How to Leverage Chinese Ecommerce to Become a Top 10: The Rise of Zara

Some months ago, we identified some Insights on ZARA in the Chinese digital market that came to underline its first steps on Chinese Ecommerce and the main reasons which led the company to choose Tmall as its official flagship store.

Zara´s stay in China began ten years ago and would not be long before the Management decided to set up its own online shopping website The Zara China and publish an M-shop called Zara.

What has been the result of the policy undertaken in recent years?

The unstoppable rise of Zara

After its landing in Shanghai, Zara currently counts with 182 stores in China. The brand is undergoing a process of rapid expansion, but gradual: after settling in major cities, continues to expand its business model in medium-sized cities –Second and Third Tier cities-.

The expansion of Zara in China occurs while increasing its international presence; the company is already present in 90 countries with a network of 2.170 stores…and there are still much more worlds to conquer.

In a curious twist of fate, while Zara undertakes an ambitious international growth -focused on Asia-, some others Chinese counterparts are the ones which starts their landing in Europe. It is especially noteworthy the case of Chinese Mulaya. Born in a spirit reminiscent of Zara, it advances rapidly in the West as a flagship Chinese in women’s clothing.

Ten years to become one of the 10 most recognized brands by Generations Y & Z

It would be this August when the Chinese RTG Consulting launched its latest study 2016 RTG Brand Relevance Report. The Report comes to underline the relevance that some brands reach between so-called Generation Y and Generation Z in China, their consumer behavior and lifestyles.

Surrounded by Chinese –Xiaomi, AliPay, Wechat, Taobao- and some others well-known international brands –Apple, Adidas, Nike, Uniqlo, H&M, Converse, New Balance-, Zara has entered into the Top 10, after becoming the sixth Most Recognized brand in China for the generation under 36 years.

But results are better for the Spanish company when we dive into Clothing brands. If we look at the survey results, we find that young Chinese place Zara as the second most-recognized brand in their industry, just behind Adidas.

China is already the second most important market thanks to ECOMMERCE

Its huge success in China is due to the combination of three main factors we describe below more in detailed:

• Zara offers a constant renewal and an affordable luxury as concept.
• Zara decided to start playing at the Chinese ecommerce scene by the hand of Tmall.com, instead of trying to build its own infrastructure to cover the entire Chinese market.
• Its Electronic commerce policy not only supports the growth of its own Digital industry, but also the Company growth as a whole: it has become a safe way to promote the brand in places where physical presence does not yet exist.

After going through critical situations in its implementation process in China, the company has adapted to the specific conditions of the market to which it is addressed. Zara not only has understood that nowadays, any approach to the Chinese territory must have a policy consistent with the preferences of the target population and be brave and fast to react to local consumer tastes,  but also that Ecommerce has become the board in which the battle occurs, an step into future and the key  that makes the difference.

All we can we do for you

Inevitably, the present is already future and both are settle on the virtual world. Knowing the ins and outs of the digital industry, take advantage of Ecommerce for the growth of our business and not give up a proactive marketing policy are the keys for successful development in the country.

In the company, we have the experience of an expert team. We are used to deal with the constraints of the Chinese market and we seize opportunities.

Let us team together. Visit us in 2 Open.