Internationalisation of the Spanish Fashion Brand Zara

Topics: Management, Project management, Scientific method, Strategic management, Organization, Psychology / Pages: 31 (7568 words) / Published: Jun 5th, 2012
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1361-2026.htm

CASE STUDY

Internationalisation of the Spanish fashion brand Zara
Carmen Lopez and Ying Fan
Brunel Business School, Uxbridge, UK
Abstract
Purpose – Research on the internationalisation of retailing has been mainly focused on market entry issues. This paper attempts to examine the internationalisation process from an international marketing perspective using Spanish fashion retailer Zara as a case study. Design/methodology/approach – An in-depth case approach was adopted based on extensive secondary research, which includes literature published in English and Spanish as well as internal company documents. Findings – The internationalisation of Zara seems to follow the classic “stage model” by firstly entering geographically or culturally close markets before taking opportunities in more distant markets. This global expansion was triggered by both push and pull factors. Compared with the competition, Zara has three distinctions: vertical integration to achieve a faster turnaround time; use of franchise and joint ventures for rapid expansion; and use of the store as the main tool for promotion, with low spend on advertising. Research limitations/implications – The main drawback in case studies is that of limited validity and representativeness, constraining the potential for making generalisations. However, this case is deemed sufficient to provide valuable insights and improve understanding in this area. Originality/value – Little attention has been devoted to the internationalisation process from an international marketing perspective. Aiming to fill this gap in the literature, this study provides important insights into Zara’s internationalisation process. Keywords Fashion, Retailing, International marketing, International business, Market entry, Spain Paper type Case study

