Fast Fashion Target Market

nimble Fashion Tar seize MarketThere ar quite salient inwardnessmation of literatures show the supply chain and the check offet strategy of the immediate spirt firms. However, establishing sore immobile elan firms in china withal need to know the local schooling much(prenominal) as the Chinese customers get behavior, the preferred location, the trade as well asls they rehearsed, etc. The exuberant invent bewilder is suited for the Chinese Market is the main hypothesis. In range to birth understand the meaning from the collected data, some sub-hypothesizes were proposed and then be affirm through data digest and conduction.Thus, the income or the cost on habiliments per month has the direct link with the demoraliseing behavior. The target customer for devalued spurt instigant prefer to be more than than(prenominal) bearingable, however, the budget is invariably limited. They did non quite prefer famous tell ons and foreign brands. That matches our hypothesis (The income go out influence customers demoraliseing behavior.).We use Zara as an example to analyze the consumers locating to a ready modality brand and their bargain foring behavior. The satisfaction reasons for Zara, the bods of dress customers prefer to buy in Zara, the reasons for them to buy and the place they get the contrive tuition. We get the data as below. We classify those 132 of 228 people who choose shopped or visited Zara entrepots for the following analysis.We list seven main meanss or namely the advantages for buying Zara. As analysis shows above that the Store Location is the most serious factor which has an average score of 6.9 in 10. The renovate of fashion update and the fashionable be following which both(prenominal) open an average mark of 6.6. Furthermore, the shopping environment and the design of bodilyes ar in standardised manner ii influential factors.Actual need is the main reason for consumers to buy young clothe s.However, there are also quite a large bar also choose spontaneous shopping, special discount and fashion followers. That kernel besides the true(a) need, consumers buying behavior is also affect by the spontaneous, speicial discount, fashion trend and etc.As the question Where do you get the fashion information? shows, magazines and mesh rank the first and second. More than half(prenominal) of the respondents choose these two as the study tool they get the information. hobby with the throw in window decoration, the percentage of this tool is also very mettlesome which means it is also a factor locoweedt be ignore. Thus, the fast fashion firms need to vest more emphasis on their marketing through magazines, Internet and the inject window decoration. gibe to feed bet on we get from the questionnaires, 95.50% consumers of Zara buy daily casual clothes, which means the demands for daily casual are the largest part. Mean succession, tangible need and special discount rank senior high in the reasons to buy clothes.Moving forward to the income per month part, it shows that the major consumers of Zara are the middle classes. This root word of customers is purposefully and efficiently and they are more knowledge about what they want, where they cigarette buy them and when they give buy (Levy S. J. Rook D. W., 1999). They have more suffer opinion for choosing the clothes. Fashionable but in best value (HM yearly delineate 2009, 2010) this slogan of fast fashion might be suitable for this group of consumers.This group of people prefers to get the fashion information from magazine, Internet and enclose window decoration. Fast fashion firms always have turn rough views for the marketing discourse. Zara tends to use store window decoration to show its brand check it only has some marketing public presentation in the first-class honours degree of a novel store (Ghemawat Nueno, 2003). However, other fast fashion firms such as HM invest more on m arketing communications in order to enhance its brand image (HM Website, 2010).Furthermore, based on an analysis for the Frequency Tendency analysis of consumer behavior in kidnap (He, 2006), we feces summarize the characteristics of consumer behavior as the following pointsThey consider non only the price, but also the taste of fashion. Consumers in Shanghai are generally more rational, price-comparison shopping. They will do more comparison with the products which have the similar feature and select the one with reasonable price. This means they try the high quality and style.Brand loyalty. Most consumers know their favorite brands. just about of them will not replace the daily use of the brand.Great room for online uptake. Higher education, noveler consumers with more online shopping experience, and they are more voluntary to accept this mode of consumption.Combine our survey with the Frequency Tendency analysis of consumer behavior in Shanghai (He, 2006), we get the resu lt that Zara is successful because of its strength to catch customers needs. They know the suitable store location in a city, the kind of clothes consumers buy most and also the right communication tool for a fast fashion brand. As fast fashion is quite unique and the business model is different from tralatitious fashion brand, knowing their customers buying behavior seems to be very eventful.Thus, our hypothesis seems to be right in fast fashion brands. The store location should be in the shopping centre so that customers could easily see their store and get the latest fashion information from the window decoration. Meanwhile, the major kind of clothes customer prefers is daily casual as it is the mostly actual need. Furthermore, as quick response is the vital advantage of fast fashion brand, the communication way is also need to be considered carefully. The magazine and the lucre are the top two communication ways that the customers get the fashion information. Their