“THE WAY THINGS ARE DONE ROUND HERE”

India

International Management
Under the supervision of Dr. Howida Barakat
Prepared by: Doaa Rady Mohamed, ID: 22126935, Group: S4
Introduction:
In 1975 a store named Zorba was opened in Galicia Spain by Amancio Ortega.
It was then changed to Zara that used to provide lookalike of popular and high-end fashion
products at a low price. The journey started from merely a small store outlet in Spain to
the biggest fashion brand across the globe as it has the fastest fashion cycles.
Vision:
The company is dedicated to satisfy the desire of the customer. It promises to provide the
new designs to the customer at an affordable price and ensure good quality.
Mission:
To contribute sustainably to society and the environment.
Corporate Culture:
Creativity, Design quality and Rapid turnover are ZARA’s design approach for global reach and
consequent product standardization, through Teamwork and open communication.
The Culture is the customary beliefs, social forms, and material traits of a racial, religious, or
social group. Businesses can’t stand divorce from society.

It is important to study the product of religion, political and economic philosophies, education,
language and social structure prior starting any business.

Therefore, ZARA does not enter any new market without doing its preliminary research for
understanding the culture through different approaches.

Considering ZARA’s Vision, customers’ views & feedbacks are given to the stores, to be
sent directly to the designer as Zara’s principal designer is the customer.

Despite all that It was difficult for Zara to Succeed in the Indian market, Lets See Why?
Context Culture High-Context
Approach Japan, China, Egypt, Saudi-Arabia,
France, Italy, Spain & India
Business Outlook Cooperative Spain and India are of the
same High-Context.
Work Ethic/Style Relationship-Oriented/Team-Oriented
Employee Desires Team Achievement India is of large number of
Decision Process Intuitive, Relational population with different
customers segmentations,
Communication Non verbal over verbal and considered as an
Planning Horizons More Implicit, Oral, Informal opportunity.
Sense of Time Deep respect for the past
That was an Edge for ZARA
View of Change Tradition over Change to Enter this Market.
Knowledge/Learning Implicit, not fully conscious/situational
Dimension Approach
Dimension Approach
Reference to the previous Hofstede's Culture dimension of Spain and India,
Find the Following:

• India and Spain are hierarchal society, where India is more dependent on the boss.
• India Considered as collectivistic and Individualist traits, while Spain is Individualist society.
• Spaniards are educated in search of harmony, refusing to take sides or stand out.
• Indians have acceptance of imperfection.
• Spaniards like to have rules for everything, which makes life more complex.
• Long-term dimensions for India is an intermediate score where No dominant preference as
the concept of “karma” dominates due to the religious and philosophical thought.
• Spanish people like to live in the moment, while the Indians are committed to traditions.
• India and Spain are of tendency to cynicism and pessimism.
ZARA’s Challenges to Succeed in Indian Market:
• Governmental Restrictions: Zara entered the Indian market with a joint venture of
(49% : 51% - Partner to Inditex).
• India do not implement the copyright law, Which shall cause Pirating of Zara’s design in 2
days of launching it, at very low prices in local shops.
• The online store was the best option to serve the targeted segments of India who do not
have physical access to Zara Which lead to the importance of advertisement.
• Some parts in India doesn’t ever experience winter, Zara should consider that in its designs
• Indians are strongly attached to their own traditional clothes.
• India’s democracy system has all ability to qualify for “illiberal democracy” Which Zara is
sensitive to, due to its main origin of business in Europe.
ZARA’s Challenges regarding designs:
Category ZARA’s Designs Indian Customers needs
Colors 3 to 4 main colors used in ready lots of colors used in readymade
made cloth – basic colors cloth - bright colors
embroidery work Lack of embroidery work Lot of or small embroidery work
Cloth Market 30000 million rupees 490000 million rupees
Traditional Cloth designs Lack of designs Traditional designs
Cloth of weathers Normal Weather Extreme Weather
Conclusion:
Zara is reluctant to invest more in Indian cloth industry, as it couldn’t maintain its key success
factors there.
• The lack of availability of the right location and space has restricted Zara's expansion plans.
• The Strategy of Instant Fashion, that capitalize on new trends very fast.
ZARA has to find new strategies and models and have to strengthen their online sales.
References:
• https://www.hofstede-insights.com/country-comparison-tool?countries=india%2Cspain
• https://blog.ipleaders.in/zara-and-its-controversies/
• https://www.dailynewsegypt.com/2009/06/05/egyptians-greet-zara-with-open-arms-and-wallets/
• https://gradesfixer.com/free-essay-examples/zara-analysis/
• https://www.essaypandas.com/essay/Zara-13701-Hofstede-Cultural-Model
• https://samplius.com/free-essay-examples/a-report-on-the-operations-of-zara-in-foreign-countries/
• https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/
• https://indiegetup.com/is-zara-fast-fashion-ethical-or-sustainable/
• https://cleanclothes.org/issues/migrants-in-depth/stories/slave-like-conditions-at-zara-supplier
• https://www.ukessays.com/essays/marketing/marketing-problems-and-issues-faced-by-zara-marketing-essay.php
• https://www.indiaglobalbusiness.com/igb-archive/spain-and-india-have-a-lot-in-common-india-global-
business#:~:text=From%20the%20cultural%20perspective%2C%20both,joint%20fruitful%20business%20and%20success.