With young people having a high fashion sense as its target, Zara, the Spanish fast fashion chain with HQ in Arteixo, was founded in 1974 by Rosalia Mera and Amancio Ortega. The Inditex company, which includes this store, is the largest clothing retailer in the world.
The corporation operates over 2000 outlets in over 70 international locations. Twenty to thirty staple designs serve as the foundation for all new Zara products every two weeks.
Zara also ensures that its clients never run out of new options by shipping new collections to its stores twice a week. After many successful years, Zara is still a major player in the fashion sector. But as the industry becomes more competitive, Zara is encountering greater difficulties.
H&M, the Gap, and Fashion Nova are just a few of their many tough rivals. Zara’s “fast fashion” output methodology is a major reason for the company’s success, allowing it to undercut competitors’ prices without sacrificing quality. While Spain’s unemployment level led to a sales decline, Zara’s profits still out-shone its competitors by far at €11.94 billion in the first quarter of 2021.
Brands Similar to Zara (less and more expensive options)
1. H&M (Less Expensive)
Erling Persson started H&M in 1947. The company expanded rapidly from its humble beginnings as a storefront in Vasteras, Sweden, to become a global powerhouse in the retail industry. H&M now operates over 2,300 retail locations in 53 countries.
In the fast fashion world, it competes strongly with Zara, offering fashions at a lower price. They target a wide market, with a focus on a varying lifestyle concept collection. Its reputation for providing the highest-quality apparel at the lowest possible price makes the brand a favorite among consumers.
H&M also works on conservation and has joined with the Better Cotton Project to enhance global cotton farming standards. The selection at H&M spans from everyday essentials to bold statement pieces. The company cares about making sure all customers are satisfied, thus they provide a variety of sizes.
Also, H&M regularly partners with major designers to produce limited edition lines. Designers such as Versace and Karl Lagerfeld have worked together in the past.
In the realm of quick fashion, H&M is among the most prominent names. Their profit averages $2.5 billion. For this reason, H&M is a great choice for people who want to put their money into the fast fashion industry.
2. Urban Outfitters (Less Expensive)
Urban Outfitters, sometimes known as URBN, is a pioneer in the niche market of “lifestyle” goods and services.
Terrain, FP Movement, Free People, BHLDN, and Anthropologie are just some of the global consumer brands managed by URBN. Urban Outfitters had about 24,000 employees and $3.45 billion in revenue in the fiscal year 2021. They compete with Zara by offering a large variety of clothing at lower prices and a robust internet presence.
Earnings for the first three quarters of 2021 at Urban Outfitters hit a record $270 million. Its internet sales grew by double digits throughout this time, contributing to a 14.3 percent rise in total revenues.
By 2021, Urban Outfitters had launched 46 new stores and gained market share by selling fashionable goods to Millennials and Generation Z. This made them a formidable rival to Zara.
3. Uniqlo (Less Expensive)
The Japanese company Uniqlo has been selling trendy clothes quickly since 1949. The company’s roots in design and tech are among the reasons for its meteoric rise to the top of its field.
Uniqlo provides clients with high-quality items at reasonable prices, and the company is always developing new products to satisfy their needs.
Uniqlo offers both brick-and-mortar stores and an online site, so that their wares may be purchased by customers all over the world. They cater to the 18-40 age range with their fashionable casual clothes.
Compared to Zara’s 11% portion of the market, Uniqlo’s estimated share is only approximately 5%. With its quick expansion, Uniqlo is on track to surpass Zara in annual revenue, which is calculated at $13 billion.
Uniqlo has a strong financial foundation and is turning a profit. Its P/E ratio is almost 20, and analysts predict that it will earn $0.90 per share this year. This suggests that traders expect the stock price of Uniqlo to rise further.
Other Stories/AOS (Similar Pricing)
With tailored-looking clothing and distinctive accessories such as gold statement jewelry plus jackets, & Other Stories is more expensive than H&M but less so than Zara. With its monochromatic clothes, which give you a premium look on a budget, & Other Stories combines classic elegance and modern trends.
They focus on people who like to personalize their style and ooze with confidence, which is the reason for their strong social media presence.
If you’re trying to save money, don’t pass up the accessories at this store. You can dress up even in an athleisure ensemble with the right accessories. In their shoe department, you may find a wide variety of styles, from the ever-popular Chelsea boot to an imitative snakeskin design.
4. Gap (More Expensive)
The Gap is undoubtedly one of the most well-known clothing labels worldwide. Don and Doris Fisher started the company back in 1969. The very first Gap store opened in San Francisco and became an instant hit with the locals. The business’ stated goal is to “deliver apparel and accessories which are both attractive and affordable.”
