In 2008 the moment Taeho-one of the team members- ended his military support, SPA brands were extremely unfamiliar with Koreans. Now in 2013 50 % of his clothes are SPA brands and every our team member provides severer components of SPA brands. Concept of HOT TUB brands have been well penetrated to Korea especially to 20's. Referring to SPA brands we located that performance of ZARA in Korea is not successful in contrast to success in worldwide. The reason for writing this is to figure out what is the matter with ZARA in consumer's perspective. By shopping criteria which will influence getting decisions and ZARA's perspective position, we would suggest ZARA's strategy.
The term DAY SPA means Specialized retailer of Private label Attire. GAP began use this idea in 1986. HEALTH SPA brands-such while ZARA, UNIQLO, H& M- design, make and deliver their apparels on their own. They generally change their clothes rapidly at a low price through mass production and reducing its lead-time. Through that SPA brands pursue Trendy & Stylish.
These DAY SPA brands will be showing rapid growth in Korea. Marketplace Size has been skyrocketed and expected to reach 3500 billion won in 2013. You will find three key players in Korean SPA market. All those are ZARA, UNIQLO, H& M. They have, of course , their own distinguished features. ZARA is known as a Spanish manufacturer and it established initial Korean retail store in 08. In 2012, their sales in Korea was ₩ 203, 875 , 000, 000 and provides 35 retailers. It focuses primarily on fashionable design and style. On the other hand, UNIQLO, is a Japan-based and that entered Korean market 5 years ago. Its product sales in Korea was ₩ 504, 908 million coming from 68 shops in 2012. UNIQLO can be seen as a 'Low price, High quality'. Meanwhile, this year, Swedish style brand, H& M opened up its 1st store in Korea. While H& M is the No1. Fashion company worldwide, their sales in Korea was ₩ fifth there�s 89, 982 , 000, 000 from 7 stores news, below the sales of UNIQLO & ZARA. However , H& M is growing the quickest among all brands. 'Appropriate selling price & Popular design' can easily define your own brand of 'H& M'. On top of these global brands, home SPA brands such as SPAO, MIXXO, 8 Seconds also provide been introduced in Korea. Therefore , it really is no exaggeration to say that Korean trend market is normally the one of the most competitive markets on the globe.
1 . Challenges of ZARA
The condition of ZARA is simple; 'ZARA's growth rate was dampened. ' Even though ZARA is usually second player in Korean language SPA industry, growth rate is lower than its opponents such as UNIQLO, H& Meters. As noticed a chart left, UNIQLO grew 53% in general, H& Meters did 42% but ZARA grew only 21% this year. With this tendency, it can be easily predicted that ZARA would be swept up by H& M. As well, gap between UNIQLO could increase significantly.
Cover investigate ZARA's problems involves three pursuing three steps. 1st, we carried out Focus Group Interview in qualitative feeling. We interviewed total doze people picked in Convenience Sample. They were asked to answer 'basic queries related to DAY SPA brands and the perception'. In that case, in order to verify results of FGI, Review, the second stage, was executed. We produced online survey with 118 people selected in Convenience Sample. Based on the survey results, we made Multi-Attribute Style to attract Positioning Map as another of our measures.
FGI provided a lot of clues to determine the cause of ZARA's relatively poor performance. All of us interviewed people mainly with three subjects-Preference of HOT TUB, Elements to consider, belief of ZARA. Each member interviewed 2 individuals with 10 to 30 minutes to make memo. By 12 interviewees, 5 had been males and 7 had been females. Here are comments by focus group interview. Inclination of DAY SPA was unlike person. 8 adults (3 men, 3 females) liked DAY SPA. Their main reasons for buying DAY SPA were trendy fashion and reasonable value. One of our interviewees said, " I usually buy garments from HEALTH SPA brands. They're affordable. ” But others (2 guys, 4 females) did not...