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Zara annual sales for FY’14 rise 43 percent in India

By FashionUnited

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Spanish fast fashion brand Zara has been tasting success in India. The brand, which opened its first shop in India in 2010, has

crossed Rs 500 crores sales mark, in the country. Inditex Trent, the joint venture between Zara brand owner Inditex and Tata Group's retail arm Trent, has registered 43 per cent annual growth in sales for the year ended March 2014 at Rs 580 crores, Trent said in its annual report released on Wednesday.

Interestingly, average sales per Zara store stand at about Rs 45 crores a year, much above, other top apparel brands such as Louis Philippe, Levi's and Marks & Spencer, and slightly higher than department store chains Shoppers Stop and Lifestyle, operating in India. Experts say, Zara earns almost 65 percent of its sales from four of its best performing stores - two in Delhi and one each in Mumbai and Bangalore. However, rest of the stores located at Pune, Surat, Jaipur, Chandigarh and Chennai are bogged down by high operational costs and low consumer buying.

Zara continues to replicate the same model that has worked for it globally, that is: creating affordable, copied versions of the latest in trend or designer-wear and make them available to shoppers at a faster pace. Inditex not only owns Zara, but it also takes care of every bit of operations, from design to distribution and a large chunk of manufacturing. If a new style is not a hit within a week, it goes off the shelves instantly. Also, its prices are at least 20 percent lower than its main competitors Mango and Vero Moda in some categories. Experts say, even before the brand entered the country in 2010, it’s online sales from India was highest in the world.

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