Zara-International Expansion OptionEssay Preview: Zara-International Expansion OptionReport this essayZaras challenges to expand and grow have amplified multifold after the recent increase in stock price of Inditex which proves very high expectations that customers have on Inditexs future growth. Zara has to take a call on its long term expansion strategy to ensure that profits keep coming in. Looking at the options we have, focusing on the rest of Europe is a great option as European markets are the largest consumers of apparel in the world (34%) closely followed by United States (29%).
The outcome of entry into Italian market next year will play a great role in Zaras expansion into high quality and highly fashionable world. Zara must look at further opening new stores across major countries in Europe such as France, United Kingdom and Germany as the huge population in these countries, the proximity of these countries to Spain and relatively fewer apparel outlets per million inhabitants will help Zaras chances of profitability and growth. The success in Italian market can only boost the growth and help improve its image across all of Europe.
Expansion in United States seems like a big challenge as of today but the conditions will have to change. Zara may need to do some aggressive advertising in the US markets to instill a greater sense of fashion comparable to that in Europe. Since GAP has clearly failed in fashion positioning and H&M has slowed down expansion into US market, you may want to consider improving Zaras fashion positioning in the US market first before opening new stores in the long run. While US markets will not have any pricing and cultural issues, Asian markets clearly have cultural barriers, regulations and price sensitivity issues and hence entering Asian markets may not be a viable option for the next few years.
• Zara has long been seen as a strong influence in the fashion industry and you will notice how much this has improved their popularity after Zara merged Zara Fashion Holdings with GAP (http://www.zarafashion.com) and is now considered a leading supplier in apparel and accessories. It’s also being talked about in a wide variety of media outlets.
I’m not sure how many blogs would support this news, especially with Zara being one of the first manufacturers to take advantage of the rise in the market to invest directly in fashion.
• I expect Zara to have strong sales in the US by 2018, which will allow the company to add some extra new categories like apparel and accessory and other accessories made overseas. The Zara brand will continue to grow in international markets and be the leader in international sales, and its stock will grow a lot in the marketshare rankings. I remain optimistic that Zara will find customers outside of the US since its distribution footprint was limited over the last three years. While I see no point in relying solely on Zara Fashion as a market leader and I do not want to take any position that I don’t view as an alternative to a Zara factory, for many, this is my perspective.
Zara Fashion Holdings will continue to invest in expanding our U.S. manufacturing footprint, bringing manufacturing to the US market by the end of 2017. After all the success of our Zara products in the United States, as I see now from this growth as a result of new products, I understand the strong consumer demand for our products in the US and am excited for the potential of this new store. When Zara’s brand gains momentum with customers worldwide, we will make certain it gets further on than Zara did during the early phases and I’ll be surprised if this continues.
While I’m always a fan of Zara, in our business we don’t want to be seen as a market force but we still want to grow our brand which is why this is my focus today.
• Zara is taking a tough road ahead, with a lot coming up in the world. It’s become clear in the last few years that their market share is declining, and I am hoping that this trend will continue after this merger. I expect Zara to do some aggressive advertising in the US on a variety of fronts as of today. As I mentioned above, Zara cannot be considered a retailer in Europe, but it does have strong links in international retail. This means that Zara Fashion Holdings will want to expand in the US as well as expand Zara in Europe and continue to grow globally. Zara, which has been in the U.S., is currently under more media hype than other new
- Fashion, Fashion, Fashion, Fashion
- “H&M” : “Sizes and colors are going to change over time, the fashion and accessories market is going to change as well. I am afraid many people are seeing the same trends for a long time, as with all these other trends and things we are seeing today.
- Elegant designs and styles will become the norm this world over, especially when it comes to fashion and accessories.
- “It’s important to recognize the trend for fashion and that is the fact that there will always be a lack of good styles on this world. As long as there is demand for quality, the industry will be changing. But it may be time to start to take a realistic look at what the trend is for, or at least realize that the trend continues to go around the world! (This will not only affect western and western women but also to all western countries! So you can expect things to change quickly, it is part of the global trend as well.”)
- “We are seeing demand for fashion. The more sophisticated things, the more it will have to wear into the hands of the women’s empowerment activists (and especially those who feel in demand. What does that mean for ‘real’ fashion and clothes?). It is about understanding what the market is doing in terms of these different cultural conditions and to try not to be complacent with demand, and to stay ahead of the market curve.
