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    H&M Vs Zara

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    Divyansh Yadav
    This document compares the brand strategies of Zara and H&M. Both brands aim to make fashionable clothing accessible and affordable. However, they differ in their approaches. Zara focuses on quick production and distribution to markets, spending little on marketing. It aims to replicate high fashion trends. H&M produces large quantities globally to keep prices low, and partners with designers for publicity. While both brands target similar audiences, they have distinct manufacturing, branding, and pricing models. As of 2019, Zara had surpassed H&M as the more valuable fashion brand according to brand valuation estimates.

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    H&M Vs Zara

    Uploaded by

    Divyansh Yadav
    330 views5 pages
    This document compares the brand strategies of Zara and H&M. Both brands aim to make fashionable clothing accessible and affordable. However, they differ in their approaches. Zara focuses on quick production and distribution to markets, spending little on marketing. It aims to replicate high fashion trends. H&M produces large quantities globally to keep prices low, and partners with designers for publicity. While both brands target similar audiences, they have distinct manufacturing, branding, and pricing models. As of 2019, Zara had surpassed H&M as the more valuable fashion brand according to brand valuation estimates.

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    Comparison between H&M and Zara

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    H&M vs Zara

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    This document compares the brand strategies of Zara and H&M. Both brands aim to make fashionable clothing accessible and affordable. However, they differ in their approaches. Zara focuses on quick production and distribution to markets, spending little on marketing. It aims to replicate high fashion trends. H&M produces large quantities globally to keep prices low, and partners with designers for publicity. While both brands target similar audiences, they have distinct manufacturing, branding, and pricing models. As of 2019, Zara had surpassed H&M as the more valuable fashion brand according to brand valuation estimates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    330 views5 pages

    H&M Vs Zara

    Uploaded by

    Divyansh Yadav
    This document compares the brand strategies of Zara and H&M. Both brands aim to make fashionable clothing accessible and affordable. However, they differ in their approaches. Zara focuses on quick production and distribution to markets, spending little on marketing. It aims to replicate high fashion trends. H&M produces large quantities globally to keep prices low, and partners with designers for publicity. While both brands target similar audiences, they have distinct manufacturing, branding, and pricing models. As of 2019, Zara had surpassed H&M as the more valuable fashion brand according to brand valuation estimates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5
    At a glance
    Powered by AI
    The key takeaways are that Zara and H&M are two major fashion retailers that target similar markets but have very different approaches to ownership, sourcing, branding and marketing.

    Zara's brand core is high-end fashion for everyone while H&M's is casualwear for the mass market. Zara's personality is more fashion-friendly and exclusive while H&M's is young, trendy and popular.

    Zara keeps production more centralized in Europe allowing them to distribute new trends quickly while H&M produces mainly in Asia requiring slower ship/train transportation. Zara also keeps tighter inventory control.

    MARKETING ANALYTICS BUILDING BRAND ARCHITECTURE

    ANDREA GIMÉNEZ USÓ

    ANDREAMARKETING ANALYTICS
    GIMÉNEZ USÓ
    BUILDING BRAND ARCHITECTURE
    MARKETING ANALYTICS BUILDING BRAND ARCHITECTURE

    1. INTRODUCTION
    ZARA and H&M are two of the biggest top names in the fashion
    industry; they are international clothing retailers that serves in more
    than 2.000 stores over the world.
    I chose these two brands because, even if they target similar
    markets, they are very different in the way they operate. These two
    clothing distributors have differing approaches to their ownership of
    materials, sourcing of manufacturing, and treatment of auxiliary
    brands, so I think it can be very interesting to get a closer approach
    into their marketing strategies to see which are the fundamentals
    that rules each of them.

    2. BRAND PYRAMID

    H&M

     Brand  Core/Essence:  casualwear,  fashionable  


    clothes  for  mass  market.  

     Brand  Personality:  young  fashion,  trendy,  fresh,  


    popular,  happy.      

     Emo?onal  Benefits:  trendy,  young,  ?p-­‐to-­‐date,  exo?c,  


    feeling  good  being  trendy,  trendy  pieces  for  the  now.      

     
    Product  Benefits:  affordable  prices,  exo?cism,  
    interna?onal,  sustainable,  best  value  for  money.  

     Product  AFributes:  accesible  clothes,  european  style,  


    long-­‐las?ng  design,  urban  casualwear,  mass  
    produc?on.      

    ANDREA GIMÉNEZ USÓ


    MARKETING ANALYTICS BUILDING BRAND ARCHITECTURE

    ZARA

     Brand  Core/Essence:  high-­‐end  fashion  for  everyone.    


     Brand  Personality:  fashion-­‐friendly,  feminine,  trendy,  
    elegance  and  exclusivity.    

     Emo?onal  Benefits:  fashion-­‐oriented  woman,  trendy  


    in  every  situa?on,  feeling  good  by  looking  good,  
    trustworthy.  

     
    Product  Benefits:  fashion  at  a  affordable  price,  
    customer  centered  business,  haute  couture  trends  
    adapted  for  the  streets.  

     Product  AFributes:  Fashionable  clothes,  varied  


    assortment,  trendy  colors,  femenin  cuts.  

    3. BRAND COMPARISON:
    Both brands are worldwide fashion manufacturers that targets similar
    audiences and with high brand awareness and great recognition.
    The main characteristic that they share is to make possible for
    customers to own fashionable items and dress themselves with the
    latest trends without spending much budget.
    But to do this they use very different strategies:
    For one side, H&M, in order to attract the audience, spent a lot of
    money in marketing and also resort to big designers making
    accessible to the big public brands that wouldn’t be affordable to
    medium range audiences.

    ANDREA GIMÉNEZ USÓ


    MARKETING ANALYTICS BUILDING BRAND ARCHITECTURE

    Zara, conversely, barely spent money on marketing; its sign is to use


    the minimum possible publicity but it does its investment on
    marketing in their stores, making everything look as if you were
    buying haute couture trying in order to seem as luxury clothes.
    Another big difference in this two models is the manufacturing and
    distribution, ZARA is very good regarding to place in the market the
    latest trends in a very short time, this is a key in its success, but is
    possible because is more centralized than H&M. ZARA´s central keep
    in touch with all the branches around the word, and meanwhile
    H&M produces most of its production in Asian countries, ZARA keeps
    a 45% in Europe, which give it the chance to send its products to any
    store in one day or two via trucks or planes.
    H&M behaves as a giant, that means that they manufacture massive
    quantities of stock that has to distribute by ships and trains, but if
    weren´t for this, they could not maintain their lower prices. Zara for
    instance keep very rigorous stock levels trying to keep its inventory
    controlled without big surpluses of clothing.
    Another differentiation is their position in the fashion industry, ZARA
    focuses more on high couture designers but H&M style is more for
    street fashion. Clothes to be dressed everyday in life.
    This is how we can see how two successful similar brands behave
    competing in the same field but with completely different strategies.

    4. BRAND VALUE/EQUITY:
    In 2019, the Zara brand was valued at approximately 18.4 billion U.S.
    dollars. In comparison, the brand's valuation was around 10.1 billion
    U.S. dollars in 2016.
    In 2019, the H&M brand was valued at approximately 15.9 billion U.S.
    dollars. In comparison, the brand's valuation was around 19 billion
    U.S. dollars in 2018.

    ANDREA GIMÉNEZ USÓ


    MARKETING ANALYTICS BUILDING BRAND ARCHITECTURE

    In this moment, ZARA is the more valuable brand, if you take a look
    into previous statistics you can see that is the first year ZARA surpass
    H&M and this is also because in the latest years H&M has suffered a
    declination in value.

    The evolution of brand value for this year's top five brands - Brand Finance 2018

    5. SOURCES CONSULTED:
    https://issuu.com/beckymajor8/docs/h_mmagazine2
    https://www.slideshare.net/preciousssa/zara-marketing
    https://innokabi.com/zara-vs-hm-batalla-de-estrategia-por-la-moda-low-cost/
    https://www.investopedia.com/articles/markets/120215/hm-vs-zara-vs-uniqlo-
    comparing-business-models.asp
    http://brandaditofexchanges.blogspot.com/2013/12/zara-vs-h-bms-model.html
    https://www.statista.com/statistics/
    https://uk.fashionnetwork.com/news/Nike-H-M-and-Zara-top-most-valuable-
    apparel-brand-list,961774.html

    ANDREA GIMÉNEZ USÓ

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