Since its inception, Gap has been a trendsetter in the clothing industry. They were among the first retailers to provide reasonably priced, high-quality apparel. And they keep adding new and intriguing items to their stock regularly so that clients never run out of options.
Gap’s dedication to environmental protection is one of the things that sets it apart from other fashion labels. They make an effort to lessen their impact on the environment by employing sustainable practices and products in their manufacturing process.
Additionally, Gap has a robust commitment to charitable work. They contribute to many different organizations and try to help disadvantaged kids.
To sum up, Gap is a diverse and inclusive company that caters to all demographics. Therefore, Gap is worth a look if you’re in the market for trendy, reasonably priced tees and sweatshirts. Even though GAP targets young people ages 18-28, it caters to everyone from babies to the elderly.
With more than 1,500 sites across the United States, GAP is a major clothing retailer. It sells a variety of apparel and accessories for males, females, and children. Although fast fashion shops like Zara have threatened the company’s market position in recent years, it is still rather large.
GAP had nearly $16 billion in revenue last year. Its price-to-earnings (P/E) ratio is currently 24 and its EPS for 2017 was $3.14. For every dollar in profits generated by GAP, investors are willing to spend $24. An indication of faith in the company’s future success.
5. Fashion Nova (Less Expensive)
Fashion Nova is a retail and wholesale fashion empire centered in Los Angeles. Yet, there are only five physical stores for the fast fashion chain. With a projected $600 million in revenue in 2021, Fashion Nova employs about 450 people. Sales through electronic mediums contribute significantly to the company’s bottom line.
Cardi B, like many other famous people and influential people, regularly wears items by the brand Fashion Nova. After all, it targets curvy women.
The fashion label Fashion Nova has been established for around 15 years, yet it is already a household name. Fashion Nova is ahead of the competition because of its unique web strategy.
From Instagram to TikTok, the business has amassed a huge international fan base online. Its high-quality clothing is promoted with the help of over a thousand manufacturers and between three thousand and five thousand influencers and celebrities.
The majority of its offerings can be purchased for less than $50, which is sure to win over repeat buyers. When compared to Zara, Fashion Nova is the youngest and most formidable rival.
6. Forever 21(Less Expensive)
Founded by husband-and-wife team Do Win and Jin Sook Chang in 1984, Forever 21 is a fast fashion chain. The store has grown from its humble Los Angeles beginnings to become a recognized name all around the world.
Forever 21 has quickly overtaken Zara as a serious fashion competitor thanks to its extensive selection of on-trend apparel. The brand’s accessories, dresses, and denim are consistently best sellers.
Forever 21’s roots are one of the elements that make the company distinct from similar fashion labels. Over the years, the corporation has cooperated with numerous charities to assist important social causes like cancer studies and education.
As part of its commitment to the environment, Forever 21 sources sustainable materials for its products when practical. Under the slogan “expect more, pay less,” Forever 21 sells fashionable clothes at reasonable prices. The majority of their products are in small and medium sizes, and they typically only carry 75 different seasonal designs per store each season.
You’ll find their stores primarily in North America, but they also have outposts in the UK, Poland, France, and Austria. They have clothes for people of all ages and sexes (including maternity). 53% of their customers are female Millennials, and 82% of them believe that the retailers these consumers choose to frequent have a significant impact on the brand loyalty of this demographic.
Forever 21’s revenue was close to $16 billion in February of 2018. They’ve already become the third-largest specialty store in the United States, and its annual growth rate is hovering around 15%.
Although this is quite a feat, it pales in comparison to the $US25.23 billion that Zara made in 2017. In any case, Forever 21 is not to be taken lightly as a top competitor in the fast fashion industry.
7. Sephora (More Expensive)
You’re like, what?? Yes, they are competitors in the beauty arena. As a group, they engage in fierce competition across all social media channels. Social media stars are crucial to the success of both Zara and Sephora in promoting their cosmetics lines.
However, Sephora gives creators and influencers a 15% cut of any sales made through their links. Compared to Sephora’s 16%, Zara’s 8% is little. When it comes to cosmetics, Sephora is Zara’s main rival.
When it comes to selling health and beauty items, Sephora is right up there with the best of them. Haircare, body products, beauty tools, nail polish, fragrance, and skin care are among the categories covered by the company’s more than 3,000 cosmetic brands. In 2021, Sephora had a revenue of over $1.5 billion and about 1,000 workers.
