Internalisation of Spanish Fashion Brand Zara - 8711 Words

INTERNATIONALISATION OF SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Brunel University Uxbridge UB8 3PH England +44-1895-267239 Key Words Internationalisation, fashion retailing, market entry, branding, international marketing, Zara 1 INTERNATIONALISATION OF SPANISH FASHION BRAND ZARA ABSTRACT Purpose Research on the internationalisation of retailing has been mainly focused on market entry issues. This paper attempts to examine the internationalisation process from a branding perspective using Spanish fashion retailer Zara as a case. Methodology/Approach An in-depth case approach was adopted based on extensive secondary research, which include literature published in English and Spanish as well as†¦show more content†¦The major trends that are restructuring and characterising the textile and clothing sector are as follows: †¢ The European textile and clothing industry is characterised by fragmented production with a large number of small and medium-sized companies mainly located in Italy, Great Britain, France, Germany and Spain (Nordas, 2004), while distribution channels are highly concentrated (Stengg, 2001). †¢ Increasing internationalisation in the textile and apparel sector and the emergen ce of international competitors (Cervià ±o, 1998). Consolidation of the sector through mergers, acquisitions and strategic alliances (Dunford, 2004). †¢ Sub-contracting or delocalisation of textile and clothing production to countries with lower labour and transportation costs and reduced lead-time (Berkeley and Steuer, 2000). †¢ Re-evaluation of the business models to adapt to the customers ´ changing taste (KPMG, 2005). Fashion companies are becoming more flexible and vertically organised, limited vertical integration being more frequent than complete integration (Samiee, 1995). Adoption of new technology to expand productivity and increase competitiveness (Berkeley and Steuer, 2000). †¢ Democratisation of the fashion sector over the last decades (Mazaira, et al., 2003). Zara has contributed greatly to this shift by offering the latest design at attractive prices. 4 ZARA: THE BACKGROUND