Project on Marketing strategies and Brand perception High Street Fashion
Project
on Marketing strategies and Brand perception High Street Fashion
Introduction
Prolific growth of Indian Economy, globalization, rise of urban middle
class with booming tech industry and burgeoning retail revolution are few of
the major factors instrumental in complex shifts in consumer behaviour.
Special growth has been witnessed in the fashion retail industry.
Educated and working youth are voraciously adopting new and latest fashion
trends. The consumers are increasingly becoming brand savvy, conscious of their
personality and understand the importance and role of clothes to enhance their
personality.
The growth of GDP and positive net disposable income factor leading to
the increase in size making brands to 24.4 percent are making brands like Zara,
Forever 21 and H & M increasingly affordable to the consumers.
Despite the various ethnic and culture restrictions, government rules
like the sale of only single-brand products allowed by a multi-brand company,
requirement of approval from the government to add new product, the ownership
to remain with the foreign investors and for FDIs more than 51 percent, 30
percent sourcing from the small and medium sale enterprise mandatory do cause
some hiccups for international brands entry.
India’s young and widely travelled, either on internet or physically,
exposure to various social media platforms leading to the knowledge of
international consumer behaviour is fuelling their preference for latest
fashion trends.
This preference has given rise to complex consumer behaviour and their
multiple needs.
ZARA
Zara is the flagship chain store of Inditex Group owned by Spanish
tycoon Amancio Ortega, who also owns
brands such as Massimo Dutti, Pull and Bear, Oysho, Uterque, Stradivarius and
Bershka.
The group is headquatered in A Coruna, Spain, where the first Zara store
opened in 1975.
It is claimed that Zara launches around 10,000 new designs each year.
Its most unusual strategy was its policy of zero advertising; the
company preferred to invest a percentage of revenues in opening new stores.
Zara delivers new products twice each week to its 1,763 stores around
the world.
Zara has developed a highly responsive supply chain that enables
delivery of new fashions as soon as a trend emerges.
Board Members
Mr. Pablo Isla Alvarez de Tejera
(Chairman and CEO)
Mr. Amancio Ortega Gaona
(Founder of Inditex and Member of the Board)
Mr. Jose Arnau Sierra
(Deputy Chairman)
H & M
H & M believes that giving the customer unbeatable value by offering
fashion and quality at the best price is what makes them successful.
About H & M
H & M targets infants, young adults and also working and retired
individuals.
Consumers can purchase the latest clothing items, shoes or accessories
for a low cost much cheaper than H & M’s competitors.
H & M remains relevant in the fashion world by keeping their markets
engaged through their Twitter, Facebook and YouTube accounts.
Consumers can be kept update with the trends, sales and ideas on three
social networks.
Forever 21
By 2015, the brand Forever 21 has grown to sell their clothing lines in
over 700 stores in the America, Asia, the Middle East and the UK. The company
now sell clothing, accessories and beauty products for both men and women, with
average storage size of 38,000 square feet.
It is now known to be one of the Fast Fashion retailers as it is able to
quickly move the designs from the Catwalks and fashion shows to mainstream
consumers. It allows common people to buy current clothing trends at economical
prices. More than 60 percent of its manufacturing is in China.
As per a research done by Forbes Magazine, Forever 21 ranks at #95 in
America’s largest Private companies. The company earned a revenue of $4.4
Billion in 2015.
Objectives of the Research
Þ
To study and
analyse the brand preference of Delhi’s youth while choosing brands like Zara,
H & M and Forever 21.
Þ
Factors affecting
the Consumer Psychology and perception while choosing one brand over the other.
Þ
The influence of
culture, advertisements changing trends and salary on a consumers purchasing
power and decisions.
Þ
Factors affecting
the willingness to spend.
Research Methodology
The research deals with the consumes who are choosing brands like Zara,
H & M and Forever 21. This initiated a research conducted on those consumer who shop from there. Hence it required:
H & M and Forever 21. This initiated a research conducted on those consumer who shop from there. Hence it required:
1. Primary Data Collection –
through structured questionnaire technique.
2. Secondary Data – data already
been collected by other researchers through internet to add various parameters
like GDP and number of young Indian population.
Sample of the study
The consumers of city Delhi
Sampling size
I have taken a sample size of 50 respondents.
Introduction of Companies
For this research project, I have taken buyers of Zara, Forever 21 and
H & M in a random order.
H & M in a random order.
In these competitive times, it is very important to be aware of customer
needs and the entry of these brands in last 2-6 years signifies their arrival
at the conducive times. These needs and behaviour can be known through consumer
data collection methods like surveys and other market database. After this
research survey, we can analyse to a certain extent what are consumer
expectations from a brand and the reasons as to why a consumer switches from
one brand to another; and the factors motivating them to adopt styling
startegies.
