Succès international de la mode rapide

ZARA : The international success of fast-moving fashion

1. Which are the reasons for the international expansion of the Inditex group?

Since the 1980’s the Inditex group develop an international presence in three geographical regions:

- Europe

- Americas

- Asia

The group chose to establish an internationalization process, to create a community of consumers. They can share a sartorial culture based on fashion. First the group focused on Europe and Asia. Europe is a great opportunity for the group. Western Europe features untapped growth potential on market (France, Italy, Germany and UK).

In Russia and Eastern European countries customers have “appetite for fashion”. SO this is a great opportunity for the company too.

Concerning Asia specially China and India, the middle classes are flourishing, and correspond to the target of the group. Moreover for the Asian customers Zara is a perception of quality compared to their local brand. So it is also a good opportunity.

The reasons of inditex group are accepted in Europe with 78% of the market share but unfortunately the Asian market have only 12% of market share. Fortunately the Asia’s part increase to 20% in 2010-2011.

2. Analyse the internationalisation approach selected by Inditex.

Market selection :

Zara choose to implant their brand in Asia and India because the middle classes, their first target, are thriving. The demand in purchase clothing is increasing in these countries whereas it is declining in European countries. Moreover Asian customers want clothes of high quality so Zara can increase their prices by 30% than in others countries.

Russia and Eastern European countries are also attractive for Inditex because of the consumers’ “appetite for fashion, they really like Zara and the other brands of the group.

The risks that Inditex can meet are the sizes of the clothes because all over the world the sizes are different for clothing.

For example in Asia people are smaller, so Inditex would probably have to make some adjustments, in India the problem that they can is the culture, for example woman can’t walk in the street with their shoulders naked or in mini skirt.

International pace:

Concerning the international pace of the development of the brand we can notice that since 1988 (opening of the first Zara store outside Spain) the company is exporting their concept. Between 1998 and 2010 515 new stores opened in Asia.

In 2009, the group opened 343 new stores, 98% abroad. Inditex planned to open their first stores in Australia and South Africa. Inditex realise their turnover mainly in Europe excluded Spain.

Market entry modes:

When traditional players of the fashion sector propose only 3 collections per year, Inditex manages to produce and distribute a new model in to weeks. So the collection is always changing, that’s why customers like the brand.

Zara propose a wide range of product to satisfy their customers.

Inditex created a just in

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