Zara/India Supply Chain Analysis

LXFM 720 - Supply Chain Management
Company and Country Profile Project

Natasha Norie Standard
Ana Tardio
Table of Contents
Company Profile
Page 4
Zaras Business Model
Page 12
Time Line
Zaras Value Chain
Product Assorment
Section 1: Profile of the country

Section 2: Country analysis
Section 3: Business etiquette
Section 4: Import/Export agreements

Section 5: Classifiying the import
Section 6: Cost Sheets
Section 7: Shipping route
Section 8: Documentation
References
Page 8
Page 14
Page 16
Page 20
Page 34
Page 48
Page 60
Page 62
Page 64
Page 66
Page 68
Page 82
Company Profile
Zara is a brand that belongs to Inditex group. The
story of this fashion retailer dates back to 1963
when it started life in a small workshop making
womens clothing. Today, Inditex has over 6,460
stores throughout the world. Through its history
the Group has evolved to become the business it
is today reaching many notable milestones along
its journey. But it has always remained focused
on listening closely to its customers to offer them
the fashions they desire.
This strong customer orientation would give
rise, years later, to the launch of the first Zara
store in 1975. This was followed by the brands
international expansion at the end of the 1980s
and the successive launch of new retail concepts:
Pull&Bear, Massimo Dutti, Bershka, Stradivarius,
Oysho, Zara Home and Uterqe. This customer
focus underpins an organizational structure that
encompasses all stages of the fashion value chain
(design, manufacturing, distribution and sale in
proprietary stores). The customer promise is
also the driving force behind the integration of
our sustainable and environmental policies used
throughout the Groups supply chain.
The Groups brands strive to sell fashionable

products of the highest quality. Inditex is committed to its customers; which means that its
128,000-strong workforce is focused on staying
true to its word. A state of the art logistics system
centered in Spain helps deliver new products
to all of the Groups stores twice weekly to meet
customers needs.
4
Amancio Ortega - Inditex Group Founder
Inditex Groups Brands
Zara is the Inditex Groups main brand and

continued its commitment to its multichannel
strategy in 2013. Along with new openings in
locations including Algiers and Istanbul, and the
refurbishment of flagship stores (Manchester,
New York), Zara launched its on-line sales
platform in two new markets this year: Canada
and Russia.
Inditex Group revenues based on a constant

exchange, rate (1,33$ per euro) in million dollars
True to its commitment to Eco-efficiency, at the

end of 2013 the brand had nine LEED certified
stores, an acknowledgment of their sustainability.
Six of the stores obtained the certificate in
2013: Champs Elyse (Paris), Kalverstraat
(Amsterdam), Nanjing West Road (Shanghai),
Haas Haus (Vienna) and Madero (Mexico City)
obtained LEED Gold certification while the Zara
store located in Park House (London) has LEED
Platinum certification, the highest category.
Since 1989 Tempe is the company of the group
that works transversaly to design, markets,
and distribute the footwear and accessories
for: Zara, Pull & Bear, Massimo Dutti, Bershcka,
Stradivarius, Oysho, Zara Home, and Uterque.
Tempe business model is established under the

same gudelines of the Inditex Group. Because of
that, and to keep it simple each time we refer to
Zara we are refering Tempe to.
Although the headquarters is in Elche (Spain),

Tempe has a delegation in India, that controls the
production and distribution from this country.
5
ZARA
Zara opened its first store in 1975 in A Corua
(Spain). It now operates in 88 markets with a network of more than 2,000 stores ideally located
in major cities. Its international presence clearly
shows that national borders are no impediment
to a shared fashion culture. With a creative team
of more than 200 professionals, Zaras design
process is closely linked to the public. Information travels from stores to our design teams,
conveying customers requests and concerns.
The vertical integration of activities (design, production, logistics, and sales in the companys own
stores) means that Zara is flexible and fast in
adapting to the market. Its model is characterized
by constantly updating merchandise: new garments land in stores twice weekly. Zara pays
special attention to the design of its stores, shop
windows and dcor, and sites them in the best
locations in major shopping areas. Its central
services base is in Arteixo (A Corua).
Zaras revenues (64% total Inditex Group)
Evolution on the Zaras stores
Zara Timeline
1963 . -Rosalia Mera and Amancio Ortega started its activity as a textile manufacturer in Coruna,
Spain. The name of the factories were GOA and
Samlor.
1975 . - Zaras first store was opened in Coruna,

