Competition; H&M’s current competitors in Brazil are Zara, Lojas Renner and C&A, Marisa and Riachuelo. The key similarities for comparison between Zara and H&M are that they are European based companies, are fashion forward at lower price retailers, and have a strong international expansion strategy.
1. Zara offers clothing and accessories for men, women, maternity, children, and baby. Zara offers trendy clothing choices designed based on international apparel tastes. In Brazil, Zara has 28 stores out of which 9 are in São Paulo. About 80% of Zara’s clothing is produced in the perimeter of Spain and its headquarters.
2. Lojas Renner is a Brazilian clothing and apparel department store ...view middle of the document...
However, C&A has also been accused for buying clothes from producers with illegal immigrants whose basic rights as human beings are not respected.
4. Marisa S.A. is one of the largest Brazilian department store chain specialized in women’s clothing based on the number of stores in Brazil. The company’s business strategy and operations focus primarily on middle-lower income women between the ages of 20 and 35. The company’s target customers are members of the largest socioeconomic group in Brazil, according to the Brazilian Association of Population Studies (Associação Brasileira de Estudos Populacionais), or ABEP. Marisa designs and sells at competitive prices a wide variety of products that reflect current national and international fashion trends. Its products are sold primarily under the brand “Marisa” and are displayed in Marisa’s stores according to “lifestyle” categories.
5. Riachuelo is an apparel retailer with more than 121 storesnationwide and over 309,087 m² of selling space in operation. Riachuelo’s strategy is to offer sustaining affordable prices while improving the quality of its products. During the last years, Riachuelo has developed and strengthen its private labels, each one with its own visual identity and target audience. During a ten-year period (from 1993 to 2003), the company´s revenue more than tripled.
Barriers to Entry/Exit; H&M invests a lot in advertising, which may aid them in entering new markets successfully if the local customer is aware of H&M’s merchandise mix. The branding consultancyInterbrand ranked H&M as the 21st most valuable global brand in 2009, making it the highest ranked retailer in the survey. Its worth is estimated at US$ 12–16 billion. However, the...