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Assignment on Fashion Retailing with Zara and H&M

Assignment on Fashion Retailing with Zara and H&M (GC0788)

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Introduction

It is challenging for retailers to maintain competitiveness in the fast-changing and rapidly-moving fashion retail marketplace. Street fashion and social media like Facebook will keep contributing to the fashion market in the future. It is essentials for retailers to discover new approaches to building good relations with customers to bring profit in three particular ways: entertainment, convenience, and information (Smulders, 2015). This paper summarizes numerous issues connected to fashion retailing in the United Kingdom focusing on two specific companies, named Zara and H&M. Zara is one of the well-known fashion retailers in the United Kingdom. The organization places itself as the shop of trendy clothes at competitive prices. Zara has executed mass marketing policies effectively to achieve competitive advantages and sustainability. H&M is also a famous fashion organization that places itself in the marketplace with trendy and high-quality clothes or fashion accessories throughout its retail shops. It has executed niche marketing to achieve competitive advantages.

P1 Explaining the characteristics of target markets of Zara and H&M

Retail outlets

Retailing is the procedure where the sellers offer the products straight to the end-users. The main retail outlets are summarized as below:

Departmental Stores: A departmental store is a system that presents a broad collection of goods to the end-consumers. The customers can obtain the goods they want to shop in a single place. Departmental stores give a broad collection of choices to the customers. They retail Footwear, Electronic Appliances, Jewelry, apparel, Toiletries, Cosmetics, Toys, Sportswear, CDs; DVDs Books.

Discount Stores: Discount shops also present a wide collection of goods to the end-customers at discount prices. The discount shops usually present a limited range of collections and the quality in certain cases might be poor than the departmental shops. Tesco at present runs more than 100 discount shops in the UK.

Supermarket: A selling store that usually retails goods along with domestic objects, appropriately located and prearranged in particular departments is called a supermarket. A supermarket is a highly developed structure of the smaller grocery shops and caters to household needs. The different food items (juices, meat, dairy products, vegetables, etc) are all appropriately presented at their particular departments to grasp the concentration of the consumers and meet their changing needs and choice. The main supermarket in the UK is Morrison, Tesco, and ASDA, Waitrose, and Sainsbury’s.

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Warehouse Stores: A selling system that limited times in bulk amount on discounted prices is known as warehouse store. Warehouse stores do not concentrate much on the interiors of the shop. In addition, goods are not appropriately presented.

Mom and Pop Store: Mom and Pop stores are the little shops directed by persons in the local community that offer everyday products focusing on the needs of local community people.  They present to offer a specific range of products and are not organized. The area of the store is not large which is dependent on the owner’s ability. They do not present high-end goods. They retail Medicines, Bread, Eggs, Toys, Cereals, Pulses, Cigarettes, and Stationery.

Specialty Stores: Specialty stores focus on specific goods and would not sell anything else not including the particular collection. Specialty stores sell only selective items of one particular brand to the consumers and primarily focus on high customer satisfaction. For example, Reebok sells Reebok goods and nothing else creating it a specialty store. Customers can never get Adidas shoes at Reebok.

Malls: When many retail stores operate in a single place it is called a mall. A mall would consist of numerous retail stores that sell their individual goods in a common selling platform.

Online: Nowadays the consumers have the choice of shopping staying at their home. They can buy through the internet, can pay by credit or debit cards. In this case, the retailers send the product to the customers’ homes.  However, there are chances that the goods ordered might not be delivered on time or the products might be faulty. This type of shopping is suitable for those who have a very tight timetable and are unwilling to visit retail stores. In this type of shopping; customer can save their transport costs and time…………………

 

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