Chief Financial Officer P Venkatesalu vice chairman Noel Tata and the companys

Chief financial officer p venkatesalu vice chairman

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Chief Financial Officer P Venkatesalu, vice- chairman Noel Tata and the company's MD Sanjay Rao - are Indians. Rao, who was previously financial controller at the company in North America , relocated to India and launched the operations. Zara’s annual sales in last fiscal soared to Rs 580 crores in India, with each of Zara's nine stores in the country making Rs 45 crore on an average, over six times more than the country's largest apparel brand Louis Philippe and a tad higher than the country's largest department chain Shoppers Stop . Inditex Trent, the Indian arm of Inditex, clocked 56% growth in sales without any new store addition in the year ended March 2013, according to its latest annual report. What Makes Zara Different From Its Competitors In terms of revenues and growth, Zara’s main global competitor is the Swedish firm H&M. H&M has already got permission from FIPB in November 2013 for opening its wholly-owned subsidiary in India. They have been eyeing India for some time now and have finally got the permission for opening their stores in India. The two leading fashion retailers have been competing to grab larger market shares across the globe which will also be the case in India, though Zara has a big first-movers advantage. In the rat race to supremacy, both the labels have transformed their philosophies into business models intricately, which has been a major motivator to drive towards success. In the Indian market, Zara is competing with Marks& Spencer (Major British multinational retailer), Tommy Hilfiger (American fashion designer) and French Connection (British multinational retailer commonly known as fcuk). “Runaway fashion at runaway prices is what Zara is for me. I visit the store for its unique clothing range having something new to offer on each visit, thus bringing exclusivity to my wardrobe”, explained one of Zara’s customers outside its Pune Page 9
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Zara Zara offers mid-market chic at down market prices. Zara when compared with its competitors is a clear winner when it came to turnaround time. For a typical brand, the entire process starting from defining a concept to receiving goods in the retail store took anywhere from 9 to 12 months. As Zara geared up to enter the US in a big way, it was being compared to Gap (a leading fashion retailer in the US) and H&M (Swedish retailer who had also entered the US recently) more frequently. A key differentiator was Zara having the shortest turnaround time. Zara's turnaround time was 14 days, whereas H&M took 21 days and Gap needed 9-12 months to reach stores. The profit margin on the products manufactured is also low, but Zara invests a meagre 0.3% of its sales to market its product because of the fast changing fashion trends unlike its competitors and as the manufacturing is done in less quantity, a failure of a fashion trend still leads to minimal loss. It has been proved that only 18% of the total production goes for an annual sale compared to 35% of its competitors in the international market. (Refer Fig. 7 Annexure I) Zara is a smart choice of those that want to combine fashion with great price. A customer survey in Pune
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