How fast fashion industry impact on Chinese customer behaviour With Zara case study - Dissertation Example

? How fast fashion industry impact on Chinese behaviour? With Zara case study. Table of Contents Chapter 3: Critical Evaluation of Research Methodologies and Methods 3 3.1 Primary Empirical Material 4 3.2 Results of questionnaire 4 3.3 Secondary Empirical Material 6 3.4 Limitations of Primary Empirical Material 7 3.5 Limitations of Secondary Empirical Material 7 3.6 Methods of Data Collection 8 Chapter 4: Findings 8 Chapter 5: Conclusion and Recommendations 11 References 15 Bibliography 16 Appendix 17 Chapter 3: Critical Evaluation of Research Methodologies and Methods As it is discussed earlier, the purpose of this study is to examine the impact of fast fashion on the buying behaviour of Chinese people and the decision making process considering the case study of Zara. The evaluation of consume buying behaviour will be examined by the implementation of several variables. In order to achieve the objective of the study, Primary and Secondary data collection method have been implemented. There are two main types of research methods. One is inductive methods and another is deductive methods. In deductive research method, research is generally started from more general overview of the research topic to more specific to the hypothesis. It is often termed as top down research approach or research methodology. The researcher also implements theory related to the topic of the research and narrow it down to the specific hypothesis. Even, the researcher narrows down to more practical observations to address or test the hypotheses and then come down to conclusion of the research. Opposite to deductive research, inductive research is worked out in different way by the researchers. It is one types of back calculation or bottom up research approach. In this type of research approach, the researchers begin with a specific observation or findings and start analysing the regularities and pattern. Finally the researchers end up drawing some general conclusion about the research topic. In this study, deductive research method has been used and therefore, the research has been started from a general overview of this research topic. 3.1 Primary Empirical Material The Primary data collection from focus group was selected for this research in order to identify the opinion and feelings of a group of a people. Zara is one of the famous fast fashion retail chains among these respondents (Chai, 2011, p.196). Moreover, the advantage of this focus group is that the data collection method will be face to face. Focus group is an effective method of qualitative research market. As the research is depending upon the customer’s motivation, behaviour and approaches, this qualitative method will be appropriate. Primary research has been conducted in Chinese high street markets and questions will be asked to the customers of fashion products in China. The questionnaire consists of 20 questions those were handed out to 25 respondents in a shopping mall. When respondents were identified, the researcher intended at random individuals who are aged between 15 and 30. Several conditions have been measured before the designing of questionnaire. Firstly, they should understand the questions properly; secondly, respondents should provide the appropriate information; and finally, respondents must be willing to give the information. Implementing this kind of face to face questionnaire handing out has a major advantage that response rates will be generally higher comparing to telephone interviews or mail surveys. The designed questionnaire is provided in Appendix. 3.2 Results of questionnaire There were total 25 numbers of people who participated in this method. Among them 15 were female and 10 participants were mail. A number of 10 students and 8 office workers have answered these questions. And the rests are health staff and civil servants respectively. The major target audience for the questionnaire were individuals between 15 and 30. Personal income level has an influence of spending. Most of the respondents earning were between 2000 and 4000 Yuan. Most of the no income participants were the school and college students. 60% of the respondents believe that comfort is the first priority, while 25% students believe in their own style. Target organization Zara has ranked second after H&M. 10 respondents have liked the brand; Zara. Identifying the approximate salary, 75% respondents spend around 300 Yuan for shopping and in terms of shopping, 50% respondents likes to visit commercial Pedestrian Street. 