{"id":3545,"date":"2016-07-16T12:53:00","date_gmt":"2016-07-16T12:53:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=3545"},"modified":"2022-09-16T12:54:56","modified_gmt":"2022-09-16T12:54:56","slug":"zara-posts-slowest-sales-growth-in-india-stiff-competition-from-global-rivals-like-hm-and-gap","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/zara-posts-slowest-sales-growth-in-india-stiff-competition-from-global-rivals-like-hm-and-gap\/","title":{"rendered":"Zara posts slowest sales growth in India; stiff competition from global rivals like H&#038;M and Gap\u00a0"},"content":{"rendered":"\n<p> <i><img decoding=\"async\" data-src=\"..\/images\/spacer.gif\" height=\"8\" width=\"20\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 20px; --smush-placeholder-aspect-ratio: 20\/8;\">Sagar Malviya, The Economic\nTimes<br>\n<\/i><\/p>\n<p><i><img decoding=\"async\" data-src=\"..\/images\/spacer.gif\" height=\"8\" width=\"20\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 20px; --smush-placeholder-aspect-ratio: 20\/8;\">Mumbai, 13 July 2016<\/i><\/p>\n<p><img decoding=\"async\" style=\"width: 45%; height: auto; float: left;\" alt=\"\" data-src=\"..\/images\/zara-india-moderate-growth.jpg\" hspace=\"10\" vspace=\"5\" class=\"img-fluid lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\">Spanish\nfashion brand Zara posted its slowest sales growth in India during the\nyear ended March, indicating that its novelty factor may be waning as\nconsumers shift to global rivals such as H&amp;M and Gap, which entered\nthe country last year. <br><br>Inditex Trent, the joint venture\nbetween Zara brand owner Inditex and Tata Group&#8217;s retail arm Trent,\nclocked a 17% sales growth to Rs 842.5 crore during FY16, Trent said in\nits annual report on Tuesday. <br><br>A year ago, its revenue\nincreased 24% to Rs 721 crore. Zara&#8217;s sales growth has been tapering\noff after stellar performances following its entry into India in 2010.\nIt posted a profit in the first year of operations and doubled sales\nevery two years. <br><br>The joint venture plans to open more Zara\nstores in India over the next three to four years in the major cities,\nafter two additions last year took its total outlet count to 18, the\nreport said. &#8220;The primary challenge to faster expansion is the\navailability of high quality retail spaces, which can be expected to\ngenerate reasonable sales throughput,&#8221; Trent said. <br><br>Zara&#8217;s\naverage sales per store was about Rs 47 crore last year, exceeding\nthose of top apparel brands such as Louis Philippe, Levi&#8217;s and Marks\n&amp; Spencer and even slightly higher than department store chains\nShoppers Stop and Lifestyle. <br><br><span style=\"font-weight: bold;\">&#8220;When\nZara entered, the novelty factor was humongous but now there is a\ncertain familiarity with the brand. Also, it has moved beyond marquee\nlocations. In addition, aggression by ecommerce companies intensified,\ntoo,&#8221; said Devangshu Dutta, chief executive officer at Third Eyesight,\na retail and consumer goods consulting company. <\/span><br style=\"font-weight: bold;\"><br>As\nthe world&#8217;s second most-populated country, India is an attractive\nmarket for US and European brands, especially with youngsters\nincreasingly embracing westernstyle clothing. <br><br>Zara, owned by\nInditex, the world&#8217;s largest clothing retailer, is facing competition\nfrom similarly priced, fashion rivals including Gap, H&amp;M and\nAeropostale, which entered India last year. <br><br>US clothing brand\nGap sold apparel and accessories worth Rs 23 lakh daily on average in\nJune in its first month of operations in India, surpassing all other\nretailers in the country in terms of sales per square foot. Swedish\ncompany H&amp;M clocked more than Rs 1.75 crore in sales on the opening\nday of its first store in India, almost double what its largest rival\nZara sold on its inaugural day five years ago at the same location,\nSelect CityWalk mall. <br><br>While sales growth of both these rivals\nmay ease after the initial launch-related surge, experts said the\nmarket has room to expand. &#8220;Given the response we have had for global\nbrands launched last year, it indicates preference for wellknown\ninternational brands,&#8221; said J Suresh, managing director of Arvind\nRetail, which holds the licence to sell brands like Gap and US Polo. <br><br>Most\nof Zara&#8217;s back-end logistics and merchandise sourcing are handled by\nInditex, while the Tata expertise is mainly for identifying real estate\nand locations.<\/p>\n<p><span style=\"font-style: italic;\"><\/span><i>(Published\nin <a href=\"http:\/\/economictimes.indiatimes.com\/industry\/cons-products\/fashion-\/-cosmetics-\/-jewellery\/zara-posts-slowest-sales-growth-in-india-stiff-competition-from-global-rivals-like-hm-and-gap\/articleshow\/53183154.cms\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: bold;\">The Economic Times<\/span><\/a><a href=\"http:\/\/www.financialexpress.com\/article\/industry\/companies\/putting-mobile-wallets-through-convenience-test-heres-how\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: bold;\"><\/span><\/a>)<\/i>\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sagar Malviya, The Economic Times Mumbai, 13 July 2016 Spanish fashion brand Zara posted its slowest sales growth in India during the year ended March, indicating that its novelty factor may be waning as consumers shift to global rivals such as H&amp;M and Gap, which entered the country last year. Inditex Trent, the joint venture [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-3545","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Zara posts slowest sales growth in India; stiff competition from global rivals like H&amp;M and Gap\u00a0 - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/zara-posts-slowest-sales-growth-in-india-stiff-competition-from-global-rivals-like-hm-and-gap\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zara posts slowest sales growth in India; stiff competition from global rivals like H&amp;M and Gap\u00a0 - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Sagar Malviya, The Economic Times Mumbai, 13 July 2016 Spanish fashion brand Zara posted its slowest sales growth in India during the year ended March, indicating that its novelty factor may be waning as consumers shift to global rivals such as H&amp;M and Gap, which entered the country last year. 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