Zara in China: Fashionably Fast
Disciplines
Business
Abstract (300 words maximum)
Abstract
The fast fashion industry is worth $35 billion USD (2019 Fashion Resale Report, 2019). Zara, a global fast fashion brand owned by Inditex, brings in an average annual revenue of $20.6 billion. Zara entered China in 2006 with its affordably priced fast fashion products, the market for these products is worth $295.2 million (Sofya, 2019). Currently, Zara’s top competitors in this market are Uniqlo and H&M. Other global competitors such as Topshop and Gap Inc launched stores in China but pulled out after experiencing poor financial performance (MarketLine, 2015). Zara faces unique challenges upon its rapid expansion into the Chinese market. The overall economy of China is slowing down which poses as a threat to an industry that is classified as nonessential. Additionally, Zara is faced with overcoming the increased adoption of ecommerce and mobile shopping that Chinese consumers have rapidly adopted. A second challenge is local Chinese apparel giants like Peacebird, Heilan, and Septwolves that are approximately ten times more stores than Zara (Towson, 2017). This case study examines China’s fast-fashion industry in the context of its consumer preferences and socio-economic situation to better understand what changes Zara should implement in its marketing mix in order to succeed in China. Zara
Keywords: Zara, China, Fast-Fashion, Fashion, International Marketing Strategy, Case Study, Emerging Markets
Academic department under which the project should be listed
CCOB - Marketing & Professional Sales
Primary Investigator (PI) Name
Dr. Mona Sinha
Zara in China: Fashionably Fast
Abstract
The fast fashion industry is worth $35 billion USD (2019 Fashion Resale Report, 2019). Zara, a global fast fashion brand owned by Inditex, brings in an average annual revenue of $20.6 billion. Zara entered China in 2006 with its affordably priced fast fashion products, the market for these products is worth $295.2 million (Sofya, 2019). Currently, Zara’s top competitors in this market are Uniqlo and H&M. Other global competitors such as Topshop and Gap Inc launched stores in China but pulled out after experiencing poor financial performance (MarketLine, 2015). Zara faces unique challenges upon its rapid expansion into the Chinese market. The overall economy of China is slowing down which poses as a threat to an industry that is classified as nonessential. Additionally, Zara is faced with overcoming the increased adoption of ecommerce and mobile shopping that Chinese consumers have rapidly adopted. A second challenge is local Chinese apparel giants like Peacebird, Heilan, and Septwolves that are approximately ten times more stores than Zara (Towson, 2017). This case study examines China’s fast-fashion industry in the context of its consumer preferences and socio-economic situation to better understand what changes Zara should implement in its marketing mix in order to succeed in China. Zara
Keywords: Zara, China, Fast-Fashion, Fashion, International Marketing Strategy, Case Study, Emerging Markets