(Spain). Something curious was that the name
chosed was Zorba at the begining but it was a bar
near the store with the same name and the owner asked Amancio Ortega to change it.
1976 - 1984. - Zara begun its expansion for
Spain thanks to the success its stores. In 1984

the Group opened a Logistic Distribution Center
in Arteixo, Coruna, with 107,640 square feet.
1988. - Zara opened its first international store

in Oporto, Portugal.
1989. - Zara arrived to the USA with the first

store opened in New York City.
1990. - Zara arrived to France with the opening

of its first store in Paris.
1992 - 1998. - Zara continued its expan-
sion opening stores in Mexico, Greece, Belgium,

Swedden, Turkey, Argentina, Venezuela, United
Arabs Emirates, Japan, and Kuwait.
2001. - Inditex Group was listed in the Stock

Exchange.
2003. - Inditex opened its European Platform in

Zaragoza, Spain, the distribution center for Zara.
2004. - The Group opened its store number

2,000 and had presence in 56 countries.
2007. - Zara opened its 1,000 store in Florence,

Italy.
2008. - Inditex Group arrived to the 4,000

stores with its opening in Tokio, China.
2010. - Zara online was launched and avaiable

in 16 european countries. Inditex Gruop arrived
to 5,000 stores in 77 markets.
2011 - Pablo Isla became the President of Inditex Group.
2012. - Inditex Group opened its store number

6,000 and launched Zaras new image in New
York City.
Zara business model

Zara designs, produces and distributes clothing, footwear and accesories for men, women and kids.
Its singular business model is based on innovation, flexibility and the way the brand understands
fashion (creativity and quality design combined with fast response to the market needs).
Zaras business model is characterized by a high level of verical integration. All phases of the fashion
process are integrated: design, manufacturing, logistics, and distribution in its own stores. This
integration permits Zara to have a very flexible structure focus on the customer. The key of Zaras
success is their capacity to be at the stores before any competitor.
Thanks to their vertical integration, Zara can reduce the processing time and have a high level of
flexibility, but at the same time the company can reduce its inventories and the intrinsec risk of
fashion.
The focus on the customer allows Zara
to identify the continues changes on
the fashion trends and analyze what its
customers want in each moment. To
have such an accurate information, the
brands has watchers around the world
and an IT system that allows them to
collect every night the stores information
and send it directly to the headquarters
where is analized every day.
Another of the keys of its succes is the flexibility and the lack of seasonal collections, Zara can adapt
its assorment continusly. based on the new demands. This gave the Zara the opportunity to not
overpromote its products. They produce small batches of the fashion collections then the customers
know if they dont get this piece today, maybe tomorrow is gone, this maximize its profit. Zara
deliveres new products on its stores every two weeks increasing the customer visit to the stores to
discover what is new.
To maintain this flexibility, Zara keeps the production of its fashion products as near as possible
(Spain, Portugal and Morocco), and the production of its basic models in far away countries such as
China, Vietnam, Bangladesh or India.
The Inditex supply chain in 2013 was made up of 1,592 suppliers in 46 countries. Inditexs
commitment to ensuring the proximity of suppliers is reflected in the fact that 55% of production is
by in suppliers located near Inditexs headquarters in Spain.
12
Zara doesnt produce any of its garments in the USA. All the suppliers Zara are in South America.
13
Zaras Value Chain
14
15
Product Assortment
Zara produces clothing, footwear and accessories
for women, men and kids. The range of products
is vast and it is divided in several lines.
These product lines include:
Zara Women
TFR (Trafaluc)
Zara Men
Zara Kids
Zara Mini
Sporty Girls
Shoes & Bags
Organic Cotton
Each product line has a basic subcollection and

has a development team in charge of the designs
and the production, but all the teams are connected to deliver consistency to the Zara experience.
16
17
Importing buying plan
Section 1: Profile the country

