Ready to wear - Zara and its competitors

Extract

[...] It appears that H&M Hennes and Mauritz AB have begun bouncing back following the recent pandemic - the company's sales grew by over 30 percent in 2021, but it is still difficult to envision a successful future for the organization (Chunling, 2020). Nonetheless, the executives of H&M Hennes and Mauritz AB have noted something still not clear to many researchers since, in 2022, the company announced initiatives to double the sales of apparel by 2030 through multichannel strategies, halving H&M's carbon footprint. [...]

[...] Zara updates and restocks the selection twice a week, presenting a challenge for many competitors in terms of maintaining such rapid changes and speed. Following the article by Hansen Suzy that was posted in the New York Times, such fast-paced distribution, production, and retail work effectively from two perspectives: The first direction reflects on the potential consumers who get encouraged to visit stores to check new additions; and second, if consumers want to purchase particular products, they feel inclined to purchase since no guarantee would exist that the item would not sell out as a result of low stock in the stores. [...]

[...] So, has the business strategy meant success for Uniqlo? Within 2021, the organization made a total revenue of 930 billion yen, which was a ten percent increase year on year, and put the company ahead of H&M and Zara - E-commerce sales increased by 20 percent (Mahardika & WayanSantika, 2021). While Uniqlo commands a relatively large fast fashion market compared to Zara, it gets crucial to highlight that the two brands involve very different principles and values, and further cater to different audiences; Zara focuses on fashionable items while Uniqlo provides essential items. [...]

[...] Conclusion A critical analysis of Zara has revealed that the company's success relies upon a robust system of operations, a great influence on the buying choices of consumers, and a coherent supply and sourcing strategy. The advanced level of logistics as well as the capacity to offer high-quality and fashionable apparel at reasonable prices likely is the company's advantage that many competitors might find it difficult to overcome. As such, it is practical to expand the presence of the brand and maintain current strategies for other desired markets, finding strategic locations for low-cost factories. [...]

[...] Ready to wear - Zara and its competitors Perhaps one of the most recognized brands around the world and also a significant international fashion organization, Zara has been cited as the third largest brand within the apparel industry and is a unit of Inditex. Founded in 1975 by Mera Rosalina and Ortega Amancio, the company has been the main branch of the Spanish corporation Inditex association - one of the biggest retailers of apparel in the globe. Once described as possibly the most devastating and innovative retailer, Zara has involved a unique marketing initiative that focuses on the provision of pleasant and innovative designs and retail experiences to consumers, different from the designs and experiences offered by other competitors. [...]