The Rapid Growth fo Zara and Forever 21 in India

Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Orteg. It is the flagship chain store of the Inditex group, the world's largest apparel retailer. Zara describes its business as “The fast fashion” model which abandoned the traditional model of seasonal lines using instead adapting the creative ideas to customer demand on a going basis. Fashion clothes are like food, it turns bad quick. Zara’s business is about reducing response time. Zara needs about two week to develop a new product and gets it to stores. The company launches around 12,000 new designs each year. Zara’s success offers us some instructive lessons in how to create and sustain a break through strategy.

Zara is the clothing company, which differentiates itself many areas. It is part of the Inditex Group, which is the one of the largest fashion company in the world. Zara is the first and largest brand of Inditex, it is the brand that has the highest impact on the Group. The first Zara store opened 1975 in Spain, founded by Amancio Ortega Gaona, who had already been in the clothing manufacturing business since 1963, owning several factories. In 1985, Inditex was formed as a holding company for Zara and the other companies in the group. It is presented in 88 countries, with 6,683 stores and 137,054 employees around the world, including 1923 Zara stores. (www.Inditex.com)

Inditex’s efficiency is the result of a more profitable investment strategy. By owning all the stores and manufacturing sites it is able to achieve control over all production processes and costs. The high number of stores may be also traced back to the increasing value of the property because Zara only buys stores in strategic areas (shopping malls, shopping arcades, pedestrian districts etc.) where competition boosts rents. Therefore total assets of Zara increase as well.

ZARA is an understood Spanish garments brand well known for its high-speed answer, which is considered as a win variable for the organization and obtaining competitive edge over its rivals around the world. Style is about new and in vogue garments, ZARA's stock administration and distribution strategy are the key components behind its high-speed answer procedure. ZARA has outlets in 86 nations, including Europe, United States, Middle East and Asia. In 2012, Inditex the guardian organization of ZARA has asserted US$20.7

Zara is a retailing chain of Inditexthat specializes in high-fashion at reasonable prices. In the last 12 months, Inditex’s stock price has increased by 50% despite bearish market conditions. The 50% increase is due to the investor expectations of Inditex’s growth. Inditex’s growth can be contributed to the decisions it has made in creating a vertically integrated centralized process. The centralization of its vertically integrated operations in Europe provided it with its competitive advantage; however, I believe it will also make it fail if it decides to grow substantially into other markets. Financial Analysis compare to competitors In comparing Inditex financial performance against its competitors, it is apparent that Inditex is

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.

Fast fashion is merely more than a one hit wonder. The fast fashion industry has grown and has ultimately proven itself to be profitable industry in the clothing market. The retailer most distinguished for a fast fashion approach is Zara (Hayes & Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (“Case 3-4. Continued Growth for Zara and Inditex”, 2013). Their marketing approach has helped them become extremely successful in terms of providing the customer with. International marketing strategies and its efficiency assists in the expansion of Zara. Cultural understanding is virtuously

Zara a company founded on just €30 Euros is now worth an estimated €32 billion. It is the flagship retail unit of Spanish parent company, Inditex also found by Ortega. Zara was found in 1975, now having over 1800 stores in 81 countries.

Inditex, as stated on its website, is one of the world’s largest fashion distributors: nearly 6 million of items were put on the market in 2006 (Figure 1). With eight sales concepts Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Kiddy 's Class they boast nowadays 3,701 stores in 68 countries, distributed as shown in Table 1.

Spanish retail group Inditex has reported a 28% rise in nine-month profits, helped by improved control over costs. The group - which owns the Zara fashion store chain - recorded a net profit for the nine months to 31 October of 520.5m euros ($621m; £351m).

Inditex itself is a huge fashion retailer company which owns 8 brands namely Zara, Pull &Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and last but not the least Uterque. Amancio Ortega is the founder of Inditex, which was established in 1963. Amancio Ortega adapted unique business model, which were innovative and flexible. This made Inditex one of the biggest retailers in the world. In 1975 Inditex established Zara’s first store in downtown A Coruna, Spain. Zara offers fashionable designs for men, women, and kids. They also sell accessories to complete their product lines.

Zara is one of the top clothing brand all over the world. This is the number one competitor of Uniqlo and all other brand. It has got 1603 store in 78 countries of the world. Those stores are located in world largest cities. This retailer proved that international

Growth for Inditex is their expansion on the web, and internationally. Since 2011 Inditex considered online sales to be a new service for customers. They are highly focused on the ongoing improvement of the commercial transaction in this particularly new channel, so customers can enjoy the same products and quality of service on line as others do in stores. Zara for one started online sales in china in September of last year and Massimo Dutti and Zara home did the same in the U.S in October of last year. The goal was to extend e-business to the markets where the company operates with actual stores. According to Bloomberg business website, the world 's largest clothing retailer, reported accelerating revenue growth after an expansion of online sales and store openings help drive a five percent profit increase last year (Jarvis, Mulier, 2015). With the decision to enter new markets and extend the reach of online sales, the company is staying ahead of most of competitors. After boosting the number of stores by five percent to 6,683 through January, Inditex plans to open as many as 480 outlets this year, including three in New York. Net sales for Inditex reached 15.9 billion

This segment is valued at US$22.1 Bn, Organized retail contribute 19% and growing at the rate of 25– 30%. The segment is attracting more and more organized retailers, and pushing for retail revolution for Indian men and women. Designer apparel was increasingly playing a role in boosting the market. International brands have also attracted as they can enter directly with 100% FDI due to single brand entry. Major Indian players are Pantaloon, Provouge Group, Raymond, Reliance Trendz, and Westside. International players are Louise Phillipe, Van Heusen, and Italian brands.

Inditex has a total of 1,558 stores operating in 45 countries out of which 550 stores are of Zara. Inditex’s major sales contribution is Zara accounting for 73.3%. Zara presents new style clothes for Men, Women, and Children