Social/Cultural
Population Nationality Indian
Ethnic Groups
Indo-Aryan 72%, Dravidian 25%, Mongoloid and
other 3%
Languages
English enjoys the status of subsidiary official
language but is the most important language for
national, political, and commercial communication.
Hindi is the most widely spoken language and
primary tongue of 41% of the people; there
are 14 other official languages: Bengali, Telugu,
Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi,
and Sanskrit; Hindustani is a popular variant of
Hindi/Urdu spoken widely throughout northern
India but is not an official language.
Religions
Hindu 80.5%
Muslim 13.4%
Christian 2.3%
Sikh 1.9%
Other 1.8%
Unspecified 0.1%
Population
1,236,344,631 (2nd most populous country in
the world)
Density
381.5KM
988.2 SQ MI
20
Age Structure
0 14 Years: 28.5%
15 24 Years: 18.1%
25 54 Years: 40.6%
55 64 Years: 7%
65 Years and Over: 5.7%
Median Age
Total: 27 Years
Male: 26.4 Years
Female: 27.7 Years
21

Government
National Symbols
Flag:
Tricolor
Emblem:
Sarnath Lion Capital
Anthem:
Jana Gana Mana
Song:
Vande Mataram
Calendar: Saka
Animal:
1. Tiger(Land) 2. River Dolphin(Aquatic)
Bird:
Indian Peafowl
Flower:
Lotus
Fruit:
Mango
Tree:
Banyan
River:
Ganga or Ganes
Official Name: Republic of India

Government Type: Federal Parliamentary Constitutional Republic
Current Government
President:
Pranab Mukherjee
Vice-President:
Mohammad Hamid
Ansari
Prime Minister:
Narendra Modi(BJP)
Chief Justice:
H.L. Dattu
Speaker of the House:
Sumitra Mahajan
Capital Name: New Delhi
Independence: August 15, 1947, from the UK
National Holiday: January 26, 1950
Constitution:
Draft completed: November 4, 1949
Adopted: November 26, 1949
Effective: January 26, 1950
Amended several times, last in 2013
22
Pranab Mukherjee, President of India
The federal government comprises three branches: Executive, Judicial, and Legislative.
Executive Branch: The President of India is the
head of state and is elected indirectly by a national electoral college for a five-year term. The
Prime Minister of India is the head of government and exercises most executive power. Appointed by the president, the prime minister is
by convention supported by the party or political
alliance holding the majority of seats in the lower
house of parliament. The executive branch of the
Indian government consists of the president, the
vice-president, and the Council of Ministers (the
cabinet being its executive committee) headed by
the prime minister. Any minister holding a portfolio must be a member of one of the houses of
parliament.
Legislative: The legislature of India is the bicameral parliament. It operates under a Westminster-style parliamentary system and comprises
the upper house called the Rajya Sabha (Council
of States) and the lower called the Lok Sabha
(House of the People). The Rajya Sabha is a
permanent body that has 245 members who
serve in staggered six-year terms. Most are
elected indirectly by the state and territorial legislatures in numbers proportional to their states
share of the national population. All but two of
the Lok Sabhas 545 members are directly elected by popular vote; they represent individual
constituencies via five-year terms. The president
from among the Anglo-Indian community nominates the remaining two members, in case the
president decides that they are not adequately
represented.
23

