When was it that high-fashion became everyday wear? I feel like it happened so fast. Suddenly everybody considered themselves fashion oracles with Jimmy Choo shoes and a bag to match. The people you would least expect had a fashion blog, took pictures of themselves in “Today’s Outfit” and had opinions on coming trends, underground designer wear and new fashion shoots. Elle was the new Times and Wedges were no longer a mathematical term. But obviously price is a factor in this. Everybody cannot afford a pair of Jimmy Choos. Well, hang on a minute…until H&M. I think this whole development can be explained with two words: H&M and Zara. That’s what happened, and that’s when everything else followed. They made it possible. They brought the latest catwalk trends to the masses without the accompanying price tag. H&M with their designer collaborations and Zara with their incredible speed in ripping off new designer styles.

Jimmy Choo shoe for H&M. Picture from ciccimodel.blogg.se

So how did they accomplish this? Well, it is not as simple as copying what celebrities just wore and think consumers will be satisfied with that. One reason especially in Zara’s case is the perceived exclusivity. Zara achieve this through always having new pieces of clothing in limited supply. That there are only a few items on display even though the average size of a Zara store is 1.000 square meters helps. And that Zara removes unsold clothes after just a few weeks also contributes towards the exclusivity.  They have successfully created a “now or never” customer mentality.

Zara clothing, picture from 1tshirtsworld

Individual Zara stores can also choose autonomously what to order for their specific store, which makes each store special and separate from another. Customers are then encouraged to go to several Zara stores in one single shopping round. But the reason Zara can get those shoes that look exactly like the Balmains out so fast to their stores is their centralized production center in Spain. That market specialists, procurement personnel and sales people are all sitting next to each other in Spanish La Coruña allows the process between sketch through design to send-off to be instant; Zara can take a design from the drawing board to stores in only two weeks. This enables them to capture new catwalk trends very quickly. Zara’s 200 designers free of the common pretentions sit in the midst of the action. Zara also let their retailers change orders to a higher extent than competitors, this flexibility saves them overproduction and using cheaper materials permits the lower price.

Zara's "Balmain" shoes, photo from Chicintuition

All this combined with Zara’s closely surveyed distribution network using latest IT enables them to introduce new fashion products every week, which has created excitement in addition to the exclusivity.  They collect data from their 4. 430 stores in 73 countries to detect trends and be able to respond with exact preciseness to consumer preferences. This has led to Zara not needing much advertising; another cost saver in addition to low inventories. Since every day is a surprise and you never know what you will find at Zara (that mysteriously complies exactly with your taste), customers are repeatedly coming back to see what’s new.

The typical Zara store. Photo off Financial Times: ft.com/donsullblog

H&M has managed to achieve this same sensation but through a slightly different strategy. About one quarter of their inventory is made up of items made by H&M themselves, in comparison to Zara whose whole operation is. H&M keeps lots of clothing inventory originating from cheap Asian manufacturers. So then H&M are maybe not that efficient and do not deserve to be held up with Zara in the fast fashion category you might ask. How come they have 2.000 stores in 37 different countries and employ 76.000 people? Ok if you have lived in a cave for the past years let me tell you; the Swedish retailer has paired up with high-fashion designers to create limited collections, creating hysteria among customers, media and uncountable fashion-bloggers, selling out instantly. These designer collaborations with Stella McCartney, Karl Lagerfeld, Viktor & Rolf, Roberto Cavalli, Comme des Garcons, Matthew Williamson, Jimmy Choo and Sonia Rykiel have given H&M legitimacy as a new-thinking fashion company and even given them credibility with alternative fashion movements, especially in the U.S. The fact that only selected stores carry the collections create a “have to have it” feeling similar to what Zara achieve.

From Comme des Garcon's collection for H&M. Photo from www.stylishkidsinriot.com.

If Zara is the most efficient, H&M is certainly the pioneer. They were first with using young talented designers to make cheap yet high-fashion items in a fast pace. Although it might not seem like it because of the careful Swedish exterior, H&M are constantly experimenting. With their guest designers for example, they launched into swimwear, menswear, new garments and fabrics that these designer had never worked with before. Jimmy Choo had never done clothes and Mathew Williamson was not familiar with menswear for example. H&M is also doing well financially. Sales are continuously rising and are up almost 20 percent in the first quarter of 2010. And unlike Zara H&M have had several clever advertising campaigns.

Advertising 2006 with actress Emanuelle Beart for H&M underwear collection from www.bizreport.com

But really, the main success factor in H&M’s case is spelled: The internet.  Zara’s fast changing collections are much harder to manage and sell online. H&M was one of the first apparel retailers focusing on e-commerce. Zara will only start with A/W collection 2010 to sell their clothing on the internet. Furthermore, not only have H&M formed designer partnerships and had fashion personalities like Madonna and Kylie Minogue designing and stylish Dita von Teese, Pharell Williams and Katie Perry making t-shirts against AIDS. They have also introduced other limited collections, such as the environmentally friendly “HM Garden Collection”. “HM Fashion Against Aids Festival Collection 2010” is the latest such collection that aims to bring awareness for AIDS spreading on festivals, or maybe just wants to generate favorable publicity for H&M and link them to a humanitarian cause to avoid the sweatshop discussion…you chose. In any case the collection is pretty cool and promoting safe sex is never bad. It has everything you would need for the rocky UK festival experience; I could definitely see Kate Moss strutting around in this in the mud. Except for clothes and accessories it includes tents and sleeping bags. Lou Dillon and Lizzy Jagger excel as models in photos with a young rebellious attitude. The collection was just released on May 20 and 20 percent of sales will according to H&M go to fighting AIDS.

H&M's new festival collection, picture from coutequecoute.blogspot.com

So tents now, what’s next? Well, Zara have a home decorating brand as well. Of course Inditex (the Spanish holding company of Zara) could have chosen to start another completely separate furnishing brand, but they chose the Zara one. H&M has said their long-term strategy is diversifying into an IKEA or Wal-Mart concept. Hmmm… a Roberto Cavalli leopard grill anyone or a Karl Lagerfeld black and white cart maybe, why not? With H&M going into computer games with The Sims this is not as far-fetched as it might sound…