Retviews, a Belgian fashion technology analysis company, recently released a fast fashion company market analysis report “H&M vs Zara”.
The report compares the differences in brand positioning and category ratio between Swedish fast fashion brand H&M, Spanish fast fashion brand Zara and Spanish fast fashion brand Mango. At the same time, they also used data to analyze the product classification and pricing strategies of various brands under Zara’s parent company Inditex Group.
Above picture: Zara and H&M have different sub-category ratios (original report)
The report shows that in terms of main product categories, Zara and H&M do not have Big difference: the three categories with the highest proportions are: tops, skirts, and bottoms; the weights in coats, shoes, and accessories are also roughly the same.
But their weights on other subcategories such as underwear, home wear, casual wear, and swimwear are different: these categories account for 18.6% of H&M’s total sales and 18.6% of Zara’s total sales. The proportion is only 10.5% – this is because Zara’s parent company Inditex Group also has a brand Oysho that specializes in underwear and home wear. In addition to product categories, the pricing of Zara, H&M and Mango are also very different:
Clothes are all Price: Mango is 39.8 euros, Zara is 35.9 euros, H&M is 26.2 euros
Lowest price: H&M is 1.49 euros, Zara is 3.95 euros, Mango is 5.99 euros
Highest price: Mango is 599 euros, H&M is 399 euros, Zara is 279 euros
Compared with H&M, Zara’s proportion of mid-to-high-end products higher. H&M has the highest proportion of clothing priced at 10 to 19.99 euros, accounting for 36%; although Zara also has the highest proportion in this price range, mid-to-high-end clothing (30 to 49.99 euros range) accounts for 29%, while H&M has the highest proportion in this price range. The proportion of range is only 18%.
Zara and H&M are also very different in clothing color selection. Black and white are the main colors of Zara clothing, but H&M uses more bright colors, with more pink, blue and gray.
In the 2019 fiscal year from February 1, 2019 to January 31, 2020, Zara’s parent company Inditex Group’s net sales were 28.3 billion euros, a year-on-year increase of 8%; net profit was 3.6 billion euros, a year-on-year increase 6%.
In the 2019 fiscal year from December 1, 2018 to November 30, 2019, H&M’s net sales were 233 billion Swedish kronor, a year-on-year increase of 11%; operating profit increased by 12% year-on-year to 17.346 billion Swedish kronor. , full-year profit increased for the first time since 2015. (Note: 1 Swedish Krona is currently equivalent to RMB 0.72)
Take a closer look at the brands under the Inditex Group
AlthoughtheInditexGroupownsmanyfashionbrands,thefocusofthesebrandsisactuallydifferent.Thegrouphasadjusteditsbrandpositioning,pricingstrategyandproductcategoriesbasedontheneedsofitstargetusergroups.
Zarahasmen’s clothing, women’s clothing, children’s clothing and home furnishing categories. This summer, after Inditex’s fashion brand Massimo Dutti completes the integration, Zara will become the only brand in the group with a children’s clothing category. Among all categories, Zara’s women’s clothing sales are the best, accounting for 34.6% of total sales, followed by home product sales at 26.8%, and children’s clothing and men’s clothing sales accounting for 22.9% and 15.7% of total sales respectively. The average price of Zara men’s clothing is 36.2 euros, which is the highest among all categories of the brand. This is mainly due to the high proportion of jackets and suits (22%). Massimo Dutti’s men’s clothing accounted for 41%, second only to the group’s fashion brand Pull&Bear (41.6%). The target consumers of the brand and Zara are of the same age, but the design style is more low-key and classic, and the production technology is more sophisticated. Because of this, the average price of Massimo Dutti products is also the highest among all Inditex Group brands, at 88.7 euros. The three categories of accessories, pants and jackets accounted for 47.4% of the total number of products. The average price of the brand’s men’s clothing department products is 55.1 euros. The shirt category accounts for 19.3%, which is higher than Zara (14%). The available shirt sizes are also twice that of Zara. The average price of a three-piece suit by Massimo Dutti is 408 euros, and that of Zara is 170 euros.
Inditex’s fashion brands Pull&Bear, Bershka and Stradivarius, which are mainly targeted at young consumers, are more affordable and have a larger proportion of T-shirts and accessories. Take the shoe category as an example: Bershka shoes account for 36.7% of the total number of products, Pull & Bear 32.1%, and Stradivarius 18.8%.
Among all the products of Pull&Bear and Bershka, T-shirts account for the largest proportion, exceeding 30%. In order to better attract young consumers, these brand T-shirts use more bright colors: colored T-shirts other than black, white and gray account for 34% of the total number of Pull&Bear T-shirts, while among Zara T-shirt products, which are mainly targeted at office workers and college students, colored T-shirts The proportion is 29.8%.
Cooperating with famous IPs such as Disney and Marvel and many music labels, and actively launching limited co-branded models has increased the sales of T-shirts of various Inditex brands. The number of co-branded T-shirts accounts for about 5% of the total number of Bershka and Pull&Bear T-shirts, and the average price is 41.5% higher than the brand’s ordinary T-shirts.
Oysho focuses on underwear and home furnishings.�, the number of underwear and homewear products accounted for 27.1% and 31.6% of the total respectively. Due to the rise of sports trends, Oysho’s proportion of casual sportswear increased to 10.2%, and swimwear accounted for 14.5%. </p
