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Future of fast fashion rivalry zara

Future of fast fashion rivalry zara

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FALL 2019 Future of Fast Fashion Rivalry: Zara and H&M MKTG/MGMT 421 – Retail Management Term Project SELIN TUNCALI 60142 KOÇ UNIVERSITY Future of Fast Fashion Rivalry: Zara and H&M The fierce rivalry between Zara and H&M reveals that the fast fashion market lies in the heart of international clothing retail industry. As the competition gets bolder, it keeps offering up-to-date responses for contemporary 21st century questions such as technology integrated supply chain management, communication strategies for offline channel or for social media, and strategic allocation of stores that speaks up for the brand. It is crucial for both of the brands to promote the rapid transformation, as it is the prevalent changing behaviour of the customer who aspires to be digital. Zara invented the game of highly responsive supply chain/logistics, whereas H&M adapted later on, which inevitably reflected on the numbers on the financial tables. Zara maintained its continuous sales growth increasing profits by 7% while H&M struggled on sales growth with profit dropping 62% in the first quarter of 2018 (Tyler 2018). Zara benefitted from choosing its battles straight from the start because it enabled Inditex to focus on its key strengths and develop based on a plan. However, the plan was ambiguous for H&M compared to its rival, and shaped after hindsight. Zara owes its growing success to its business model that includes continual inseason assortment that engages with the needs, wants and ex ...
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