H&M, Zara

Zara and H&M expansion

Zara has posted a 26% rise in annual nets profits to 803M euros for the year 2006. Its swedish rival H&M made a 193M euros net profits for its firts quater, up 21% on a year earlier. H&M said its sales across the entire three months to 28 february were up 20% year-on-year to 1.6BN euro, but cautioned that february sales incresead by just 11%, instead of the expected 15%. The two brands plan to open lot of stores through the world

Zara Organisation

H&M: a model fashion retailer

While its revals start planning their lines on average nine months before they hit the shelves, Zara has a reputation for instant reaction to fashion trends and rapid restocking of stores. Zara lines rarely stay on the shelves for more than one month. Zara can make on new line, from the initial concept to when it arrives in the shop, in just three weeks. In addition the Zara technology is very important and will be more important in the future. Designers are in daily contact with store managers, discussing which items are most in demand and which are not.   

H&M and Stella MC Cartney

Stella MC Cartney is the lastest deisgner to sign up for a one-time run with retailer H&M. The first designer to do a one-time line for H&M was Karl Lagarfeld who produced a popular fall 2004 line. But Stella Collection was less appreciated by the customers than Karl's. All people spend lot of time front shops in order to see Stella collection. Stella's H&M collection is Kate-Most-stylish, trendly and most importantly, actually looks like it was designed by Stella MC Cartney.   This concept is appreciated by the customers because clothes are very cheap, between 14€ and 100€. They can have a fashionable product for a little price. It is a good way to promote the brand and to have lot of customers.  

Luis Javier Garcia Sanz

H&M, men collection

In order to launch men collection, H&M has chosen Luis Javier Garcia Sanz to promote the brand. He is an elegant and technically footballer, an midfielder, from Spain. He comes from near Barcelona. He is humble and relaxed off the field. His debut season in the Premier League was a great success. He is at Liverpool team. He was chosen for the Spanish national team. He thinks that is important to look very nice all the time. But in Liverpool where he lives the weather is very cold. He has to dress up too much. But during the summer, he lives in Spain, he can just wear shorts and T-shirts. In addition, Luis likes to consult the web site because there is a style guide where is can find useful advice on how to choose a jacket or how to pick the right tie for example.  

Zara strategy

The market clothing is always in evolution and movement. In order to reduce the cost and to prevent the demand, Zara decided to reduce the cycle of production of the most trendy products thanks to a logistic chain revives. In fact, they want to be at the point of the art of the fashion. We can quote that Zara produce a little more half of its products in Spain, the most trendy. For this, Zara is very flexible concerning the evolution of the fashion. In addition, all the stylists are just near the factory of production.

Zara offers 12 colletions by a year to its customers in comparison its competition make only 3 or 4 collections.

Marketing research

I made my study on the brand Zara. In fact, the subject of my blog is Zara and H&M. I collected 53 answers for my survey. We know that Zara is a store specialized in women, but in this store there are sections for men. In my survey, 62.3% of respondents were women. The average of age is 22 years old. I administred my survey to the pupils of the school. It is a special public which it is not respresentative of the population because we have a very young average age and you have not all the social and occupational categories.

Firts of all, all the respondents know the brand Zara. Only one person doesn't know Zara. In addition, 69.8% frequent this store. But you can see that 54.3% of them go to Zara less than once a month and 28.3% once a month. They are only 17.4% who frequent the store several times a month. The people who frequent Zara go for the fashionable look of the product. 80.5% of them thing that. Then, we can quote that they go in this store for the price of the product which is cheap (56.1%). On the other hand, only 31.7% go to Zara for the quality of the product.

Zara is appreciated for the design of the store. 55% think that Zara stores have a good design. Futhermore, 40% consider that the stores are well placed. Zara emphasize the store and the product. Their image is very important.

Secondly, i asked if the respondents know H&M. All the respondent answered "yes". Like Zara, H&M is a recognized brand. But you can quote 68% prefer Zara. The respondents thinks that Zara is more elegant and more fashionable; H&M is more expensive and the quality is bad. The 32% who prefer H&M think that H&M is cheaper and there is more choice in H&M.

To conclude, we can say that Zara and H&M are the same kind of stores and their targets are very similar. They propose fashionable products with low prices and they have stores which are very well placed in the different towns where they are present. 

H&M and Karl Lagarfeld

H&M a big comsuption brand  and Karl Lagarfeld a luxury brand practice "masstige". This terms is appeared in 2004, to indicate an old phenomenon: the union between a prestigious brand and a big comsuption brand. In fact, they work together in order to distribute luxurious product in the big comsuption. The "masstige" is different from the co-branding. In fact, the first is between a normal brand and only with a luxurious brand. For example, the association between Christian Lacroix and Larousse is a masstige. But an association between a brand of Washer and washing powder is a co-branding.

We can say that H&M chosen the masstige in order to inter the american market. It was very dificult for the brand to sell their product and to make know the brand in the United States.