Fast Zara, Fast Fashion
Fast Zara, Fast Fashion
Introduction
Everyone, no matter youngsters or middle-aged mothers, love to buy clothes and keep updated on latest fashion trend. In the past, people could only consume western styles clothing if they are rich enough to go shopping by travelling in European countries or able to afford expensive air mail to send the consumed western clothes back from overseas. However, it took a period of time and the fashionable clothing may become “old” at the time received.
As the information technology grows rapidly and, at the same time, trend of globalization makes the world become flat, people in every corner of the world receive updated news and knowledge quickly. They started to learn cultures from different part of the world. Cultural differences are no longer barriers on communication. People accepted cultures other than their own one. Therefore, more and more organizations started to set up subsidiaries in countries outside home town so as to gain some advantages on resources and labor; but the most important is to enlarge the customer bases and thus earn more profits. Spanish retailer, Zara, noticed the trend and set up subsidiary in Hong Kong few years ago. Nowadays, Zara becomes the most popular fashion brand in Hong Kong. You will see there are always crowd of consumers inside its stores both after working hours and on weekends. Other fast fashion retailers, like H&M, UNIQLO, also catch the brightly trend to set up subsidiaries in Hong Kong. Clearly, these popular retailers are riding two of the winning retail trends – being in fashion and low prices – making a very effective combination out of it. Zara is, especially, an interesting case study for many other retailers and fashion brands around the world. The goal of this report is trying to discuss internationalization strategy of Zara through looking at its winning elements in business model, especially finding out the factors leading Zara succeed in Hong Kong.
Background of Zara
Zara
Introduction
Everyone, no matter youngsters or middle-aged mothers, love to buy clothes and keep updated on latest fashion trend. In the past, people could only consume western styles clothing if they are rich enough to go shopping by travelling in European countries or able to afford expensive air mail to send the consumed western clothes back from overseas. However, it took a period of time and the fashionable clothing may become “old” at the time received.
As the information technology grows rapidly and, at the same time, trend of globalization makes the world become flat, people in every corner of the world receive updated news and knowledge quickly. They started to learn cultures from different part of the world. Cultural differences are no longer barriers on communication. People accepted cultures other than their own one. Therefore, more and more organizations started to set up subsidiaries in countries outside home town so as to gain some advantages on resources and labor; but the most important is to enlarge the customer bases and thus earn more profits. Spanish retailer, Zara, noticed the trend and set up subsidiary in Hong Kong few years ago. Nowadays, Zara becomes the most popular fashion brand in Hong Kong. You will see there are always crowd of consumers inside its stores both after working hours and on weekends. Other fast fashion retailers, like H&M, UNIQLO, also catch the brightly trend to set up subsidiaries in Hong Kong. Clearly, these popular retailers are riding two of the winning retail trends – being in fashion and low prices – making a very effective combination out of it. Zara is, especially, an interesting case study for many other retailers and fashion brands around the world. The goal of this report is trying to discuss internationalization strategy of Zara through looking at its winning elements in business model, especially finding out the factors leading Zara succeed in Hong Kong.
Background of Zara
Zara