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Zara vs H&M Benchmarking

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Submitted By jessicacalyle
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Zara is H&Ms biggest competitor. They are both fast fashion, cutting edge high street retailers. H&M has a brand value of 13 billion euros so therefore is currently the highest valued fashion brand in Europe. Close on its heels is the equally ambitious Zara, valued at 7.8 billion euros. Both stores have a global vision and excel with their fast, affordable fashion. H&M is clearly in the lead In terms of the number of shops in Europe, the fashion retailer manages more than 2,200 outlets throughout Europe, whilst Zara operates only 1,120 shops. Both companies have online retail, Zara offers a next day home delivery option and free delivery over £50m whereas H&M do not offer this to their customers.
According to the research by fashion blogger Angelika, she found Zara clothing to be of a poor quality. Some garments looked unfinished and some items even had zippers and buttons missing. Angelika compared her Zara shopping experience to H&M, and these results proved to be much better. There were no problems found with any of the designs in store, unfortunately the downside to H&M was the fabric, for example the material of a certain blouse and dress was nylon meaning this type of material will cling to your body. 50% of Zara’s clothes are made in Western Europe. This means it can capture catwalk and luxury trends and have them available within stores in weeks. H&M's longer supply chain means it can't compete as fast on fashion, so it tries to do so on price instead: H&M is on average about 60% cheaper than Zara. However, it is still more expensive than budget competitors such as Primark and Forever

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