Igg Wants To Keep Pace With Zara.

Agge also wants to keep up with the speed of Zara, but he has implemented many strategies like his opponent, but with a quick replacement strategy for every small quantity of products, he has no choice but to have a large base and a large backlog of risks. That is to say, one shop only sends 5 pieces, and a new product has more than 10000 pieces. With the offensive of the trend guide created by Zara model line-up, the goods of IgG begin to be unsalable, and soon the stock exceeds the 20% safety line, and the capital chain also begins to tighten.

In July 2013, Fu Sen asked suppliers to give 2% of the last year's settlement amount as business support to IgG. If successful, he will get nearly about 60000000 yuan of working capital. Generally speaking, suppliers are relatively weak in the face of manufacturers. In order to maintain long-term cooperation with IgG, they can only "support" work.

However, some suppliers are reluctant to swallow. Labor costs in the mainland processing enterprises are getting higher and higher, and profits are getting thinner and thinner. Some suppliers who are unwilling to cash in on their money have left.

It is not known how the new policy is effective. In order to eliminate inventory, Fu Sen decided to sell at a low price, and expected that Zara would not follow up.

Who knows that Fu Sen miscalculated the accounts. The stock of Zara has also increased. It is also because the continuous invitation of world-class models and the operation and management of big stores are all self run. Selling cost Increased by 37%, and management costs soared to 146%. Zara also followed up the discount and withdrawal of funds.

unlike Iger Discount price, Zara price cuts more planned. For example, first the original price of 859 yuan coat, the first week discount for 799 yuan, second weeks discount for 499 yuan, third weeks discount for 399 yuan is the lowest price. Meanwhile, Zara has vigorously promoted the art of dress matching while offering a substantial discount. Customers only buy one piece, and the sales volume can be increased by more than 1000 yuan by a salesman.

stay Zara Under the promotion attack, in 2013, the sale of AGG suddenly dropped by 2.5%, and sales remained at only 2 billion 500 million yuan, while Zara's sales surpassed Edgar in one go.

The price war has started, but it has broken its own feet. What is more important is the fact that more changes and sources of chaos occurred after the battle.

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Because Zara only has its own big store, the shipment port is single and convenient to control. Another important reason is that Zara has many styles of clothing launched every year, but there are few quantities. There are only a few pieces in each store, and the number of stores is not large enough to be sold out in less than two weeks.

If a discount is not available, it will be sent back to Spain by air and sent to the special discount shop by headquarters. This ensures that there is a backlog of goods and the brand is not damaged by discounts.

In the first half of 2014, many stores began to lose substantially. Depending on the size of the more than 2000 stores, it has kept fifteen or six hundred million yuan in sales. At this point, only half a year's sales of Zara in more than 180 stores increased to nearly 3 billion 500 million yuan, almost 2 times that of Igor.