There has been a significant rise in e-tailing in the last 10 years within the western countries; however e-tailing is still in an infancy stage in other parts of the world, critically evaluate this statement in regards to high street clothing sector - Assignment Example

Over the period of last 10 years, there has been a consistent increase in the high street fashion industry. High street brands such as Zara and Pradahave been making entry into the emerging markets such as China and other countries suggesting a growth in the overall industry during the period. There has been a shift in the industry and new trends emerged over the period of time including the fast fashion which actually increased the competition. It has been suggested that the e-retailing is on the rise in the retailing industry with all major brands have online presence.

During the last 10 years, the average growth rates in the industry remained at the historical average of approximately 3% however, major chunk of this growth was witnessed in the emerging markets which accounts for approximately 50% of the total growth rates in the industry. (Moodley, 2013) There has been a shift into the development of alternative delivery channels which have been catered through the online retail stores. The increase in internet speed i.e. introduction of broadband and fast mobile networks have made it easier for high street retailers to reach to the customers.

The same level of growth in e-retailing however has not been observed in the developing countries despite the fact that high street brands have entered into some of the leading emerging economies of the world. (Grose, 2011) Zara is one of the leading high street clothing brand sin the world with special presence in the developed economies such as UK and US. Zara is an Spanish brand which is being maintained by the Inditex. Zara is the largest fashion retailer in the world with over 12% market share and is followed by H&M.

Having strong online presence has been one of the key strategic moves made by many high street fashion retailers including Zara. It was one of the earlier entrants in the online market and established strong presence online to allow its customers to actually buy through its online channels. Zara has 22 online stores across all the markets where it operates as compared to 9 by the H&M. This suggests that Zara has been aggressively pursuing its growth strategy through expanding into online market also.

It is however, important to note that most of the online presence of Zara is concentrated into the developed countries i.e. mostly in Europe. (Reuters, 2013) e-tailing is on the rise because technology has actually allowed to develop customized solutions online and improve the overall delivery channels. Besides, it also offers an opportunity to offer more choice to the customers to buy without actually visiting the stores. This results into low prices being offered through online channels to increase the sales.

This has been mostly done through the use of online web stores and mobile applications which allow the customers to actually buy on the go. Further, there has been a tremendous improvement in the overall supply chain of high-street fashion stores also with over-night deliveries and other methods of shipment which ensure safe and timely delivery to the customers at their doorsteps. Bibliography BoF - The Business of Fashion. 2013. Has Zara Reached Saturation Point? Far From It, Investors Bet - BoF - The Business of Fashion.

[Online] Available at: http://www.businessoffashion.com/2013/11/has-zara-reached-saturation-point-far-from-it-investors-bet.html [Accessed: 27 Feb 2014]. Grose, V. 2011. Basics Fashion Management. 1000 Lausanne: Ava Publishing SA. Moodley, K. 2013. Zara Still Has Room to Grow: Analyst. [Online] Available at: http://www.cnbc.com/id/100548691 [Accessed: 27 Feb 2014].