ZARA'S INTERNATIONAL EXPANSION

Zara's International Expansion

Zara's International Expansion

While many shops are disappearing from the map of the shopping streets, Zara 's international expansion continues unabated. At the light of recent growth data of our most successful fashion brand, this picture is only at national level. The fashion giant Galicia has accelerated its expansion in the second half of the year (which closed in February) and is about to achieve in the coming days the 5,000 stores worldwide: about 245 local open its second half, 41% more than the first (Nicolaj , 2001).

Zara's are opening one to three stores a day, sometimes even more. What is clear is that 5000 will reach stores next month of December. These are the statements that includes the business press by the fashion company. And the reactions of its competitors are not waiting. It is very evident the interest that competition between brands of the business strategy (especially the international expansion) of our most successful fashion label and internationally, and is a role model. At least for Gap, which has revised its international strategy and has decided to follow the model of Inditex . It is opening in Italy, China and South America, although very distant figures to those of Inditex (over 2000 stores less). However, each time the flagship Zara toughest competitors will come out based on its growth strategy, but it sure Amancio magic formula will not be easy to clone(Denise, 1999).

In December 1988 it opened the first international, particularly in the Portuguese city of Oporto, where Zara had already surpassed the number of 60 stores in Spain. This followed, in 1989 and 1990 respectively, the openings in New York and Paris, which pose a significant inflection in the expansion process. In both cases it is also taking the first steps in two major international markets, also obtain a return in terms of image, Zara put in two of the world capitals of fashion.

Throughout the 90's, Zara is progressively implanted in a growing number of countries, reaching number 36. As a result of the incorporation of new channels to the group, in some cases by acquisition (Massimo Dutti and Stradivarius in 1991 in 1999) and in others by creation (in 1991, Pull and Bear, Bershka in 1998, Oysho in 2001, Zara Home in 2003 ) (Lindsay, 2004), with its own plans for internationalization, the number of countries in which Inditex is present today rises to 47. Table 1 shows the time schedule followed in its international expansion.

Table 1. Inditex group's international expansion

The new formats incorporated into the group over the last ten years share the same international approach Zara. In fact, this is one of its basic characteristics. As a result, they have all grown simultaneously in Spain and abroad. In most cases, Zara has been the first network to reach new countries, accumulating experience has facilitated the subsequent introduction of other concepts. This experience has also allowed international expansion has accelerated in the chains whose creation is more ...