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Gap Vs Zara Essay

5226 words - 21 pages

Zara vs. GAP Inc.
American GAP and Spanish ZARA
We are going to compare two super giant clothing retail companies of the world in this thesis. These two giants are dominating apparel retailing market nowadays with their simple and attractive with high level quality of clothes. We will try two analyze working culture, business performance and history, competition and geographic dominance of two clothing retailer giants. Years before two small stores opened and they succeed to dominate market with their modern style and different business doing.

• Zara has already changed the fashion industry. - Business Insider
Zara is most #58 biggest brand in the world ...view middle of the document...

Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market. At present, Zara launch 10,000 new articles per year across their portfolio of stores. Finally, store location, as any marketing is left to store location rather than advertising. Opting for a strategy of minimal advertising provokes the consumer into having to visit their stores. Securing a foothold in as many markets as possible with the intended outcome of building brand awareness and an increased market share has resulted in Zara developing their brand, launching Zara Home. Zara opened their first store in Spain in 1975 and have since expanded internationally, opening their first international store in Portugal in 1988, and later opening a further store in New York, US, in 1989. Today the Zara name is recognised throughout the entire world. The clothing sector is at current, the second largest in UK retail. The market has recently been flooded with value fashion as Supermarkets for example launch their own brands. Bruce and Daly (2006:330) view the entrance of supermarkets into the clothing market has “increased competition and redefined how customers shop for clothing”; impacting the consumer appreciates the facility of being able to buy fashionable clothing affordably as part of their weekly shop. This has resulted in specialists having to re-think their value proposition. There has been a major drive for efficiencies, but commentators regard further price cuts as not the answer. Consumers are now seen to be deviating away from the factor of low prices and are showing a far greater interest in shorter response time. In an industry where time is the main driver for gaining a competitive advantage, companies are striving to shorten response time, ensuring that consumers get what they want when they demand it. The retail market traditionally endures both volatile and turbulent activity and as time progresses product lifecycles are becoming significantly shorter. Christopher (2000:37) recognises “the importance of time as a competitive weapon” indicating that by having the ability to provide when the fashion consumer demands, results in a sustainable advantage over competitors. The turbulence of the industry is a result of companies outsourcing their production to overseas nations in order to take advantage of cheaper labour costs. With an industry struggling to remain profitable, competing on price alone is no longer suffice. Leading back to the notion of time, and the expectations from consumers who thrive on constant change and new products frequently reaching the high street shelves. Sourcing products from overseas poses problems for the industry where speed is a vital necessity.

Gap Inc.
A small store was opened in 1969 by Donald Fisher and his wife near San...

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