Zara Swop

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Introduction
Zara has established itself successfully over the course of five years since the opening of its first retail store in Spain in 1975. We must now consider further opportunities of growth with a sole purpose of gaining further international recognition in order to maintain our mark as a top leader in the retail industry amidst the competition of the fashion industry. Across the region in Asia, Europe and Middle East, my choice of Zara’s next expansion to branch into is Hong Kong. This report represents my analysis compiled with research emphasizing the lucrative aspect of Hong Kong’s country profile and its retail industry. My plan for this company is to ensure a successful transition into Hong Kong and therefore, I have utilized business analytical tools such as SWOP Analysis, PESTLE Analysis and Porter’s Five Forces to ensure my chosen market is credible and to eliminate any unforeseen risks or upcoming difficulties. This report will bring into light possible challenges we may encounter and suggestions of overcoming such issues has been indicated in this report. I am certain that the directorship of Zara will find the information I have provided in this report extremely useful in forwarding an ultimate corporate decision of expanding our retail outlet into Hong Kong. Hong Kong’s Booming Retail Industry

The Q212 BMI Hong Kong Retail report forecasts that total retail sales in the special administrative region will grow from US$42.44 billion in 2012 to US$46.39 billion by 2016. Rising disposable incomes and a strong tourism industry are key factors behind the forecast growth. The prediction of the average annual GDP growth of 3.3% through to 2016. With the population increasing from 7.2million to 7.5million over this period, GDP per capita is forecast to rise 18.8%, from US$35,886 in 2012 to US$42,633 by 2016. Tourist spending contributes significantly to Hong Kong retail sales, and data from the Hong Kong Tourism Board (HKTB) show that a total of...
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