Question

what is the opportunity of zara and H&M? Explain it.

Answer 1

Zara and H&M are the two international brands which play the role of leaders in the international fashion market.

Let us see their opportunities:

Zara

• Growing Market demands for fashion.

Zara will easily catch this to upgrade its products according to the customer’s tastes by previous experiences. Zara is known for its flexibility to trend its products time to time.

• Market expansion in European countries and other highly populated markets like China and India.

Merging with Inditex Group increased the markets for Zara. Zara easily catches the perception of fashion. That is the reason why it can easily accommodate in all kinds of markets.

• Zara splits its focus acroos all the three groups (kids wear, Women’s wear, Men’s wear) equally.

This indicates that Zara is confident and drives with great clarity.

• One of the main advantage of Zara is its high consumer loyality.
• Zara lacks in flagship designs. It is a huge opportunity for them to increase such designs

Flagship designs are some specific designs of the brand which can be bought in only that brand.There is a huge demand for such demands among the consumers.

• Online shopping i.e. E commerce is a boon to fashion brands.

Zara can easily take the advantage of E commerce to increase its business.

H&M

• H&M mainly segmented its brand only towards women’s wear.

There is a huge opportunity to penetrate in to men’s wear and kids wear.

• Growing Market expansion.

H&M is targeting japan and it is a huge market for its brand.

• They have lot of deals and sales for their product.
• They have exchange policy which is a great opportunity to gain consumer loyality.
• They still operate with traditional 4P’s of marketing i.e. Product, Price, Place, Promotion. There is a lot of scope if it changes its policies to gain more by focusing on customer’s changing fashion perceptions.