Judicial
India has a unitary three-tier independent judiciary that comprises the Supreme Court, headed
by the Chief Justice of India, 24 High Courts, and a
large number of trial courts. The Supreme Court
has original jurisdiction over cases involving
fundamental rights and over disputes between
states and the center; it has appellate jurisdiction over the High Courts. It has the power both
to declare the law and to strike down union or
state laws that contravene the constitution. The
Supreme Court is also the ultimate interpreter of
the constitution.
Political
India is the worlds most populous democracy. A

parliamentary republic with a multi-party system, it has six recognized national parties, including the Indian National Congress and the Bharatiya Janata Party (BJP), and more than 40 regional
parties. The Congress is considered center-left
or liberal in Indian political culture, and the BJP
center-right or conservative. For most of the period between 1950when India first became a
republicand the late 1980s, the Congress held
a majority in the parliament. Since then, however,
it has increasingly shared the political stage with
the BJP, as well as with powerful regional parties
that have often forced the creation of multi-party
coalitions at the center.
In the Republic of Indias first three general
elections, in 1951, 1957, and 1962, the Jawaharlal Nehru-led Congress won easy victories.
On Nehrus death in 1964, Lal Bahadur Shastri
24
briefly became prime minister; he was succeeded, after his own unexpected death in 1966, by
Indira Gandhi, who went on to lead the Congress
to election victories in 1967 and 1971. Following
public discontent with the state of emergency
she declared in 1975, the Congress was voted
out of power in 1977; the then-new Janata Party,
which had opposed the emergency, was voted
in. Its government lasted just over three years.
Voted back into power in 1980, the Congress
saw a change in leadership in 1984, when Indira
Gandhi was assassinated; she was succeeded
by her son Rajiv Gandhi, who won an easy victory in the general elections later that year. The
Congress was voted out again in 1989 when a
National Front coalition, led by the newly formed
Janata Dal in alliance with the Left Front, won the
elections; that government too proved relatively
short-lived: it lasted just under two years. Elections were held again in 1991; no party won an
absolute majority. But the Congress, as the largest
single party, was able to form a minority government led by P. V. Narasimha Rao.
A two-year period of political turmoil followed
the general election of 1996. Several short-lived
alliances shared power at the center. The BJP
formed a government briefly in 1996; it was followed by two comparatively long-lasting United
Front coalitions, which depended on external
support. In 1998, the BJP was able to form a successful coalition, the National Democratic Alliance (NDA). Led by Atal Bihari Vajpayee, the NDA
became the first non-Congress, coalition government to complete a five-year term. In the 2004
Indian general elections, again no party won an
25

absolute majority, but the Congress emerged as
the largest single party, forming another successful coalition: the United Progressive Alliance
(UPA). It had the support of left-leaning parties
and MPs who opposed the BJP. The UPA returned
to power in the 2009 general election with increased numbers, and it no longer required
external support from Indias communist parties.
That year, Manmohan Singh became the first
prime minister since Jawaharlal Nehru in 1957
and 1962 to be re-elected to a consecutive fiveyear term. In the 2014 general election, Bharatiya Janata Party became the first political party
since 1984 to win a majority and govern without
the support of other parties. The current Prime
Minister of India is Narendra Modi who was also
the former Chief Minister of Gujarat.
Narenda Modi, Prime Minister of India
26
Economy
Currency Indian Rupee (INR)
GDP 2014
Total: $7.277T
GDP per capita $1,498.87
GNI per capita 5,350 PPP
GDP Growth Rate 3.2%

GDP Composition, by sector of origin:
Agriculture: 17.4%
Industry: 25.8%
Services: 56.9%
Agriculture products: Rice, wheat, oilseed, cotton, jute, tea, sugarcane,

lentils, onions, potatoes, dairy products, sheep,
goats, poultry, fish
Industries: Textiles, chemicals, food processing,

steel, transportation equipment, cement, mining,
petroleum, machinery, software, pharmaceuticals
Per Capita
$1,626
Time Zone IST (UTC+5:30)

DST (not observed)
Date format: dd-mm-yyyyy (CE)
Drives on the left side of the road
Calling Code: +91
Internet TLD: .in
Fiscal Year:
1 April 31 March
27