Spanish fashion brand Zara

279
Received May 2007 Revised June 2008



References: Alexander, N. (1995), “Internationalisation: interpreting the motives”, in McGoldrick, P.J. and Davies, G. (Eds), International Retailing: Trends and Strategies, Pitman, London, pp. 77-98. Alexander, N. and Myers, H. (2000), “The retail internationalisation process”, International Marketing Review, Vol. 17 Nos 4/5, pp. 334-53. Alonso, L. (2000), “Vistiendo a tres continentes: la ventaja competitiva del grupo Inditex-Zara, 1963-1999”, Revista de Historia Industrial, Vol. 18, pp. 157-81. Berkeley, N. and Steuer, N. (2000), “Comparative analysis of EU and national trends in the textile and clothing industry”, available at: www.stile.coventry.ac.uk/adapt (accessed April 2006). Bilkey, W. and Tesar, G. (1977), “The export behaviour of smaller-sized Wisconsin manufacturing firms”, Journal of International Business Studies, Vol. 8, pp. 93-8. Blanco, X.R. and Salgado, J. (2004), Amancio Ortega. De cero a Zara, La esfera de los libros, Madrid. ˜ Bonache, J. and Cervino, J. (1996), “Caso Zara: el tejido internacional”, in Duran, J.J. (Ed.), ˜ Multinacionales espanolas I. Algunos casos relevantes, Piramide, Madrid, pp. 51-86. Brown, S. and Burt, S. (1992), “Conclusion – retail internationalisation: past imperfect, future imperative”, European Journal of Marketing, Vol. 26 Nos 8/9, pp. 80-4. ˜ as, A. (2003), “Zara en Italia: la consagracion de un modelo empresarial”, Economia Camun Exterior, Vol. 25, pp. 57-66. Castellano, J.M. (1993), “Una ventaja competitiva: el factor tiempo. El caso Inditex-Zara”, Papeles ˜ de Economia Espanola, Vol. 56, pp. 402-4. Castellano, J.M. (2002), “El proceso de internacionalizacion de Inditex”, Informacion Comercial ˜ Espanola, Vol. 799, pp. 209-17. Castro, I. (2003), “Zara Japan Corporation”, Boletin Economico de ICE, Vol. 2770, pp. 95-8. Cavusgil, S. (1980), “On the internationalisation process of the firm”, European Research, Vol. 8 No. 6, pp. 273-81. ˜ Cervino, J. (1998), “Las empresas de distribucion de productos de confeccion. Un caso de proyeccion internacional”, Distribucion y Consumo, Vol. 8 No. 38, pp. 50-67. ´ Cinco Dias (2003), “Benetton aplicara el modelo Zara para impulsar las ventas”, December 10, Cinco Dias, Madrid. Crawford, L. (2000), “Management fashion retailing”, Financial Times, 26 September. Creswell, J.W. (1998), Qualitative Inquiry and Research Design: Choosing Among Five Traditions, Sage Publications, London. D’Andrea, G. and Arnold, D. (2003), Zara, Harvard Business School Press, Cambridge, MA. Dunford, M. (2004), “The changing profile and map of the EU textile and clothing industry”, available at: www.geog.susx.ac.uk/research/economic/02_t.pdf (accessed May 2006). (The) Economist (2005), “The future of fast fashion”, The Economist, available at: www. economist.com/business/displaystory.cfm?story_id ¼ 4086117 (accessed May 2006). Euromonitor (2002), “Inditex”, Retail Monitor International, Vol. XIII, pp. 41-72. Expansion (2001), “Mango sera la primera cadena de moda internacional que entre en Italia”, February 14. Fabrega, F. (2004), Zara. El modelo de negocio de Inditex, Claves de gestion, Madrid. Fernie, J., Moore, C., Lawrie, A. and Hallsworth, A. (1997), “The internationalisation of the high fashion brand: the case of central London”, Journal of Product & Brand Management, Vol. 6 No. 3, pp. 151-62. Flavian, C. and Polo, Y. (2000), Estrategias de marketing para un crecimiento rentable. Casos practicos, ESIC, Madrid, pp. 133-61. Foroohar, R. (2005), “Fabulous fashion”, available at: www.msnbc.msn.com/id/9630978/site/ newsweek/ (accessed May 2006). Ghemawat, P. and Nueno, J.L. (2003), Zara: Fast Fashion, Case No. 703-497, Harvard Business School Press, Cambridge, MA. Johanson, J. and Wiedersheim-Paul, F. (1975), “The internationalisation of the firm – four Swedish case studies”, Journal of Management Studies, Vol. 12, pp. 305-22. Kasper, H. and Bloemer, J. (1995), “Cultural closeness and its impact on internationalisation strategies”, Proceedings of the 26th EMAC Conference, Budapest, pp. 1805-15. Keenan, M., Saritas, O. and Kroener, I. (2004), “A dying industry – or not? The future of the European textiles and clothing industry”, Foresight, Vol. 6 No. 5, pp. 313-22. KPMG (2005), “Trends in retailing 2005. An outlook for the food, fashion and footwear sectors”, available at: www.kpmg.de/library/pdf/030930_Trends_in_Retailing_2005_en.pdf (accessed January 2006). ˜ ˜ La Opinion de La Coruna (2006), “Zara para todas las cinturas”, La Opinion de La Coruna, 21 January. Laulajainen, R. (1991), “International expansion of an apparel retailer – Hennes & Mauritz of Sweden”, Zeitschrift fur Wittschaftgeographie, Vol. 35 No. 1, pp. 1-15. Martinez, J.A. (1997), “Jose Maria Castellano”, Economistas, Vol. 73, pp. 118-26. McGoldrick, P.J. (1995), “Introduction to international retailing”, in McGoldrick, P.J. and Davies, G. (Eds), International Retailing: Trends and Strategies, Pitman, London, pp. 1-14. ˜ Mazaira, A., Gonzalez, E. and Avendano, R. (2003), “The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case”, Marketing Intelligence & Planning, Vol. 21 No. 4, pp. 220-9. Monllor, C. (2001), Zarapolis. La historia secreta de un imperio de la moda, Ediciones del Bronce, Barcelona. Nordas, H.K. (2004), “The global textile and clothing industry post the agreement on textiles and clothing”, available at: www.wto.org/english/res_e/booksp_e/discussion_papers5_e.pdf (accessed April 2006). Spanish fashion brand Zara 295 JFMM 13,2 296 Samiee, S. (1995), “Strategic considerations in European retailing”, Journal of International Marketing, Vol. 3 No. 3, pp. 49-76. Stengg, W. (2001), “The textile and clothing industry in the EU. A survey”, Enterprise Papers, No. 2, European Commission, Brussels. Treadgold, A. and Davies, R. (1988), The Internationalisation of Retailing, Oxford Institute of Retail Management/Longman, London. Usunier, J.C. and Lee, J.L. (2005), Marketing across Cultures, 4th ed., Prentice-Hall, Harlow. Wells, J.R. and Raabe, E.A. (2005), Gap, Inc., Case No. 706-402, Harvard Business School Press, Cambridge, MA. Further reading Alexander, N. (1997), International Retailing, Blackwell, Oxford. Bombin, V. (2001), “Caso: el Grupo Inditex”, Harvard Deusto Finanzas & Contabilidad, Vol. 44, pp. 42-53. Burt, S. (1993), “Temporal trends in the internationalisation of British retailing”, The International Review of Retail, Distribution and Consumer Research, Vol. 3 No. 4, pp. 391-410. Pellegrini, L. (1994), “Alternatives for growth and internationalisation in retailing”, The International Review of Retail, Distribution and Consumer Research, Vol. 4 No. 2, pp. 121-48. Salmon, W.J. and Tordjman, A. (1989), “The internationalisation of retailing”, International Journal of Retailing, Vol. 4 No. 2, pp. 3-16. About the authors Carmen Lopez is a doctoral student at Brunel University, West London. Carmen holds a MSc in Marketing from the University of Stirling and has over three years’ experience working in the advertising industry, both in Spain and in Ireland. Her PhD topic aims to investigate the influence of corporate image on country image. Ying Fan is a Senior Lecturer at Brunel University in West London. He has held faculty positions at the Universities of Durham, Hertfordshire and Lincoln. Dr Fan has published over 50 papers relating to marketing and international business. He is currently undertaking research on nation branding in relation to emerging Chinese multinational companies. To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints

You May Also Find These Documents Helpful

  • Internalisation of Spanish Fashion Brand Zara
  • Internationalisation of Zara (1)
  • Fashion and Zara
  • Zara Fashion
  • Zara Fashion
  • Fashion and Zara
  • Zara Brand
  • Zara Fashion
  • Zara Fashion
  • Fashion and Zara