Survey Questions
Gender: Male/Female/Other
Which age group do you fall under: Under 17/18-24/25-30/Over 30
How often do you buy new clothes?: Several times a month/Several times a
year/Less Often
What is your usual reason for buying new clothes?: As a gift/Replacing
worn out clothes/To enrich my wardrobe/One of my routines/Other reasons (leave
space)
What is your favourite brand? Zara/H&M/Forever 21
How much do you spend on clothing per year? Below 3000/3000 to 6999/7000
to them/No
What type of clothing do you buy most often? Clothing items/Footwear/
Undergarments/Bags/Others
Undergarments/Bags/Others
What is your work status? Student/Working/Self Empoyed/Retired/Other
Please indicate the importance: (Very unimportant/Unimportant/Neutral/
Important/Very Important)
Important/Very Important)
Price
On Trend
Brand
Convenient Location
Store Atmosphere
Product Quality
Where do you usually get information on the latest trends?
Magazine
Television trends
Television commercials
Movies
Websites
Friends
Style Influencers and Celebrities
Other
Which of the brands do you think fits your style most closely?
Zara/H&M/ Forever21/Other (Specify)
Please rank according to importance (Unimportant/Of little importance/
Somewhat Important/Important/Very Important)
Somewhat Important/Important/Very Important)
Price
Fabric
Style
Fit
Washability
Comfort
Brand
Quality
Trend Relevance
Do 1 for each:
1. Have you heard of --------? Yes/No
2. How did you hear about -------? TV or Radio/Online Media (Facebook
etc)/Print Media (Newspapers or Magazines)/Word of Mouth/Other (Specify)
3. How relevant are the following factors for your choice of a clothing
brand? Advertising, Style, Online shopping options, affordability, High number
of options, Frequency of new designs.
4. How likely are you to shop at ------ in the next three months? Unlikely/
Very unlikely/Neutral/Likely/Very Likely
Very unlikely/Neutral/Likely/Very Likely
5. What categories of clothing would you be most likely to purchase from
------? Casual/Work/Evening/Shoes/Bags/Accessories
6. Please indicate your level of agreement: (Strongly disagree/Disagree/
Neutral/Agree/Strongly agree)
Neutral/Agree/Strongly agree)
------ has reasonable prices
------ has a contemporary image
------ is a well known brand name
------ is easy to access
------ has good store atmosphere
------ has high quality products
Is ------ a trend setter?
------ has all the latest fashion
trends
------ has a good customer service
7. Please tank according to your perception of ----
Price
Fabric
Style
Fit
Washability
Comfort
Brand
Quality
Trend
Relevance
Most of the respondents in these
outlets were females 43/50
The respondents varied in age
|
Under 17
18 – 24
25 – 30
Over 30
|
= 12
= 19
= 19
|
How often do you buy new clothes?
|
Several times a week
Several times a month
Several times a year
Not very often
|
2
13
23
8
|
Analysis: Most of the consumers by new
clothes several times a year while consumers buying regularly in a month are
also just next to majority.
What is your usual reason for buying
new clothes?
|
As a gift
Replacing worn out clothes
To Enrich my wardrobe
Out of Routine
To stay stylish and trendy
Any other Reason
|
3
14
4
29
|
Analysis: Majority of the consumers buy clothes to look stylish and
trendy very few tend to buy as a gift. This can be analysed as the consumers of
today given importance to style and latest fashion trends.
Which is your favourite brand?
|
Zara
H & M
Forever 21
|
36
27
18
|
How much do you spend on clothing per year?
|
Below 3000
3000 - 6999
7000 – 14999
15000 – 25999
Above 25000
|
-
3
7
18
22
|
Consumer frequenting Zara, H&M and Forever 21 in my sample size were
spending more than Rs. 25000 per annum. This shows they are ready to spend for
stylish trendy foreign brands irrespective of cost. People are ready to spend
more for better choices availability.
With increase in income levels brand awareness is also increasing.
Do you follow current trends?
|
1.
Yes, I follow them closely
2.
Yes, But I don’t really adopt them
3.
No, I don’t
|
36
9
3
|
Merely three out of fifty respondents did not follow current fashion
trends who actually shop at these outlets. Most of the respondents show they
are clothes shopping and wearing fashionable clothes is important for them.
What type of clothing do you buy most often?
|
Clothing Items
Footwear
Lingerie
Bags
Other Accessories
|
17
12
7
14
-
|
The buyers of bags and footwear closely follow apparels. Respondents
follow latest trends in other fashion accessories as well.
