Another Way to Advertise: Inditex Paid 320 Million Dollars for a Building for Zara in New York

Some companies are dedicated to hang large ads in Times Square, others decide to fill the fashion magazines and then there are those who decide No advertising and all they have under their name speak for itself only. Zara It belongs to the third group and looks set to continue with the tactic for a long time.

Inditex just left a whopping of more than $ 320 million buy a shop in the center of New York, specifically in the legendary Fifth Avenue of the American city. A local of 11.887,2 meters in the 666 number of one of the most expensive streets around the world. Before passing into the hands of Inditex this local was a store of the NBA, whose monthly rent had risen to $2,000 per square foot per month.

Right in front of this store are the Salvatore Ferragamo and Cartier, two large firms untouchables. More than 320 million dollars seem to be a great figure but if we look at the annual report from Inditex we see the gradual increase in sales of its brands overseas. In 2009 only 68% of its sales came from these shops. In 2009 he coded his equity 5.329 million euros.

Very high numbers that allow Inditex go steadily on its investments. To avoid spending on advertising they manage to have more capital to invest and as it is the largest textile company today, beating out H & M, any movement will appear in the media, so that this investment is a very smart publicity move.

To this is added the tactical intelligent place alongside the big names in luxury. These firms are that then Zara It makes constant allusions in their collections. It is clear that the positioning of Zara is a brand of low-cost but classy, fashionable and cheap. The investment made by Inditex in New York is a great movement that are doing for years.