Tripp's Blog

The nature of Competition in the high street segment of the Fashion industry is relatively passive. Unlike traditional rivalries, such as Apple vs. Microsoft, in which companies engage in an aggressive battle to determine who is superior, there isn’t much overt aggression here; instead, Zara and H&M are rivals that generally do not “go head-to-head” against each other.

Normal rivalry involves comparing how your brand stacks up compared to another. While both Zara and H&M are positioned as direct competitors in terms of clothing offerings, Zara positions itself as more trend-forward and slightly more upscale. On the other hand, H&M positions itself as more affordable, offering basic pieces. Even though neither company says it outright, they create different “vibes” through their positioning Strategy.

More recently, however, there has been a shift toward a softer approach among these competing Brands. Rather than directly bashing their competitors, some competing Brands have shifted to a positive support mechanism. For example, H&M touting sustainable products helps validate sustainable practices among all Fashion Brands, including Zara. It appears to give Brands more confidence and a less desperate tone to compete.

While this may appear complex from a psychological perspective, the process is quite straightforward. From thin-slice theory we know that most consumers judge companies very quickly based upon first impressions. Therefore, when a company demonstrates fairness, honesty and/or respects its competitors’ products and philosophies, the consumer’s perception of legitimacy increases.

Trust is built rapidly. As you compare two stores that sell comparable products (e.g., Zara and H&M), that perception of legitimacy can often guide you toward purchasing from one store rather than the other. At this point, it is no longer about the product itself and more about the “vibe.”

Being nice is not effective in every situation. In fast-Fashion pricing and trends are significant factors. An example would be if Zara were to openly praise H&M’s lower prices. That could potentially damage Zara’s position as a higher-end alternative. The same would apply the other direction — H&M cannot allow Zara to appear cooler than it is perceived to be.

Additionally, simply appearing to be nice will not be successful if it is perceived as insincere. Consumers are typically able to detect when a company is attempting to gain favorability solely for marketing purposes. In those instances, the opposite effect occurs.