Zara Vs.H&M taking the global lead in style

Zara and H&M are two of the most recognizable brands in the clothing industry, with over a thousand stores each worldwide these two clothing brands is taking the world by storm one trend at a time.

Although these two companies were established ages apart and have two different  strategies in in their business models both companies are doing well in the market. Zara, first sold its  clothes in Spain and was established in 1975 owned by the textile giant Inditex, while H&M or earlier known as Hennes & Mauritz, was founded in Sweden in 1947. The Swedish company is know being publicly traded and has several brand lines, including Monki, Weekday, Cheap Monday and COS.

H&M over 3,450 stores worldwide as of November 2016, while Zara prides itself with 2,266 stores. Both companies have infiltrated the U.S. market where there sales have been more prolific.

A part of H&M’s strategy in order to boost sales is to offer customer featured products that have been advertised as a designer collaborations with well-known names, by offering these products the company pushes its own reputation by partnering with valuable figures in the fashion world, and diversifying its look and style at the same time.

 Zara's Strategy

Zara’s strategy has a different approach and that is to offer consumers with a higher amount of available products than its competitors. While most clothing lines offer 2,00 to 4,000 different articles of clothing, Zara’s production takes it up a notch and is at 10,000 pieces of clothing produces per year. Which is a unique feature of the company’s strategy allowing Zara to appeal to a bigger number of customers who have different tastes.

Putting Zara into the spotlight, in the current fiscal years, the company has opened 60 stores, and even as expansion continues, Zara’s corporate parent demonstrates a leadership that it willing to make tough decisions. This year, the Company’s sales has increased by 10% to €18 Billion and comparable store sales continued to be strong.

H&M reported very different results, which shows that their 3rd quarter earnings of $6.95 billion shows a surprising drop of 2% over last year’s figures. Management is now indicating that it is accelerating its online drive with a plan that includes integration of physical and on-line stores.

 

 

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