There's no surprise that there's so much excitement in the air. But then, comes the reservation. Let me explain. ZARA's success is owed to a few simple "truths" found in their methods of production and supply chain management. They have big stores, but they never fill them up -- their designers are constantly working, creating up to 50,000 styles a year and only ever putting into production 10,000 of these. Stupid? Well, time-consuming and costly, yes - stupid, I think not. The designs that do make it are produced in limited quantities and given ample space in the store. When a customer comes along, they don't know if it'll be there tomorrow so they buy it because it feels "exclusive" yet they don't have to pay a couture price tag. That's where ZARA's supply chain comes in. They make their clothes quickly - from design to production to stores in as little as fifteen days in Europe. What does that mean? A runway style can be emulated and remodeled for a wider market virtually instantly and at a fraction of the price. It could fit perfectly anywhere that younger demographics with disposable incomes want fashionable clothes. Right? Not exactly.
For me, a very real issue for ZARA in Australia is that our market is unlike the consumerist havens of other Southeast Asian nations. The demographic ZARA will infiltrate in Australia is minute in comparison to Singapore, Malaysia or Indonesia. What will start as everyone loving ZARA's presence is likely to turn into the brand losing its exclusivity amongst consumers. When two twenty-one year olds are at a party wearing the same dress, shit breaks loose. You don't see it, but you can feel that if you're in the presence of these twins, that the universe is not quite in order.
ZARA are hugely successful elsewhere and it's unlikely to be any different in Australia. That said, I think for Inditex Group monitoring such brands as Country Road or Sportsgirl is a sound idea. These brands are accessible yet allow for the customer to feel like they're not shopping somewhere everyone else does, even if the store's full. ZARA can't afford their brand image to become one for all in a small market like ours; their brand will come to represent where everyone shops, and in a society where one's own sense of individualism can mean more than having the same Balmain-inspired jacket as your best friend, that's going to hit them where it hurts.
