Zara and H&M pricing strategy in South east Asia - Vietnam vs Thailand market

Abstract

There are more and more international brands come and choose Vietnam at an ideal destination to widen the business in recent years, especially in the apparel industry. With the significant increase in the number of new opening clothing store during years, people can recognize the attraction of this industry in Vietnam market and Southeast Asia market in general. However, besides the fierce competitions with the domestic brands which always have many competitive advantages, international brands have to take part in the races with others. Hence, to become a winner in the competition requires the companies need to have a reasonable strategy. In Vietnam, in particular, and developing countries in general, the buying behavior of customers depend much on price. For this reason, having a good pricing strategies is a must to all the companies in this race. With the main objective to examine about pricing strategies of two big brands in apparel industry: Zara and H&M, this paper was conducted to understand which brand has a better strategy both Vietnam and Thailand market. Qualitative method was used in this research, with the random 240 product codes for each brand were collected through the website in both Vietnam and Thailand market. The information of data includes: article number, price and image of the products. these products were keep tracking during 3 months to investigate about the changing in price and the different in changing in each market. After that, researcher conducts the data analyzing process by the cross- sectional method to find out the differences between two brands. In conclusion, the result shows that Vietnam has a better price than Thailand at present and some conclusions and recommendations were made in order to help the companies to enhance some problems so that they can perform better