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Zara Franchise Cost In India

Zara Franchise Cost In India
Published on June 17, 2022

Want to know about Zara Franchise Cost In India ? Well you have landed on the right article.

Zara - the name is synonymous with fashion. From a fashionista who turns heads to someone who just enjoys shopping, most people would have made a stop at an online or retail Zara outlet at some point.

Zara’s product range stays true to its core values of beauty, clarity, functionality, and sustainability. 

A customer-first approach and its unique ability to bring designs to market in a short time frame compared to competitors give this brand its well-deserved fame.

While everyone recognizes the appeal of the brand, if someone has ever thought - “wish we knew what it takes to be a franchisee of a brand like Zara in India!”, then this article might interest you as it addresses just that.

Let us explore Zara from a business point of view and know what the brand offers, its presence in India, and what having a Zara franchise in the country entails.

Zara Franchise Cost In India

The Beginning

Amancio Ortega, the founder of Inditex which is the parent company of Zara, set up Zara’s first store in 1975. It was in the Spanish coastal city of A Coruna, Galicia.

By 1977, the business model was so successful that it established its headquarters as well as two garment factories in Artexio, Spain.

Inditex was founded in 1985 for the consolidation of all the group’s companies. Since then, there has been no looking back for Zara as it grew from a Spanish to an international brand.

Business model

Zara’s business model Is customer-centric and has three pillars, namely flexibility, digital integration, and sustainability.

All their stores are located in high-end or landmark locations around the world by design to let the brand’s personality come through.

Zara relies on its store locations and word-of-mouth recommendations from customers than on commercial advertising.

Fast fashion is a term popularized by brands like Zara. Amancio Ortega is among the pioneers of this concept by making designer clothes quickly available and affordable to
people.

Zara achieved this by setting up a clever and effective supply chain and production network with a short lead time and reduced carbon emissions.

Their in-house teams ensure that it takes only 3 weeks for a product to make it from the design board to a store.

Product range

The brand sells clothing and accessories for women, men, and children. This includes casual and formal wear.

Other than clothing, their collection also includes swimwear, bags, shoes, and perfumes. The accessories section of Zara has different fashion jewelry, headwear, hats, and eyewear.

Zara home, its home furnishings and furniture division, cover a range of products that meet the functional and decorative needs of a home.  

Reach and brand commitment

Zara has an expansive reach and sells products in 200+ markets through a combination of online and retail stores. It has stores in 96 of those markets.

In India, Zara has stores in 21 locations, with the first-ever shop being set up in Delhi. Inditex group’s aim of creating fashion that is “Right to wear”, extends to Zara, too.

It means the company is committed to making a positive impact through fashion - on its customers, the community at large, and the environment.

An example of this would be Zara’s Join life collections, which are made using the most
sustainable raw materials and processes.

The stores also offer facilities for customers to drop off their old clothes for recycling.

How to open a Zara franchise?

Franchise opportunities are given only under certain specific circumstances and where agreements are signed, it is normally with well-established players with the right infrastructure and know-how to support the brand’s requirements.

So, we have provide some information about how to get franchise of zara in india .

In general, the process would entail:

  • Market research to identify the potential for a franchise. This could happen with help from consultants. A franchise disclosure document also comes in handy for this

  • Sound expertise in the fashion industry and a proven track record go a long way in establishing credibility and increasing chances of getting approval

  • Capital adequacy to set up and manage stores. This will include covering ongoing costs such as franchise fees, royalty, etc. Loans can be availed for this purpose

  • Know what licenses and permits are necessary for a successful launch

  • Submit the application and receive approval. 

Zara has over 200 franchises across the world. In India though, it is not possible to obtain Zara franchise rights.

Exclusive permission to open and operate Zara stores in India is held by Trent Limited, which is part of the Tata Group. The controlling interest for Zara in India rests with Inditex.

Zara may not encourage any arrangements outside this partnership. Interested parties can approach company representatives for further information or look for alternatives. 

Conclusion

From humble beginnings in a small city by making dresses and quilt gowns, to a high fashion giant that is a name to reckon with, Zara is iconic in the fashion Industry.

With fresh stocks being added to its store every 2-3 weeks, its customers are assured of  the latest and only the best in fashion.

The brand’s commitment and superior business practices together with a customer-first principle are what make Zara exclusive and famous.

In India, though, franchise opportunities will not open up till Inditex’s partnership with Trent and the Tata Group is going strong.

I hope you liked our article on zara franchise cost in india , if you have any comments or suggestions do share them in the comments below.

Frequently Asked Questions

Q1. Does Zara give franchise in India?

Zara has given franchises in India, but its exclusively to a joint venture with Tata Group’s Trent  Limited. Outside this, the company will not sign any agreements in the foreseeable future.

So, the answer to whether Zara gives franchises in India is no for other individuals and companies.

Q2. How much does it cost to open Zara?

In the Indian context, this question is difficult to answer as there are no franchises being  signed on by the company.

Abroad, where the company might be open to such arrangements, the base investment is   around 80,000 USD according to Top Franchise website.

Q3. Does H&M give franchise in India?

H&M is another brand, like Zara, that believes in running its own stores.

Its expansion plans do include working with franchisees in the markets that they are entering or expanding in, but these are due to regulatory reasons than as company policy or plan.

prakash

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About the Author

Prakash is a passionate individual who loves to live his life up to full potential. An avid traveller and reader, he loves to explore various places and has quite a knack for research. He is intuitive by nature and possess the ability to handle multiple informational resources at one time. Prakash is dedicated and sincere in approach and he loves networking with like-minded people.

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