- “Fashion for all, fashion, fashion, fashion, fashion, fashion, fashion, fashion, fashion
- “It is the most beautiful look but I don’t think it is about style. It is about being there at all times and that is the main reason why I started Zara fashion… as it’s a fashion store that is available throughout most of the world, whether you are an Indian or a Filipino. We wanted to go a bit more into lifestyle and fashion for the western women and men and for Indian and Filipino women. Also we wanted to take women seriously in their own way. To know that you are not alone is very important. It makes it possible to live as a fully aware person and to find what is right in any situation.
- “We know that it’s challenging to go without fashion and have the same clothes as that of the Indian. It would make life so much easier, because now you have something that you don’t know, what your clothes are, why you are wearing it and what you wear, it makes it easier. Especially for me (at Zara), I want to see clothes that are good with all the things people have for wear, I want clothes that are well priced and
- Fashion, Fashion, Fashion, Fashion
- “H&M” : “Sizes and colors are going to change over time, the fashion and accessories market is going to change as well. I am afraid many people are seeing the same trends for a long time, as with all these other trends and things we are seeing today.
- Elegant designs and styles will become the norm this world over, especially when it comes to fashion and accessories.
- “It’s important to recognize the trend for fashion and that is the fact that there will always be a lack of good styles on this world. As long as there is demand for quality, the industry will be changing. But it may be time to start to take a realistic look at what the trend is for, or at least realize that the trend continues to go around the world! (This will not only affect western and western women but also to all western countries! So you can expect things to change quickly, it is part of the global trend as well.”)
- “We are seeing demand for fashion. The more sophisticated things, the more it will have to wear into the hands of the women’s empowerment activists (and especially those who feel in demand. What does that mean for ‘real’ fashion and clothes?). It is about understanding what the market is doing in terms of these different cultural conditions and to try not to be complacent with demand, and to stay ahead of the market curve.
- “Fashion for all, fashion, fashion, fashion, fashion, fashion, fashion, fashion, fashion
- “It is the most beautiful look but I don’t think it is about style. It is about being there at all times and that is the main reason why I started Zara fashion… as it’s a fashion store that is available throughout most of the world, whether you are an Indian or a Filipino. We wanted to go a bit more into lifestyle and fashion for the western women and men and for Indian and Filipino women. Also we wanted to take women seriously in their own way. To know that you are not alone is very important. It makes it possible to live as a fully aware person and to find what is right in any situation.
- “We know that it’s challenging to go without fashion and have the same clothes as that of the Indian. It would make life so much easier, because now you have something that you don’t know, what your clothes are, why you are wearing it and what you wear, it makes it easier. Especially for me (at Zara), I want to see clothes that are good with all the things people have for wear, I want clothes that are well priced and
- Fashion, Fashion, Fashion, Fashion
- “H&M” : “Sizes and colors are going to change over time, the fashion and accessories market is going to change as well. I am afraid many people are seeing the same trends for a long time, as with all these other trends and things we are seeing today.
- Elegant designs and styles will become the norm this world over, especially when it comes to fashion and accessories.
- “It’s important to recognize the trend for fashion and that is the fact that there will always be a lack of good styles on this world. As long as there is demand for quality, the industry will be changing. But it may be time to start to take a realistic look at what the trend is for, or at least realize that the trend continues to go around the world! (This will not only affect western and western women but also to all western countries! So you can expect things to change quickly, it is part of the global trend as well.”)
- “We are seeing demand for fashion. The more sophisticated things, the more it will have to wear into the hands of the women’s empowerment activists (and especially those who feel in demand. What does that mean for ‘real’ fashion and clothes?). It is about understanding what the market is doing in terms of these different cultural conditions and to try not to be complacent with demand, and to stay ahead of the market curve.
- “Fashion for all, fashion, fashion, fashion, fashion, fashion, fashion, fashion, fashion
- “It is the most beautiful look but I don’t think it is about style. It is about being there at all times and that is the main reason why I started Zara fashion… as it’s a fashion store that is available throughout most of the world, whether you are an Indian or a Filipino. We wanted to go a bit more into lifestyle and fashion for the western women and men and for Indian and Filipino women. Also we wanted to take women seriously in their own way. To know that you are not alone is very important. It makes it possible to live as a fully aware person and to find what is right in any situation.
- “We know that it’s challenging to go without fashion and have the same clothes as that of the Indian. It would make life so much easier, because now you have something that you don’t know, what your clothes are, why you are wearing it and what you wear, it makes it easier. Especially for me (at Zara), I want to see clothes that are good with all the things people have for wear, I want clothes that are well priced and