fast re sponses agree with the quick response spirit of fast fashion.Thus, the fast fashion intentness has a positive develop environment in the east of China, because most of fashion manufactories are located in Chinas east regions. As the China Textile Exhibition Report (2008/2009) shows, Chinas textile industry is mainly concentrated in coastal areas and almost over 80% of Large-scale manufactories are centralize in Jiangsu Province, Zhejiang Province, Guangdong Province, Shanghai and Shandong Province. The locations for manufactories are real for fast fashion firms as they are famous by its rapid response. New firms which intend to open the Chinese market need to put emphasis on the east market not only for its leadership but also for the favorable transport location.From all these analysis and findings for questionnaires, we offered fiver recommendations. As our main aim for this dissertation is to find out whether the fast fashion model is suitable for Chinese market. Therefore it will be quite useful to give some recommendations to help the firms that want to use this kind of business model.Zara is different in the organization and design salute with most of the clothing company. It gets the inspirations from the customer needs and quickly responds to them. Zara always cumber pace with fashion, not to predict 6-9 months later or even interminable needs as other traditional companies. The team of Zara is built up by the designers, marketers, buyers and cross-functional members. Their functions are to ensure rapid transfer of information, the executable program, and easy to implement.Sourcing and ManufacturingIn the stage of purchasing and producing, Zara is different with most of the clothes companies. The major manufactories of Zara are in Europe, and many are based in Spain, around a small range. plot other fast fashion firms such as Benetton, Gap, H M are basically as a mode of the first worlds brand, the third worlds production.(Ghemawat Nueno, 2 003) The forgedgest advantage is low cost, while the outrage is slow response speed. Inditex in Spain has a capital-intensive manufacturing plant, and it is a vertically compound organization, it has a dyeing, designing, tailoring and garment processing and delay manufacturing strategy(Inditex website, 2010). Inditex bought white cloth in advance, standardized semi-finished products significantly and shorten the production cycle. By maintaining meet of dyeing and processing field, it makes Inditex have on-demand ability to produce new models for providing the needful cloth. However, the majority of the Chinese fashion companies were not used to store the stuff and the quantity of every collection was quite large. Zara has the advantage of production speed because it contracts with some small factories. Thus, they could change easily according to the market.DistributionZara puts more emphasis on speed, and even grab at all cost some measure. Because there is no loss of fourth dimension is the concept of fashion. While other fashion firm pay more attention to the cost. Zaras dispersion center is in the fast, efficient operation. In fact, it works just as a clothing center and its main function is turnover, not memory. however many domesticated garment enterprises distribution centers are larger and more built inside the mountain of storage product. Basically, all the stores of Zara from distribution centers are with direct distribution model, while most domestic garment enterprises are built of local branches and warehouses. They have links at all levels and a large backlog of finished goods origin. However, Zara is high frequency, fast, with a small storage variety of switch strategy also ensures a rich store of the kind.RetailingZara is totally broken the traditional clothing brand practise mode of operation and take a completely different insalubrious innovation road. The most fundamental factor is its efficient operation as the core operating s ystem for collaborative supply chain. Zara is success of its collaborative supply chain operation. This could be learned by some domestic enterprises. It could be decided as follows taking consumer as the center trim back the prepare time and all supply chains in order to squeeze time and eliminate possible problem reducing or eliminating those which cannot bring value-added component being more variety to create in order to enhance brand value and competitiveness.2. Marketing strategiesComparing with the traditional fashion firms, Zaras marketing strategies is quite unique. It spent quite small amount of money in advertising only in the start of a new store open. (Ghemawat Nueno, 2003) They put emphasis on the rapid consumer information feedback by the store sales people and the decoration for the aver store and the window. Through these ways, Zara figures its brand image. In comparison, HM use celebrity mental picture to attract the consumers. The advantages and disadvantage s of Zaras marketing strategy will be explored.A store as a show platformOne of the most important reasons of Zaras success is that the company takes every store as its show platform. At the beginning of the new store launched, the location selection is the premier life-or-death thing for the company to inject fund. Usually, the most prosperous shopping center will be targeted and a large amount of money will be spent on renting the store. Meanwhile, expense will not be saved on window decorations and store settings. The staffs of the stores are asked to wear the reproducible and communication skills will be trained as well. eminence effectZara is now participating more in social performance in order to enhance its brand awareness. However, HM represents much wiser than Zara on this point. To illustrate, in terms of brand value, HMs brand value is $12,131 million while Zaras is $8,966 million. (Millward Brown Top 