17 Aug 2011
How will ZARA adapt to SA?
ZARA is a brand I love and no trip is complete without it infiltrating my case. It’s the stylish Mr Price of Europe. The quality isn’t amazing, but you deal, because their stores are polished, their marketing is slick and you’re wearing the latest trends for a fraction of the cost. They are the retail superstar with footprints in Asia, Africa (Morocco and Tunisia), America and the Middle East.
ZARA has always been an elitist brand here in South Africa; something only those who travelled had access to. In fact it’s become a significant lifestyle indicator. If you’re wearing ZARA, you’ve travelled, you probably have an iPhone and you’re on-trend with the current, “IT” brand against your skin.
Earlier this year they launched in Australia and posted impressive, initial sales and after months of rumour and speculation, it’s finally launching in JHB. Local girls are flipping sticks about the news. But I know that it’s not going to be the same experience. I mean obviously it’s not going to be the same, because it could never be the same.
But local expectations are high. I mean this is the brand we’ve idolised for months and months. Just a sniff of ZARA and we practically dismantle the doors off the store to get inside.
Here’s why it won’t be the same.
Time and Distance:
ZARA promises consumers affordable designer-looking products , with new garments hitting stores every 2 weeks. Every two weeks. [Yeesh I'd hate to see their carbon footprint]. They rely heavily on vertical integration [ZARA is the ultimate supply chain Big Brother] and adapting their offer to suit customer needs in the shortest time possible. ZARA heavily values time over money. To them time is key, their USP and the move that was the retail industry game-changer.
Now.
South Africa is miles away from ZARA HQ, which sits in Spain. All garments must go through HQ, before being dispatched to stores worldwide. The lag time between the garment getting out of Spain and into JHB is going to be significantly longer than the time it takes for them to get stock into their European stores. I mean logistically Europe is a gem. Everything is nearby, the transport infrastructure is geared to aid freighting, they don’t have pirates and it’s reliable.
ZARA have gotten around international freighting[Australia, America], but I potentially see our customs and infrastructure posing obstacles for further expansion. ZARA just won’t be able to respond as quickly to the SA market.
Sale Culture:
ZARA is undeniably a retail success story. Their European stores truly pump and they’re busy the whole year round. I’ve yet to walk into a quiet one. But their success is greatly aided by quick turn-around and the drastic European sale culture. When Europe says everything must go… everything actually goes.
I’ve seen MISS SIXTY reduce everything in their store to 5 euros, because they didn’t want to cart unnecessary stock to their new premises. To them, it was more cost effective to cull stock, than to move it to a premises which was situated 2 streets away. Asian markets like Hong Kong and Shanghai have a similar sale culture. Trust me, Hong Kong is truly incredible during sale season. Incredible. This is one of several reasons that ZARA’s success and aggressive expansion into China makes total sense to me.
I love South Africa, but our sale season is laughable by comparison; we don’t have anything close to this.
Range:
Obviously we won’t get the benefit of all their collections and hence won’t be spoilt for choice of colour, style and size. Thanks to inexperience in our market and shipping costs, they’ll send a basic sample of what’s on offer. By the way, ZARA sizing can sometimes be a tiny nightmare, as the Mexican and Spanish sizing is odd. So always, always try the garments on, especially their shoes. My feet regularly dance between 38, 39 and 40.
I’m really stoked ZARA is here, but the realist in me cautions myself not to get my hopes up. Everything you have heard about it, will not be true for South African consumers.
Sure, it’s highly-anticipated arrival will ensure it’s the next biggest thing for a few months. But if the the stock sits stagnant, it will go the same way that Mango [another Spanish fashion label] did. And to me the Mango’s in South Africa are a complete morgue, when contrasted with their European counterparts.
And how will competitors like Country Road, Forever New and Mango react? Will they even react? Forever New, how’s that going by the way? Another international arrival that was hyped beyond comprehension.
BUT back to ZARA.
Maybe I’m wrong. It’s just my 2c. No matter what, I love their collections and I’m really keen to see how their business model adapts to local market conditions and their long-term success in outlying, markets like South Africa and Australia.
PS
Rest assured elitist Fashionistas. Your status won’t be compromised. I bet you’ll still be able to spot who gets their ZARA overseas and who gets it in JHB.
*images sourced here
