Presentation on: ZARA

Presented By: ANKITA KAVA (17531015)

Subject: International Business
Topic: Market entry strategy adopted by ZARA to entre
global market
Global market entry and factors influencing

■ When a service or product need to deliver in the foreign country(target market) it

needs to apply global market strategy. When importing or exporting services, it
refers to establishing and managing contracts in a foreign country.
 About ZARA

■ Zara is a Spanish fast fashion (clothing and accessories) retailer

based in Arteixo in Galicia. The company was founded in
1975(44 years until now) by Amancio Ortega and Rosalía Mera.
■ It is the main brand of the Inditex group, the world's largest
apparel retailer. The fashion group also owns brands such
as Massimo Dutti, Pull&Bear, Bershka, Stradivarius, Oysho, Zara
Home, and Uterqüe.
■ More then 60% of inditex revenue is generated from ZARA.
■ Around 10000 stores worldwide. And a revenue of $18.9
billion(annually-2018).
■ Its first store featured low-priced lookalike products of popular,
higher-end clothing fashions.
 ZARA Product

■ Zara stores have men's and women's clothing, as well as

children's clothing (Zara Kids). Zara's products are supplied
based on consumer trends.
■ Its highly responsive supply chain ships new products to
stores twice a week. After products are designed, they take
ten to fifteen days to reach the stores.
■ Zara produces over 450 million items per year.
■ Even there is ZARA home which consist of home accessories
and furnishing.
 ZARA, INDIA

■ In India ZARA is recognized as ZARA, India.

■ In 2010 Zara, India was came into market.
■ It was a joint venture with Tata Group to entre India.
■ Inditex has a share of fifty one percent of this collaboration while
Tata’s subsidiary Trent Limited holds forty nine percent.
■ Currently 20 ZARA stores across country, planning to open 18 in
next coming year.
■ With annual sales of Rs 405 crores, each of Zara's nine stores in
the country on an average made Rs 45 crores.(2017)
 Market entry strategy of ZARA

■ Own subsidiaries: high investment, expensive and high

level of control and risk. For ZARA this strategy is
suitable in Spain, U.S., Europe, Brazil, etc.
■ Joint Venture: CO-operate strategies with local
companies, it is usually implemented in large competitive
markets this strategy is applied by ZARA in China, India,
Japan, Germany, Italy, Indonesia, etc.
■ Franchising: High Risk and having small markets with
low sales forecast and culturally distant. eg. Saudi
Arabia, Kuwait, etc.
List of stores
globally ■ ZARA has more than 2,200 stores
in 96 countries and is the flagship
brand of the Inditex Group.
■ Zara added a net of 51 stores in
2017, plus 38 Zara Home
locations. Spain is the biggest
market with 563 stores (including
Zara Kids and Zara Home),
followed by China (223 stores),
France (150), Russia (144) and
Italy. The U.S. has 87 stores as of
January 2017. Zara's online sales
soared 41% in 2017 to 10% of the
brand's total. Zara launched
online sales in Singapore,
Malaysia, Thailand, Vietnam.
 Assessment of ZARA globally(failure and success)

■ Its is one of the most successful and accepted brand

globally.
■ In 2017, Zara was ranked 24th on global brand consultancy
Interbrand’s list of best global brands. Its core values are
found in four simple terms: beauty, clarity, functionality and
sustainability.
■ The secret to Zara’s success has largely being driven by its
ability to keep up with rapidly changing fashion trends and
showcase it in its collections with very little delay.