35 % respondents like to go for shopping with friends and 30% respondents like to go for shopping with their boyfriends and girlfriends. Among the respondents, 90% people have heard about Zara, 80% of them liked the products. The respondents who liked Zara, has gather the information about the organization mostly through internet. The percentage is 70%. Major of the respondents, feels that the pricing of Zara is reasonable and 200-500 price range is acceptable for them. The new arrivals and the customer service is the popular thing of Zara to the most. The readers of this report can rely or accept the findings from this primary research that has been conducted through asking face to face questions to random customers of fashion product in few high street markets of China. The answers of respondents are reported by explaining their direct answers to the quaternaries. Therefore, findings from the primary research are relevant and credible to research objective of this study and also reliable and authentic. 3.3 Secondary Empirical Material As the purpose of the research is to examine the impact of fast fashion on the purchasing behaviour of Chinese people and their decision-making, several theories regarding the background of the study are needed in order to identify what fast fashion is all about, how the fast fashion brands used to position themselves and the theory of buyer behaviour of consumer as well as several models of decision-making process. Several authentic textbooks, journals and websites have been used to gather knowledge and information about this topic. Secondary data has been used because it can be obtained easily. Though secondary data cannot provide all the answers, but still it is useful in many ways, such as it can help people to define the problems more adequately and identifies the ways to deal with the problems. The advantages of implementing the secondary data are to improve our understanding in the different sources of media and advertising. Dividing the fast fashion market into two different categories in the year 2009, the fashion brands for lady have accounted 25%, while the professional clothing market has accounted 10% and menswear market has achieved 15% share. Consumers are shifting towards the fast fashion category in order to consume time. According to them, the casual fashions bring the sense of a modern life that is comfortable and very much simple. The current young generation love to consume the trendy and casual fast fashionable clothes in China. According to the young people, it gives a huge emphasis on their personality. Moreover, people of medium age are also tending to shift towards the casual and trendy outfit. Therefore, it is feasible that, demand for Fast and casual fashion has significantly increased. 3.4 Limitations of Primary Empirical Material In terms of primary, research the staffs and employees have told nothing about the organization. Therefore, a questionnaire method and several respondents were needed in order to carry out the research work. As Zara is one of the leading fast fashion retail chains with huge popularity, very limited barriers had to face in order to conduct the questionnaire method. It was difficult to organize the data collection method, as the respondents were not encouraging enough to fill in the questionnaire. After convincing people for maximum time period the process has accomplished. 3.5 Limitations of Secondary Empirical Material Data missing is the biggest drawback in the secondary data collection method. The drawback of secondary data is that the information may not be relevance and accurate. Moreover, it may not be sufficient to accomplish the research objective. In an addition, the nature of the method does not necessarily fit with the current situation. There are other drawbacks too. Secondary data may lack accurateness and can be out of date. Therefore, it is necessary to evaluate the secondary data before using it. It has been described in the following two characteristics. Firstly, the latest information does not cover past two years. The sample survey used to implement in every decade in China. Therefore, it is impossible to collect fresh and current information or data. Secondly, instead of implementing the specific data, the study has to rely on the general references and the research has aimed to achieve the objective basis on the data and information as it was difficult to find the corresponding data that will result in weak and indirect convincing. 