SPA system
SPA(Speciality store retailer of private apparel) : SPA means to provide products to customers by reasonable price through innovative system from design and plan to sale, distribution and produce.
SPAbrands have these following strong points.
1) A company can manage all the process of planning, producing and even distributing.
2) Through 1, they can cut down their production cos
From newborns to adults aged 45
(do not define their target by segmenting ages and lifestyles)
⇒ ZARA KIDS, ZARA YOUNG, ZARA WOMAN, ZARA MAN
SPABrands in Korea
Started to flow in with the launch of Mango in 2001
So far ZARA, UNIQLO, GAP, FOREVER 21 are in the market and H&M, Top Shop will be launched next year
International SPAbrands’ market share in Korea is going over 50%
SPAbrands in the world and when it became the number one brand, there is also fine human resources management system which encourages employee to work hard. UNIQLO promotes diversity, so they employ disable people and focus on global communication. Also they have program for workers to improve human resources environment and develop skills. H&M which has the biggest markets in the world has 3 bi
SPAbrand
T
- Internal competition
- Threat of substitutes is large
- Increased raw material price
- Compared to yen(Japanese money) yuan’s (Chinese money) exchange rate revaluate
W
Low brand value
Lack of differentiation
UNIQLO provides good quality products with inexpensive price
Various Designs– Global R&D center in Tokyo, New york, Paris, Milano
Focus on Simple
GlobalSPAbrands (ZARA, GAP, etc) penetrated the
Korean market by collaborating with the local conglomerates
- Easiest way to make success in Korean market due to the
unique Korean distribution system
“Korean consumers are used to finding their favorite stores
through department store chains”
- Refused Hyundai’s JV proposal (18% incentive)
-Heavy & Conc