Main indicators in charts
28
India counts with one of the highest business confidence in this moment. The stabilization of its
government and the improvement in the business climate has made this indicator to have one of its
better performance in the last periods.
In this moment the country has a very appealing wages in manufacturing, what make it really attractive for sourcing.
The unemployment rate continue decreasing but the diaspora and the brain drain is another factor to
consider.
29

Geography
India lies largely on the Indian Plate, the northern portion of the Indo-Australian Plate, whose
continental crust forms the Indian subcontinent.
The country is situated north of the equator
between 84 and 376 north latitude and 687
and 9725 east longitude. It is the seventh-largest country in the world, with a total area of
3,166,414 square kilometers (1,222,559 sq mi).
India measures 3,214 km (1,997 mi) from north
to south and 2,933 km (1,822 mi) from east to
west.
Land frontier of 15,200 km (9,445 mi) and a

coastline of 7,517 km (4,671 mi).
On the south, India projects into and is bounded
by the Indian Ocean in particular, by the Arabian Sea on the southwest, the Laccadive Sea to the
south, and the Bay of Bengal on the southeast.
The Palk Strait and Gulf of Mannar separate India
from Sri Lanka to its immediate southeast, and
the Maldives are some 400 kilometers (250 mi)
to the southwest. Indias Andaman and Nicobar
Islands, some 1,200 kilometers (750 mi) southeast of the mainland, share maritime borders
with Burma, Thailand and Indonesia. Kanyakumari at 8441N and 773228E is the
southernmost tip of the Indian mainland, while
the southernmost point in India is Indira Point
on Great Nicobar Island. Indias territorial waters
extend into the sea to a distance of 12 nautical
miles (13.8 mi; 22.2 km) from the coast baseline.
The northern frontiers of India are defined largely by the Himalayan mountain range, where the
country borders China, Bhutan, and Nepal. Its
30
western border with Pakistan lies in the Punjab

Plain and the Thar Desert. In the far northeast,
the Chin Hills and Kachin Hills, deeply forested
mountainous regions, separate India from Burma. On the east, its border with Bangladesh is
largely defined by the Khasi Hills and Mizo Hills,
and the watershed region of the Indo-Gangetic
Plain.
Geographic 8 digit grid coordinates:
20 00 N, 77 00 E
Area:
7th largest country in the world
3,287,263 SQ KM Total Land Mass
2, 973,193 SQ KM Land
314,070
SQ KM Water
Land Boundaries: 13,888 KM
Coastline: 7,516 KM
Border Countries:
Bangladesh 4,142KM
Pakistan
3,190KM
China
2,659KM
Nepal
1,770KM
Burma
1,468KM
Bhutan
659KM
India dominates the South Asian subcontinent;

near important Indian Ocean trade routes;
Kanchenjunga, 3rd tallest mountain in the world,
lies on the border with Nepal.
31

Climate: Varies from tropical monsoon in the
South to temperate in the North
Terrain: Upland plan (Deccan Plateau) in South,

flat to rolling plain along the Ganges, deserts in
west, Himalayas in the North
Natural Resources: Coal (4th largest reserve in

the world), iron ore, manganese, mica, bauxite,
rare earth elements, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable
land
Natural hazards: Droughts, flash floods, as well
as widespread and destructive flooding from
monsoonal rains, sever thunderstorms, earthquakes
International Environment Agreements: Party

to Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty,
Biodiversity, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental
Modification, Hazardous Wastes, Law of the Sea,
Ozone Layer Protection, Ship Pollution, Tropical
Timber 83, Tropical Timber 94, Wetlands and
Whaling.
32
33

