Digital Exposed Seminar

via Herald Sun

After months of preparation, anticipation and trepidation, the new Zara Bourke St flagship is finally set to open next Wednesday June 15.
Today I attended the media launch hosted by Zara Chief Communications Officer, Jesus Echevarria who flew in especially to deliver the news.
To say there is buzz surrounding the opening is an understatement.
The expectations, given the Sydney store reportedly still has a nightclub style line-up outside during peak hours, are high with many Melbournian women desperate to get their hands on the cheap designer threads.
But at what cost to the local retail market?

As one of the world’s largest fashion retailers, including 5,000 stores in 78 countries and over 100,000 employees worldwide, Zara is a formidable fashion force.
Just last year alone, the Inditex group that owns Zara, and 8 other brands including Oysho who’s current campaign stars Aussie model Bambi Northwood-Blythe, achieved a consolidated turnover of 12,527 million euros.
According to Zara Chief Communications Officer, Jesus Echevarria the success of the company lies in it’s very complex business model or in their own words `vertical integration’.
The company works off a very flexible model that has a strong customer-centric focus in every facet of its business structure and this starts at the very basic level of customer feedback on the shop floor.
Basically, what the customer wants the customer gets – and fast.
As little as two hours from a conversation between floor staff and the customers, an order will be made and communicated to in-house designers. In 8 hours they will be consolidated and in less than 48 hours will be on a plane or a truck on their way in-store.
This phenomenal efficiency comes from the company’s history and origins as a textile manufacturer from 1963 to 1975.
“All the secrets of manufacturing is in the DNA of the company, that is why it can do this as fast as it is supposed to,” said Jesus.
In the 80s, the company expanded into a primary producer of fashion-forward garments and launched their first stores in Europe, then Portugal in 1988, New York City in ’89 and Paris in 1990.
Each time they open in a new country the collection is cleverly crafted to suit the current consumer demand, even the fabrics are different in order to suit the climate.
But the most interesting aspect of the company is the retail environment itself which Jesus called `engaging spaces’.
“The company never advertises, they are always focused on the store, everything about the store,” he said.

In no particular order, the following are considered with great detail before any new Zara store is opened;

1. Location – Jesus says they will wait ages if necessary to source the right one to suit the customer of that area.
2. Architectural project – many of the flagships around the world are historic sites that have been redesigned, while still keeping the original shell. Bourke st has been completely reconstructed while still maintaining the heritage nature of the building.

Zara Salamanca, Spain – this is actually a converted old church that was in ruins before they restructured the entire building and fitted the interior with a industrial-style metal framework.

Zara Rome

Zara 5th Avenue

3. Store windows – this is the first meeting point for the customer so much emphasis is placed on this project. Zara hire a specific design team to create the displays.

4. Interior Design – the retail environment is a carefully designed space. Jesus compares this team as `painters’, weaving their artistic magic into the theme of the collection.

And if that wasn’t enough, Zara are also environmentally conscious with the entire store designed within the `green’ theme from escalators that have a rest mode to storage cupboards that have lights switched on by feet detectors in the flooring.
As for the trends, Jesus tells us these are global so therefore each store will stock the same styles but with a difference in fabric to reflect the region.
But there will be tailor-made `exclusive to Australia’ ranges specific to the store that can’t be purchased anywhere else, such as the snakeskin clutches and matching shoes that will launch at Bourke St next week but are unavailable even in Sydney.

So what are the trends you will see next week?

1. Colour – powerful pinks, glaring metallics, emerald green, and orange burst.

2. Black and White features as a prominent colour combination from suits with white or cream shirts, to cardigans in b&w prints

3. Oriental – reminiscent of the Louis Vuitton Spring oriental theme, Japanese kimonos bearing floral prints feature over a casual look of beige tee and jeans.

Zara

4. Leather – a red leather biker jacket was a prominent feature a la French fashion house, Balmain.

Zara

5. Black – 3/4 sleeve round shoulder mini dress akin to the Calvin Klein SS 2011 version worn by CK ambassador, Lara Stone.

6. Military – for men it comes in the form of WWII trench coats in heavy wool fabric with leather detail on the neck line; for women the trend comes in the form of cargo print and skinny pocket pant, not far from the popular JBrand version.

Mens military coat

7. Metallics – this is a new trend coming through Zara, expected to land in Sydney and Melbourne next week. The star of the look is a shiny gold mini skirt.


Seen here with heavy outwear, similar to the Vera Wang SS11 runway showcase – a feminine look seriously toughened up with the heavy military style.

8. Beige, tan, caramel – leather mini skirts in tan tones, sheer silk skirts and accessories.

9. Fur – already we have seen the style set sporting this trend, with fur vests, shawls and coats being rocked all over the city.

So what effects do you think Zara will have on the Australian fashion industry? Will they be negative and drive out smaller retailers, or will they be positive and drive competition?
And what about our Australian designers? What will there future challenges be competing with Zara’s lower prices and high quality?
Personally, I will always favour my Aussie designers, but there’s no denying I too will be hopping enthusiastically aboard the Zara chain train.

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