Zara Strengthens Logistics for Online Store

Zara's rival H&M is planning to launch an online store next year in the country

Zara, a Spanish fast-fashion brand, has set up a warehouse in New Delhi to serve its online customers.

The size of the warehouse is not known. Zara launched its online store on Wednesday. The company spokesperson said warehouse is only for online store and not for its physical ones.

For delivery, the company has got logistics companies Blue Dart Express and Gati.

The company said it will deliver the products in Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad and Ahmedabad within two to four working days, while in other cities, the product will reach customers in five to eight days. “This move from Zara India is in line with the current international expansion of the brand, and will also allow it to make the most of the developing market,” said Abneesh Roy, senior vice-president at Edelweiss Securities.

However, Zara charges Rs 299 for orders less than Rs 4000. This could be an issue given that other e-commerce websites are providing free delivery, for even lesser bills, he said.

Zara's rival H&M is planning to launch an online store next year in the country. Zara’s sales for FY17 were 21 per cent more to Rs 1,023.10 crore compared to the previous year.

It’s profit was Rs 47.62 crore, according to Trent’s latest annual report. Zara opened store in India in 2010 with a partnership with Tata's Trent.

Reference - http://www.business-standard.com/article/companies/zara-strengthens-logistics-for-online-store-117100500097_1.html