The advantages of ZARA's advancement into e-commerce is outweighed by disadvantages, and the fast fashion competition is fierce.

The advantages outweigh the disadvantages

According to media reports, ZARA online stores and physical stores will be updated synchronously, and online and offline price strategies will also be implemented. Users can choose to deliver goods to their homes or pick up nearby stores, etc., and implement a unified return policy online and offline. Etc.

The reporter logged in to the ZARA official website yesterday and visited its physical store. He found that the online and offline product models and prices are basically the same, and there is not much difference. However, the new product display is more prominent on its concise official website. Unlike general shopping websites, there are no sales, discounts, and VIP sections on the official website. An industry observer pointed out that "ZARA only uses e-commerce as a (display) platform."

At present, with the rapid development of the domestic e-commerce market and a new economic growth point, foreign brands such as ZARA and Uniqlo have recently entered the domestic e-commerce market. Some industry insiders told reporters that on the one hand this can effectively avoid the problem of profit reduction caused by rising rents. On the other hand, it can increase brand awareness, expand sales channels, and achieve more profitable sources.

However, in the market competition in which a large number of apparel e-commerce operators are desperately trying to win prices, ZARA's unique implementation of the same online and offline prices can be described as a "double-edged sword."

CIC consultant light industry researcher Xiong Xiaokun analyzed with reporters that the same price strategy can avoid consumer heavy-line purchases and light-line purchases caused by price differences, so that online sales will not have an impact on offline sales. However, he pointed out that in the context of e-commerce and price wars, if there is no price advantage, it will weaken the competitiveness of fast-fashion brands and other ordinary clothing, but overall this kind of strategy outweighs disadvantages and is more appropriate.

Brand competition is becoming increasingly fierce

As a giant of the Spanish fast-fashion brand, ZARA has already begun to enter the e-commerce test operation. According to media reports, ZARA began experimenting with online stores in Europe as early as three years ago. It also successfully opened online shopping channels in Japan and the United States last year. Some industry insiders commented that ZARA hopes to complement each other online and offline and start a new profit growth point.

At present, ZARA's physical stores in China are mainly concentrated in first-tier cities. It is not yet possible to cover second and third-tier cities. The move to open an online sales channel in China will attract consumers to pick, buy, or go to physical stores online. Covering a wider market and supplementing offline sales channels.

In recent years, overseas fast fashion brands have increasingly attached importance to the domestic market. Fast fashion brands targeting the Chinese online shopping market are not only ZARA, but also foreign brands such as Uniqlo and domestic-funded enterprises.

Pablo Isla, Chairman and Chief Executive Officer of the ZARA brand owner Inditex Group, said in September last year that the company's priority will be the growth of business in Asia and Europe. Fast fashion brands such as Gap and Uniqlo do not show weakness. They have already launched e-commerce business in China and their operations have matured. In addition, although the development of domestic brands is facing difficulties, its price advantage can still be a threat to foreign fast fashion brands.

Xiong Xiaokun said that the rapid development of fast fashion brands in China indicates that the competition will become increasingly fierce. If Chinese traditional service enterprises want to continue to survive, they need to achieve distinctive and differentiated operations, but also to create the brand advantage of clothing, and constantly enhance the brand's visibility. And influence, this will be conducive to the long-term healthy development of service enterprises.

Some analysts believe that the main group of online shopping is young people. Consumers in this age group have high fashion sensitivity, and the fast-fashion brand zara faces consumer groups between 20 and 35 years old, which are in line with the major groups of online shopping. The development of zara offline has been very popular among consumers, so zara's online business will be able to quickly be laid out. The simultaneous development of online and offline will further expand the development prospect of Zara in China, and will also have a significant impact on other domestic and international fast fashion brands such as Smith Barney, Uniqlo and Gap.