Zara goes online in India

Fashion retailer Zara will start selling its trendy clothes online in India. Zara entered India in 2010 through a joint venture with the Tata Group. It’s known for chic western wear, and its clothes are relatively inexpensive. It has 21 stores in India. Zara does about Rs 2,500 per square feet per month on an average across its stores. In most malls, either it's steady or growing. Zara is posting a 20 to 30 per cent like-for-like growth, considered robust in fashion retailing.

Zara's bargaining power and appetite for more store space can be judged from the fact that it has been able to secure the right of first refusal over any space that gets vacated adjacent to its store in future. Symbiotically, it works well for the mall as well, to have a successful global retailer driving footfalls and revenues.

For the year ending March 31, Zara’s revenue in India grew 17 per cent, trailing the 24 per cent growth from a year earlier. The retailer’s plan to pursue an online strategy makes sense in a market with a paucity of quality real estate options. The brand is currently available in eight cities in India. Opening up sales online will give it access to more markets where malls and high streets are still underdeveloped.