Spain-based Inditex, well-known for its trendy high street fast fashion brand Zara opened a
33,000 sq. ft. retail outlet in New Delhi’s DLF Promenade mall. This is Zara’s second outlet in Delhi, the first having been the launch store in Select Citywalk mall.
Inditex is Europe’s largest retailer and now faced with a sharp downturn in sales in its home country, is aggressively expanding in the Middle East, the Indian subcontinent and Southeast Asia. Plans are afoot to open a Zara store in Mumbai soon. Inditex has entered into a joint venture with the Tata Group for retailing the Zara brand in India.
"Zara's arrival in India, the world's second most populous country, with 1.1 billion inhabitants, represents a new milestone in the Inditex Group's expansion in Asia," said the group’s spokesperson. “This popular Spanish brand, which makes about a third of its sales in its home country now has Asia accounting for 12 per cent of group sales”, the spokesperson added. The company operates in 77 countries including Japan, Singapore, Malaysia and Indonesia.
Inditex posted Euro 301 million profit in the first quarter of 2010, above the targeted Euro 259 million, thereby a forecast beating 63 per cent jump. According to its Chief Executive Pablo Isla, the success was mainly due to the fast-to-market business model that helped it to respond instantly to a new found upswing in demand.