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Zara And H&M Marketing Strategy Comparison: A Small Number Of Styles

2014/2/22 15:49:00 171

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Spain's famous clothing brand ZARA belongs to the brand of clothing retailer Inditex, ranked first in Spain and ranked third in softball. The company has nearly more than 2000 branches in the world, of which ZARA is the most famous flagship brand in the 9 brands of Inditex company, and is considered to be the most valuable brand in Europe. ZARA has branches in 57 countries and regions around the world and is growing at about 70 per year. Although ZARA chain stores account for only 1/2 of Inditex's total sales, sales account for about 75% of the company's total sales. 
 Sweden H&M company, the full name Hennes&Mamitz, was founded in Sweden in 1947 by its founder ErlingPersson in apparel retail chain enterprise. At present, the company has its retail outlets in 29 countries and regions in Europe and North America. It sells over 5 and 500 million pieces of goods each year, and has become one of the largest apparel retail chain enterprises in Europe. 
 these two giants of Garment Retailing can be successful in Europe and the international market due to their unique marketing strategies. This paper aims to compare the similarities and differences of marketing strategies between the two companies. Draw some useful experiences for China's apparel retailing industry. 
 < a > href= < http://www.91se91.com/news/index_c.asp > ZARA < /a > and < a href= > http://www.91se91.com/news/index_c.asp > H&M > href= > marketing strategy.
 1) product strategy 
 ZARA and H&M are all small and multi product strategies, both of which have broken the traditional clothing industry season, and will also introduce new styles for consumers in the same season. 
The realization of product strategy of ZARA is based on the rapid acquisition and sharing of fashion information and consumer feedback information, mainly due to the construction of the following two systems. 
 the construction of a huge design team: ZARA has a very strong new product development team composed of more than 200 people. The team includes three types of personnel: designers, marketing experts and production managers. About more than 100 of them are designers, with an average age of less than 30 years old. The young new product development team has a sensitive and accurate understanding of fashion. They are inspired by the fashion show in Milan and Paris, identifying fashionable fashion trends, and designing various styles that match these trends. ZARA takes only a few days to complete the imitation of the costumes of the singer or the creative work of the top costume designer. From the recognition of fashion trends to the new fashions that cater to the trend of fashion, they are placed in stores. ZARA takes only two weeks, while the traditional production cycle takes up to 4-12 months. The construction of information sharing system: each store in ZARA is equipped with independent information systems. Every evening, the ZARA headquarters in La northo, northwest Spain, will exchange large amounts of raw data with each store. The data will be meticulous to the number, size, color, quantity, selling time, payment method, discount information and price adjustment of each product. After that, the departments will decompose the data according to their needs so as to make judgments on the local market. And the information obtained will be returned to the design headquarters of ZARA in time. Designers identify the trend of design based on popular intelligence information. PDA, the manager of each store manager, is an effective tool for communication. She can send orders to Spain headquarters through PDA, get the quantity ordered by headquarters for PDA, and use PDA to communicate directly with headquarters product manager. 
 H&M has also made efforts to achieve its "small quantity and multiple" product strategy. 
 the establishment of consumer demand information acquisition system: in order to more accurately meet the real needs of consumers, the company created a product push "pull" way, that is, in addition to the company believes that consumers want products to "push" to consumers, but also to use consumers want goods to "pull" consumers. The company's design team travels in Tokyo, Paris, New York and other major cities, from T fashion to street fashion to capture fashion inspiration and design attractive products. 
 establishment of information sharing system: communication between all departments of H&M headquarters and 22 production offices is based on a ICT (Information and Communicat ion Tech-nologies) platform, at the headquarters of H&M. The design and procurement department work together, each design concept has a designer, buyer, assistant, print editor, financial controller and department manager team, so that in the early stage of design, we can start to balance between price, market feedback and fashion, and the daily communication of these personnel is based on the ICT platform. ICT has established a looped information feedback mechanism for H&M. Information on sales, inventory, procurement planning and production capacity has been completely transparent, making it possible to manage multiple products and update higher frequency products. 
