Zara vs H&M (framework)

1. Theoretical framework
   A. Definition of merchandising

Merchandising is a marketing technique that studies how to increase profitability at
points of sale (shops). Merchandising are activities that stimulate the purchase of
the customers in certain areas of a commercial place. Studies and the
implementation of commercial techniques allow presenting the product or service
in the best way to the customers. Different techniques are used to make the
product or service more attractive to potential consumers.
Merchandising is a technique that includes the activities developed at the shop to
modify the buying behavior of consumers. Its main objectives is to get the attention
of consumers to encourage that way the purchase of products that have the most
profitability for the company.

B. Explanation of the stores you chose

ZARA
Zara is one of the leading international fashion companies. It belongs to Inditex,
one of the largest distribution groups in the world. The customer is the center of
their particular business model, which integrates design, manufacture, distribution
and sales, through a wide network of own stores.
It currently operates in 88 markets with a network of more than 2,100 stores
strategically located in major cities. In Zara design is closely related to its
customers. Specialized teams constantly receive information about the decisions
of customers in each of the stores, an aspect that inspires their creative team of
more than 200 people. Zara seeks total harmony with its customers and helps to
shape their ideas, trends and tastes. The essence is to share the passion
responsible for fashion among a wide group of people, cultures and generations.

H&M

The H&M Group is one of the world’s leading fashion companies. With their
brands H&M, COS, Monki… they want to inspire fashion fans across the globe to
dress their personal style. Each of their brands has its own unique identity and
they are united by a passion for fashion and a way to dress customers in a
sustainable way. They want to make sustainable, good-quality fashion accessible
to as many people as possible.
H&M Group joins together more than 148,000 colleagues from different
backgrounds and nationalities working together for six fashion brands across the
world. They are dedicated to always create the best offering for their customers
and share a value-driven way of working, based on a fundamental respect for the
individual. They believe in endless possibilities and are always dedicated to create
the best offering for the customers.
C. Why merchandising is important for this companies

We think that for companies like Zara and H&M merchandising is so important to
attract possible customers to their shops, to rise up their sales volume or just to
show a good image of their business.
Merchandising is what is making your brand different from the others in the
market, it will help the company in increasing the sales and also the store will
looks clean and comfort for customer eyes.
Indirectly lots of customers are attracted to this 2 stores for their merchandising,
because the store looks very well and invite you to have a look inside, and
sometimes that people buy a product that he/she didn’t need or didn’t have in their
minds.
Zara, uses different merchandising strategies like:

• Shops are located in the best streets of each city, an example could be de
  shop located in Passeig de Gràcia in Barcelona.
• To keep the shop very clean and with good illumination so they can attract
  customers in this aspect.
• Another strategy is the pricing of their products. Cheap prices so everybody
  can afford the products.
• Zara have also a clear idea of their publicity. They don’t want to advertise
  their products on TV, but they want to create their.
  H&M, uses a different marketing strategy:
• They use celebrities to promote their products instead of they have to
  spend more money on paying that celebrities.
• They do different collections from famous designers so almost everybody
  can afford clothing of one famous designer because of the price.
• As Zara does, H&M is also so competitive in terms of pricing, their low
  prices allows them to cover a big part of the market.