BIBLIOGRAPHY 25 Weakness:

PESTLE analysis is a framework which is imperative for companies such as Zara, as it helps to understand market dynamics & improve its business continuously. A full suite of products to drive sales and increase retail margins, Global retail market data, collected and categorized by our AI engine, Dashboards to track global price, product and assortment data, Expert industry, trend, and runway analysis, published daily. Another major factor that affects the market is political disruption as it affects the economy and disrupts supply chain. A. H&M 11 Zara • Clothing options for the whole family. The company Inditex has also decided to join the pact to reduce their carbon footprint. 2.2.2 Threats

2.2 External Analysis Request a live demo with one of our product specialists. H&M’s most optioned price bracket in tops is $0-$20, whereas Zara’s is $20-40.

H&M act in the fashion industry and are one of the really big global players with 2078 stores in more than 30 countries. H&M was established in Vasteras, Sweden in 1947. 7. 9. • Strong dependency on independent suppliers in Asia and Europe. 2.2.1 Opportunities TABLE OF CONTENTS 4-9 Evidently, Zara doesn’t slow its processes with mass restocking. The companies are not associated with MBA Skool in any way. At the same time these brands such as H&M, Zara also need to strongly enforce copyright laws as the clothes that they launch in the market involves investment of time, effort and money. Get in touch here. The different pricing structures are visible when comparing two of the most competitive categories: womenswear tops and dresses. 1.1 H&M History Happily, retaining these differences will let both retailers continue on their ambitious paths. Their focus is to establish these principles across the entire line of their operating business as well as supply chain. H&M are regarded as a high street fashion retailer, aimed at 'everybody' - and always with the best prices. The way each retailer communicates its brand is very different. At both, womenswear is the most replenished segment. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. We have been given an assignment, where we have been divided into groups. B. A PROJECT BY: KUSH BUDHWAR S.Y.BCOM(HONS.) This being said, the company still experiences strong forces that hinder growth and even the maintenance of market share. In 2009 they launched H&M Home which sells interior textiles through internet. The technological factors in the PESTLE Analysis of Zara are mentioned below: The brand has the money as well as the customer base to extract the most out of the data. 3.4. Strategy and environment 26 • Multiple retail channels such as H&M Issues related to poverty and inequality are also covered under the umbrella of these set goals. Political Factors 4 C. Bargaining power of buyers 8 POSITIONING 14 H&M’s women’s apparel pricing spans from $2.99 for a short camisole top to $349 for a cashmere-blend coat. • High unemployment rate can... ...supply chain.

2. Another very important aspect for H&M is the future direction the global economy will take.

This gives Zara the accessibility to a constant flow of new ideas. Zara launches about 12.000 collections each year (1000 each month)! While Zara’s womenswear assortment gets plenty of promotional coverage, its assortment breakdown is very balanced across segments. 3.2. Generic strategies p. 3 & 4 3.3. There are also uncertainties of H&M’s future since they are in the middle of a shift of expansion focus from the European and North American markets to China, Japan and Russia. • Lack of customer service. With lower labor costs ensuring a solid margin for shareholders, the company’s core business model is solid. TARGETING 13 We’ve turned to EDITED’s retail data platform to understand what sets them apart. SWOT analysis p. 12 country and opening H&M stores in Over the years, Zara has evolved its strategy in line with its competitors by ramping up its replenishment rate with continued investment in its top-performing styles. Comparison of the 4 P’s p. 13 It's not too early to start preparing for the increasingly-p... Want to know how we pulled this analysis. Its minimal and understated branding is consistent in communications, whether promoting a new launch or a percentage off – discounts are never communicated with splashy red campaigns. The company provides living wages to its workers for which they have developed separate laws. II. 3. 3. to H&M with similar prices. 14. Group reflection Enclosed Concurrence with legal laws is a growing requirement for the brand and the company has invested for the same through its supply chain management. The company has implemented RFID technology to track its goods and inventories. We can prove this with EDITED data, which reveals the speed at which Zara womenswear experiences sell out is an average of 63 days, outpacing H&M at 119, Forever 21 at 168   and Topshop at 85. Culture influences buying decisions of consumers especially in the clothing sector. Each week, a new influencer takes over to create content featuring items available to shop directly from Instagram. E. Intensity of rivalry among competitor 10 The industry accounts for 74% of the total exports of EU and hence it gives access to Zara to a broader customer base within all European countries without paying extra border tariffs which helps to boosts its sales. Start your journey to higher margins and more sales today. Date: 24/10 2008 History of H&M A rise in labor or overall production cost can put the company under financial distress. When their store opened in Stockholm's kungsgatan, there was a queue one kilometer long and the traffic police were forced to intervene. Or perhaps an overly broad vision? H&M and Zara were late to this party.

Technology also increases a firm’s responsiveness to customer. Mr. Amancio Ortega, the creator and initial organizer of Inditex is appreciated for his strategic decisions as well as his market competition-winning strategies have been accepted and followed by his competitors now. Company presentation p. 3 Other than the H&M stores there are now also Weekday, Monki, COS and Cheap Monday stores. The brand has actively shown its commitment to climate change and energy, biodiversity, sustainable materials, animal welfare and other environmental issues in depth. Following are the legal factors in the Zara PESTLE Analysis: Zara is a brand that has prioritized its emphasis upon ethics and sustainability. Logistics. Zara The outdated legal doctrines are one of the reason brands are able to copy each other without facing any significant repercussions. The ever increasing speed of product supply within the industry allows competitors to frequently change strategies to suit observed trends in consumer behaviour. MARKETING 17 H&M’s new concept stores and their success will probably play a greater role in the future if H&M wish to continue their fantastic growth figures. Zara and H&M are two of the world's largest fast fashion retailers. EXECUTIVE SUMMARY 3

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