Medium to High threat of substitute : though there are competitors like H&M, F21, Topshop ; none of them are quite like Zara in the sense that their styles are all different (H&M is more casual, F21 is more geared towards the youth, Topshop is more classy while Zara is straight out of runway. It’s more daring, in a sense). Therefore, innovating in its own style is for Zara a sure way to secure the market shares they’re already holding. However, for a consumer who doesn’t belong to any specific style, each shop has clothes that can interest them, and thus represents a threat of substitution for Zara.
Medium to High threat of substitute : though there are competitors like H&M, F21, Topshop ; none of them are quite like Zara in the sense that their styles are all different (H&M is more casual, F21 is more geared towards the youth, Topshop is more classy while Zara is straight out of runway. It’s more daring, in a sense). Therefore, innovating in its own style is for Zara a sure way to secure the market shares they’re already holding. However, for a consumer who doesn’t belong to any specific style, each shop has clothes that can interest them, and thus represents a threat of substitution for Zara.
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