The shop did not open ZARA and Esprit "fire"

ZARA, the world’s leading affordable clothing brand, has not officially entered the mainland market, but has already let its opponents feel chilled. Yesterday, "Daily Economic News" learned from reliable sources that Esprit's 2-storey storefront in Shanghai Times Square will expire in mid-year next year. If nothing else happens, the earliest Esprit image store in Shanghai will be in turmoil. Exit from the current street location, and the replacement is exactly the "price killer" - ZARA.

The head of the marketing department of ZARA's Spanish headquarters in Shanghai confirmed the information of the new store in ZARA, but she would not reveal more details. Informed sources disclosed that when Shanghai Times Square introduced ZARA, the conditions for ZARA's opening were shops along the street, and the area must be large. The target was to refer Esprit to the flagship store of Times Square. In order to introduce this target customer, Shanghai Times Square made a concession and the two parties have basically negotiated. Esprit may be relocated to the East Wing of Times Square in Shanghai, Lane Crawford.

“Daily Economic News” saw yesterday at the Esprit store in Shanghai Times Square, Huaihai Zhong Road, this flagship store consists of two floors, with an area of ​​approximately 1,600 square meters. Esprit and edc's lineups are on display in the store. The store is bright and wide. Although it is work time, the flow of people is not fragmented.

An apparel industry source told the “Daily Economic News” that Esprit has more than 60 stores (including counters) in Shanghai, leading the middle and high-end casual wear market, and the arrival of ZARA will bring “cruel” to Esprit. Impact.

He believes that the price of ZARA jeans in Hong Kong is about 400 yuan, and Esprit's similar products are close to 600 yuan, not competitive in price. “Actually, Esprit's price in Hong Kong is more than half of that in Shanghai.” ZARA’s headquarters also confirmed that this brand has already opened more than 2,000 stores worldwide, and the prices in the mainland will maintain its competitiveness in the global market. The logistics model will also be copied to the Mainland.

“ZARA has had too many successful experiences in the world.” Industry insiders lamented that this popular brand known for its plagiarism and fast logistics model will have a considerable impact on the mid- to high-end casual wear market in the mainland market. According to Bain's survey, ZARA will allow customers to patronize the average of 17 times within a year, and Esprit will bear the brunt because of its “considerable overlap” with its “consumer group”.

It is worth mentioning that another ZARA Shanghai store, currently being renovated, is located on the former Pearl River Restaurant at the Ping An Cinema on Nanjing West Road. It is just across the road from CITIC Pacific, and Esprit's largest flagship store in Shanghai is also located here.

Esprit, known as the first white-collar casual wear brand in big cities, officially entered the mainland market at the end of 1992, and subsequently established the Esprit China headquarters in Shanghai, namely China Resources Inc. A source from Marketing Department of China Resources Inc. said that it has learned that ZARA will enter the Shanghai market, but there is no response to this.

In addition, unlike Esprit, which mainly focuses on franchising in the mainland market, ZARA chose the self-operated model to enter the mainland market.

Hou Wei, deputy general manager of Shanghai Times Square, believes that agents can save a lot of effort in brand development. In contrast, self-employed companies need to invest a lot of energy. ZARA does not choose agents, indicating that they are confident in their own strength.