Product details

Zara operates over 6500 stores worldwide and is currently present in 88 countries. Zara was launched in India in 2010 as a joint venture initiative with Trent Ltd, a retail part of Tata Group. Zara closed down 1200 stores in India during the pandemic, and its major challenge was consolidating its position in India. This case discusses Zara's pricing and merchandising issues in the Indian market. Zara offers high-quality and exclusive products that showcase the latest fashion trends but the challenge was to differentiate the merchandise from their direct competition such as H&M. The pricing strategy adopted by Zara is skimming price, especially in Asian markets, where price sensitivity is less among consumers. Zara struggled to keep up with the pricing and merchandise due to the intense competition. This case also discusses the retail management framework for Zara to understand the challenges faced in emerging markets. Lastly, this case further elaborates the challenges faced by Zara related to their pricing and merchandising strategy.