Fashion brand Zara cuts prices by 10-12%

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Spanish fashion brand Zara has cut its merchandise prices by 10-12 per cent to make it more affordable for Indian buyers, said sources in the know.The cuts were initiated late last year to coincide with the entry of its arch rival H&M into India, sources added."There is a slight change in pricing but Zara has introduced wider merchandise," said a senior executive in a mall who declined to be identified.Zara operates 16 stores in the country and is looking to open more in the coming quarters. Operational in India for the past six years, Zara has a joint venture with Tata's Trent here.Although it has become the fastest fashion brand to achieve $100 million revenues, its sales growth has slowed.According to the Trent annual report for FY15, Zara's sales in India were down from 43 per cent in FY14 to 23 per cent in FY15.According to the executive cited above, Zara's prices are 30 per cent higher than that of H&M. "The entry price at Zara is Rs 2,200 apiece, but the same is Rs 1,500
Spanish fashion brand Zara has cut its merchandise prices by 10-12 per cent to make it more affordable for Indian buyers, said sources in the know.The cuts were initiated late last year to coincide with the entry of its arch rival H&M into India, sources added.There is a slight change in pricing but Zara has introduced wider merchandise, said a senior executive in a mall who declined to be identified.Zara operates 16 stores in the country and is looking to open more in the coming quarters. Operational in India for the past six years, Zara has a joint venture with Tata's Trent here.Although it has become the fastest fashion brand to achieve $100 million revenues, its sales growth has slowed.According to the Trent annual report for FY15, Zara's sales in India were down from 43 per cent in FY14 to 23 per cent in FY15.According to the executive cited above, Zara's prices are 30 per cent higher than that of H&M. The entry price at Zara is Rs 2,200 apiece, but the same is Rs 1,500