To be more affordable for the market, Zara India has cut its merchandise prices by 10 to 12 per cent.
The Spanish fashion brand took this move to coincide with the entry of rival H&M into India, reports the Business Standard.
Established in India for six years in a joint venture with Tata’s Trent, Zara has 16 stores and is planning to open more. H&M has three stores after arriving late last year.
Though it has become the fastest fashion brand to achieve $100 million revenues, Zara has seen a slowdown in sales growth. Its prices are reportedly 30 per cent higher than H&M. It has 7013 stores internationally, while H&M has about 3900 in 61 markets.
Both brands are in malls in India’s National Capital Region, such as Select City Walk in Delhi and Mall of India in Noida. In Mumbai, H&M is planning to open a store next to Zara in High St Phoenix and in Phoenix Market City, Kurla, where Zara also has a store.
Zara’s sales in India were down from 43 per cent in 2014 to 23 per cent last year, according to the Trent annual report.
