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Spanish Retailer, Zara Decides to Form a Joint Venture with the TATAs, rather than franchise

Written by: Dhawal Shah

Article Overview: Inditex, the Spanish retailer behind Zara, expects to open its first stores in New Delhi, Mumbai and other Indian cities next year. Inditex, the Spanish retailer behind Zara, is to set up shop in India in partnership with Tata, the conglomerate, as it presses on with an aggressive expansion plan despite the global downturn. Europe's largest clothing chain is betting that its "fast fashion" model can be transposed to the subcontinent. The group, which already has outlets in 73 countries, from Russia to Guatemala, prides itself on being able to design, manufacture and deliver new lines in just two weeks, compared to an industry average of nine months.

Spanish Retailer, Zara Decides to Form a Joint Venture with the TATAs, rather than franchise

Zara, which is controlled by Amancio Ortega, Spain's richest man, is stealing a march on arch rivals H&M and GAP, who are yet to move into India, a market that has grown rapidly in recent years and which analysts believe has enormous long-term potential. However, it will face several hurdles in the shorter term: India's middle classes are tightening their belts as rapidly as their western peers amid mounting job losses and a sudden drought of easy credit. Even before the global slowdown began to bite, Western middle-market retailers had found India hard work. Marks & Spencer, for instance, was forced to slash its prices last year after shoppers shunned its stores for being too dear.

Inditex will take a 51 per cent stake in a joint venture with Trent, the retail arm of Tata, which already has a partnership with Britain's largest retailer, Tesco. India's laws prevent overseas groups who sell more than one brand of good from wholly owning retailing operations. Some of the ways in which

Zara will not be further franchising. Franchising is one of most popular methods of venturing into new markets, due to obvious inherent advantages. However several companies including McDonalds India have created a joint venture that has the franchise rights']);"> master franchise rights and they only expand with company owned locations.

The Spanish company relies on Spain for about a third of its sales, down from a half five years ago.

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Article Tags: amancio ortega, arch rivals, belts, drought, gap, global slowdown, hurdles, inditex, job losses, joint venture, master franchise rights, mcdonalds, overseas groups, peers, retail arm, richest man, spanish company, tata, tesco, zara



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Re: [JOINT VENTURE] Want FREE Staff? Want to Scale Up Massively? - Hi Alan, Welcome to the forum! [quote="Joint Venture":2bfdqwzb]Total transparency is a must when JVing with someone.[/quote:2bfdqwzb] What about when inviting people to send you their proposals...? Cheers, David H
Don't leave your Wallet on the table - Targetzone, Evan has great points on targeting you package. Also I read the revenue model you mentioned and i believe you are leaving a lot of money on the table. Aisde from making just $15/sale of a package you could also be making income from sales generated after the people use the coupon on their second and ongoing visits to the Service/Product company. I've sent you a PM - We can talk more advanced strategies. BTW - I'm a Dollarmakers Member and have taken the Joint Venture BootCamp 101 and highly recommend it if you wish to pursue this idea. PM me privately and we can talk.
Re: [JOINT VENTURE] Want FREE Staff? Want to Scale Up Massively? - [quote="Joint Venture":3738ldxh][quote="Ringo":3738ldxh]1) Credentials? Any website? Any client list? 2) Where do you get your staff from? How? I mean if i really am going to hand over a lot of sensitive information to be handled by staff of your choosing, I'll need to know how you operate with total transparency.[/quote:3738ldxh] Ringo, 1) Send me an email with your proposal and if I like it I shall disclose all that your need. 2) That's my USP! Total transparency is a must when JVing with someone. Let me know your proposal and we may discuss it. In regards to staff dealing with your sensitive information, compartmentalize the data. Have different teams deal with only a section of the whole picture. [quote="ideasuniversity":3738ldxh]How long have you been doing this? And what are your success rate?[/quote:3738ldxh] Joint venturing? I have done JVs before and had good success. This JV? Brand new. New source of staff. Success rate? I've made a good bit money! [quote="Trent Brownrigg":3738ldxh]This same person posted this exact same post several times at another forum I moderate. Now, he is posting it here as his very first post. I consider that to be a spammer![/quote:3738ldxh] I consider it being proactive! Sorry if I have stepped on anyone's toes. Not my intentions. Look forward to reading more of your emails, Alan[/quote:3738ldxh] Let have your website.
Re: need a capitalist to hear me out - If you have solid business plan, there are thousands of Angel Investors and Venture Capitalists that will fund your project. Google "Venture Capitalist" and you will get tons of investors who are ready to fund your project
Re: [JOINT VENTURE] Want FREE Staff? Want to Scale Up Massively? - [quote="Joint Venture":1ofoz1sm] [quote="Trent Brownrigg":1ofoz1sm]This same person posted this exact same post several times at another forum I moderate. Now, he is posting it here as his very first post. I consider that to be a spammer![/quote:1ofoz1sm] I consider it being proactive! Sorry if I have stepped on anyone's toes. Not my intentions. Look forward to reading more of your emails, Alan[/quote:1ofoz1sm] Well, I will give you credit for at least coming back here and replying. But just an fyi that you will be seen as a spammer if you post the same thing on a bunch of different forums, especially if you post it more than once on any one forum. You should be careful about that because a lot of people are members of the same forums.


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