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https://ww.fashionnetwork.com/news/Zara-returns-to-the-metaverse-with-zepeto,1515026.html

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Inditex is not shying away from combining innovation and artificial intelligence in its future projects, as seen in its recent Stradivarius collection. Along with these advances, the fashion giant is also continuing its long-term strategy in the metaverse. This initiative began in 2021 with Zara's first collection on the South Korean platform Zepeto in collaboration with the collective Ader Error.

Zara has been actively exploring the potential of the metaverse. Following its first successful venture with Ader Error, Zara continued to release collections on the platform, including 'Lime Glam', 'Y2K Creatures', and ' Valentine's Tale'. Now, on Thursday, May 11, the Galician conglomerate's flagship brand is launching its latest metaverse collection in partnership with Zepeto called 'Fairy Magic Idols'.

The capsule was designed as a "digital story" that takes inspiration from the beauty of nature and the arrival of spring. The collection adopts a "phigital" style, offering both physical and digital garments. The physical line includes six denim garments, four tops featuring the collection's iconography, two bags, two models of sandals, and two beauty products - a gloss and a lip balm. All products will be available for sale on the brand's website.

Among Zara's digital offerings is a set of six avatars, designed with "fantasy influences" and "spring elements" such as flowers and butterflies, and featuring modern details like bows and piercings. The collection offers a selection of denim garments that will also be available in physical format as well as sandals with socks, wings, and fantasy glasses, all of which will be available on the Zepeto platform. Additionally, the fashion brand has developed a new dedicated lends that will be available for use on Snapchat, as with previous collections.

In the last fiscal year, the Inditex group broke sales records, reporting a surge of 17.5% to 32.569 billion euros, and recorded a net profit growth of 7% to 4.130 billion euros.

Zara (which reports its income jointly with Zara Home) recorded a remarkable 21% increase in revenue to 23.761 billion euros, cementing its position as the top-performing chain of the Inditex group in terms of sales volume. As of January 31, the brand operates globally with a total of 1,885 stores out of the 5,815 owned by the parent company.

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Zara returns to the metaverse with Zepeto

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News collection : On Thursday, May 11, Zara is launching the 'Fairy Magic Idols' capsule collection, marking its fifth foray into the metaverse through a collaboration with the South Korean platform, Zepeto. (#1515026)

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By Anya

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This device is used to scan the whole shop floor with an app called ‘25R’.

The ‘Bluebird’ picks up a signal from the unique tags attached to each individual item.

It allows you to wave the device around the shop floor, fitting rooms and stock room and identify when you are near the item you are trying to find.

When near the item, the Bluebird will beep which allows to retrieve the item, beeping louder and faster the closer you get.

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When a customer walks into a store asking you if you have a certain item in a certain size, the ITX app allows you to identify whether that specific item is either on the shop floor or the stock room. If the item is on the shop floor, you can let the customer know and use the app to locate the zone and wall/table. If the item is not in the place of what the app is telling you the Bluebird will help you to locate it.

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This is when you use the Bluebird to scan what is on the shop floor and stock room to allow the employees to know the quantity of an item and where it is placed. It makes it easier to know if the item is actually in the right place.

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Zara Finds Shoplifters Outsmarted Its New Security System

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Inditex SA is racing to iron bugs out of a new anti-shoplifting system for its Zara stores, slightly delaying its rollout partly because the security tags were easy to identify and remove in initial tests, according to people familiar with the matter.

Chief executive officer Oscar García Maceiras unveiled the new technology in March and pledged to roll it out for tests in all Zara stores worldwide over the summer. The system relies on tiny chips known as RFID, doing away with the hard plastic tags on garments that require checkout clerks to remove them.

The new technology has run into teething issues. Staff in several countries have raised concerns to management that the technology may actually make theft easier, according to the people, who asked not to be identified.

The problems come as retailers need to boost their defences against an increase in shoplifting. The British Retail Consortium recently found that incidents of store theft increased by 27 percent last year across the UK's 10 largest cities amid the surge in inflation. Primark is adding security guards and cameras to counter the phenomenon, the discount retailer said Tuesday.

Inditex had said it would get the technology into all its shops for testing by July, and that has yet to happen. The plan was that the chain would test the system over the autumn-winter season. Delays are in part due to supply bottlenecks, according to several of the people. The retailer downplayed the issues.