The Sephora Collection, Sephora’s private label, features a wide variety of cosmetics. Zara Beauty was introduced in June 2021 to expand the company’s offerings and increase sales in this area.
8. Gucci (More Expensive)
Established by Guccio Gucci in Florence in 1921, Gucci is an Italian upscale design and leather goods brand. Products offered by the company span many categories, from apparel and shoes to travel goods and cosmetics to furniture and decor. Additionally, Gucci has the highest rate of expansion among luxury labels.
Frida Giannini, the founder of the company, established a nonprofit organization in 2012. The mission of the foundation is to “encourage innovation and craftsmanship in Italy,” as well as to “promote emerging designers” and “help conserve the country’s cultural legacy.”
The range of Gucci’s wares is similarly extensive. Clothing, accessories, jewelry, timepieces, accessories, footwear, fragrances, and cosmetics all fall under this category. For the second year in a row, Gucci has led all luxury brands in sales growth.
With over 10% of the market share and over $4 billion in annual revenue, Gucci is undoubtedly a fashion industry giant. Gucci has quickly become a major competitor to Zara, which has dominated the fashion business for many years.
Many affluent consumers have become devoted fans thanks to the brand’s cutting-edge aesthetic and consistently high-quality offerings. More than 14 million people follow Gucci on Instagram, demonstrating the brand’s popularity in the digital sphere.
Gucci has so much happening for it that it will undoubtedly continue to be one of the most influential brands in the fashion business for the foreseeable future. Net income for the Gucci Group in 2018 was $804 million on total assets of $4.0 billion-plus equity of $5.9 billion on the annual revenue of 3.8 billion euros, a number that has grown gradually over time (2016).
9. Mango (More Expensive)
Nahman and Isak Andic, two brothers, started Mango in 1984. Women’s clothes were the first focus of this Barcelona-based family business. It has subsequently expanded into a global fashion powerhouse, with more than 2,000 locations across 100 countries.
As well as women’s, men’s, and children’s apparel, Mango also sells a variety of accessories, home goods, and cosmetics. All sorts of different looks, from business attire to laid-back streetwear, are available. Mango offers a sizable online business that serves people all around the world.
Mango stands apart from the rest of the industry thanks to its dedication to both fashion and quality. The company’s clothing is consistently on-trend and of superior quality. Also, compared to other high-end fashion retailers, Mango has more affordable apparel options.
The clothing company that specializes in Mexican-made designs saw a 6% increase in annual sales to nearly $7 billion in 2019, from $736 million in 2017. This rapid expansion has allowed Mango to rival Zara’s main competitor, H&M, in terms of annual revenue, with 2018 retail sales of 9 billion euros (11 billion USD).
Investors are already planning for next year when they expect Mango to hopefully continue this trajectory while also bolstering its position in omnichannel and menswear.
Though Mango has long been regarded as Zara’s second-place competitor, the latter’s recent sales decline has opened the door for Mango to overtake it. Given the rise of competitors like Mango, Uniqlo, ASOS, and Primark, it will be fascinating to observe how Zara reacts.
10. M&S (More Expensive)
The British department store chain Marks & Spencer (M&S) first opened its doors in 1884. Over 78,000 people are employed by the corporation, which has over 700 outlets in over 40 countries. Fashion, home decor, food, and wine are just a few of the many categories covered by M&S.
M&S has been around for over 130 years, thus it has a long and storied past. Thomas Spencer and Michael Marks started a tiny penny bazaar in Leeds, England in 1884. After the initial store’s success, the partners quickly expanded to other locations across the country. When the turn of the century arrived, apparel sales became M&S’s bread and butter.
For a long time, M&S has been the go-to store for Brits. But a competitor like Zara has made it harder for the brand to thrive in recent years. Because of this, M&S has had to modify its operations and introduce new goods and services.
Therefore, M&S has a strong foundation on which to continue competing in the worldwide retail targeted audience and should do so for the foreseeable future.
A well-known name in British retail, Marks & Spencer has enjoyed great success. It sells a wide variety of products, including clothes, food, and low-priced home goods. Retailing is only one aspect of M&S’s business model; they also operate as a supply chain by purchasing the well-known Mr. Kipling brand in 2008 plus having a presence in 50 countries spanning Europe, Africa, and Asia. In FY2016, their net sales topped 7 billion GB pounds, or roughly $9 billion.
With EPS of 6.03 GBP ($8.00) and a P/E of 15.72, M&S is a highly lucrative business. That’s a sign that investors think M&S’s bottom line will keep expanding in the years ahead. The profitability of 3.66% indicates that a sizable portion of the company’s earnings is being distributed to stockholders.