 2) < a href= > http://www.91se91.com/news/index_c.asp > price strategy < /a > /strong > /p >
 both companies adopt a low price strategy in terms of price. ZARA's target consumers are young people with higher incomes and higher academic qualifications. They are mainly 25-35 year old customers. H&M also targets consumers as young people aged 15-30. Such buyers have high sensitivity to fashion and have a certain ability to consume, but they do not have the ability to frequently consume high-end luxury brands. However, because the two companies have adopted different supply chain strategies, there are still obvious differences even though they are low prices. 
 ZARA to ensure that its "small, multiple and parity" goods are delivered to customers in a "extreme speed" way, most of the production is put in Europe. In Spain, ZARA has 22 factories, 50% of its products are produced by its own factories, and 50% of its products are completed by 400 suppliers. 70% of these suppliers are in Europe, while others are in Asia. Such geographical location is to maintain the response speed of its supply chain, but to a certain extent, it improves its logistics cost. In order to ensure the rapid delivery of goods, ZARA also insisted on transporting goods by air and increased its cost further. 
 is different from ZARA. H&M takes the cost factor more seriously in the construction of supply chain. The manufacturing process of the company's products is completely outsourced to about 700 manufacturers in Asia, Europe, Africa and South America (most of them are in gagara, China and Turkey). According to the difference of sales products, the company adopts a double supply chain strategy: 
Less than half of the cutting-edge fashion products are manufactured in European countries (mainly Turkey) which are close to the European market. They require a shorter delivery cycle (the shortest 3-4 weeks), so that they can be adjusted in time according to the sales feedback; p
 control Asian supply of higher education supply chain, the other half of the basic products have less fashion risk, and the delivery cycle can be extended (the longest 6 months). In order to ensure low price and quality, it is arranged in low-cost Asian countries (mainly China, Bangladesh and other countries). 
 through the adjustment and arrangement of the above supply chain, H&M can adopt a lower level strategy than ZARA in price. According to statistics, the price of H&M's clothing is about 30% to 50% lower than that of ZARA. 
 in terms of price discounts, both companies also adopt a low discount strategy. Because the products of both companies are "small sum", if consumers do not buy them at the first time, there is a risk that they will never be able to buy them. It is the psychology of consumers. Almost all of the two companies can sell their goods in a short time after they are on board. Only a few unwelcome products will be left at the end of the season or at the end of the year. In this regard, ZARA's performance is particularly prominent. The average number of discounted goods in ZARA is about 18% of the total number of its products, about half of its competitors. Take the best H&M operation in 2001 as an example, ZARA had an average discount of 7%, while H&M was 13%. 
 3) < a href= > http://www.91se91.com/news/index_c.asp > sales channel < /a > strategy /p >
 to deliver goods to consumers in a fast and fair manner. Both companies have adopted the strategy of "direct camp". ZARA and H&M are also brands of retail chains. They have a large number of chain stores all over the world. In order to achieve the goal of fast delivery and low price, the chain stores of the two companies are directly run by headquarters, and the goods are centralized by headquarters. 
P, however, H&M has not given up its innovation in the development of sales channels, so far its sales channels are still dominated by direct outlets, but its catalogue sales and online sales are growing steadily. In 1980, H&M acquired the RoweHs company and began cataloging in Sweden, Finland, Norway and Denmark. In 1998, H&M opened online stores in Sweden, and then launched online sales in Finland, Norway and Denmark. On the basis of initial success, in the autumn of 2006, Holland became the first country to open online sales outside the Nordic region. In the autumn of 2007, Germany and Austria are also expected to launch online sales. 
