Team – Brainstorms

• HARSHDEEP KAUR CHALOTRA- 202103869

• ANURADHA ASHOK KUMAR PADMANABHAN- 202101685
• DIVYA ARORA- 202103790
• AMANPREET KAUR – 202103376
• GAURAVEE CHAVAN- 202202392
• HIMANSHI- 202104470
• PARTH VARMA- 202301028
INTRODUCTION , H&M

1.H&M is a multinational clothing company headquartered in

Sweden and the world's second largest clothing retailer.

2.The company was founded in 1947 by Erling Persson. It

grew from a single store in 1947 to a family of brands that
offers fashion and design to customers all over the world.

3International expansion begins during the decades. The rate

of growth accelerates even further .It is the oldest and has the
most physical stores (4167) open worldwide.

4. Since the first designer collaboration, H&M has

collaborated with fashion giants like Versace and Alexander
Wang.

5. H&M Group is now present in over 75 markets worldwide,

with nearly 60 of them also offering online sales.
INTRODUCTION , ZARA

1.Zara is a fast fashion clothing and accessories retailer based

in Spain. Amancio Ortega and Rosala Mera founded the
company in 1975.

2.ZARA has kept up with the technologically advanced world

by operating approximately 6,500 stores in 88 countries. In the
year 2010, they made their inventory available online.

3.Since day one, Zara's annual growth has not slowed, and the
company has expanded in countries and locations all over the
world.

4.Zara as a brand provides a diverse range of options, including

collections for men, women, and children. The company also
released cosmetics, perfumes, and home goods.

5.The company's competitive advantage is based on three

factors: high-quality items, reasonable prices, and a quick
response time.
Mission Statement:
H&M goal is to provide fashion and quality at the best price in a sustainable
manner as well as to help people to look and feel comfortable.
Vision Statement:
"To lead the change towards circular and renewable fashion while being a fair
and equal company," reads the vision statement of H&M.

Mission Statement:
The mission Statement of ZARA is "to give customers what they want, and get it
to them faster than anyone else.“
Vision Statement:
"We aim to be the fashion company that designs and offers the hottest trends.
We achieve this by quickly adapting to what individuals find interesting.
 Market Data – Global and Local
• Zara has 547 stores in Spain (local market) and
2003 stores in more than 90 countries (global
market).
• Zara spends 0.3% of it turnover on advertising.
• International Sales accounts for 59% of the
revenue.
• H&M has 118 stores in Sweden (local market) and
4,801 stores in more than 70 countries (global
Market).
• H&M spends 4% of it’s turnover on advertising.
• International Sales accounts 91% of the total
revenue.

Social Media Followers in Mil- Social Media Followers in Mil-

lions lions
80 50
40
60
30
40 20
20 10
0 0
Instagram Facebook Twitter Tiktok Instagram Facebook Twitter Tiktok

Followers in Millions Followers in Millions

 Marketing strategies and Data Takeaways

• Zara and H&M have a key

common factor advertising factor
which is the store location as the
primary tool.

• H&M is focussed more on global

market with it’s top focus being
America(520 stores) and Zara
places importance on Spain as it
has most of it’s stores followed
by China (229 stores).
7 P’s of Marketing PRODUCT
PRODUCT

Product

Price

Place

Promotion

People

Process

Physical Evidence
Technology has had a big impact on marketing strategies for both H&M and Zara's
products. This is how:

PRODUCT: To keep up with the rapidly evolving fashion business, technology has
revolutionised H&M and Zara's product development and management processes.
Here are some examples of how technology has affected these fashion stores' product
offerings:

a. Prototyping and design: H&M and Zara utilize computer-aided design (CAD) tools to
generate and visualize clothing designs digitally, streamlining the design process and
reducing the reliance on physical prototypes. This technology enables designers to
experiment with various elements electronically, making the design process faster and
more efficient.

b. Trend Analysis and Forecasting: H&M and Zara utilize data analytics technologies to
analyze sales data, market trends, and consumer preferences, enabling them to
identify fashion trends and make informed product decisions. By leveraging data-
driven insights, they can align their product offerings with customer expectations and
stay competitive in the dynamic fashion industry.

c. Virtual Shopping Experiences :H&M and Zara have implemented virtual shopping
experiences using AR and VR technologies, allowing customers to try on clothes
virtually in their homes. These technologies enhance the customer experience, enable
better decision-making, and reduce the reliance on physical store visits.
 H&M
POLITICAL FACTORS
 Political unrest, conflicts, or significant changes in government policies can cause disruption, raise costs, or force H&M to close
stores or withdraw from markets.
 The rules and regulations governing wages, working conditions, and workers' rights in various countries can have a significant
impact on H&M's operations and costs.

