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How Consumers’ Response on CSR Affects Brand Competitiveness in the Fast Fashion Industry——Case Study of Zara (Inditex) and H&M

This research is to examine how consumers’ response on CSR affects brand competitiveness. A case study of Zara and H&M is conducted to compare brand CSR practices and brand competitiveness. In addition, a qualitative questionnaire research is designed to collect consumers’ response on CSR, as well as their brand preference and purchasing behaviour, which directly indicate brand competitiveness. The research finds that Zara is more competitive although H&M has done better in CSR. Consumers’ response on CSR has a moderate effect on brand competitiveness, while the competitive factors in the fast fashion industry rank from design, price to quality, and finally CSR. Besides, consumers’ response on CSR benefits brand competitiveness by positively prompting brand equity, and negatively impacting competitors’ competitiveness through CSR’s spillover effect on non-CSR competitors. Moreover, negative CSR is found to have more serious influence on brand competitiveness than positive CSR. Gender difference is found that male customers are more social CSR oriented, while female customers are more environmental CSR oriented. Secondly, female customers are more susceptible to CSR, while male customers have less confidence on brands’ CSR initiatives.