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...

Other Papers Like Zara & H&M

Zara, Success Story Essay

908 words - 4 pages stores. Such strategy means catching up a trend when it is in vogue in the fashion circles. On the other hand H M company needs about two months to do the same job. It is this difference which makes Zara unique from others. Zara has teams in the international arena, who observe the latest fashion trends and report leads to head office. The mangers are also involved in tracking customer demands through sales analysis; this process enables Zara

Brand Essay

1384 words - 6 pages Brand positioning Focusing on 2 clothing brands “ZARA” and “H&M” ZARA Brief Introduction Zara is a Spanish clothing and accessories retailer based on Arteixo, Galicia. Founded in 24 May, 1975 by Amancio Ortega and Rosalia Mera. Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10.000 new designs each year. Zara was described by Louis Vuitton Fashin

Business Model Analysis in the Fast Fashion Industry

4714 words - 19 pages Cover Page Business Model Analysis in the fast fashion industry Table of Contents 1. Introduction 3 2. Industry environment of fast fashion 4 2.1 PEST analysis 4 2.2 Five forces analysis 6 2.3 Summary of findings 7 3. Analysis of Zara and H&M 7 2.1 Analysis of Zara 7 2.1.1 Vision, mission and objectives 7 2.1.2 Internal analysis 8 2.1.3 Business model canvas 8 2.1.4 Value proposition canvas 9 2.2 Analysis


932 words - 4 pages to be Zara's three closest similar international competitors. Benetton and Gap place at relatively less fashionable and higher price, while Zara and H&M are more fashionable and price lower. Comparative performance indictors: | Operating Marginal / Sales (%) | Inventory Turnover | ZARA | 14.7 | 10.67 | GAP | 10.6 | 7.18 | HENNES & MAURITZ | 12.3 | 6.84 | We can see from table given above that Zara has got more sales in

Zara Customer Survey Analysis Report

1627 words - 7 pages such as H&M and United Colors of Benetton. Zara was described by Louis Vuitton Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world." ZARA INVENTORY MANAGEMENT * Zara develops a business model that incorporates moderate prices with new clothing styles faster than its competitors. * It maintains design, production and distribution processes well to respond to the quick shifts in

Critically Evaluate the Comparative Transnational Effectiveness of Benetton and Zara

2118 words - 9 pages the unsalable product, besides, increase the sales margin by customer satisfaction. In terms of Benetton, even though it has the advantages of exclusive technology and superior quality, the cost and prices pressure from the emerging competitors like H&M and ZARA have forcing Benetton to further cut its cost, therefore chasing after Global Strategy instead, to be better off in the competition. For example, evidence shows that Benetton’s low

Pestle Analysis of Zara

1902 words - 8 pages , & Avendano, 2003) Business Environment Global textile and clothing industry (Lopez & Fan, 2009) with 900 billion Euro in 200 worldwide (Ghemawat & Nueno, 2006). Main competitors: H&M, Gap and Benetton (Ghemawat & Nueno, 2006) Dynamic and innovative sector (Nordas, 2005) High quality fashion market vs. lower quality products (Nordas, 2005) Production in Europe vs. Production in low cost (Nordas, 2005) Political

ZARA: Fast Fashion

4518 words - 19 pages market was with high demand of average and considerable internal variation, which is quite different from European market. Zara's competitors Benetton and H&M both experienced waterloo in North American market before. Another option, Asian market, appears to be more competitive and difficult to enter.Apart from form the geographic expansion issues around Zara, its parent company, Inditex, also faced the complexity of managing multiple chains

Zara Marketing Management

723 words - 3 pages stores of all around the world and other brands need six months to do it. Also they work with an unusual strategy with zero advertising, they prefer to save money to open new stores in different places. The idea of a lot of consumers is that Zara is fashion imitator with very cheap prices compared to the most fashion brands. Main Competitors Mango Bershka H&M Massimo Dutti Pull and Bear

Zara Case Study

1614 words - 7 pages Zara operates its “fast-fashion” organization. According to Astrid in the article Zara and H&M: Fast Fashion on Demand, “Zara’s fast changing collections are much harder to manage and sell online” than other brands such as H&M that while very efficient, do not operate a “fast-fashion” systems and therefore can also sell their products online. Because Zara creates a sense of urgency for its customers and an artificial scarcity then it would be

Zara; S Fashion

3611 words - 15 pages been revolutionized in recent decades by companies such as Zara, H&M and Topshop (London Business School, 2008). Accordingly, factors influencing the apparel industry at large will also influence the fast fashion apparel industry. General Environment Summary In the apparel industry, the customers’ demands differs according to the their ages. An aging population may increase the demand for looser-fitting styles (Keane & te Velde, 2008

Related Essays

Marketing Strategy Essay

2215 words - 9 pages strength and market share in the local market. Second, Zara will be facing the challenges and competitions from the competitors in other country if Zara is planning to enter the global market. So Zara will need to do plenty of market research to allocate the customers’ needs and wants Competitive Analysis The closest competitor of Zara is H&M. (Amanda Craig, Charlese Jones and Martha Nieto, 2004). Compare with Zara, H&M is also a European based

Case Zara Essay

874 words - 4 pages 
 NTERNATIONAL MARKETING ZARA: INDIVIDUAL ASSIGNMENT FACULTY OF ECONOMICS UNIVERSITY OF LJUBLJANA 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? One of the most important competitive advantages that Zara have is the rotation in the stores, Zara is constantly looking forward increase the rotation of products and the leadership in

The Strategy Of Zara Essay

2144 words - 9 pages world. Threats First and foremost is competition from comparable competitors: H&M, Gap and Benetton. All three has narrower vertical scope than Zara, which owned much of its production and most of its stores. H&M is the most powerful competitor of Zara. H&M tended to have slightly lower price than Zara, engaged in extensive advertising like most other apparel retailers, employed less designers(60% fewer than Zara), and refurbished its stores

Zara Supply Chain Strategy Case Essay

1831 words - 8 pages Case 1: Zara, H&M, Benetton Supply Chain Strategies | Executive Summary The performance of many organizations is highly dependent on utilizing the correct supply chain model. This report focuses on the analysis of the supply chains of three clothing companies: Zara, Hennes & Mauritz (H&M), and Benetton. The analysis was focused on three aspects. First, the supply chain models of the three retailers were compared and contrasted