China'S Road Of Parity Clothing Brand: Positioning Different Competition Fundamentals

H&M and ZARA are different from unreachable luxury goods.

A few years ago, Dr. Wang Yao of China Business Information Center issued a warning: "foreign brands not only occupy high-end.

H&M, on the day of Qianmen Street store opening, fanatical fans queued up for 400 meters in the rain, and the limited edition spring clothes were sold out in ten minutes.

H&M came, and even opened two stores, which ended ZARA's history of being spoiled by fans in Beijing. The large-scale pre advertising promotion and lower prices were obviously contrasting with the low-key practice before ZARA.

A small, fast and cheap "fast fashion" business model has been growing rapidly in recent years. H&M and ZARA serve as a model, with the H&M being in place.

According to the insiders, different positioning is the fundamental reason for the difference between the two methods of competition.

ZARA is more favored by white-collar workers.

The author sees in ZARA Joy City store that customers who come to patronize are over 25 years old, and are mostly white collar workers.

Shop furnishings in black and white gray tone, more conforming to the beauty of intellectual women, some fashionable elements of professional wear is very popular.

The price of basic clothing is between 200 and 300 yuan, which is not cheap. The skirt and coat with strong sense of design are more than 500 yuan, and the price is rather expensive.

Unlike ZARA's consumers, H&M's fans are younger, and the store's street feel is stronger.

The basic design is simple, and each garment has multiple sizes. Even if it is 165 centimeters tall, there are many kinds of chest circumference, which is very humane.

Of course, its biggest killer is low price, clothing price tag is 99 yuan, 199 yuan, 299 yuan, men's clothing is slightly more expensive.

The price of accessories such as hairpins, earrings, bracelets and so on is priced at tens of dollars.

Wu Shuang, director of public relations, said that H&M pursues "the most appropriate price, providing fashion and quality". These three aspects are always Trinity.

Although the business models behind H&M and ZARA are basically the same, H&M promotes civilian and parity prices. They aim at a group of customers who do not have strict age groups. ZARA has a concept of personalized fashion. They aim at a certain age defined customer base.

In addition to low prices, H&MZARA's salesmen basically do not adopt domestic brand follow up service. They allow customers to shop on the spot, showing that the international brand respects customers and fully grasps the mentality of customers.

ZARA is a quick responder to fashion.

You will see many popular seasonal styles here, but the price is less than 1/10.

ZARA joy shop manager on duty said that the ZARA headquarters designers team will often attend fashion city fashion conferences in New York, London, Paris, Milan, Tokyo and so on, and draw the idea of top designers.

Of course, this imitation is by no means equivalent to plagiarism, but is based on the most popular colors, styles, patterns and textures of the season.

Often two weeks after the end of the fashion week, ordinary people can spend less than 50 dollars on ZARA's shop to buy Chiffon Dress containing Chanel's fashionable colors this season.

Despite advocating "parity fashion", H&M always invites designer designers to operate.

From CHANEL fashion director Karl Lagerfeld to Wakubo Rei to Matthew Williamson, designer limited edition dress became the key to attracting a large number of fans.

On the day of Qianmen Street store opening, Matthew Williamson's exclusive spring product was sold out in 10 minutes.

The target consumers of H&M and ZARA are highly sensitive to fashion and taste changes very quickly.

They adopt the strategy of accurately identifying and rapidly launching the corresponding clothing styles when the fashion trend is just emerging, and taking the best creativity as quickly as possible.

These two fashion brands rely on the design power of luxury products to sacrifice their quality and satisfy the demand of consumers for fashion. At present, the quality of clothes renewal and sacrifice is neglected.

Although target consumers are eager for fashion, they do not have the ability to constantly consume high-end luxury brands, and frequently updated fashionable low-priced products can meet the needs of this group of people.

ZARA has little input in publicity, and quietly entered China just now, and rarely advertised in the media.

Reputation is mostly based on white-collar consumers and their fans in the fashion consumption forum.

In the survey, I found that ZARA did not even have a Chinese website targeted specifically at Chinese consumers, and only had headquarters in Shanghai.

The brand promotion of H&M is very painstaking. The gathering of media advertising and the gathering of stars gathered on Qianmen Street are all very high-profile.

CEO, its Swedish headquarters, was present in person and received an exclusive interview with the media.

On the Chinese website, even the public relations director's contact telephone was released to the media, which shows his importance to publicity.

This large-scale publicity is harvested on the day of the 400 meter long queues which began to rain in the open day. Until now, people who buy clothes in the shop are still on the same roof.

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The more advantageous the geographical location, the higher the investment income of merchants.

Whether it is ZARA or H&M, especially in the location of shops, we should pay close attention to selecting business circles with dense flow of people and frequent commercial activities.

Despite the high cost, the famous business circle often has many famous brands with good reputation. It can quickly improve the brand image and enhance its popularity in the short term.

Star Marketing also makes the fashion fans who have no money but taste in the world crazy.

ZARA the time from design to production to pportation is not more than 15 days.

ZARA Marco Bohler, China's marketing manager, has said that most of their production is in Europe.

In Spain, there are 22 factories, 50% of which are produced by their own factories, and the other 50% products are completed by 400 suppliers.

Every Wednesday and Saturday is the date of the new stores fixed on each shop. In order to ensure speed, we have always insisted on using the air without cost.

The survey showed that H&M had the fastest time from design production to pportation on the shelves, 20 days later than ZARA, but 5 days later, but it also won low cost, and the price of clothing was 30% to 50% cheaper.

H&M, which emphasizes cost, has adopted two supply chains. Its production area always shifts to areas with excellent labor and low wages, 60% of production is in Asia and only 40% in Europe.

Most of the conventional fashions and children's garments are made in Asia, and small and popular garments are usually given to European suppliers.

Traditional clothing retailers can not increase their new products according to seasonal changes due to their long production cycle.

H&M and ZARA flexible supply chain constitute their distinctive production and supply methods.

There are only a few pieces of stock in the same clothing and retail store, and the opportunity will be missed at a moment's hesitation, which will result in the decisive buying speed when customers are patronizing again.

Small batch supply and forecast of tight supply have stimulated the frequency of customers visiting shops and created unique attraction to customers.