Contributing Factors
1. Labor Force:
487.3 Million (2nd Largest in the World)
By Occupations:
Agriculture: 49%
Industry: 20%
Services: 31%
Literacy: Defined:
Age 15 and over can read and write
Total Population: 62.8%
Male: 75.2%
Female: 50.8%
2. Inputs
Raw Materials:
Natural Rubber
Nylon Tyre Cord Fabric
Carbon Black
Rubber Chemicals
Butyl Rubber
Styrene Butadiene Rubber (SBR)
Polytbutadiene Rubber (PBR)
Cotton
Juke
Silk
Coir
3. Products
Export Commodities:
Petroleum, textile goods, jewelry, software, precious stones, machinery, iron and steel, chemicals, vehicles, apparel and leather goods.
Export partners: UAE 12.3%, US 12.2%, China
5%, Singapore 4.9%, Hong Kong 4.1%
34
Import Commodities:
Crude Oil, precious stones, machinery, fertilizer,
iron and steel, chemicals
Import partners: China 10.7%, UAE 7.8%, Saudi

Arabia 6.8%, Switzerland 6.2%, US 5.1%
India is the second largest textile exporter after
China.
4. Transportation
Airports: 346

Airports with paved runways: 253

Airports with unpaved runways: 93

Heliports: 45
Railways Total: 63,974KM

Broad Gauge: 54,257KM

Narrow Gauge: 7,180KM

Roadways Total: 4,689,842KM
National highways and expressways: 155,716

Other roads: 4,455,010
Waterways Total: 14,500
Major Rivers: 5,200KM
Canals suitable for mechanized vessels: 485KM
Merchant Marine Total: 340
Bulk Carrier: 104
Cargo: 78
Chemical Tanker: 22
Container: 14
Liquefied Gas: 11
Passenger: 4
Passenger/Cargo: 15
Petroleum Tanker: 92
Foreign-Owned: 10 (China 1, Hong Kong

2, Jersey 2, Malaysia 1, UAE 4)
10 Registered in other countries:
76 (Cyprus 4, Dominica 2, Liberia 8, Malta 3,
Marshall Islands 10, Nigeria 1, Panama 24,
Saint Kitts and Nevis 2, Singapore 21, unknown 1) (2010)
Ports and Terminals
Major Seaports: Chennai, Jawaharai Nehru
Port, Kandla, Kolkata (Calcutta), Mumbai
(Bombay), Sikka, Vishakhapatnam
Container Ports: Chennai (1,558,343), Jawaharal Nehru Port (4,307,622)
5. Business Climate
India is ranked 134th out of 189 economies in

Doing Business 2014. Its overall score recorded a three-point decrease compared to last
year, due to deteriorations in the majority of
the sub-indicators. No significant reform has
been implemented in the country this year.
According to the latest Enterprise Surveys
data (2006), electricity, tax rates, and corruption represent the top three business environment constraints experienced by private
sector firms in India. In India, the duration of
a typical power outage is 3.1 hours, compared
to 1.3 in the region, and 2.7 in the world.
Indias restrictions on foreign equity ownership are greater than the average of the countries covered by the World Bank Group Investing Across Sectors indicators in the South
Asia region and of the BRIC (Brazil, Russian
Federation, India, and China) countries.
35

India imposes restrictions on foreign equity
ownership in many sectors, and in particular in the service industries. Sectors such as
railway freight transportation and forestry
are dominated by public monopolies and are
closed to foreign equity participation.
With the exception of certain activities specified by law, foreign ownership in the agriculture sector is also not allowed. Foreign
ownership of publishing companies and
newspapers is limited to a maximum of 26%.
In the financial services sector, foreign capital
participation in local banks is limited to 87%
and in insurance companies to 26%. Furthermore, foreign ownership in the telecommunications sector (including fixed-line and
wireless/mobile infrastructure and services)
is limited to a less-than-75% stake.
improvements in six of the 10 economic freedoms including trade freedom and fiscal freedom. India is ranked 25th out of 41 countries
in the AsiaPacific region, and its overall score
is below the regional and world averages.
6.
Effects of quota removal
Before Englands Industrial Revolution, Indias cotton textiles dominated world trade.
Much has changed from then to now.
The Multi-Fiber Agreement (MFA) of the

1970s and 1980 allowed Indias economic
policies to encourage the textile industry
geared toward providing employment to
village hand weavers and providing low-cost
cotton cloth to its own population. Indias exports were generally anemic during that period, and its MFA quotas often went unfilled.
The Investing across Borders indicators also

