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Factors affecting the growth and its increasing popularity in India.

Founded by Amancio Ortega and Rosalia Mera Belongs to Inditex First store in La Corua, Spain in 1975 Expansion into other major cities of Spain Opening of stores outside Spain in the 1980s Partnered with Tata in India as Inditex Trent Launch of online shopping in 2010

Global Outreach
1,763 stores in 86 countries

The parent company, Inditex consists of 8 major brands- Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. In recent years, on an average Inditex has opened around 500 stores in a year, which means more than one store per day !

It stands as the worlds largest fashion retailer and is worth $57 billion as of March, 2013. The four essential areas of their business model:
Design Logistics Customer care Investment in real estate

The other trend-bucking aspect of the company's business model is its approach to advertising.

Fundamental Research on company Qualitative as well as Quantitative research techniques applied Convenience Sampling Primary Data (Customer Survey) Online Survey

Literature Review
Andrew Pearson believes Zara differentiated itself from its competitors by performing key activities [in its supply chain] differently Only .3% of sales are spent on advertising for the company compared to that of its competitors who spend around 3.5%. Zara's success is a vertically integrated business model spanning design, just-in-time production, marketing and sales. The Economist [May, 2001]

Zara Business Model






A significant proportion of production takes place in the groups own factories. Short Lead Time. Ability to adapt the offer to customer desires in the shortest time.

Sales and Distribution

The stores act as a market information gathering terminals, providing feedback to the design teams The shop window play a major role, acting as an authentic advertisement for their chains tin the worlds main shopping streets. Total integration of franchised stores with own managed: global image in the eyes of customer around the world.

Consumer Survey
Convenience sampling. Primarily aimed at student groups in Mumbai. Sample size was 51. Data was collected via an online survey.

Null Hypothesis: There is no significant difference between the mean overall expenditure on shopping and mean expenditure on Zara. Alternate Hypothesis: Not Ho. Students t-test on two dependent sample groups.

Applying t-test
T-cal : 3.772 T-tab : 1.6623 Level of Significance : 5% Since, t-cal> t-tab , We reject Ho at 5% L.O.S.

Social Responsibility
All of Inditexs and Zaras activities are conducted:
o Ethically and responsibly o Respecting the environment o Including actions regarding product health and safety

Bibliography 12/11/zaras-big-idea-what-the-worlds-topfashion-retailer-tells-us-aboutinnovation/265126/ /extend/00000788