Blog: Inditex eyes India
Leonie Barrie | 3 June 2010
Clothing retailer Inditex already has a vast global footprint - 4,607 stores around the world at the last count, 1,395 of which carry the Zara name. And it shows no signs of slowing down, with up to 425 new stores planned during 2010 - 95% of them outside its home market of Spain.
Of course this isn't surprising when you consider that international growth is key to bolstering sales as western markets continue to be buffeted by the aftermath of the recession. But what is perhaps startling is that this is the first time Zara has made a foray into India.
Inditex describes the opening of its first Zara store in the capital Delhi as "a new milestone" and is already planning to roll out more locations in the country's largest cities. Like many firms it is attracted by India's 1.1bn inhabitants - which make it the world's second most populous country - and, in particular, its rapidly-expanding middle classes, who are keen on fashion and up to date on international trends.
"The country has a dozen cities whose populations each exceed three million people, and the Indian market promises substantial growth potential for Zara's fashion offering," Inditex says.
The timing of its move coincides with new research that suggests clothing market demand in India is likely to grow at 16.8% per annum between 2009 and 2014 - outstripping the 10.9% growth forecast for Asia and Oceania as a whole.
But one of the biggest problems facing overseas retailers making a move into India is the need to find a domestic partner. Indeed, for its expansion into India, Inditex has formed a joint venture with industrial conglomerate Tata Group.
Perhaps this is why it has waited so long before setting foot in the country. After all, Asia already accounts for 12% of group sales, with its first foray into the region beginning with Japan in 1999, followed by Singapore, Malaysia, Indonesia, Thailand, the Philippines, Hong Kong, mainland China and South Korea.
Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
- Fashion fit for the future – strategies for speed
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- How PVH is paving the way for connected apparel
- Child refugees found in Turkey apparel factories
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Chinese manufacturer invests $20m in US facility
- Managing change in the move to new tech tools
- Reebok Liquid Factory reinvents shoe production
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020