The 1990s brought Indias economy dramatreport that establishing a foreign-owned limically reoriented toward exports, and Indias
ited liability company in India, Mumbai, takes
export capacity has surged. As a result, Indias
16 procedures and 46 days. This is slightly
exports of other textile products have grown,
slower than the average for countries in South
and it is well positioned to take advantage
Asia and the global average.
of the MFAs phase-out. However, before the
end of MFA, its access to the U.S. market for
Leasing private or public land is the most
numerous products was encumbered by the
common means for foreign companies to
outcome of negotiations concluded many
acquire land. However, leasing public land is
years before. During the first 9 months of
a lengthy process that may require several
2005, imports from India rose 100 percent.
negotiations with the relevant public authorThe lifting of United States quotas did not
ities.
alone impact Indias increase in US exports,
the India government change in position
Indias economic freedom score is 55.7, maktoward trade directly influenced the increase
ing its economy the 120th freest in the Heriin exports.
tage Foundations Index 2014. Its score is 0.5
point higher than last year, reflecting modest
36
37
ZARAs Code of Conduct

The Inditex Code of Conduct for Manufacturers and Suppliers (hereinafter, the Code) defines minimum standards of ethical and responsible behavior which must be met by he manufacturers and
suppliers of the products commercialized by Inditex in the course of its business, in line with the
corporate culture of Inditex Group (hereinafter Inditex), firmly based on the respect for Human and
Labour Rights.
Inditex undertakes to allocate the appropriate resources so that manufacturers and suppliers are
acquainted with and understand this Code and are able to ensure its compliance. The Code shall be
applied to all manufacturers and suppliers that take part in the purchasing, manufacturing and finishing processes and fosters and is based upon the following general principles that define Inditexs
ethical behavior:
- All Inditexs operations are developed under an ethical and responsible perspective.
- All persons, individuals or entities, who maintain, directly or indirectly, any kind of employment,
economic, social and/or industrial relationship with Inditex, are treated fairly and with dignity.
- All Inditexs activities are carried out in a manner that most respects the environment.
- All manufacturers and suppliers (production centers that are not property of Inditex) fully adhere
to these commitments and undertake to ensure that the standards which are set forth in the Code are
met.
1. No forced labor
Inditex shall not allow any form of forced or involuntary labor in their manufacturers and suppliers.
They may not require their employees to make any kind of deposits, nor are they entitled to retain
employees identity documents. Manufacturers shall acknowledge the right of their employees to
leave their employer after reasonable notice1.
2. No child labor
Manufacturers and suppliers shall not employ minors. Inditex defines minors as those persons who
have not yet reached their 16th birthday. In cases where local legislation stipulates a higher minimum
age, the higher limit shall apply. 2 Persons with the ages between of 16 and 18 years will be considered young workers. Young workers shall not work during night hours or in hazardous conditions.
3. No discrimination
Manufacturers and suppliers shall not apply any type of discriminatory practice with regards the
recruitment, compensation, access to training, promotion, termination of the employment agreement or retirement, based on race, caste, creed, nationality, religion, age, physical or mental disability,
38
gender, marital status, sexual orientation and/or

union membership or political affiliation.
4. Respect for freedom of association and collective bargaining.

Manufacturers and suppliers shall ensure that
their employees, without distinction, have the
right of association, union membership and
collective bargaining. No retaliation may arise
from the exercise of such right and no remuneration or payment whatsoever may be offered to
the employees in order to hinder the exercise of
such a right. Likewise, they shall adopt an open
and collaborative attitude towards the activities
of Trade Unions. Workers representatives shall
be protected from any type of discrimination
and shall be free to carry out their representative
functions in their workplace. Where the rights to
Freedom of Association and Collective Bargaining
are restricted under law, the appropriate channels to ensure a reasonable and independent
exercise of such rights must be designed
5. No harsh or inhumane treatment
Manufacturers and suppliers shall treat their
employees with dignity and respect. Under no
circumstances shall physical punishment, sexual
or racial harassment, verbal or power abuse or
any other form of harassment or intimidation be
permitted.
6. Safe and hygienic working conditions