3.6 Methods of Data Collection The research method for this study is highly based on the qualitative research rather than quantitative research. In order to achieve the objective of the study, it was necessary to analyze the people’s feeling, motivation, behaviour, and attitude and decision making process towards the research topic (Bryman, 1988, p.111). However, the study has followed the both qualitative and quantitative research and data collection methods. In terms of primary data collection, the study has followed the questionnaire method, while several academic books have been used to collect the secondary data and information (Cassell and Symon, 2004, p.221). The questionnaire was filled in by the 25 respondents in front of a busy shopping mall. The study did not rely totally on the secondary data collection method as the secondary data are not fresh and correct. A sample of used questionnaire is provided in the Appendix part of the research. Chapter 4: Findings The evaluation of consume buying behaviour has examined by the implementation of several variables. In order to achieve the objective of the study, Primary and Secondary data collection method have been implemented in this study. As it is feasible that secondary data cannot provide all the answers, but still it is useful in many ways, such as it can help people to define the problems more adequately and identifies the ways to deal with the problems (Maxfield and Babbie, 2011, p.236). The advantages of implementing the secondary data are to improve our understanding in the different sources of media and advertising. The Chinese fast fashion and clothing industry is becoming highly competitive as several potential competitors are competing within the industry. Women are the potential target customers of this industry. Moreover, people of young generation are tending to consume the casual and fast fashionable clothes (Kierkegaard, 2004, 88). According to them, the casual fashions bring the sense of a modern life that is comfortable and very much simple. The current young generation love to consume the trendy and casual fast fashionable clothes in China. According to the young people, it gives a huge emphasis on their personality. Moreover, people of medium age are also tending to shift towards the casual and trendy outfit. Therefore, it is feasible that, demand for Fast and casual fashion has significantly increased. The impact of growing number of young potential consumers may be more apparent in the next stage under the conditions that more apparel elements will be added in the fast and casual clothing. Moreover, it has been identified from the study is that people of aged between 35 and 55 are also tending to consume casual outfits. According to them, the casual and fast fashions are comfortable and trendy. Therefore, it can be said that, the needs for fast fashion is significantly increasing in the Chinese market. In terms of primary empirical material, the major target audience of Zara is mainly the people of young generation. According to the respondents who participated in the questionnaire method, Personal income level has an influence of spending. Most of the respondents earning were between 2000 and 4000 Yuan. Most of the no income participants were the school and college students. Therefore, it is feasible that people of medium income level and upper medium income level tend to consume Zara’s outfits. 60% of the respondents believe that comfort is the first priority, while 25% students believe in their own style. It is evidenced that Chinese people are tending to consume comfortable, trendy and stylish outfits. The people of young generation are becoming more style conscious. Target organization Zara has ranked second after H&M. 10 respondents have liked the brand; Zara. Identifying the approximate salary, 75% respondents spend around 300 Yuan for shopping and in terms of shopping, 50% respondents likes to visit shopping malls. Zara outlets have been situated at in the shopping malls in all the metro cities of China. 35 % respondents like to go for shopping with friends and 30% respondents like to go for shopping with their boyfriends and girlfriends. The fashion products of Zara have all kind of outfits, as they have premium priced products and economic price ranged products. Among the respondents, 90% people have heard about Zara, 80% of them liked the products. The respondents who liked Zara, has gather the information about the organization mostly through internet. Zara is a popular global retail fashion outlet chain. Therefore, the popularity of brand is increasing day by day in China. The brand has achieved huge awareness in Chinese market. The percentage is 70%. Major of the respondents, feels that the pricing of Zara is reasonable and 200-500 price range is acceptable for them. The new arrivals and the customer service is the popular thing of Zara to the most of the respondents. Relating the analysis part with the findings, it can be state that China is a potential market place for Zara. The organization already has achieved huge brand awareness in China. People of china are tending to consume the fashionable and trendy outfits that have been provided by Zara. Major of the people of China has influenced to buy the outfits from Zara as the organization used to provide the outfits in both economic and premium price level. Moreover, the quality and style of clothes has already increased the brand image of Zara. People of young generation used to gift the fashionable clothes of Zara to their boyfriend or girlfriend. Average price range, quality of stylish clothes, huge