Youngor P.K. Zara

       Zara, the leader of the fast fashion industry, wins the competition based on its business model. As a fashion company, Zara attracts the customer who wants the high fashion style with lower price compare to the expensive couture.  More over, Zara cares more about their consumer and follow the change of their needs. "Fast" is the key factor for them to beat H&M and Gap. But how can Zara make the lead time shorter than its competitors? The core value of its business model is value chain. The efficient integration of the fashion industry value chin reduces the the manufacturing lead time. The supportive information system enable the information, especially the consumer needs, exchange from the design point of view to the production point of view. Thus, Zara only needs 7 days to introduce the new apparel to its consumers in season.

     For Zara, it doesn't put too much energy on its own manufacturing operation. Instead, Zara out source the production part but put more efforts and resources on the marketing expansion and design, their core competitive advantage. It also establish the brand image as fast fashion at affordable price. The company focuses only on the fashion apparels and accessories.  Because of its success, most fashion apparel company take the same strategy and try to earn back their lost market. However, once the brand image established and have its loyal customer, it's difficult to change consumer's loyalty.



      Unlike Zara, Chinese apparel company, Youngor, take a different strategy. While, Youngor is not only a apparel company that target for the business person, but also engaged in different industries like the real estate and investment. Thus, the profits earn from the other industry allow Youngor has more funds for its apparel business expansion. During the initial period, the company didn't have enough money to expand and establish its own retail system. So it have to work with other retailers as the same time. But for the apparel business, the company owned retail store is more important because it can help the company to establish and reinforce the brand image.

Although I do agree that this strategy can benefit the business for the previous business environment, it is not an sustainable model.  Losing focus will make the company lose its core capability on all those industry and make a more complex resource allocation problems. Unlike Zara, Youngor needs to consider more can what's the consumer need, but what the company need.  In the end, the company will lose its business, especial on the apparel business in the emerging Chinese market.