Entry Mode Of Zara Into The Indian And Chinese Market

1 January 2018

In the Indian market, the various entry strategies that Zara Company may use include own subsidiaries, franchising, and joint ventures. The Indian policy on foreign direct investment (FDI) allows the formation of joint enterprise which would be very crucial in the growth of the company. The strategy of perusing a joint venture with other organization in the clothing industry is very essential. The joint undertakings is very obliging strategy where the manufacturing amenities and the company reputation as well as its proficiency of the foreign company in the industry, particularly in huge, competitive industry where it is hard to obtain resources to set up retail channels or regions having other types of hindrances that need an association with a native corporation to which Zara reputes its retail as one of the connected basics in its corporate mold (Laufs & Schwens, 2014). The only concern that may affect the company in its effort of entering the market is the issue with cultural and demography concerns. In India for instance, the target market would obviously be more comprehensive than anticipated as the country has a populace of about 1.2 billion individuals. It is expected that income in India will increase and thus the demand for the fashionable and quality of clothing will increase. Before entering any foreign market, the most important thing to consider is the cultural concern as it tremendous attention. The business has to follow the beliefs and perspectives of the part played by culture in control since in India, for instance, social safety is given distinct consideration.

The strategy of selling different local clothing lines, and international clothing lines while at the same time maintaining Zara as the primary brand in the country would enable the company to effectively achieve its goals. Being new in the market the company would try to target the bigger positions comprising the initial or subsequent position in the whole of the marketing wear lines (Ang, et.al.2015). This is because acquiring one of these positions would assist the company in creating an exceptional level with respects to manufacturing, distribution, and marketing. Therefore, these positions would form a stage where Zara may vend their wear lines, and other unique cloth wears.

Furthermore, in order to endorse the company and its clothing positions, the company needs to use a video advertisement, e-marketing and print ads which would fulfill the different needs of clients from India and surrounding locales; mainly that priority in Indian markets or the customers living in the urban regions (Quer, 2015). Throughout the campaign period, the ideal info the Zara would be utilizing is the fashionable and quality clothing lines that meet the needs of clients. The company would efficiently penetrate the Indian market just the way it been able to dominate the Spanish clothing industry for a couple of years now. The company is well positioned to face various challenges either directly or indirectly and where this is made possible through the effective positional and promotional strategies formed to help maintain a large profit margin as well as forming the foundation of the company attires and fashion trends. In India, the promotional approaches of Zara would be implemented by the local workers hence enabling the business to enormously advance without the problem of applying expensive technologies.

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