Jesus Echevarria Hernandez, Chief Communication Officer at Inditex Group.

Says that “The

entry in the Indian market has a significant strategic importance for Inditex. India is one of the
top priorities in the Asia region when our retail offering has been very well received,” .

To enter the market in India, Inditex (the company behind Zara) used the strategy of pursuing a
joint venture with Trent Limited, a Tata Group company, a highly recognized clothing line
distributor. Zara took up joint ventures as its mode of entry in India because this is a co-operative
strategy in which the manufacturing facilities and know-how of the local company are combined
with the expertise of the foreign firm in the market, especially in large, competitive markets
where it is difficult to acquire property to set up retail outlets or where there are other kinds of
obstacles that require co-operation with a local company to which Zara regards its stores as one
of the related elements in its business sculpt. The shop is regarded as the boundary among the
buyer and the motor of the whole business – mode design, development, logistics and finally
retail.

The main concerns that Zara had wile entering into the Indian market were Demography and
cultural concerns. Speaking of demography India has a population of about 1.2 billion people
and the target market would be no doubt wide than what is expected. As the income become
larger in India, there will be more demand in the quality and fashionable clothing. Cultural
Concerns: it is the major concern that has to be given tremendous attention when entering into a
foreign market. It must accept the perspectives and beliefs of the role of culture in influence and
as in India social security is given special attention.

In order to effectively achieve their goals, Zara pursued a strategy of selling a variety of its local
clothing lines and international clothing lines, but maintaining Zara as the primary brand in
India. Zara also targeted the larger positions including either the first or second positions in the
Indian market of clothing lines. Any of these positions would be sufficient enough for Zara to
create an outstanding level with regards to manufacturing, marketing and distribution. These
positions can set up a stage from which Zara can sell their clothing lines and other special
fashion products.

To promote the organization and its clothing lines, Zara utilized video advertisements, print ads and the
idea of e-marketing which fulfilled the varying needs of consumers from India and beyond; particularly
those priority Indian markets or the consumers in the urban India areas. For this promotion campaign,
the perfect information that Zara Company utilizes is “Providing quality and fashionable clothing lines
that fulfills your needs. Zara has been able to set up its reputation as one of Spain’s primary clothing line
companies for several years now. It is able to rise up to the challenges in most of its markets directly
(year ’99). This is made possible through the efficient promotional and positional strategies established
in order to maintain not only large profits, but also on establishing the foundations of Zara’s clothes and
fashion trends. The promotional strategies of Zara in India are easily implemented by the local
employees themselves which enables the organization to vastly improve without the burden of
implementing costly technologies. These initiatives can also lead in improved