The apparel industry across the globe is one of the most competitive industries, competing in around every part of the world. The market characteristics in this industry are very short product lifecycles, high volatility, ever-changing trends, low predictability attached to very less or no repeatability. The apparel industry usually competes in three major categories. Firstly, they compete on the basis of cost advantage; they supply high quality products to the mass markets. For example, Armani doesn’t cater to the mass market, although the level and quality of products, produced by Armani are of no comparison but still they do not stand in the competition. Secondly, they produce affordable fashion clothes, in this section what they compete is not cost but the speed, their aim is to provide trendy clothes to the stores in the shortest possible operating times. For example, if the colour of London ramp in 2010 is blue, then it is the ability and efficiency of brands like Zara, Benetton and Top Shop to present the colour as soon as possible. Thirdly, the last but not the least is the high-end market competition, in this section the companies provide luxurious apparel to the customers satisfying their needs and demands. Brands like Ralph Lauren, CK, DKNY and etc. provide such high-end market competition, they neither competes upon cost nor upon the speed but what they compete upon is ‘brand equity’.
Companies go global for a number of reasons for example international brand recognition, greater market share and top of the line revenue growth. For this particular case, the Zara retail comes to mind. Due to the regulations, they are not allowed to open new stores easily in their home market; therefore, they seek growth in other markets. Some companies go global to take advantage from the emerging markets when their own domestic markets are stagnant, Germany and Japan comes first in this case. The companies expand globally in order to leverage their existing assets: global purchasing relationships, a global supply chain, a unique product, a unique format, or a well known brand. It is not sufficient to enter into an emerging market without weighing out its pros and cons, therefore, a strategy must be defined to enter in the market which reflects its uniqueness and quality. There might be several hundred reasons why a certain company wishes to go global but at the very basic level, a company’s reason to internationalize itself must fall under one of the following basic-root categories: