Fast Track Fashion Giant ZARA And H&M

When it comes to fast fashion, people must think of ZARA and H&M as the two major retail giants.

Same point:

The success of ZARA and H&M lies in the fact that they have grasped the essence of the industry, conformed to the current social situation, and also conformed to the current and future development trends.

According to expert analysis, M type society, luxurious wind and complex demand have made ZARA and H&M.

Nowadays, the United States and many other countries are already M type society. In the future, more countries will enter the M society, and the middle class will be greatly reduced in the future. This makes people more demanding on the price of clothing, and the parity becomes a big demand. Luxury is blowing among young people, and many people are pursuing thousands of luxuries at any cost. But not everyone can afford it. ZARA and H&M have opened up another space for those who pursue luxury goods. The demand of consumers for fashion has always been increasing. Complex demands require ZARA and H&M to constantly update their styles, and constantly bring forth new ideas, and people want their clothes to be "distinctive" and "unique".

ZARA launches about 12000 kinds of fashions in a year, and the amount of each fashion is generally not large.

Both ZARA and H&M greatly improve the lead time.

Leading time is the time from design to the sale of clothes on the counter.

China's clothing industry usually takes 6~9 months, and international brand names can generally reach 120 days, while ZARA is generally 7-12 days. H&M compresses the time from the design to the shelves, and the shortest is three weeks.

The reduction of lead time also brings profits directly to enterprises, and the cost will be increased if the lead time is more than one day.

ZARA starts with consumers, then sends feedback to stores, stores gather to design, and then purchases and produces new fashions.

In this way, the design and production are closely integrated to achieve local sales in different countries.

H&M daily analyses the sales performance of each garment in a country and storefront, and knows which products are hot. It needs to increase production and supply goods more smoothly.

The company advertised the storefront every day to replenish the products that consumers need most.

Difference:

1, production base

The production base of ZARA is in Spain. Only the most basic 20 garments are produced in low cost areas such as Asia.

ZARA has set up 20 highly automated dyeing and cutting centers, and has outsourced human intensive work to 500 small factories and even family workshops.

H&M does not own its own garment factory, and it is totally outsourced to nine hundred factories.

In order to get the best price, the company chooses carefully the outsourcing objects, which are scattered among the 21 lowest wage countries in the world.

Due to the proper cost control, the company's selling price is low, but its gross profit can still be maintained at around 53%.

2. Advertising and publicity

ZARA has maintained a unique marketing price strategy that does not dispose of advertising and discounts, but uses its own store to advertise.

H&M is covered by a large number of advertisements, through advertising to consumers direct visual and auditory enjoyment, the lowest price information is most directly pmitted to consumers.

3, price difference

In terms of price, there is still a certain gap between ZARA and H&M, and the average price of H&M is generally 50-100 yuan lower than that of ZARA.

The average selling price of clothing in H&M stores is only 18 dollars.

In terms of price, H&M is more competitive and attractive.

4, design aspect

In terms of design style, H&M favours the use of pure color, such as black and white, simple and fashionable design, and ZARA's clothing is also quite different.

ZARA has nearly 400 designers, who often travel by air between various fashion shows or enter various fashion venues.

Usually, the latest designs of some top brands have just been put on the counter, and ZARA will soon release the fashion that is very similar to those designs.

This way of design ensures that ZARA keeps pace with fashion trends.

H&M pays special attention to popularity, and creates fashions and leads fashion.

All the costumes of H&M are designed by eighty designers in the company.

H&M is making use of the star effect to create popularity, allowing celebrities to design costumes and attract fans.

Finally, let's take a look at the future development of ZARA and H&M:

ZARA entered China and entered Hongkong market in 2004. Shanghai was set up in 2006.

Raul admits that the Asian market has great attraction, among which Japan, South Korea and China are the main markets for the group to enter.

Despite the financial crisis, the group opened more than 550 new stores in the world from last year to September this year, and distributed in 73 countries.

Raul clearly pointed out that "with the improvement of China's market share, Chinese consumers will see more ZARA stores.

By the end of 2009, the total number of H&M stores in Greater China will increase to 27, which is further higher than the current 21.

H&M set up sixth branches in Hongkong today, plus 15 shops in China, with 21 stores.

In recent years, H&M has been actively expanding around the world, and has about 1800 stores in 34 markets around the world, and will open its first branch in Seoul, South Korea next March.