The Rapid Growth fo Zara and Forever 21 in India

2152 WordsFeb 22, 20189 Pages
INTRODUCTION In this paper, we have analyzed the rapid growth of two fast fashion giants: Zara and Forever 21 in India. While Zara India is a joint venture between Spanish retailer Inditex SA and Tata Trent, Forever 21 is in a joint venture partnership with DLF brands Limited. We have analyzed the growth of these two companies on the basis of the following parameters: 1. Performance of the two companies 2. Challenges faced by the two companies to penetrate into the Indian market 3. Business strategies undertaken to overcome such challenges 1. ZARA’s GROWTH STORY The world’s largest fashion retailer, Zara’s Indian unit Inditex trent which is a 51:49 Joint venture partnership between Spanish retailer Inditex SA with Tata Group’s retail arm trent has witnessed a phenomenal rise in India’s fashion retail sector. Incorporated in 2009-2010, Zara India has been the fastest fashion brand in India to clock profits. In the financial year 2011, Zara India made net profits of 22.5 crore while in the financial year 2012, it made net profits of 38.3 crore on sales of 260 crore. In the year 2013, Zara clocked a staggering 56% growth in sales as it earned net profits of 45.19 crore on annual sale of 411.19 crore. According to Economic Times, this is “over six times more than the country's largest apparel brand Louis Philippe and a tad higher than the country's largest department chain Shoppers Stop”. Zara has 13 stores in Mumbai, Delhi, and Bangalore. It is believed that the company is

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