Expansion of the Spanish Clothing Retailer Zara in

5051 WordsJun 28, 201021 Pages
Expansion of the Spanish clothing retailer Zara in India Executive Summary The main goal of this report is to analyze the environment how Zara wil be marketed and launched in India. Analysis shows that the main problem of the product is to in terms of making the target market know the existence of the product in the country and the competition of the current clothing lines available in the market. In order to solve such complexities, the solution is to implement strategic marketing approach in terms of advertisement and promotion to make the target market become aware of the existence of the product in the marketplace. In addition, strategic market planning can also be attributed as a better solution to ensure…show more content…
The company’s fashion philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast international expansion and excellent response to sales concepts. With over 3,100 stores, in over 70 countries around the world, and Zara are around 1,000 of those stores. Zara has a high response when it comes to their supply chain. Latest fashion designs are easily supply to all the stores/branches of Zara worldwide, in just a matter of two weeks. Zara was described by Louis Vuttion fashion director as "possibly the most innovative and devastating retailer in the world". Zara has also been described as a "Spanish success story" by CNN ( CNN, 2001) Even though there are threats and risks involved along with other challenges, the firms move into the direction of expansion so as to reach and to penetrate new markets segments. Zara, a vertically integrated company, yet controls most processes in the supply chain wherein 50% of its products are manufactured in Spain, 26% in the rest of Europe and 24% in Asian countries. Although it outsourced the production of labor intensive processes, it still preserved the in-house other capital intensive processes, shielding its knowledge and know how. The quick-response capability of Zara is made possible by the three main stages that define the competitive edge of the company: design, manufacturing and distribution. Zara grips the strategy to focus on operations that boosts
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