ddp design fair

Written by Jungho Park (Professor of Myongji University)

Specialty store retailers of private label apparel (SPA) or fast fashion brands refer to clothing brands that directly manage the entire process from planning and design to production and manufacturing to distribution and sales. Uniqlo, Zara and H&M are well known examples of SPA brands. They have been popular around the world since they have the advantage of being able to mass produce new products within about 10 days according to the demand and trends of the market.

However, in-store marketing strategies of these SPA brands are quite similar. Even though they sell inexpensive clothes, their stores feature a sophisticated atmosphere. They even operate huge flagship stores. Since it is difficult to make a lot of profit by selling cheap clothes, operating huge and luxurious stores can lead to greater financial loss. However, they operate on a hidden strategy using consumer psychology.

SPA brands operate huge flagship stores to encourage consumers to stay longer and shop longer. If the store is small, shoppers are highly likely to take a look at clothes near the entrance and pass by the store. If the store is large, it is easy to attract customers into the store since it is hard for them to see clothes deep inside the store without stepping inside. Once shoppers step inside the store, they are more likely to choose and try on a variety of clothes from the rack. In most cases, people casually buy fast fashion clothes on the fly when they find something they like in the store. Therefore, encouraging consumers to look through clothes and stay longer would lead them to buy things on impulse.