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Inditex to set foot in Australia and South Africa in 2011
Jul '10
This year, Inditex, Spanish apparel retailer, has already entered several new markets and it is now set to enter the Australian and South African markets in 2011. With its plans for expansion, this includes launching international online retail platforms, will ensure that the firm stays one step ahead of its global competitors and provides ample opportunity for revival in the domestic apparel markets.

The company has already made its presence felt in 77 nations, which also includes new markets such as Bulgaria and Kazakhstan, which took place early this year. Before December 2010, Inditex intends to launch stores in the range of 365-425. This figure will cross the 343 store launches, which have already taken place in 2009, 98 percent of these being outside Spain.

The world economic downturn has already impacted its local market, with the proportion of local sales falling from 33.9 percent in 2008 to 31.8 percent in 2009. Hence, its globalization plans has turned important for the firm to grow and survive.

Inditex has also assured its plans of introducing its online offering for brand, Zara, in selective markets such as UK, France and Spain on September 2, 2010. An online portal will be created for Japan, US and South Korea in 2011. As of now, only Zara Home as a trading website and in the future, Inditex intends to introduce websites in all markets, wherein it has physical presence in terms of stores.

Hartley explains further that, retailers are attracted to the Australian market owing to its similarities to US and UK, with respect to consumer tastes and no language restrictions.

But the Australian apparel market is least developed as compared to US and UK, when it comes to fashion. Hence, Inditex intends to tap this unseen potential. More so, Australia was quite good during the economic recession and the apparel and footwear market is now increasing by 2.95 percent between 2009 and 2013, mainly driven by the accessories and women's wear segments.

Fibre2Fashion News Desk - India

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