Global Expansion Boosts Profits for Zara Parent Inditex

What can an entrepreneur or small business owner learn from Inditex (owner of Zara), the world's largest clothing retailer? Plenty.

First, Zara delivers new models of clothing to its stores twice a week (lesson: depending on the industry, speed counts).

Second, emerging market consumers will account for sixty percent (60%) of global luxury goods sales in 2020, up from 40 percent in 2009, according to an analyst at Sanford C. Bernstein (lesson: emerging markets are worth a look).

Lastly:

The goal for every luxury company, wherever their clients are, “is to keep people coming back into stores with new products,” analyst Farren said. “That’s what consumers want.”

(Lesson: To get and keep global customers you must continually hit the refresh button on your product and service offerings. Are you?).

Read more here. Related articles here and here.

Posted by: The Global Small Business Blog

Graphic source here.

Exporting Big Box Concepts to India

Is Wal-Mart's deep retail discounting formula doable in India? Only time will tell.

India is part of Wal-Mart's rapid global expansion under Mike Duke, the former head of the company's international division who in February became CEO. In his previous job, he recruited native-born managers in international markets who understood local customs. Mr. Jain, for example, had worked more than 20 years here for Unilever PLC and Whirlpool Corp. Wal-Mart's 3,400 international stores generate close to one quarter of the company's revenue.

The arrival of big-box wholesalers and retailers in India was a major political issue a couple of years ago, with widespread protests from small merchants. But as the Indian economy has slowed, the furor has eased. Shoppers became accustom to larger stores from local retailers such as Pantaloon Retail India Ltd.

Read more here.