Zara Is About To Open Shop In India.

In the minds of customers in India, the most recent sense of existence.

Absolute number of brands

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In May 4th, Zara opened a five storey flagship store in the downtown area of southern Mumbai, India.

This is the largest store that the brand has opened in India, covering a total area of 51 thousand and 300 square feet, which is about 4766 square meters.

Moreover, this is another historic building shop that has been reformed jointly by local architects and Zara architects. Previously, Zara had made similar old building renovation stores in Japan, Spain, Italy and Russia.

According to the world clothing and shoe net, the building of the flagship store in Mumbai has a history of 110 years. Zara rents it by paying 300 million rupees (32 million 240 thousand yuan) annual rent.

That's not the end.

Another reason why India customers are concerned about the brand is that Zara is about to open a shop in India.

According to the Zara group's Inditex chief communications officer Jes s s Echevarr a, who interviewed the media in Mumbai flagship store, the online shopping mall targeting the India market will be launched before the end of 2017 and will adopt the "online and offline full integration" mode.

"Asia is one of the fastest growing markets in our country. We will continue to push forward the group's development in India market in accordance with the past speed," Echevarr a asked in an interview about whether Inditex has accelerated in India.

"We don't want to be overly anxious because we need the market," he said.

Inditex in the past few years, the action in India market is not very frequent.

Since the establishment of a joint venture with the India company Tata Group in 2010 and the opening of the first local Zara store in the same year, Inditex has only opened 21 Zara stores and 2 Massimo Dutti in 8 cities in India.

According to Echevarr a, in the short term, Inditex will not set up other brand stores in India, while Zara and Massimo Dutti will not speed up shop opening.

But this is not to say that Zara can keep calm.

When we reported that all the fast fashion brands were seeking to catch up with India in the second wave of growth, we mentioned that India is the battleground of all brands in the weak market and slow sales growth.

At the same time, this is also the reason why brands have fought the price war. After H&M opened its first store in India with its sole proprietorship, Zara quickly reduced its overall price in India market by 15%.

For Zara, India is still a very important place besides Europe. At present, 40% of Zara products are produced in non European countries, and India accounts for a large proportion.

Therefore, it can make a difference in the India market, which means that Zara can gain greater profit margins on the basis of a certain price by compressing pportation costs.

Only by cutting prices to grab market share is not a permanent solution.

Zara has obviously begun to take a more in-depth layout.

Starting from the 2015 fiscal year, Inditex has launched a global ploughing program in the world, which no longer pursues the growth of the number of stores, instead of focusing on the revenue efficiency of each store. Therefore, there will be a "closed shop boom" and the subsequent issuance of more large flagship stores on the landmark.

The flagship store in Mumbai is a practice of this strategy in India.

At the same time, it is a general trend to get through the whole channel strategy under the online and offline channels.

With the growth of the number of stores in India market and the expansion of single store size, what Zara will do next is to open a shop.

It has to be said that Zara is very cautious in the India market. Besides the need to implement the global strategy of the group, it also stems from the fear of the complexity of the India market itself.

Not long ago, we reported that the local extremist group issued an attack threat to the brand because Zara sold products made in Pakistan.

In addition, the dominant position of sari in India and the gap between the rich and the poor in cities are also factors that need to be taken into consideration when Zara expands in India.

More interesting reports, please pay attention to the world clothing shoes and hats net.