Who is the target market for Zara?
Zara's target market is young, price-conscious, and highly sensitive to the latest fashion trends. They do not define their target by segmenting ages and lifestyles therefore giving them a much broader market and an advantage over traditional retailers.
Essay details
H&M's target market is very broad because of their extensive product portfolio. Their primary target audience is women between 20 and 34, who are on the market for trendy fashion at a low price. These women are up-to-date, trendy and fashionable consumers.
Personal commerce is the every place where the customers are, rather than only in the physical place the brand is present. This is the new distribution model for retailers today: Delivering the brand experience and products when and where the customer demands it. Zara does that for them.
Zara's generic strategy is cost leadership. The brand holds a competitive advantage in the market by offering products similar to high-end fashion and designer brands' styles at modest prices.
The main aim of Zara is to position its product at affordable price to its consumers. Zara believes that consumers perceive the prices of its products to be quite reasonable as compared to other existing competitors of the brand that fixes premium prices of their offerings (Yan & Joey, 2011), (Dutta, 2003).
ZARA is targeting young and middle class customers who pursue fashionable products at affordable prices. However, there are not enough brands in the market to achieve the perfect match between quality, style and price.
According to Zara retailer their consumers are classed as middle-class individuals in society.
Zara uses a mix of demographic, geographic and psycho-graphic segmentation strategies in order to serve the growing needs of the customers, It has limited stores across the globe due to which it uses selective targeting strategies to make their products available in the market.
Zara's brand identity refers to the identity of the brand Zara created from Inditex group. Zara´s identity represents how Inditex group wants Zara to be seen, Zara´s differentiation from competitors and what the brand promises.
Zara's success is based on its ability to adapt quickly. Unlike many clothing brands, whose designs are stagnant for the season, Zara is constantly assessing and reacting to the environment in a matter of weeks. The brand designs new styles and pushes them into stores while the trend is still at its peak.
How does Zara differ from its competitors?
Zara's strategy is to offer a higher number of available products than its competitors. While most clothing retailers manufacture and offer to the public for sale 2,000 to 4,000 different articles of clothing, Zara's production has been markedly higher, at over 10,000 pieces produced per year.
The ad, which has been seen in stores in England and Spain, features the slogan "Love Your Curves." While it's seemingly a well-intentioned message about body-positivity, there's a problem: The two models featured alongside the phrase are straight-size, and thus, the curves that Zara is asking customers to love aren't ...
Zara's value proposition focuses on keeping up with fast-changing fashion trends. Its activity configuration allows it to spot trends and launch new pieces in less than three weeks. Competitors show two collections per year and take over nine months to get items to stores.
Its core values are found in four simple terms: beauty, clarity, functionality and sustainability. The secret to Zara's success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay.
Who is the customer? Zara's target market is young, price-conscious, and highly sensitive to the latest fashion trends. They have an advantage over traditional retailers because they do not define their target by segmenting ages and lifestyles giving them a much broader market.
NEW data has revealed that women are most likely to shop in Zara between the ages of 23 and 27. But, surprisingly, by the time a woman reaches the age of 33, they are no longer interested in shopping in the popular high street chain.
It mainly uses value-based pricing approaches. The strategy focus on customers' perceptions of value rather than company's costs to set price. Its target customers want fashion clothes but could not afford the high price of luxury fashion brands. Zara counts broken code and unsalable products every day.
CATEGORY ANALYSIS: APPAREL
The Spanish fast-fashion label Zara ranked ninth in this year's luxury goods category in the Asia's Top 1000 Brands 2019 ranking, below the usual lineup of fashion houses such as Louis Vuitton (which came top again).
Zara gets a competitive advantage by offering customer stylish clothes at inexpensive prices. A team of 200 designers is accountable for turning the latest fashion into products. The collection was converted every year with 11,000 dissimilar items.
These are cheap and low-quality brands and stores such as H&M, ZARA, Target, GAP, Wal-Mart, American Apparel. The clothing that these stores sell, like fast food, is cheap with consequences.
Why is Zara so successful?
The Zara brand strategy
Its core values are found in four simple terms: beauty, clarity, functionality and sustainability. The secret to Zara's success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay.
The Zara mission statement is "to give customers what they want, and get it to them faster than anyone else." An effective mission statement is something that is clear and concise, and the Zara mission statement definitely gets a check-in both these criteria.
"I think the resurgence in apparel buying has led to a sharp uptick in demand for popular brands," GlobalData Retail Managing Director Neil Saunders told Insider. "This is much more visible in terms of lines to get into the store because of continued social distancing and capacity limitations," he said.
Price War: Fast-fashion, Zara's primary niche, brings the latest trends from the ramp to the customers quickly and at low costs. However, the industry is vulnerable to imitators waging price wars to leech off from Zara's line.
Zara sells in trend affordable clothes, also some good classic basics like tees, cardigans and office dresses.
Zara has slightly better quality than H&M. Both brands offer trendy and fashion-forward clothes. Zara tends to be more professional, while H&M is more casual. H&M has a large selection and variety of clothes.
- H&M. Year founded: 1947. Headquarter: Stockholm, Sweden. ...
- Uniqlo. Year founded: 1949. ...
- Gucci. Year founded: 1921. ...
- Nike. Year founded: 1964. ...
- Urban Outfitters. Year founded: 1970. ...
- Gap Inc. Year founded: 1964. ...
- Forever 21. Year founded: 1984. ...
- Adidas. Year founded: 1949.
Zara has been a dominant force in the fashion industry for many years, but as competition heats up, Zara is facing more and more challenges. While each of these brands has its unique selling points, Zara remains a top contender in the market.
The H&M brand has established over 4000 stores in several countries globally; A number that's way bigger than that of Zara. This brand has gotten an edge over its competitors as they've been more productive in the US market.
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H&M.
| The H&M logo used since 1999 | |
|---|---|
| Trade name | H&M |
| Headquarters | Stockholm , Sweden |
| Number of locations | 4,801 stores (2021) |
| Area served | Worldwide |
Where does Zara get their clothes from?
While some competitors outsource all production to Asia, Zara manufactures its most fashionable items – half of all its merchandise – at a dozen company-owned factories in Spain (particularly in Galicia), Portugal (northern part) and Turkey.
The target customers of H&M are a broad group of consumers who follows fashion trends. The price points allow consumers to follow the newest trend without breaking their bank, which attracts mostly working class, middle class, and students who consider shopping as pleasure.
18 answers. No age required! h & m's clothing serves all ages and genders. There's no age !
Company Description. H&M Divided welcomes everyone who is young at heart and loves affordable and sustainable fashion. We especially want to empower young women to embrace who they are becoming. H&M Divided also has one of the most important tasks – to attract and win back the young female customer between ages 16-21.
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H&M Group's store count per region, second quarter 2022.
| Region | Stores (31 May 2022) |
|---|---|
| The Nordics | 410 |
| Western Europe | 1,094 |
| Eastern Europe | 654 |
| Southern Europe | 633 |
