Principles in Fashion Marketing: Chanel and Zara. Essay

2574 Words Jan 27th, 2013 11 Pages
1. Introduction
Nowadays, Zara and Chanel are known worldwide as two successful brands. The former is a mass clothing retailer whose production takes only weeks whereas the latter is perceived as one of the most established retailers in haute couture, specialising in luxury goods whose production takes months. Zara has more than 800 stores worldwide, in sharp contrast to Chanel which has about 160 boutiques (wilkepedia).

Coco Chanel founded her brand 106 years ago while Amancio Ortega created the Zara label 35 years ago ( At first glance these two companies seem alien in their market outlooks, however in many aspects, such as pricing, quality, and market strategy they are competitors. This is an
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Moreover, Chanel produces everything in-house and so production corresponds to exceptionally high standards. With Chanel their “haute couture” products are only available in one shop in Paris on Rue Cambon( This exclusivity reinforces the brand image.

Price:£800,00 Price:£39,99

2.2. Place – “The shops make the brand”
In marketing, the location of the stores is one of the most important factors in attracting customers. That is why Chanel and Zara’s marketing teams do their best to open shops in particular areas.

Chanel has a presence in prestigious locations in the best known cities in the world such as New York, London, Paris, Tokyo and so forth. In London it is located on Sloane Street. Their direct competitors are located nearby such as Dior or Gucci. However, and unusually, this is not a weakness but instead it helps reinforce the brands of these businesses and there is significant customer overlap.

Zara’s stores are located in the main commercial and popular areas of cities across Europe, America, and Asia. Thus, the stores are easily accessible by the mid-market segment referred to earlier. Their shops have to be visible, spacious and provide easy access so that they can establish a strong link with the customer base.

2.3. Promotion
According to Bruno Remaury, “Fashion is a factory which produces

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