap shops, everything is the same."

"In the end, you will never wear the same clothes as others." This is the common aspiration of people all over the world who admire Zara. Marie, a 34 year old architect, is also a frequent visitor to Madrid Zara.

Zara never needs to collaborate with designer, nor does it cost millions of dollars to launch an advertising campaign. Instead, it builds its own stores through its large and minimal stores and clothing inspired by sidewalks. brand 。 Isla thinks, "our store is the best advertisement. Our savings can be spent on the top location. "

Zara shops are located on the most expensive streets in the world: Fifth Avenue, Tokyo Ginza, Rome, Paris and Champs Elysees street.

In Galicia, Arteixo, a town with only 25000 people, is located at the headquarters of Zara, and the center of Zara is a hall with an area of 11000 square feet. There, hundreds of designers, purchasers and product planners work in a consistent team, completing all the company's design, sales and half production. Concentrated behavior enables Zara to take a woman's dress, shirt or coat from the drawing board onto shelves in only two weeks, shorter than 1/4 of the industry's average time.

Resolving expansion risks

However, the cost of the expansion is also obvious. Zara risks going deeper into the broader market, risking its loss of speed advantage.

Because Zara takes the responsibility of globalization on its own, and sells goods from Spain to everywhere, regardless of origin. Replenishment of goods two times a week worldwide will become increasingly complex and costly.

The tension has begun to appear: the cost is rising, while the growth rate of the same branch sales is slowing down. Compared to 9% in 2004, the profit growth rate of the branch that opened for more than two years last year was 5%.. "The farther away from Spain, the less competitive they are," said a Harvard Business School professor. "As long as Zara has a production and sales base, its mode will be restricted to some extent."

So far, the company has raised prices to offset problems arising from being away from headquarters. For example, according to the number of "Lehman Brothers" (New York stock exchange code: LEH) estimated by securities brokers, the price of Zara in the United States is higher than that in Spain by 65%.

But for Zara, tight control makes it one step ahead of its competitors. "We have strong adaptability," Isla said. "At the beginning of each quarter, we guarantee that the purchase volume is at a low level, so that we can respond quickly when the new trend is highlighted."

This response is obviously manifested in Zara's grasp of the tidal current index.