The Zara aura spreads in India

Ever since Spanish high street fashion brand entered India exactly a year ago, there’s been no looking back as the brand writes its huge success story in the nation. International clothing giant Inditex that owns brand Zara, opened the first Zara store

in Delhi and apparently that day retail history was written as the outlet recorded the largest single-day sale by an international retailer in the country. Less than a year later, the Zara fever has gripped several retailers who are chasing shop space next to the Spanish brand’s outlets to leverage on its ability to pull shoppers in herds.

Natasha Chopra, Head of Personal Shopping at South Delhi’s Select Citywalk Mall succinctly says, “Zara has just nailed it.” She adds that no other brand offers such trendy styles between Rs 1,500 to 2,300. “It’s definitely the shopper’s hot favorite.”

The day Inditex’s Indian joint venture with Tata Group’s retail arm Trent, opened the first Zara outlet, it sold apparels worth a record Rs 9 million, according to industry estimates. The 18,000 sq. ft. shop at Select Citywalk sells Rs 5-6-crores clothes a month. The average sales at Zara’s outlet in Mumbai’s Palladium Mall is similar, while sales are nearly Rs 4 crores a month at the DLF Promenade shop in New Delhi, industry insiders said. Inditex of course remains tight lipped about it. Zara’s international spokesperson only says that they are really honored by the good reception that their customers are given them in India.

This success story’s has a spin-off. Other brands now want a bit of the Zara success rubbed off on them, as they are in queue to get an outlet next to a Zara one. Similarly mall developers want Zara in their tenants’ directory. Such is the Zara aura.

In January 2011, retail planning consultancy Asipac Projects received requests from some international apparel brands, a major jewelry brand and a cosmetics chain that seek shop space bang opposite the Zara outlet at Hyderabad’s City Capital Mall, which will be operational by end of 2013, according to an official at retail planning consultancy Asipac Projects. At Select City Walk, two store executives with international brands operating near Zara said customer visits in their stores have increased nearly 20 per cent since Zara became their neighbour.DLF Promenade in South Delhi, where Zara opened its second store in June last year, settled for a revenue share of 7 per cent of sales compared to 8-20 per cent that developers usually charge to attract the Spanish retailer. The mall developer also deleted the minimum sales guarantee clause for Zara and did the interiors and air conditioning of the store that usually retailers do. Clearly, many brands would rather leverage Zara’s visibility than fight it.

Zara has done exceptionally well in two malls where incidentally all brands have high sales. But in New Delhi, the largest market for premium brands, its third store in Rajouri Garden has not performed as well. Star Centre’s Sinha, who earlier headed Select City Walk, said it will be difficult for Zara to repeat its first shops success in other malls, but the brand is here to stay.