Which professional field or category do
you belong to?
|
Student
Employed
Self Employed
Retired
Homemaker
Other
|
26
12
2
-
8
-
|
Analysis – Most of the respondents are the young student buyers which
shows they prefer branded styles and then self employed followed suit. Students
are may be more aware of the international brands.
Please indicate the importance level
|
Price
Trendy
Brand
Convenience of location
Ambience of store
Product Quality
|
Somewhat
Important
Very Important
Very Important
Important
Important
Very Important
|
Analysis – For the trendy shoppers product quality, brand value and
adhering to latest fashion trends and styles is very important as compared to
price. Consumers are ready to ignore pricing for the better quality
international brands. Respondents agreed that the quality of clothes at Zara,
H&M and Forever 21 was better than local brands.
Which of these sources influence your buying decisions?
|
Magazines
Television Plays
Movies
Websites
Friends
Celebrities
Own Decision
|
7
2
5
2
12
7
15
|
Analysis – Most of the respondents marked that buying clothes and
following the trend is their own decision. Brand ambassadors, stylists,
celebrities don’t really influence them. They buy for their own comfort and
personal style. Friends are major influencers.
Do you think style and design of an apparel is the primary motivation
factor to enable you to buy the product.
Yes
No
|
47
3
|
Why do planktons shire in the deepest
of deep blue ocean?
Why do koalas cuddle their cubs?
Why one tiny pebble is powerful enough
to create ripples?
Analysis – Majority of the respondents agreed that their primarily
motivating factor is the latest styles and more variety in designs to guide
them towards a brand.
Have you hear of Zara?
Yes
No
|
50
-
|
Have you heard of H&M?
Yes
No
|
47
3
|
Have you heard of Forever 21?
Yes
No
|
46
-
|
Analysis – Zara emerged to be the most known brand with all respondents
having heard about it while the other two, Forever 21 and H&M were
following closely. These international brands seems to have made strong inroads
in the stylish consumers lists.
How relevant is the high number of options in styles and designs in
these brands?
|
Very Important
Important
Somewhat Important
Not Important
|
47
2
1
|
How relevant is frequency of designs for your choice of these brands?
|
Very Important
Important
Somewhat Important
Not Important
|
43
3
2
2
|
How relevant is advertising of these brands in your choice of these
international brands?
|
Very Important
Important
Somewhat Important
Not Important
|
9
7
8
26
|
Analysis – Surprisingly price is not a major deterrent for shopping of
the brands like Zara, Forever 21 and H & M. consumers rate multitude of
designs and styles as a very important factor to shop. They also get attracted
to buy with the frequency of change available to keep up with changing trends:
Even though the brands are expensive yet the loyalty is steady for these
brands. Brands ambassadors or celebrity endorsements or advertisements doesn’t
influence their decisions much. Hence recognition they get from wearing branded
clothes is not so highly ranked while shopping.
How important are brand offers and discounts by other brands in
motivating you to buy?
|
Very Important
Important
Somewhat Important
Not Important
|
26
18
3
3
|
Brand Offers
Analysis – Brand offers and discounts play a very significant role in
influencing consumers to adopt new brands.
Is price or style a differentiating or attractive factor for you?
|
Price
Style
|
9
41
|
Analysis – When asked to choose between style and price, consumers opted
for style in majority.
Findings of
Research
Þ
Consumers wear
Zara, Forever 21 and H&M for their stylish designs
Þ
Styles and design
rated higher than price while making buying decisions
Þ
International
brands offer superior quality of clothes
Þ
International
brands offer superior quality of clothes
Þ
Consumers buy
clothes very frequently from these brands
Þ
Respondents seemed
to be satisfied by the frequency with which these brands updated their trends
Þ
Consumers do get
influenced by offers and discounts yet stylish and trendy clothes are the
deciding factor
Þ
Zara, Forever 21
and H&M generate brand loyalty
Þ
Friends are a
major influencing factor while adopting new trends
Þ
Consumers did not
seem to be swayed by advertisements of these brands
Þ
The lines are more
diversified for female consumers
Conclusion
Indian consumers seem to be very fashion savvy and follow the global
style trends frequently and as per the respondents survey even adopt them
regularly.
Price is not a major deciding factor when new trends and styles are more
attractive for shoppers. The young Indian population is ready to spend on
clothes and frequent to spend a major portion of their income on clothes and
frequent the outlets every few months. The main consumers are women and female
students. The young, urban consumers seek innovation, new variety and exciting
trends frequently. Zara, H&M and Forever 21 have displayed a strong brand
image and loyalty among this segment and the education with positive economic
environment seems to be conducive to nurture shoppers in these times.
Papers
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