ECONOMICAL FACTORS
 The overall economic condition and rate of growth can have a significant impact on its sales. People have more disposable
income and are more likely to spend on clothing when the economy is strong.
 High unemployment can reduce consumer spending power, reducing H&M's sales.

ENVIRONMENTAL FACTORS
 Climate change may have a number of consequences for H&M's business. It can, for example, affect the availability and cost of
raw materials, particularly cotton, a water-intensive crop.
 Many consumers are becoming more environmentally conscious and looking for environmentally friendly products. This may
have an impact on consumer perceptions of H&M and purchasing decisions.
 ZARA
POLITICAL FACTORS
1.Changes in trade policies, such as tariffs, trade barriers, or other restrictions, can have an impact on Zara's supply chain and

overall costs.
2.Tax regulations and rates in various countries can have a significant impact on Zara's profitability. Corporate tax rates, sales
taxes, and import/export taxes can all have a direct impact on a company's financial performance.

ECONOMICAL FACTORS
1.Consumers have more money to spend during periods of economic expansion, which leads to increased spending on clothing and fashion
items.
2.Changes in exchange rates can have an impact on the company's profitability because revenues and expenses in different countries are
subject to currency conversion.

ENVIRONMENTAL FACTORS
1.To reduce its environmental footprint, Zara should prioritize sustainable material sourcing, such as organic or recycled fabrics, and
implement eco-friendly manufacturing processes.
2.Zara can launch waste management and recycling initiatives, such as encouraging customers to recycle their old clothes or implementing
a circular economy model that emphasizes material reuse and recycling.
Conversion from Transection to Relationship
based Marketing
1 • Customer-centric approach

2 • Loyalty Programs

• Two-way
3
communication

4 •Omni channel Strategy

5 • Social responsibility and sustainability

 An Ethical practice by H&M:
 One moral practice by H&M is their obligation to
supportability and their efforts to promote
harmless to the ecosystem.
 H&M has set a goal to use 100% recycled or
sustainably sourced materials by 2030.
 H&M has implemented various programs to
reduce their environmental impact, such as their
garment collecting initiative.
An Unethical Practice by H&M:
 One unethical practice by H&M was the
contention surrounding their work conditions
before.
 H&M has faced criticism for working conditions
and labor rights violations in some of their
supplier factories.
An Ethical practice by ZARA
 One prominent moral practice by Zara is its
commitment to sustainability.
 By prioritizing sustainability, Zara demonstrates a
commitment to ethical business practices and
environmental stewardship.
 Zara also emphasizes the use of organic and
sustainable materials in its clothing lines.
An Unethical practice by ZARA
 One prominent unethical practice associated with
Zara is the alleged exploitation of workers in its
supply chain.
 The company has been accused of using suppliers
that engage in unfair labor practices, including low
wages, long working hours, and unsafe working
conditions.
 Conclusion
Although ZARA and H&M both have significant global footprints, it may be considered that ZARA has a more effective global marketing plan for a number of
reasons.
1. Fast-Fashion Model:
 ZARA's fast-fashion model, characterized by rapid production cycles and quick response to market trends, allows the company to capture and capitalize on
emerging fashion trends worldwide.

2. Market Sensitivity:
 ZARA's global marketing strategy is highly sensitive to local market preferences and trends. The company invests in market research and employs localized
strategies to adapt its offerings to specific regions.

3. Retail Store Locations:

 ZARA strategically selects prime retail locations in major cities around the world. These high-visibility store locations contribute to the brand's global image.

4. Digital Integration:
 ZARA has successfully integrated its online and offline channels, providing customers with a seamless shopping experience and a consistent brand presence.

5. Brand Image and Differentiation:

 ZARA has managed to create a distinct brand image that resonates with fashion-conscious individuals seeking unique and trendy clothing.
While H&M also possesses a strong global marketing strategy, ZARA's focus on fast fashion, market sensitivity, strategic retail store locations, digital
integration, and brand differentiation gives it an edge. By effectively capitalizing on global fashion trends and tailoring their marketing efforts to local
markets, ZARA has created a powerful and adaptable global marketing strategy that resonates with consumers worldwide.
Thank you