Zara Internationalization Analysis

1099 Words Apr 5th, 2010 5 Pages
ZARA-Internationalization Analysis When it comes to internationalization strategies, ZARA is the perfect case to look at. By putting in practice a set of different strategies, ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of Spain, at the end of the 1980’s and beginning of the 1990’s, they looked for markets that resembled the Spanish market, had a minimum level of economic development and would be relatively easy to enter. The entry into the market would be decided by a …show more content…
The marketing mix that emerged there was applied to other stores in the country as well. Pricing was also part of this market based mix. However if a decision was taken to enter a particular market, customers effectively bore the extra cost of supplying it from Spain. ZARA had historically market local currency for all the countries in which it operated on each garments price tag. The higher prices outside did imply a somewhat different positioning for ZARA overseas, particularly in emerging markets. For example in Spain about 80% of the citizens can afford ZARA. It’s different in Latin-American countries like Mexico for cultural and economic reasons because the average income in Mexico is $3000 compared to $14000 in Spain. The Mexican people who buy in ZARAare the upper class and the middle class, which is the class that knows fashion that is accustomed to buying in Europe, or in the United states. In Mexico ZARA’s are targeting 14 million inhabitants compared to 35-36 million in Spain, but 14 million is more than enough to put in a network of stores there. Differences in positioning also affected the stores which products were sold and ZARA’s overall image. For example in South America, ZARA’s products had to present a high-end rather than a mid-market image and it was emphasized that they were “made in Europe”. However, the image

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