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Zara in China - Term Paper Example

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This study stresses that globalization has dissolved boundaries between countries and companies have started to expand on a global level. Evolution of communication technology has contributed to the flow of ideas between the countries and that has created an international culture. …
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Zara in China
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Download file to see previous pages As the essay highlights Zara is a world renowned fashion retailer based in Spain. It was founded in 1975 and since then the company has grown substantially. The company is regarded as a great success story as it has made itself an international brand over a few decades. The unique thing about Zara is that it rejects the industry trends by investing no money in advertisements. The company focuses on low cost strategy by providing fashion garments and accessories to everyone. The target market of the company is not only the rich people. In contrast company has made fashion within the reach of everyone.

This paper discusses that the company has up till now refused to follow the market trend of outsourcing its production to low cost developing countries. By doing this fashion retailers attempt to save costs but Zara believes that providing customers with latest fashion products in the fastest possible time. Zara is known for providing a new product to the customers within 2 weeks while the industry average is about six months. This shows how efficient the supply chain of Zara is compared to other retailers in the industry. The vertical integration helps Zara control its supply chain and this makes it possible for the company to stay ahead of the trends. The company has audacious growth plans for future. Zara entered the Chinese market in 2006 and since then the company has grown substantially in the country. Zara has 91 stores in China and the company is planning to open more stores in future....
This shows how efficient the supply chain of Zara is compared to other retailers in the industry. The vertical integration helps Zara control its supply chain and this makes it possible for the company to stay ahead of the trends. The company has audacious growth plans for future. Operations of Zara in China Zara entered the Chinese market in 2006 and since then the company has grown substantially in the country. Zara has 91 stores in China and the company is planning to open more stores in future. China is a huge market for the company given the population of the country is 1.2 billion people. But still most companies do not enter China due to strict regulations and lower standards of living. Zara on the other hand entered China and has shown tremendous success because the company was able to attract the middle class population of the country. As mentioned earlier Zara does not believe in extremely expensive garments rather it is known for its new fashion and cost effectiveness. With this business model Zara was able to capture the market of China. The company aims at opening more stores in future in the country as well. The domestic consumption of the country is increasing and people are getting more and more aware daily about the new fashion trends. This is why it is expected that fashion retail giant will continue to pursue its expansion policy in China as well. Stores of Zara are mostly seen overcrowded which shows the potential of Chinese markets (Xinhua 1). The urban middle class of China is multiplying at a great pace and this means that more and more people are demanding fashion products. Zara is the right choice for them because of the cost related advantages the fashion retailer offers. Objectives of Zara in China The ...Download file to see next pagesRead More
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