Why Does ZARA Almost Not Advertise, Its Performance Is Higher Than Others?

Spain's fast fashion brand ZARA has been running for 40 years. It has gone against the road. They rarely make ads and advertising budgets are surprisingly low, but they always maintain brand awareness and sales performance. How did they do it?

UNIQLO and

Saito Hyoho, the author of hot selling, says that we all know that the main purpose of publicity is to expand the turnover. But what should we do? Let's look at the following formula first.

Turnover = customer number x customer price

Number of customers to buy = incoming number x purchase rate

Arrivals = incoming customers x shop frequency + new guests

Customer unit price = average unit price x per person purchase number

Obviously, the sales volume is formed by the number of customers purchased and the unit price of customers, and the main purpose of publicity activities is to stimulate the growth of the number of visitors.

This is why fashion brands are always throwing money into advertisements, because the more consumers are coming into the shops, the better we can see. The next picture is the advertising fees of Listed Companies in the revenue ratio. It can be found that the global fashion industry will allocate 3%~5% to advertising expenses. Although there are no ZARA (they are not disclosed), according to Saito, ZARA will account for less than 0.3% of the advertising budget.

Advertising distribution budget in the global fashion industry

But what the global fashion industry is doing, ZARA has a strong personality and insists on keeping advertising costs to a minimum.

But this strategy, even the internal staff, is very strange. It is reported that someone has asked AmancioOrtega, "why don't you advertise?"

"Because advertising is not a customer, it is the business itself, so we will spend money on improving the quality of products and lowering the price. If you are a guest, do you want the store to invest money in advertising or spend on your clothes?"

If they don't advertise, how can ZARA maintain their freshness in their customers' hearts? Saito collated two strategies to tell you that even without advertisements, ZARA can maintain the secrets of high camp:

1. use super high rents to grab the best storefront and create word-of-mouth.

"Shop location is king.

In 2011, the first store in ZARA in eastern Taipei showed a high price of nearly 9 million per flat 800 thousand and monthly rent (at which time the average rental price of the store fell to 500 thousand). In 2014, the Queens Boulevard opened in central Hongkong was the site where H&M opened the first shop in Hongkong. According to the Hongkong media, ZARA used to double the rent to get the store.

Rents are expensive.

With the convenience of the guests, it is the first choice. Its policy is to strictly select the best location exhibition shop.

2. new products two times a week is a secret known to all.

In addition to investing in store locations, ZARA's positioning is fast. They insist on two times a week, and new products will be launched on Monday and Friday, while changing the distribution area of merchandise within the store.

In fact, they have never publicly declared that every Monday and Friday will have new products, but this is the law of the world.

Shop assistants know, familiar guests know, there are those who buy or not buy, every Monday and Friday regularly check new products Fans.

Saito pointed out that in a study of the coming shop rate, it is pointed out that the rate of customers coming to shops in general fashion brands is 3.5 times, and that of ZARA is 17 times, which is five times that of the same industry.

The brand image of ZARA is not to let customers get tired of it. Fashion is the image of fresh products. They believe that most customers who have demand for fashionable clothes are not just beginning to make up their minds to buy a product. Instead, they are looking for inspiration at random, or enjoying the imagination and familiarity of ZARA with new products.

Most of the replacement consumers will set up the mentality of "not buying this time, maybe not" next time, so that consumers will buy the products they want very much, so that they will greatly improve their purchase intention.