CATEGORY ANALYSIS: APPAREL
The Spanish fast-fashion label Zara ranked ninth in this year’s luxury goods category in the Asia’s Top 1000 Brands 2019 ranking, below the usual lineup of fashion houses such as Louis Vuitton (which came top again). The ranking usually shows little change, but Zara’s unexpected entry this year just below Burberry displaced Versace, which slid to 14.
The brand also came second after Chanel in the women’s apparel category, which Uniqlo topped last year but this year sits in fourth place.
The likes of Uniqlo and H&M are more familiar competitors to Inditex-owned Zara, and it is ahead of them both in the overall Top 1000 ranking. It moved up to 48 from 52 as Uniqlo fell from 38 to 69. H&M gained slightly, from 65 to 62. While Zara is admittedly higher priced than its closest rivals, it clearly isn’t in the same league as genuine luxury players.
That might not matter to a lot of emerging middle-class consumers, who appreciate good design but have relatively little experience of it. Zara’s aesthetic and retail strategy mean it feels upmarket relative to Uniqlo which, while its clothing might be more wearable, is unlikely to be confused with the likes of Armani.
The perception clearly bodes well for Zara, which is especially well received in India and Vietnam, according to the ranking. But given the speed at which consumer sensibilities have matured in markets like China, it may not last.
The ranking comes at a time of change for the luxury sector, which is increasingly influenced by streetwear and sneaker culture. These are of course quite distinct from Zara’s offering, but Uniqlo continues to innovate through tie-ups with designers and artists associated with street culture. In early June, strong demand for KAWS collaboration T-shirts led to large-scale in-store brawling between Chinese consumers.
Other brands in this year’s top 10 luxury goods ranking were Chanel, Gucci, Hermes, Calvin Klein, Prada and Cartier.
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FAQs
The Spanish fast-fashion label Zara ranked ninth in this year's luxury goods category in the Asia's Top 1000 Brands 2019 ranking, below the usual lineup of fashion houses such as Louis Vuitton (which came top again).
What is Zara's marketing campaign? ›
Zara's marketing strategy revolves around a modern approach to fashion, with a keen focus on the younger demographic, especially millennials. Understanding the need for trendy yet affordable fashion, Zara delivers the latest styles at competitive prices.
Is Zara considered a luxury brand? ›
Zara is an affordable non-luxury brand! Then why does it position its stores next to luxury brands like Gucci, Armani, and Louis Vuitton? See, Zara does not spend a dime on conventional advertising.
Who are Zara competitors in China? ›
Chinese mass market brands Metersbonwe, Peacebird, Youngor, Mo&Co and Eifini are among the local players competing with global fast fashion brands. H&M and Zara also compete with Chinese brands on platforms like Tmall, Taobao and Douyin that cater to hyper-local trends, fit and consumer behaviour.
What is the most popular brand in Asia? ›
A total of 500 brands from 20 countries and regions were selected. Toyota, State Grid, and ICBC are listed as the top three influencers. Haier, Samsung, Tencent, Honda, China Life, Sony and CNPC are also listed in the top ten.
Why are luxury brands moving to Asia? ›
Brands are showing significant interest in Viet Nam and Thailand because of their growing economies, expanding HNWI populations, and the favourable attitude of the young middle class toward luxury goods.
What countries is Zara most popular in? ›
Zara is the Spanish clothing retailer Inditex Group's flagship brand. Of the numerous fashion companies that belong to Inditex, Zara has the highest store numbers on a global scale. As of January 2024, Spain, France and Italy were the European countries with the highest number of Zara stores as shown in this statistic.
What country is Zara most popular in? ›
Of all the countries in which zara.com operated in 2022, the United States emerges as the number one market, accounting for 23% of Zara's total online revenues. Including the United Kingdom (11.1%) and Spain (8.6%), these top 3 markets represent a total revenue share of 42.7%.
Which country is Zara's biggest market? ›
Zara's Geographic Segmentation
Zara opened its first store in Spain in 1975, followed shortly after in Portugal, before expanding to the US, Europe, and the rest of the world. It currently has stores in 96 countries. The largest market for the Zara brand is Spain, which has 547 stores.
Does Zara have stores in Asia? ›
The number of Inditex stores in mainland China amounted to 192. Inditex is one of the world's largest fashion retailers. It is headquartered in Arteixo, Spain. The Group has seven store formats: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home.
