Hong Kong is very important in ZARA's expansion strategy as it is a showcase for mainland visitors says Inditex's managing director David Konn

Hong Kong is the best information centre to keep track of the latest trends and developments in textiles, according to managing director of Inditex (Asia) Ltd, David Konn.

'This is a very sophisticated market with huge spending power. And it's the best market in the world to reach mainland shoppers, who are keen to buy European products," he explained.

The Inditex Group, headquartered in Spain, is one of the world's largest and most admired fashion empires. Its flagship brand is ZARA, which currently has four stores in Hong Kong and plans further expansion in this region. Mr Konn said the group was looking at several projects in China.  

"It is part of ZARA's strategy to expand in China and the rest of Asia. We opened our first Hong Kong store in 2004, and it was so successful that we opened three more. Hong Kong is an important part of our expansion strategy because it is a "shop window" for people from the mainland, who come here to view the latest styles and fashion trends, and to decide what type of products to buy when they return home," said Mr Konn.

"Hong Kong is also a centre for production in the Pearl River Delta, and has a number of other factors to give it a competitive edge for Spanish companies. It's the most efficient port in the world, and offers a very stable environment for growth," he said. "All the essentials for successful sourcing are available here - a sophisticated supply chain system, quality of goods, expertise in fashion and textiles."

ZARA is popular because it is both fashionable and inexpensive, and has a super-fast garment design and production process, allowing it to keep well ahead of fashion cycles and trends. Inditex focuses less on promotion and advertising and more on locating its stores in prime retail space: ZARA stores can be found in the trendiest luxury shopping districts in Hong Kong, including ifc Mall, Pacific Place, and Times Square.

Reinforcing its status as the city of big spenders, Hong Kong enjoyed the second highest consumer confidence rating in the Asia Pacific region in the fourth quarter of last year, according to a survey by MasterCard.

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