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Zara’s brand value has shrunk from $18 billion to $13 billion, according to projections from Brand Finance.
Inside of the clothingthe 2022 Fashion Industry Benchmarking Study reveals the challenges facing apparel and its physical stores.
Zara’s action of involving the consumer in activities previously reserved for employees implies a new culture of consumption.
Zara will implement a new policy inside its stores, adding to the consumers in the operation that was previously reserved for the employees, to make the organization of the inventory at the point of sale more efficient. This is one of the many operational actions with which it has scaled its omnichannel logistics model, to make the task at the physical point of sale more efficient, maintain the visual merchandising on point and scale consumer engagement in the brand’s operational experience.
Tasks from employees to consumers at Zara
The measure has begun to be reported in Spain, birthplace of the first-born of Inditex, and consists of the consumer being responsible for returning, as found, the garments that he does not acquire after measuring them, for which Zara passes responsibilities from its employees to consumers that they did not find their size, the garment was not to their liking when trying it on or they only come to make window shopping. The measure could soon be established in flagship markets for the brand, such as Mexico, which is one of the few markets where the sale of Massimo Dutti Studio.
The novelty, according to specialized media reports, has occurred at a time when the brand involves the consumer more and more in activities that facilitate the tasks of the brand, now that the operation and logistics is key to the omnichannel model of in-store and online sales you have, where functional space is crucial. The fact that it happens from 2022 marks an important precedent in apparel, when other players have announced that they are scaling their business in this industry, as Nike has done with the opening of Nike Style.
Insights identified in the 2022 Fashion Industry Benchmarking Study The main challenges in the fashion market are pointed out, where a transcendental element is verified, the tasks that are consuming the most energy in this segment.
Within the study, it is noted that the majority of executives in the fashion industry see the increase in production costs and delays in shipments as the main challenges to face, with 39 percent of those surveyed voting in the same proportion for these challenges.
Six percent saw competition within physical spaces as another of the challenges in the fashion market.
Zara’s decision has no comparison, but it is a very important reference in the market, where the task of brands plays a fundamental role before the consumer, especially when they have used resources that, without realizing it, have turned them into part of the sales strategy.
An extraordinary case to understand how the role of the consumer goes from being a simple shop window viewer to a member of a community determining prices of garments for sale and actively joining the logistics chain for their sale is voper, a second-hand clothing sales platform, which has an inventory of high-cost brands, all from users who join this platform to market them.
The seller has very clear tasks of participation in this platform, but also the role of the consumer already assumes another more active profile, no longer just clicking if he was interested in a product, now he can communicate with the platform and generate an interaction with the expectation of being able to buy the garment.
Zara has a brand value of 13 thousand 156 million dollarsaccording to one projection of Brand Finance and the value is a contraction you’ve recorded since of 2019. The brand’s challenge is clear, climbing to a premium segment with brands such as Massimo Dutti Studio.
The action is a unique case of how fashion brands prepare for competition, with increasingly bold players like Nike who launched Nike Stylea store where it sells its premium category with designs that alternate sports or a pure player What Sheinwhich increasingly dominates the fast fashion with your online store.
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