Fashion fiasco to follow?

While Massimo Dutti is all set to enter Indian boundaries, Zara has already created a niche. Together, will they be a threat to Indian fashion counterparts?
Fashion fiasco to follow

Zara as a brand has gained immense popularity across the globe. It has brought laurels to Inditex more than any of the other seven brands under its umbrella.  

Zara: The trademark

Zara opened its doors for the first time in 1975 in A Coruña in Spain. Its journey spreads across 85 markets with a network of more than 1,700 stores located at appropriate locations. Its global presence clearly shows that national borders are no impediment to a shared fashion culture. Its specialty lies in its ability to constantly update merchandise with replenishments landing in stores twice in a week. The new store launches this year include the global flagship Zara store located on the corner of New York’s Fifth Avenue and 52nd street.

 

Zara’s international journey

In most cases, Zara was the first concept to disembark in new countries, gaining experience that facilitates the subsequent rollout of the other concepts.

 

1975 Spain

1988 Portugal

1989 United States

1990 France

1992 Mexico

1993 Greece

1994 Belgium and Sweden

1995 Malta

1996 Cyprus

1997 Norway and Israel

1998 Argentina, United Kingdom, Venezuela, Turkey,

Lebanon, U.A.E, Kuwait and Japan

1999 The Netherlands, Germany, Poland, Saudi

Arabia, Bahrain, Canada, Brazil, Chile and Uruguay

2000 Andorra, Qatar, Austria and Denmark

2001 Puerto Rico, Jordan, Ireland, Iceland, Luxembourg, Czech Republic and Italy

2002 El Salvador, Finland, Dominican Republic, Singapore and Switzerland

2003 Russia, Malaysia, Slovenia and Slovakia

2004 China, Morocco, Estonia, Latvia, Lithuania, Hungary, Romania and Panama

2005 Philippines, Thailand, Monaco, Costa Rica and Indonesia

2006 Serbia and Tunisia

2007 Guatemala, Croatia, Colombia and Oman

2008 South Korea, Ukraine, Egypt, Honduras and Montenegro

2009 Syria

2010 Bulgaria, Kazakhstan, India

 
2011 Australia, Taiwan, Azerbaijan, South Africa and Peru.

 

 


 

THE HURT STORY

Zara has time and again been a part of fiascos in different parts of the world. 

Patrick Waldo, known as the ‘Moustache Man’, accused Zara to have copied his iconic art on their T-shirt. Waldo at the New York City Subway scribbled the word ‘Moustache’ across posters. Zara’s T-shirt boasts of a skull with ‘Moustache’ written on it in a similar way as done by Waldo.

In 2010, a French blogger alleged that Zara stole her pictures and created T-shirts around them.

In 2007 too, a street artist claimed that the brand had xeroxed his designs. 

 

 

 

Massimo Dutti: The brand 

Headquartered in Tordera, Barcelona, Massimo Dutti was founded in 1985 and later acquired by Inditex in 1991. At present it has more than 570 stores in 50 markets and offers quality international fashion for men, women and children. Its portfolio ranges from sophisticated urban fashions to casual wear. 

The Indian picture

Zara as a brand has received a warm welcome in the Indian marketplace, owing to the fact that it provides ramp and designer fashion in the mainstream market at highly competitive price points. Zara in India is run through 51: 49 joint venture, Inditex inked with Trent. “We signed an agreement with Tata Group to form a joint venture to develop Zara stores in India in February of 2009 and we announced our intention to open the first Zara stores in India in 2010. We launched our first store in India in May of 2010. We consider that our entry in the market has been taken in the most appropriated moment. We are very satisfied with the warm welcome of the Indian public. This welcome has been received from us with satisfaction but always keeping in mind that we must to learn a lot from our Indian customers. Our experience in India confirmed there are people interested in fashion, that they know and appreciate the international trends but with their own taste. Our teams of designers, commercial and store staff try to satisfy everyday to our Indian customers offering design and quality products at attractive prices”, said INDITEX- Communication and Institutional Relations, Corporate Division.”

The Zara fashion offering is global. A large collection that is adapted everyday to the desires of its worldwide customers. Every store, in an individual way, collects the sensibility to their customers for giving a specific commercial offer, boosting the trends or styles have a major demand between its customers. At present they have nine stores in India at Pune, Mumbai, Bangalore and Delhi.

It has adopted a different strategy to market itself amongst its clientele. “Our interaction with our customers is focused in the store, through its localization, its architecture and interior design, the image of their shop windows, the product itself and its display in the store and with customer service of quality. Zara offers the clothes its customers want to wear”, said Inditex.

Designer fashion at prêt price points has helped the brand create a widespread consumer base. The elevated feeling of moving a notch higher in terms of premium offerings has worked well with their clientele. While is good news for Zara, it smells trouble for those brands who are swimming in the premium segment. The coming of Massimo Dutti might increase the pressure for the counterparts. Fast fashion is still a relatively a new space for Indian fashion players.

Both Zara and Massimo Dutti come from the Inditex group, a Spanish retail chain however the entry of application for the setting of Massimo Dutti stores in India was made by Zara Holdings Netherlands. The relaxation of FDI norms has facilitated the entry of the brand on Indian shores. “Massimo Dutti wants to enter in the Indian market but nowadays is early to comment any details about it”, says Inditex.

 

Brand No of stores Turnover (Million Euros, 2011)
Zara 1830 8938
Massimo Dutti  570 1013

 

The fashion industry is in for a spin and will witness global trends that will need to kept pace with. With Zara and Massimo Dutti add their special touch to the industry; other brands will have to gear up to create a feel of their own.

 

 

 

 

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