Zara's Entry to India.. What say u..?

In fact I wish to do quite a bit of research into this one. But however, this thought has been boiling in my belly since quite some time, so I’m putting it on the blog. Now for those who don’t know what Zara is; well as a primer, you can say that ZARA is one of the very prominent fashion brands especially in the European countries.

And since the era of retail dawns upon India, many brands have started shifting their faces towards the Indian sub-continent. Zara I believe must be one of them. I don’t have many news clippings to prove that they are seriously looking about foraying into India, but I’m sure they’re looking at the options.

Now allow me to tell what’s so special about Zara??? Typically, any firm that’s into fashion apparels follows a 12 month planning period. That means in any normal nicely running mill, Arvind Mills let’s say, starts its design phase for any particular season 12 months in advance. Thus, we can safely assume that the designers at Arvind Mills have begun the designing apparels for the summer of 2008. Cool no?

Well, for any layman this would sound like really hunky dory, but in real fashion terms, this 12 month-in-advance cycle actually sucks! And the reason is quite simple. Fashion is an ever changing phenomenon. And typically any fashion house can be called successful if it is able to respond quickly to the customers’ changing preferences with respect to fashion! And after knowing the kind of design cycle Arvind Mills follows, you certainly can’t call them as a responsive fashion house. In fact any fashion house of India can’t be called ‘responsive’ to consumer fashion preferences, since most of them follow the cycle that Arvind Mill does.

Thus, we can say that in India, it’s the fashion house that defines fashion for the people rather than the people determining what fashion should be! Quite eerie isn’t it? However, surprisingly, we don’t seem to realize the fact. And we quite easily accept what the fashion houses churn out for us.

This is where Zara comes in. Zara’s responsiveness towards the current fashion trends is as fast as 14 days max! That is, it senses the new fashion trends and is able to deliver designs pertaining to the upcoming fashion and hits the stores within 14 days! From fiber to fashion within 14 days! I think this is what we call as responsiveness.

How does this happen is sort of a complicated thing. It ranges from phone calls from every retailer to the head-office to online tracking of sales and stuff like that to a superb supply chain system. I won’t bore you on all this stuff, but my point is will this brand work if bought to India?

Let’s look at a few statistics to lure you into believing that it will work in India! Zara typically produces around 12,000 designs throughout the year, it produces designs in smaller quantities but produces a variety of designs. Which means lower quantity per design thus no off-season discounts or clearance sales necessary, and variety means more choices for the customer.

It is said that if you go to a Zara outlet and you like an apparel, the store attendant would prompt you to pick it up at that time only, since there are high chances that it would be sold out when you return back in a few days if you plan to pick it up later!

Also, there are around 200 designers who design the garments from fashion inputs received though phone calls from hundreds of Zara outlets every day. Ideally, there is an addition of 1-2 styles every week on a Zara portfolio.

After telling you all this, quite obviously you will tend to believe that Zara should certainly come to India isn’t it?

I say it shouldn’t. Here’s why.

One, there isn’t a sizable amount of population of India that changes its wardrobe every season. Most people don’t even really care about fashion specifics. In fact, there is a large part of the population that waits for the end season sale or the clearance sale to get their hands on the favorite brands. Fashion takes a back seat.
Thus, in this demographic build-up where people are not oh-so fashion crazy to change their pants every 3 weeks, the responsiveness, the 200 designers sitting in Spain and the supply chain counts for nothing at all.

You’re trying to give something to the consumer, and that too to a level he hasn’t matured.

Is it wise? I don’t think so.

What say??

6 comments:

Miken Jain said...

i totaly comprehend your point when you say that ZARA should not enter the market because the markert is not yet matured but I do not agree to it. India as you know is a land of paradoxes, you never know, which of them will take you for a surprise.

Zara will have to target the population that actually is fashion consciouss and believes in moving atleast with, if not ahead of times. and there are number of stores spread all across the hinterland that send such stuff.

The bollywood city has people visiting the fashion street of Paris or London to get a good collection for their wardrobe, Bangalore and Pune will have a decent population that will be eager to be fashion savvy.

But yes all this will cost Zara, to combat the situation it may compromise on the time based deadline for the initial period, in India where international fashion is difficult to spot leave adopt a 21 days deadline is also a 'WOW!' option.

There is also a high chance of having a first mover advantage in this nation.

What say?

Anonymous said...

I agree with Micky Jain.India definately is ready for Zara.When we form a significant segment in world luxury market, it makes sense for zara to enter India.

Zara though works ahead in terms of trends en al,they study the local market & customise it accordingly( u mentioned about store associates updating designers). Thus India, supposedly not that happening in fashion front wil definately pick up the phase.

& can someone p'ze explain why we often hear people saying India lagging behind in fashion en al? has anyone been keeping track of our designers work? The LIFW is on par with any European fashion weeks. We are consumers of about 23% of designer wear every year? isnt that gud share for a developing country?
Sorry if i have gone off the tangent....but would love to read an explanation when i re-visit your site.

Smitha
mezsmitha@gmail.com

Swas Swasti said...
This comment has been removed by the author.
Swas Swasti said...

Zara can be a sure hit in India... With fashion awareness entering the Indian's blood, and cities like Delhi, Bombay, Bangalore, Pune, lately even Chennai can afford to it..~!!

On to ur notice...Its High Fashion At a very Cheap Price that Zara is known for ~!!!!

Even Now...i still find at least a customer complaining about the sizing or the same kind of style over time ...often.... LOL....sometimes even me ~!!

Zara is meant for SMALL QUANTITIES! and im damn sure that all the pieces in the shelf will be billed as soon as it is stocked...atleast within 14 days... ;)

moreover India is a multi-cultural country...with a Great No: population ~!!! and people celebrating as many festivals and occasions...while the WESTERN COUNTRIES or the EUROPEAN COUNTRIES Dont...

ANd... i shall tell u a stat... INDIA RANKS NO:1 FOR ITS HIGHEST PURCHASING POWER ~!!!!!

so....when therz rain or sun..be it watever...the Cheerness of the people does not fade in india...
the 1st thing that an Indian does 4 any festival... parties...or occasion or Hehe... :P even important Meeting ...people Step on to the Stores. ;)

Im really waiting 4ward 4 Zara to place its Store in Chennai.. :P ;)


Nikitha ;)
icecreams2chill@gmail.com

Anonymous said...

Your blog keeps getting better and better! Your older articles are not as good as newer ones you have a lot more creativity and originality now keep it up!

Anonymous said...

Good...Zara can be a success in India but who makes the success possible....people who work in the company....

To make that a success Zara needs to treat its employees well and they will inturn deliver success...

PEOPLE ARE NOT COMMODITIES.....