by 981374 on April 15, 2011
http://www.marketingweek.co.uk/sectors/retail/hm-launches-ethical-fashion-brand/3025566.article
H&M, Zara’s greatest competitor is launching a new fashion brand which their aim is to be ethical. This means that their clothing’s are made up of more environmentally friendly materials. This new brand will build a good image for H&M and with a better image comes better sales and new customer base. This might affect Zara because some of their customers will change to go to H&M because of their new environmentally friendly image.
by 981374 on April 15, 2011
http://www.bloomberg.com/news/2011-04-15/china-economy-grows-more-than-forecast-9-7-as-prices-jump.html
Even though China’s economy is growing rapidly, so is the inflation. Not only is the growing economy affecting China itself, but also a large number of countries in Asia such as India. With retail stores in China and India, this will certainly hurt the company because of inflation. Due to inflation, people will save more than normal and money are less worthy. But with China’s economy growing exponentially, for the time being, Zara is still safe.