Zara has maintained a reputation for targeting the teenagers, those in their twenties and even the

individuals considered young at heart. This is a customer sector that other clothing companies
have previously ignored in place of the adult consumers. Zara Company also has the unique
strategy of portraying the generations in their campaigns. These campaigns in India will tell that
Zara Company is not a mere simple clothing line for the next generation; its users are also a
generation ahead of their competitors. Zara Company can establish an image for itself in India as
the clothing line for the present generation. It has discovered that the purchasing power of the
youth and the marketing power of celebrities were similar (1998). They have garnered significant
profit gains out of this strategy, and there is no reason why this won’t also work in India.

Nevertheless Zara undergoes quite a few hurdles like the existing rules on FDI in India require
that foreign single-brand suppliers are obliged to surpass a 49% stake to a resident associate.
This includes the vendor to share its organizations information and data it would usually not
reveal. Moreover, franchising stores means that the merchant loses certain jurisdiction over how
these are operated, which numerous businesses worry that it might harm their brand name. As a
result, single-brand retailers are regularly cautious of entering the Indian market. For a apparel
seller akin to Zara, further considerations contain the relative need of seasonal modification and
the separate, consolidated manner of dress amongst Indian females that differs significantly to
Zara’s offered ranges.