H&M is known for its stylish clothing for low prices. H&M’s price strategy is based on their customers wants and needs. Low prices, high fashion! H&M uses physiological prices which is a very smart strategy that always works. This strategy means that the price of a shirt isn’t 20 euro’s but 19,90. It seems much cheaper but the difference is just 10 cents. Normally at H&M you will not see clothes with a price higher than 80 euro’s. but sometimes a designer designs clothes for h&m for a lower price than the price of the original designer clothes. But higher than the usual H&M prices. For example Givenchy and Jimmy Choo . By doing this, they get much attention, so they might attract new customers. H&M uses also discounts. For example two weeks ago there was a student discount so you got 10 percent discount on the entire collection. Price strategy -> low prices, high fashion.
Designer -> much attention.
Discount -> student discount.
ZARA offers fashion at reasonable prices by following the most up to date fashion trends. ZARA has clothes that are fresh of the runway but they sell it for an affordable price. ZARA uses also physiological prices just like H&M. ZARA is more expensive than H&M but the quality of the clothes are also better. They do not use discounts. But when the clothes are old fashion or when there is just one size left of a product they will have a sale. Reasonable prices
Fresh of the runway -> affordable price
More expensive -> Better quality
Discounts / Sale
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