Inditex(Zara) Case Study Example | Topics and Well Written Essays - 1500 words

Inditex(Zara) - Case Study Example The United States of America is acknowledged to be a graveyard for European retailers. Everyone who goes there is believed to have struggled with comparisons to Laura Ashley’s shutting down and Benetton’s declining. The US is believed to be a complex market as shopping malls are located in the middle of nowhere while the real fashionistas live around the East and West coasts. In addition, everyone nowadays is dressing in Wal-Mart, the Gap and T. J. Maxx. If one is to open a successful fashion retail stores in the US, they would have to open at least 300 and focus all their energy into it to make it work. Another problem causing the inability of Inditex (Zara) to break the US market is a matter of size. For starters, the store is European which means it makes European style clothes. The clothes just would not fit in the US fashion where most of the clothes are for small bodied people. Therefore, Inditex would have to ask themselves why make production more complex? More money would have to go into producing new clothes that fit the US market. Inditex is a pioneer in the fashion industry essentially imitating the latest fashion trends and speed the cheaper imitated versions into stores. Badia (2009) Every one of their brands follow the Zara brand: trendy, decent but inexpensive products sold to people in beautiful, high-end stores. Zara has similar prices to the Gap with coats going for $200, T-shirts at $30 and sweaters for $70. Inditex now makes 840 million clothes every year and has around 5,900 stores located in 85 different countries. Arnarsson (2009) stated those numbers keep changing as in recent years, the company has already been opening more than one store a day or about 500 every year. Recently, there are around 4400 stores located in Europe and about 2000 Spain only. The company’s roots go back in 1963 when the railway worker’s son, Ortega, started a company making robes and housecoats in La Coruna. Oshea (2012) reveals he opened his