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