Unlike P and H&M's innovation, ZARA always adheres to its "direct camp" strategy and says it will not change in the short term. Because they insist that it is the best way of management to let customers enter the shops, directly contact the goods and experience the goods. 
 both companies are also committed to laying Direct stores in various countries. ZARA was a small shop founded by Oman, the son of an ordinary railway worker, in 1975, by Ortega, Qiao Qiao. Since its development, ZARA has branches in 57 countries and regions around the world and is growing at about 70 per year. The ZARA retail terminal network has now covered five continents. ZARA has the highest proportion of retail stores in Europe, and the middle class in Germany, France, Britain and other European countries is the main consumer in the Nordic region with more H&M stores. The number of shops is relatively small, for example, there are only 1 shops in the capital's Oslo road in Norway, and Finland only has 3 shops in two cities including the capital Helsinki, while H&M has 46 outlets in Norway and 26 cities in Finland. 
 H&M was founded in Sweden in 1947. In 1964, it began to explore the international market. Now it has branches in 28 countries and regions around the world. In 1964 and 1967, H&M first entered neighbouring Norway and Denmark. These two countries have similar cultural, economic level, values and climate conditions with Sweden. These similarities do not have any international experience, and H&M companies, which are just beginning to operate internationally, help to reduce operational risks. Since then, the company has also adopted near to distant contacts and diffusion methods. First, it has launched business activities in countries close to the original market, and then established production and service organizations when business activities reached a certain scale. H&M has a wide range of shops in the world without ZARA. There is hardly any South American market that has been actively involved in ZARA development. It is also reflecting the prudent management and steady expansion of H&M. Although the main area of H&M is still in Europe, the opening of the first stores in Hongkong in March 2007, the opening of two stores in Shanghai in April, and the establishment of its Chinese website have all demonstrated its momentum in Asia, especially in the Chinese market. 
 4) promotion strategy 
In the above marketing strategy, the similarities between the two companies are different from those of P. 
 ZARA hardly advertised. Its advertising cost accounted for only 0-0.3% of its sales, while the industry average was 3.5%. The savings of advertising cost almost became another source of profit. 
The brand publicity of ZARA mainly depends on the following two aspects: 
 one is the characteristics of its product structure. To attract consumers with fashionable, modern and rich styles and structures at the right price. And seize the consumer's purchasing psychology with a quick update speed - "once you see it and don't buy it, it will soon be out of stock"; 
 two relies on its superior geographical location and fashion display and display: 
 geographical location choice: ZARA usually stores in high-grade business district and prosperous transportation hub. Although the cost of opening shops in these places is very high. But ZARA always set up a spacious room in the store to create a relaxed and pleasant shopping environment for customers. In 2000, the average area of ZARA store was 910 square meters. By the end of 2003, the total area of ZARA in softball chain stores reached 686 thousand square meters, with an average area of 1096 square meters for each branch store. 
 window display: ZARA has invited many fashion designers to design inspiration from Milan and Paris fashion show, and use the high-end brand to release fashion information ahead of time (such as March autumn winter fashion and September spring and summer fashion). There is usually 6 months' difference between the release time and the real selling season, which makes fashion magazines still present the content of the season trend when ZARA magazines show them. 
 store layout: ZARA store clothing is usually not stacked according to the type of goods, but the upper table, trousers, leather bags and accessories are put together. It is easy for customers to buy a whole set of things with one heart and one mind. The excellent geographical location, the characteristic window design and the unique shop display all make ZARA do not advertise and have extraordinary attraction. 
The brand promotion of H&M is quite different from that of ZAlLA. The way linking cheap mass brands with fashion masters can be said to be their first in the fashion industry. In 2004 and 2005, H&M hired the famous designer Carle Lagerfeld Karl and the former Beatles member Paul MeCartney, the famous designer Stella SteUa (SteUa MeCartney) for the brand design clothing in 2004 and 2005. When the cooperation with Carle Lagerfeld (KarI L) began in November 2004, it achieved a 24% surge in turnover in the month. In 2006, the new clothing series, designed by Holland fashion designer Victor (VIKTOR) and Rolf (ROLF), launched a craze rush in Stockholm and European cities. In 2007, the M byMadonna series was launched, using the design series of international superstar Madonna and the opening of new shops in Hongkong and Shanghai.