"The in-store implementation process of the new soft-alarm system, which uses several technologies, is going according to plan, without any significant incidents," Inditex said. The retailer added that the new system hasn't resulted in any detectable change in garment theft.

The new method, in which the tiny chips are placed on labels or inside the clothing fabric, is a key part of Inditex's strategy to seek all the synergies it can between its e-commerce business and its brick-and-mortar store network.

Inditex's new security system is supposed to reduce theft by 60 percent, according to a report by Bank of America that cited Associated Security.

Shares of Inditex were little changed in Madrid trading Tuesday. The stock has gained 45 percent this year as the retailer has been reporting its gross margin at record levels. Inditex is expected to report an increase of about 28 percent in first-half operating profit when it reports Wednesday.

Hard security tags, which require extremely strong magnets to remove, will eventually become obsolete, according to Arkansas-based retail strategist Carol Spieckerman. Still, retailers have yet to come up with a system that can fully replace them, she said.

"Theft-thwarting technology is very much in test-and-learn mode currently, and everything is on the table," she said. "Unfortunately, any solution that relies on physical tags or sewn-in chips is vulnerable to sabotage as removal techniques are discovered and promoted online."

Inditex started testing the technology this year in some stores in Spain. Shoplifters quickly figured out how to remove the small chips, which were initially implanted into labels. Another problem is with alarms ringing when customers walked into the store to return items purchased online.

As Inditex works to integrate its online business and physical stores, it's adding collect points for internet customers in Zara shops. Some e-commerce orders are also delivered from big shops rather than warehouses.

The new system would make those processes even more efficient because a clerk wouldn't need to remove the hard security tag. Plus, checkout time in brick-and-mortar shops would be reduced, and it'd become easier for Inditex to expand self-checkout.

The company said in June that it aimed to eliminate all hard tags and eventually deploy the technology across its brands.

After months of experimenting with placing tags in different places on the garment, one possible alternative is a special type of thread made of a miniature RFID tag that's wrapped in textile yarn and sewn into garment seams, the people said.

While the new technology will add to Inditex's rising costs, over the long-term, it should help boost profit. Theft resulted in about $66 billion in lost sales for retailers in the US in 2021, according to the National Retail Federation.
By Clara Hernanz Lizarraga Learn more: The Organised Retail Crime Phenomenon, Explained Reports of large-scale theft rings are driving US lawmakers to explore tough-on-crime policies. Data on whether there is a crime wave paints a more ambiguous picture. BoF unpacks the murky situation.

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Zara Finds Shoplifters Outsmarted Its New Security System

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The British Retail Consortium reported that store theft increased by 27 percent last year across the UK's 10 largest cities.

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in the article, it states that security tags have been outsmarted by shoplifters as they can be easily removed and identified. in the future, inditex seek to put small chips into the labels. it then goes on to mention that they may need to be sewn into place.

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1. Non-verbal, Verbal, Active Listening, Written

2. Verbal (pros) - Makes it more certain and official (cons) - May seem less genuine. Written (Pros) one may look back at it to confirm. con may be mistranslated

3. It is important because they will go away feeling satisfied and its good for the company

4. Active listening is when you demonstrate listening by gestures and maybe a nod of the head when someone else is speaking to you. It allows you to speak and reflect on what the person has been speaking about.

5. Feedback is important to give as it gives you the opportunity to react and improve. It helps a person motivate and feel encouraged. It promotes personal growth.

Examples

Feedback is important at Massimo Dutti as it allows the employees to act and grow as a team. It helps them to learn from their mistakes.

Negative feedback such as using an abrupt tone could knock your confidence and not encourage

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Recording of the data with Peer (manager)

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Recording of the data with Peer (manager)

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2 key findings and 2 actions

Data: Sales on the retail app

Manager: As you can see from the past week, women’s wear is making 60% of the sales, whilst men’s wear is making 40%. All I ask is that you can be selling more shoes in men’s wear as women’s wear shoes met the target.

Me: Have you got any tips on how to do this?

Manager: Try to offer more outfit choices, cross sell, remember to connect with the customers. If you see a male about to purchase a suit why not offer some shoes to go with the suit.

Me: That sounds good, I have also noticed that we need to make £X today without SINT which doesn’t sound achievable.

Manager: This could be because this day last year fell on a bank holiday meaning the store made an awful lot of money. I suggest that we could possibly think about  looking back at the retail app and seeing what collection is selling the best and maybe moving more near to the front of the store .

Me: Ok, I’ll speak with the VM’s and we can get that sorted.