brand awareness, increasing brand image, high disposable income of Chinese people have motivated the Chinese to buy the fast fashionable outfits from Zara. In terms of competition, the organization is facing competition from H&M, GAP Inc, Bestsellers and many more, but the core competency and customer loyalty has resulted a positive output for Zara (Holt and Cameron, 2010, p.112). Chapter 5: Conclusion and Recommendations Zara is a successful fast fashion retail chain in global market. The organization has effectively implemented the internationalization process into business (Leeman, 2010, p.16). Major of the people of China has influenced to buy the outfits from Zara as the organization used to provide the outfits in both economic and premium price level. Moreover, the quality and style of clothes has already increased the brand image of Zara (Aaker, 204, p.77). People of young generation used to gift the fashionable clothes of Zara to their boyfriend or girlfriend. Therefore, it is feasible that China is a potential market place for fast fashion industry. It is evidenced that an impression of a particular brand is being constructed by the processing and information that has been gained. Chinese people are becoming loyal to the brand called Zara due to high brand image and brand recall. The impact of growing number of young potential consumers may be more apparent in the next stage under the conditions that more apparel elements will be added in the fast and casual clothing. Moreover, it has been identified from the study is that people of aged between 35 and 55 are also tending to consume casual outfits. According to them, the casual and fast fashions are comfortable and trendy. Therefore, it can be said that, the needs for fast fashion is significantly increasing in the Chinese market. In terms of data analysis and research method, the major target audience of Zara is mainly the people of young generation. According to the respondents who participated in the questionnaire method, Personal income level has an influence of spending. Most of the respondents earning were between 2000 and 4000 Yuan. Most of the no income participants were the school and college students. Therefore, it is feasible that people of medium income level and upper medium income level tend to consume Zara’s outfits. The prospective Chinese customers actually purchase the brand name rather than purchasing the clothes. It is an effective example of Brand Loyalty. The quality and style of clothes has already increased the brand image of Zara (Haig, 2011, p.254). People of young generation used to gift the fashionable clothes of Zara to their boyfriend or girlfriend. Average price range, quality of stylish clothes, huge brand awareness, increasing brand image, high disposable income of Chinese people have motivated the Chinese to buy the fast fashionable outfits from Zara. It is feasible that, the organization has positioned its products according to the income level, age group and current trend of Chinese people. Women are the potential target customers of this industry (Hall and Bock, 2010, p.72). Moreover, people of young generation are tending to consume the casual and fast fashionable clothes. According to them, the casual fashions bring the sense of a modern life that is comfortable and very much simple (Cheverton, 2006, p.199). The current young generation love to consume the trendy and casual fast fashionable clothes in China. According to the young people, it gives a huge emphasis on their personality. Moreover, people of medium age are also tending to shift towards the casual and trendy outfit. Therefore, it is feasible that, demand for Fast and casual fashion has significantly increased. Zara has both the premium and economic price level products. Therefore, maximum people of all income level and all age group are gradually becoming the loyal customer of Zara. The global brand awareness and significant core competencies of the organization has created the success story for Zara in China. After evaluating and analyzing all the aspects related to the research topic it can be recommended as follows. Zara is the fast growing fashion brand in Chinese market (Tungate, 2008, p.43). They need to provide quality and luxury at the same point of time as the fashion attribute in China in order to motivate more number of buyers. They need to reduce operational cost in order to control the pricing strategy of clothes. The reduction of price will help to maximize the business profit. The organization need to establish new retail outlets in the developing towns as the trend of Chinese people is to consume fast fashionable clothes. They should focus on the promotional strategy as it is an effective marketing tool that motivates the target customers to buy the products (Jobber, 2012, p.320). There are several potential competitors, who are trying to achieve maximum number of market share