Some companies are dedicated to hang big signs in Times Square, others decide to fill the fashion magazines and then there are those who choose not to advertise and that all they have under their name speaks for itself. Zara belongs to this third group and it seems it will continue with the tactic for a long time.
Inditex has just left the tune of over $ 320 million to buy a shop in downtown New York, particularly in the famous Fifth Avenue in the U.S. city. A local 11,887.2 meters the number 666 in one of the most expensive streets worldwide. Before going into the hands of the local Inditex was the NBA store rentals a month which had risen to $ 2,000 per square foot per month.
Right in front of this store are those of Salvatore Ferragamo and Cartier, two large firms untouchable. More than $ 320 million seem like a big number but if we see the annual report of Inditex find a gradual increase in sales of its brands overseas. In 2009 alone 68% of its sales came from these stores. In 2009 its net assets amounted to 5.329 million euros.
Very high figures that allow Inditex go steadily on their investments. Spent on advertising to avoid more capital are able to invest and as the largest textile company today, beating H & M, any movement will appear in the media, so this investment is a smart publicity move.
To this is added the clever tactic placed next to the big luxury brands. These firms are the ones that Zara makes constant then winks in their collections. It is clear that the positioning of Zara is a trademark low-cost but classy, fashionable and cheap. The investment made by Inditex in New York is a great move they've been doing for years.
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