Zara expansion in China
Zara is the flagship chain store of Inditex Group owned in Spanish. Inditex takes a step forward in its expansion in China. Zara opened its first store in this country in May 2004 at the IFC mall, Hong Kong, where it now has five stores. In February 2006 the first store was launched in Shanghai, in Nanjing Xi Lu, followed by a second one in this city located at Times Square mall. In February 2007 The Inditex Group already opened its first Zara store in Beijing, located at The Place shopping mall. The store has more than 1,500 m2 of retail space spread over two floors. The Inditex Group is present in 64 markets in Europe, the Americas, the Middle East, Asia and Africa, with upwards of 3,100 stores. In the Asia-Pacific area, Inditex is present with 59 stores in China, Japan, Malaysia, Singapore, Thailand, Indonesia and the Philippines. Zara has developed a unique business model which is needs just two weeks to develop a new product and get it to stores and launches around 10,000 new designs each year (fast fashion). Zara is vertically integrated retailer and control every step of the value chain; only cloths with a longer shelf/ fashion life time are outsourced. Zara acknowledges as one of the “largest, fastest growingand successful” clothing retailers. Zara’s success story begins by offering a product range capable of catering for men, women and children, providing affordable and stylish clothes whatever the season. Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market. Finally, store location, as any marketing is left to store location rather than advertising. Opting for a strategy of minimal advertising provokes the consumer into having to visit their stores. Securing a foothold in as many markets as possible...
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