within the industry. Therefore, effective marketing strategy and process will increase the brand value of Zara in China. They should implement in store customer feedback system. It will improve the business process of Zara. If any purchaser or buyer is not satisfied with the in store customer, service or product attribute and quality or price range, then the feedbacks from that customer will help the organization to monitor these issues. It will help to improve their business process. Moreover, implementing feedback option will positively increase the core competency of Zara in near future. References Aaker, A., 2004. Brand Portfolio Strategy. New York: Free Press. Bryman, A., 1988. Quality and Quantity in Social Research. London: Unwin Hyman. Cassell, C., and Symon, G., 2004. Essential Guide to Qualitative Methods in Organizational Research. London: Sage. Chai, T., 2011. Fashiona Supply Chain Management. Hersey: Idea Group. Cheverton, P., 2006. Understanding Brand. New York: Kogan Page. Doherty, M., 2004. Fashion Marketing. London: Emerald Group Publishing Limited. Haig, M., 2011. Brand Success. New York: Kogan Page. Hall, T., and Bock, W., 2010. Ruthless Focus. Indianapolis: Dog Ear Publishing. Holt, D., and Cameron, D., 2010. Branding a Store. New York: Kogan Page. Jobber, D., 2012. Foundations of Marketing. New Delhi: Tata McGraw-Hill Education. Kierkegaard, S., 2004. Either /Or: A Fragment of Life. London: Penguin. Leeman, J., 2010. Supply Chain Management. London: BoD. Maxfield, M., and Babbie, E., 2011. Basics of Research Methods. Stamford: Cengage Learning. Tungate, M., 2008. Fashion Brands. New York: Kogan Page. Bibliography Ellwood, I. (2002), Essential Brand Book: Over 100 techniques to increase brand value (2nd edition), New York: Kogan Page, Limited. Hague, P., and Jackson, P., 1994. The Power of Industrial Brands. London: McGraw-Hill. Kapferer, N.,1992, Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity, Kogan Page, London. Yin, K., 2003. Case Study Research. London: Sage. Kotler, P. and Pfoertsch, W. (2006), B2B Brand Management, Berlin: Springer. Tungate, L., 2005. Fashion Brands. New York: Kogan Page. Appendix Questionnaire 1. What is your gender? A. Male B. Female 2. What is your profession? A. Office Worker B. Artist C. Civil Servant D. Science, Cultural and Health Staff E. Social worker F. Student 3. How old are you? A. Under 15 B. 15 – 20 C. 21 – 25 D. 26 – 30 E. 31 – 40 F. 41 – 50 G. 51 – 60 H. Above 60 4. What is your approximate monthly salary? (In Yuan) A. 800 – 2,500 B. 2,500 – 4,000 C. 4,000 – 7,000 D. 7,000 – 10,000 E. Above 10,000 F. Under 800 G. No Income 5. Describe your own fashion style A. Progressive Fashion B. Following Current Fashion C. Having Your Own Style D. Comfort as First Priority E. Not Very Important 6. Which of the following fashion brand have you ever heard about? A. Zara B. Baleno C. Bestseller (including Jack&Jones, VeroModa andOnly) D. Giordano E. Metersbonwe F. H&M G. Jeanswest H.None 7. How much money do you possibly use on buying clothes every month? (In Yuan) A. Less than 100 B. 100 – 300 Yuan C. 300 – 500 D. Above 500 8. Where do you usually go for shopping? A. Specialty Chain Store B. Shops along Commercial Pedestrian Street C. Clothing Market D. Supermarket or Department Store E. Internet Shopping 9. When you come to buy clothes, which of the following factors would you like to Consider first? A. Colours and Style B. Price C. Popularity at the Time of Buying D. Material and Workmanship E. Brand F. Comfort 10. Who do you usually go shopping with? A. Yourself B. Friends C. Boyfriend or girl friends D. Parents E. Others 11. Have you ever bought any clothes from Zara? A. Very Often B. At Least Once C. Never 12. How much do you Zara? A. Like it Very Much B. Not Bad C. Do not Like it D. Do not know the brand 13. How did you get to know the about Zara? A. TV B. Newspaper C. Internet D. Magazine E. Introduced by Friends 14. What makes the brand Zara attractive for you? A. Brand Culture B. Price C. Style and Design D. Quality E. Colours F. Furnishings of the Outlet 15. What do you think of Zara’s slogan? A. Very Innovative and Special B. Good C. Normal D. No Impression 16. Do you think the price of clothes set by Zara is reasonable? A. Very Reasonable B. Normal C. Not Acceptable D. Don’t Care 17. What is your acceptable price for the clothes labelled by Zara? (In Yuan) A. Less than 200 B. 200 – 500 C. 500 – 800 D. Above 800 18. If you had bought any clothes from Zara, what was your reason? A. New Arrivals B. Holiday on Sale C. Season Change Sales D. Good Service Attitude E. Display and Furnishings of the Outlet 19. What are the things that you do not like about Zara? A. Delay of New Arrivals B. Not Effective Advertising C. Products Too Expensive D. Unchangeable Pattern and Style E. Inferior Quality F. Other (Please Define): 20. If you had any suggestions for Zara, please write them down. Read More