100 Most valuable global brands 2010, 2010) According to the market value, HM equals to $50,587 million which is 10,468 million more than Zara (about $40,119 million) (HM Annual Report 2009,2010 Inditex Annual Report 2009,2010) . In addition, the brand value of HM takes 24% of the total market value. In comparison, the percentage of Zaras brand value in total market value is 22%. However, the situation above does not means that Zara do not think highly of building brand image. Through the management of every store, namely, the decoration, service, turnover speed and so on, Zara demonstrates its advantages to the customers and passes-by vividly. This is also a good way to build the corporations image and promote itself.Methods for consumption stimulationPricing strategy is also another(prenominal) important factor for Zaras success. The accurate position for target customer, the control of cost and the reasonable price setting plays equal significant mapping and cannot leave anyone. Because of Zara mainly targets on the young generation, the price element seems to be quite important. Most of the young generations are students in the universities or senior schools. Since they have no business line and the parents are their only economy source, they can not afford too expensive clothing or they may intromit the conception of economic system money. When talking about the young people who are in careers, as they are the trainees or the new arrival staffs, they may have the big pressure of renting house and solving living problems, and have no extra money to buy expensive clothes. Therefore, the young customers might be the price-hunting shopper. They may be hesitating when they decide to buy one new item. Zaras fast update rate solves the problem as it promotes people to buy the products quickly. Furthermore, discount is absolutely a wise approach to stimulate consumption.To sum up, although Zara still have some disadvantages such as its branding and communication, we can learn quite a lot of experience especially in its uniqu e supply chain. However, the domestic firms can not directly counterpart Zaras mode because of the business environments, the local markets and the corporations target are distinct from individually other.RecommendationsFirst, if the Chinese company want to build international fast fashion brand, effectively collecting the fashion information partly from the customers is quite significant,( compose) the store managers and employees have a serious responsibility of this task. Basically, the company should oppugn and employ the staff who is sensitive at fashion and capable to collect, conclude and express the element of fashion trends. In addition, the staff could adopt the mode of questionnaires to investigate the preferences and suggestions of the consumer. Copies of questionnaire could also be sent to the university students in the big city, like Shanghai, Peking, Hangzhou and so on. In order to catch the fashion trends, the company could escape the specific investigator to di fferent fashion zones to travel, observe and get the fashion trend, for instance, Nanjing Street of Shanghai, Wangfujing Street of Beijing, and etc.Second, China mainly plays a role of an export country quite a than an import country. The material in China is relatively sufficient and ready to use.(-Recommendation) Like Zara, the vertically integrated grammatical construction of the organization could be found, forming design, manufacturing and delivery as a vertical line. Therefore, both the time and the money will be saved. From the domestic country, the rough material is relatively cheaper than that from other countries and there will be no tax on the freight. Furthermore, the shipping expense will be saved as well. In addition, discount is a good way to sell as well if the cost price is low.Third, in China, most of the companies still hold the perspective of saving cost rather than saving time. Absolutely, saving time needs money. However, saving time could gain more time, mo re chance, and more profit which could cover the costs. It benefits the companys image and strengthens the competitive power.(ref) Aiming at the time element, the inventory or distribution center should pay more attention on turnover rather than storage. The direct distribution model and variety of replenishment strategy could be adopted in the company to ensure the high speed of goods turnover and storage supplement. On one part, it will build good image of the company at the operational level. On another part, fast-changing goods in stores could stimulate the consumption. It gives pressure on the consumers and reduces the time on considering whether to buy or not.Fourth, the company in China often is divided into some(prenominal) parts and each manager only take note of his own department.(Reference) However, it will be better if the departments of the whole supply chain can work coherently and communicate with each other in time. For example, the time to replenish the goods shou ld be supervised orderly and strictly. The daily sales, inventory and after-sale information should be counted and reported to the company. For instance, which are the best and the worst selling, how many items have been sold, and so on. In addition, the unsold clothing could be sent back to the company for the re-manufacture.Fifth, building the brand image through display of stores rather than celebrity effect is a new way for Chinese companies. The new open store should be decorated attractively, especially the display window. The staff in stores could wear the new arrival clothing instead of the uniform to have a show and to attract the consumers. In addition, it is still a good way for Chinese company to invite a flash or singing star as a brand image standing for the company because the celebrity effect is relatively strong in China.