Inditex Case Study China

Introduction

It is known worldwide that the Chinese market is one of the most appealing and attractive markets for investors all around the world. There’s no wonder why many of the biggest international companies have tried to entered the Chinese market throughout the years, some of them successfully while other’s perished trying to accomplish all the requirements of the nation’s needs.

One of these companies that were able to position themselves on the Chinese market was Inditex, a group best known for being the owner of companies such as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe; a company dedicated to the commercialization of clothing as well as products destined for housing decorations.

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In regards of governmental regulations the company had to cogitate and modify itself in order acclimatize to protection issues of the homeland’s local producers.

Zara’s Approach to the Chinese Market

Inditex has been able to show the world more than 19, 000 designs every year which vary and change for every region in which they are active, which are produced in various areas of the world, including European and Asian countries, while the production in China sets up around a 13% of the total stock.

Although we have to consider that the entry of Inditex to China wasn’t as smooth as it seems like, at first the concept of ‘fast fashion’ in the Chinese market is full of other international brands that offer colossal competitive challenges to incoming brands, at first the market was dominated by other brands such as Vero Moda, Uniqlo and Levis, but later on Zara was able to position itself as one of the leaders of the apparel market having H&M, Forever 21, Uniqlo and C&A behind