2. Substitues: MODERATE
1. Buyer propensity to substitute is high with several competitors to choose from (H&M, Uniqlo, MANGO, and many other fast-fashion brands)
2. Low buyer switching costs and easily substitutable where a customer can walk into its neighboring store instead of Zara
3. Zara has gained substantial customer loyalty which has more visits per year than its competitor’s store
4. Copying of styles is quite prevalent in this industry, which can attract the customer who does not mind lower quality but “similar” looking apparel. The example will be counterfeiting of Zara products in Indonesia which is currently trending.