Zara & H&M Essay

2271 words - 10 pages

Table of Content
1. Executive Summary
2. Introduction & History of Zara
3. Introduction & History of H&M
4. Products Offered By Zara & H&M
5. Marketing and Communication Strategy of Zara
6. Marketing and Communication Strategy of H& M
7. SWOT Analysis: Zara
8. SWOT Analysis: H&M
9. Conclusion

Executive Summary
This report will examine and make comparison of the communication strategy between two leading and established fashion brands, Zara & H&M. Through close study of each of their communication strategy we can understand the reasons behind their success in the current dynamic and competitive market. In the Hong ...view middle of the document...

In 1980, the company started its international expansion through Porto, Portugal. In 1989 it entered the United States market and in 1990 France market. This international expansion was increased in the 1990s, in 1992 Mexico, in 1994 Greece, Belgium and Sweden. Currently Zara has presence in over 73 countries worldwide and a total of 1770 stores.
Inditex decided to setup Inditex Asia Ltd in Hong Kong in 1997 as its regional buying office. But the first Zara store in Hong Kong was not opened until May 2004. According to David Konn (Inditex Asia General Manager) “the increasingly affluent mainland Chinese consumer, the top target for many high-end European and US brands in the city will not be Zara's main focus.” [2]. Since the first store of Zara in Asia was opened in Japan in 1998, Zara has been watching Hong Kong for quite some time, Hong Kong has always been an important market for the brand. The first Zara store in Hong Kong opened in the prestigious Central Financial district of Hong Kong and in one of the most recognised high end malls, IFC Mall. In 2004, IFC was still a very new shopping mall, opening just the year before. Zara choose IFC as its first flagship store in Hong Kong because it's located in the same building as high-end western brands, for example, Prada, Furla, Ferragamo and also its spanish competitor Mango.

Introduction & History of H&M

H&M, full name is Hennes and Mauritz, originates from Sweden. It makes fast fashion clothing for men, women, teenagers and children. The first store of H&M was opened on the high street of Vasteras, Sweden in 1947. It currently has 2629 stores in the worldwide and it ranked the second largest global clothing retailer behind Inditex. The first store outside of Sweden was opened in Norway in 1964, and it kept opening many stores in Europe's Scandinavia region including Denmark, Switzerland, Germany and the United Kingdom. The first store in United Kingdom was opened in 1976. In the 1990s, H&M expansion led to opening of stores in Austria, Belgium, Finland, France, the Netherlands and Spain [3].
The first store in Asia was opened in Hong Kong on March 2007. And then shortly after followed by stores opening in China, Japan and South Korea. The first H&M store in Hong Kong was opened on 10 March 2007, it was located on 68 Queen's Road Central. On the opening day, there was over 1000 people queuing outside the store and waiting for the official opening at 11am, with some people that has camped outside for more than 24 hours, creating a buzz around the event [4]. This was the flagship store in Hong Kong, the store measured approximately 3,500 square meters over four floors and offers an extensive collection of fashions for women, men, teenagers and children. But as retail property rental prices boomed in Hong Kong, H&M was forced to close the flagship location after just 6 years. The same location was taken over competitor, Zara. According to Cher Chui, '' our...

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