The Spanish low-cost fashion giant opened an online mall in six European countries on September 2 and hopes to use new channels to boost sales.
The Spanish low-cost fashion giant opened an online mall in six European countries on September 2 and hopes to use new channels to boost sales.
It is reported that the first countries to land in Spain, Germany, France, Italy, Portugal and the United Kingdom. Zara’s sales in these countries accounted for 40% of the total.
According to a survey conducted recently by Nielsen, a market research agency, in 55 countries, clothing ranks second behind books in terms of enthusiasm. In the United Kingdom, close to 10% of all apparel sales go through the internet. Based on this reasoning, Zara, which is active on the Internet, should be a pioneer in the development of e-commerce.
In fact, before the Zara, the major fashion giants began to scramble to rush out of the Internet business. The world’s second largest clothing giant, the US GAP Group, expanded its online shopping business from the United States to 55 other countries on August 12 and promised to increase the number of online stores to 65 countries by the end of this year. In addition, the world’s third-ranking Swedish H&M Group had launched online sales in seven countries, including Germany, as early as 1998, and plans to enter another leading market in the near future.
From this point of view, Zara seems to have some "following footsteps."
According to estimates by industry insiders, last year's online clothing sales in Spain accounted for only 2.5% of the annual e-commerce turnover, and only 5.6% in France. Although Mango, another low-cost fashion brand in Spain, started online shopping as early as 2000, online channel sales accounted for only 1% of its total revenue. The e-commerce development in the home country of the headquarters has determined that e-commerce is only a supplementary channel for Zara at this stage.
In addition, Zara also needs to consider brand coverage issues when doing online shopping. After the company hopes to test water in Europe, the official online store can expand to 77 countries in which the brand physical stores are located. But in fact, Zara is famous in Europe and is still in the initial stage of establishing brand image in more emerging markets, and it is still in the preliminary stage of channel development. If you migrate sales to the Internet, will it affect the development and management of offline channels?
Take China as an example. Soon after Zara entered the Chinese market, the consumer groups in China were still small. At this time, the company hopes that consumers will "enjoy the shopping experience of the store and establish a brand image." Therefore, it is not difficult to understand why Zara currently only opens several e-commerce platforms in Europe.
In fact, even in the European market, Zara's new channels still face considerable challenges to penetrate. Zara's expectation is that online channels and physical stores will be able to update their products synchronously, because their weekly payment model fits well with the psychology of online shopping consumers.
However, the real difficulty is that most e-commerce websites still have the function of clearing inventory or throwing off tails. In other words, the characteristics of e-commerce are still low prices or discounts. Lin Wenqin, the founder of MMbuy Shopping Network, once pointed out that “traditionally well-known brands have been moved to the Internet and sold, and traditional brands have been synchronizing online and physical channels, resulting in extremely poor sales. Finally, websites often become price lists. There is only one name."
For Zara, the company also needs to consider the specific strategy of "integration of reality and reality." For example, how do online and offline channels fully interact? How to avoid online channels become a kind of decoration?
"It should be said that consumers will not go to the physical store because they have an online channel. It is very likely that they have taken a certain style online, went to the physical store to try on, and finally placed an order online." Ye Qichen, the founder, said. It is worth noting that Zara allows consumers to order goods from nearby stores after they order online. This, to a certain extent, also promotes the conversion of online and offline consumption.
In addition to channel conflicts, another major challenge for Zara to make online shopping is logistics distribution. You know, the most important step for B2C companies involved in "fast fashion" is to streamline channels and distribution. Originally, Zara might make up one store every week. After opening an online shopping platform, the company is likely to change to “replenishment every day.†This will undoubtedly greatly increase the company’s logistics load. Imagine how ridiculous it would be if the efficiency of online shopping was not able to keep pace with Zara's weekly turnover.
It is reported that the first countries to land in Spain, Germany, France, Italy, Portugal and the United Kingdom. Zara’s sales in these countries accounted for 40% of the total.
According to a survey conducted recently by Nielsen, a market research agency, in 55 countries, clothing ranks second behind books in terms of enthusiasm. In the United Kingdom, close to 10% of all apparel sales go through the internet. Based on this reasoning, Zara, which is active on the Internet, should be a pioneer in the development of e-commerce.
In fact, before the Zara, the major fashion giants began to scramble to rush out of the Internet business. The world’s second largest clothing giant, the US GAP Group, expanded its online shopping business from the United States to 55 other countries on August 12 and promised to increase the number of online stores to 65 countries by the end of this year. In addition, the world’s third-ranking Swedish H&M Group had launched online sales in seven countries, including Germany, as early as 1998, and plans to enter another leading market in the near future.
From this point of view, Zara seems to have some "following footsteps."
According to estimates by industry insiders, last year's online clothing sales in Spain accounted for only 2.5% of the annual e-commerce turnover, and only 5.6% in France. Although Mango, another low-cost fashion brand in Spain, started online shopping as early as 2000, online channel sales accounted for only 1% of its total revenue. The e-commerce development in the home country of the headquarters has determined that e-commerce is only a supplementary channel for Zara at this stage.
In addition, Zara also needs to consider brand coverage issues when doing online shopping. After the company hopes to test water in Europe, the official online store can expand to 77 countries in which the brand physical stores are located. But in fact, Zara is famous in Europe and is still in the initial stage of establishing brand image in more emerging markets, and it is still in the preliminary stage of channel development. If you migrate sales to the Internet, will it affect the development and management of offline channels?
Take China as an example. Soon after Zara entered the Chinese market, the consumer groups in China were still small. At this time, the company hopes that consumers will "enjoy the shopping experience of the store and establish a brand image." Therefore, it is not difficult to understand why Zara currently only opens several e-commerce platforms in Europe.
In fact, even in the European market, Zara's new channels still face considerable challenges to penetrate. Zara's expectation is that online channels and physical stores will be able to update their products synchronously, because their weekly payment model fits well with the psychology of online shopping consumers.
However, the real difficulty is that most e-commerce websites still have the function of clearing inventory or throwing off tails. In other words, the characteristics of e-commerce are still low prices or discounts. Lin Wenqin, the founder of MMbuy Shopping Network, once pointed out that “traditionally well-known brands have been moved to the Internet and sold, and traditional brands have been synchronizing online and physical channels, resulting in extremely poor sales. Finally, websites often become price lists. There is only one name."
For Zara, the company also needs to consider the specific strategy of "integration of reality and reality." For example, how do online and offline channels fully interact? How to avoid online channels become a kind of decoration?
"It should be said that consumers will not go to the physical store because they have an online channel. It is very likely that they have taken a certain style online, went to the physical store to try on, and finally placed an order online." Ye Qichen, the founder, said. It is worth noting that Zara allows consumers to order goods from nearby stores after they order online. This, to a certain extent, also promotes the conversion of online and offline consumption.
In addition to channel conflicts, another major challenge for Zara to make online shopping is logistics distribution. You know, the most important step for B2C companies involved in "fast fashion" is to streamline channels and distribution. Originally, Zara might make up one store every week. After opening an online shopping platform, the company is likely to change to “replenishment every day.†This will undoubtedly greatly increase the company’s logistics load. Imagine how ridiculous it would be if the efficiency of online shopping was not able to keep pace with Zara's weekly turnover.
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