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Amanda Azer

on 8 May 2013

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Transcript of ZARA & H&M

Type of Merchandise Merchandising
Philosophy Target Customer Visual Merchandising Vendor Assortment Pricing Strategies Signage Website Features &
Organization Social Media Depending on the physical stores' location, Zara's and H&M's product offerings will change slightly to accommodate for a different environment and customer and their online sites vary in a similar way
Buyers study trends and types of merchandise that sell well online vs. in stores.
E-commerce sites carry a much larger range of merchandise styles and sizes. Online Exclusive Styles Suggestions and Pricing Suggestions for Improvement:
H&M should not only offer a wide option of products but present a complete look like Zara does.
Zara should begin to suggest related or similar items in addition to the complete look.

For both Zara and H&M the same price in stores apply to the online merchandise. affordable
fast fashion
women's wear
children's wear
swim quality
higher priced lingerie
lower priced Zara:
App for iPhone, iPad, Android, Blackberry, and Windows phone Suggestions for Improvement:
Zara should make their Social Media sites more interactive
Involve the customer more in Social Media and make it customer-focused
Post about not just merchandise, but fashion events, inspiration, videos, and etc. Zara:
• Reflects the brand image in its simplicity and style
• Very basic layout
• Difficult to view an entire category of merchandise
• Not very interactive
• Small print H&M:
Online-magazine set-up
Easy to navigate and find the category of merchandise you want
Customers can shop for merchandise, gain style inspiration and shop by desired features
Dressing Room feature: customers can coordinate outfits and see how they would look on a model Suggestions for Improvement:

Zara should try to make their website more user-friendly and customer-oriented
Increase font size, make options clear & visible
Make their website more interactive
Develop website as a shopping destination as well as a source for fashion news and inspiration H&M:
• Facebook
• Twitter
• Youtube Instagram
App for iPhones and Androids Both websites are very easy to navigate through
Both organized by either women’s, men’s, kids, etc.
Further organized by category of clothing
H&M’s website appears to be cluttered and slightly disorganized
Zara’s website is very clear, direct, and spaced out which is easy on the eyes
Zara’s website is more appealing because the display of their garments is clean cut and to the point Clarity of Websites Zara and H&M both succeed in sending a
concise and consistent merchandising message
to their customers through their online websites. Merchandising Philosophy Male or female
Single or married
25-40 years of age
Visits the store on average 17x a year Male or female
Particularly younger age group
Liberal Inside Zara Inside H&M Merchandise in display windows is located in various areas throughout the store
Approx. 2-3 mannequins are placed by entrance
Merchandise is organized by category & sometimes by trend
Sale items located towards back of store
Price varies anywhere from $20-$150
Fixtures consist of modern, wood-finished tables and wall units with accent lights Merchandise in display windows is located throughout the store (mostly towards the front)
Merchandise organized by color and trend
Sale items are located against the walls throughout the store
Many different fixtures: white wooden tables, tall, metal wall units, and black tables of assorted sizes Zara’s merchandising message is to "contribute to the sustainable development of society and that of the environment with which we interact."
No clear indications of interactions and contributions to the environment.
Their commitment to the environment does not seem to be evident anywhere within their store or website. H&M’s merchandising message is to “give the customer unbeatable value by offering fashion and quality at the best price.”
Company is able to provide up-to-date trending fashion
Remarkably fast speed
Extremely low prices
Very few middlemen
An incredible design team with an expansive, in-depth understanding of design, fashion, and textiles
Have the right product at the right time for the right target audience
Aware of costs and spending at every step By: Amanda Azer, Valentina Fabbro, Angelina Mangiardi, Alexa Nicole, Chelsea Phipps, & Keerthana Sivaramakrishnan Final Project
Zara and H&M Comparison
FM-262-202, Retail Mgt.
Spring 2013
May 8, 2013
Professor Banavara Vertically integrated demand and supply chain
Has total control of all business activities including designing, manufacturing, sourcing, and distribution
Produces and releases products in limited amounts
A vertically integrated system means there is only one label, ZARA
"Guest" collaborations are done occasionally H&M is the second largest apparel retailer in the world, just behind Inditex SA
2,600 stores in 43 countries, H&M is a pioneer in pursuing vertical integration with its own distribution network
Approximately 150 designers and 100 buyers create the company’s clothing collections in Sweden
H&M features guest designer collaborations such as Karl Lagerfeld, Stella McCartney, and Madonna The successful pricing strategies behind Zara’s’ success is that Zara’s puts 10,000 different items on the store shelves in a single year
Zara can take a new style from a concept to a store shelf in 10-14 days (nine months is the norm)
By focusing on shorter response times, the company ensures that its stores are able to carry clothes that the consumers want at that time
This cuts down the concept of sales The pricing strategy of H&M is designed based on their customer’s needs, which is low price and high fashion
H&M outsources the production to countries where the labor cost is much lower
To control transportation cost, outsourcing was arranged according to different product
Those high fashion products, which target the European market, were produced in Turkey because of the short product life cycle
In addition, basic products are produced in Asia because they allow longer transportation time and bear lower risk Zara relies mainly on its stores to project their image
Zara has a department, which exclusively works in acquiring global prime real estate locations
In addition, this department is responsible for the frequent refurbishing of store layouts, as well as the creation of a common window display for Zara’s global stores
The displays give Zara a prestigious and elegant image in the industry
Its new items are first displayed in its stores H&M’s main aim is to create a comfortable and inspiring atmosphere in the store that make is simple for customers to find what they want and to feel at home
The H&M company style is very "fashion forward" and this is always reflected by the in-store signage that backs up the new selections
These signs help keep the customer still “hooked” onto the store
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