{"id":1543,"date":"2016-05-19T11:04:16","date_gmt":"2016-05-19T11:04:16","guid":{"rendered":"http:\/\/www.2open.biz\/?p=1543"},"modified":"2016-05-24T07:44:14","modified_gmt":"2016-05-24T07:44:14","slug":"zara-chinese-digital-market","status":"publish","type":"post","link":"https:\/\/www.2open.cn\/?p=1543","title":{"rendered":"Insights on ZARA in the Chinese digital market"},"content":{"rendered":"

Since first arriving to Shanghai in 2006,\u00a0ZARA has had incredible achievements in the volatile Chinese fashion industry<\/strong>. Etam and Ochirly used to be considered as the \u201cKing and Queen\u201d in this sector with the vast majority of the market share, however ZARA’s arrival crashed down this obsolete structure. In 2014, ZARA reached the top fashion brands in China, earning\u00a0twice the revenue of Etam.<\/p>\n

\"Zara<\/p>\n

-Zara’s first Chinese store at Nanjing West Street in Shanghai.<\/p>\n

In\u00a0the same year, ZARA<\/strong> opened its\u00a0official flagship store on T-mall<\/strong>. This is not the first step ZARA takes towards the Chinese digital market, in 2012, ZARA set up its own online shopping website \u201cThe ZARA China<\/strong>\u201d and also published an\u00a0m-shop application\u201cZARA<\/strong>\u201d.<\/p>\n

\"Zara<\/p>\n

-ZARA China carries on with\u00a0clear style.<\/p>\n

\"Zara<\/p>\n

-ZARA’s mobile application for\u00a0IOS.<\/p>\n

Despite all of this, the big brand\u2019s official website is often tasteless, sort of similar to the one from Dell. Dell’s official Chinese website actually used to be\u00a0the largest e-commerce platform<\/strong>, however, nowadays it has become a more passive marketplace. Apple is also a good\u00a0example to illustrate this, its official e-shop is\u00a0beautifully\u00a0decorated, nevertheless, \u00a0Chinese users rarely to buy any products on it.<\/p>\n

The main reason for this is because e-commerce not only involves the\u00a0build up of a simple website<\/strong>. It requires\u00a0collaboration throughout the supply chain, especially the logistics, and of course, \u00a0the follow-up services.<\/p>\n

For many international brands, including ZARA, the option of building up the infrastructure to cover the broad Chinese market is perhaps not\u00a0as\u00a0profitable<\/strong>.\u00a0Thus, it is essential, and \u00a0more appealing, to cooperate with the third-party platform like T-mall.<\/p>\n

\"Zara<\/p>\n

-The frontpage of ZARA on T-mall<\/p>\n

Why did ZARA choose T-mall?<\/h2>\n

Many people thought the main reason was that ZARA wanted to catch up with the \u201c11.11\u201d festival on T-mall, which is the Chinese version of Black Friday. However,\u00a0based on the opinions of many insiders, the market and the decrease on revenue in 2013 forced ZARA to set a foot on e-commerce.<\/strong><\/p>\n

-In 2013, its\u00a0growth rate of net profit was less than 1%, which was its worst performance in the past five years. <\/strong><\/p>\n

-For the first quarter of 2014, its revenue increased by 4.3%, but net profit fell -7.3%. In contrast,\u00a0in the past three years, it has maintained double-digit growth in net profit.<\/strong> When the results were published, Citigroup cut its TSP down from 130 to 120 euros.<\/p>\n

-In May 2014, the monthly sales reached 60 million yuan<\/strong>, and consequently in June, the headquarter announced the plan to cooperate with T-mall, saying the shop would officially be settled soon.<\/p>\n

-As for 2015, the growth rate on revenue increased 20%<\/strong>, and the market performed positively.<\/p>\n

We can safely determine\u00a0now the main reasons why a big company like ZARA entered the Chinese e-commerce scene.\u00a0They can be summarized as the following:<\/p>\n

    \n
  1. E-commerce is a leading trend of buying behaviour in China and the amount of people buying things online is rapidly increasing.<\/li>\n
  2. This is a good way to promote ZARA itself on second and third tier\u00a0cities, as it seldom makes advertisements.<\/li>\n
  3. The Chinese e-commerce contributes to the highest growing rate of GDP in the world.<\/li>\n
  4. The business model of T-mall and its fellow platforms just fits the needs of ZARA \u2013 Small amount but multiplicity.<\/li>\n<\/ol>\n

    All in all, e-commerce seems to be the way to go in China and who else to help you than 2 Open.\u00a0Our goal is to understand our clients business needs in order to provide the best possible services.\u00a0 If you have any questions or require any information about our <\/span>services, please do not hesitate in contacting us<\/a>, our group of specialists will happily <\/span>assist you.<\/span><\/p>\n

    This article was edited by Andres Arroyo Olson from 2 Open.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Since first arriving to Shanghai in 2006,\u00a0ZARA has had incredible achievements in the volatile Chinese fashion industry. Etam and Ochirly used to be considered as the \u201cKing and Queen\u201d in this sector with the vast majority of the market share, however ZARA’s arrival crashed down this obsolete structure. In 2014, ZARA reached the top fashion<\/p>\n","protected":false},"author":19,"featured_media":1550,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,16,5,18],"tags":[428,427,398,423,424,425,422,421,426],"_links":{"self":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1543"}],"collection":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1543"}],"version-history":[{"count":4,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1543\/revisions"}],"predecessor-version":[{"id":1557,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1543\/revisions\/1557"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/media\/1550"}],"wp:attachment":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}