Zara vs H & M - Competitor Analysis

Topics: Inditex, Fashion, Target market Pages: 6 (1642 words) Published: April 10, 2013
Zara is a flagship brand of the Spanish retail group, Inditex group. Inditex is the world's largest fashion group, which owns other fashion brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterqüe. It was founded in 1975 by Amancio Ortega, when he decided to expand his factory in Arteixo by opening a store in La Coruña. Zara has expanded since and currently operates a total of 1,671 stores in continents Spain. It was founded by Amancio Ortega in 1975, Zara opened its first store in downtown La Coruña, Galicia, Spain. Its first store carried low-priced lookalike products of popular, higher-end fashion brands. The store proved to be a success in the early 1980s, and Ortega began opening more Zara stores throughout Spain. Global Expansion:It was only in 1988, Zara decided to venture into the international market. This was spurred by Portuguese youths crossing the border into Spain to shop in Zara. Hence, Zara responded by opening its first store in Oporto, Portugal. The expansion strategy proved to be a success. Subsequently, new stores popped up in New York (1989) and Paris (1990), the fashion capitals of the world. Since then, more stores have opened globally to a standing of 1,671 stores. Zara Company has become an icon for Spanish fashion.

H&M offering fashionable clothing for the best price. They mean that all people who want to be fashionable should have the right to be it. The price should not be a holdback. H&M have a mission that it should be possible for everybody to find their personal style in H&M´s collection. The target group is everyone who is interesting in fashion. They offer a couple of different concept for women, men, young persons and children. The collections including everything from modern basic clothing to high fashion reflected by international trends. When they create a new collection the mission is to satisfy people with different kind of taste and demand. H&M is a cool brand. Their cloth is cheap, but has good quality as well. The brand is innovative and a trendsetter with lots of attitude. They have big volumes of sales, which mean that they have always trendy cloths in the shops. H&M have a wide supply and are also selling complements like accessories, cosmetics, shoes and underwear. H&M has a Magazine which they distribute in the shops. That magazine gives the customers different tip about the latest trends. For the customers that not manage to visit a store can buy H&M cloth on the Web Page. CBBE Pyramid of H&M:

ZARA is the world’s largest fashion retailer in the world today because of its widely known process innovation. Fast fashion, creativity, flexibility, quality design and rapid turnaround are all part of its approach to expand internationally at such a fast pace.

Zara stores are usually situated at upscale locations in the world’s largest cities. Its strategy is to get as close as possible to luxury brands but at the same time maintain its mid-range affordable prices. Although the apparel may be relatively less expensive compared to designer goods, Zara has never forsaken the quality and comfort of its completed products.

On top of its operations excellence and good quality designs, Zara’s approach to design is also closely linked to their customers. Its customers, who help to give shape to the ideas and ever-changing demands emerging in the fashion industry, direct Zara’s strategic fast fashion. The relationship with...
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