Manufacturers and suppliers shall provide a safe
and healthy workplace to their employees, ensuring minimum conditions of light, ventilation,
hygiene, fire prevention, safety measures and
39

access to a drinking water supply. Workers shall
have access to clean toilets facilities and drinking
water. Where necessary, facilities for food storage
shall be provided. Accommodation, where provided, shall be clean and safe. Manufacturers and
suppliers shall take the required steps to prevent
accidents and injuries to health of their workers, by minimizing as much as possible the risks
inherent to work. Manufacturers and suppliers
shall provide their workers with regular training
in the matter of health and safety at work. The
company shall keep an appropriate record of
the training courses done. Likewise, they shall
appoint a person in charge of health and safety
within the Management, duly authorized and
with the appropriate decision taking
power.
7. Wages are paid

Manufacturers and suppliers shall ensure that
wages paid meet at least the minimum legal or
collective bargain agreement, should this latter
be higher. In any event, wages should always be
enough to meet at least the basic needs of workers and their families and any other which might
be considered as reasonable additional needs.
Manufacturers and suppliers shall not make any
withholdings and/or deductions from wages for
disciplinary purposes, nor for any reasons other
than those provided in the applicable regulations,
without the express authorization of workers.
Likewise, they shall provide all workers with:
written and understandable information about
their wages conditions upon their recruitment,
and detailed information about the particulars of
their wages every time that these are paid.
40
Manufacturers and suppliers shall also ensure that wages and any other allowances or benefits are
paid on time and are rendered in full compliance with all applicable laws and specifically, that payments are made in the manner that best suits the workers.
8. Working hours are not excessive

Manufacturers and suppliers shall adjust the length of the working day to the provisions of the applicable laws or of the collective bargain agreement applicable for the sector in question, if the latter
affords greater protection for the workers. Manufacturers and suppliers shall not require their employees to work, as a rule of thumb, in excess of 48 hours a week and workers shall be granted at least
one day off for every 7 calendar day period on average. Overtime shall be voluntary, shall not exceed
12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a
premium rate, pursuant to the provisions of the prevailing regulations in force 8.
9. Regular employment
Manufacturers and suppliers undertake that all the employment formulas they use are part of the
applicable local laws. Thus, they shall not impair the rights of workers acknowledged under labor and
social security laws and regulations by using schemes that have no real intention to promote regular
employment in the framework of regular employment relationships.
10. Traceability of production
Manufacturers and suppliers shall not assign any work to third parties without the prior written authorization of Inditex. Those who outsource any work shall be responsible for the enforcement of the
Code by these third parties and their employees. Likewise, manufacturers and suppliers shall apply
the principles of this Code to any homeworker involved in their supply chain, and shall give transparency to the locations and working conditions of said homeworkers.
11. Health and Safety of products

Manufacturers and suppliers are responsible for all products supplied to Inditex to comply with Inditex health and safety product standards so that the commercialized products do not entail any risk to
customers.
12. Environmental awareness
Manufacturers and suppliers shall be duly committed at all times to protect the environment and
shall comply with the standards and requirements of the applicable local and international Laws and
Regulations. Likewise, they commit to comply with environmental standards established by Inditex
including, if applicable, the necessary measures to reduce and compensate such impact in order to
41

apply said standards.
13. Confidentiality of information

Manufacturers and suppliers shall preserve the integrity and confidentiality of the information they
may receive as a consequence of their commercial relationship with Inditex. The obligation of confidentiality will remain once the relation with Inditex is terminated and it will include the obligation to
return any material related to the company held by the manufacturer or supplier.
14. Code implementation

Manufacturers and suppliers shall implement and maintain programs to set in motion this Code.
They shall appoint a senior member of Management who shall be responsible for the implementation
and enforcement of this Code. Manufacturers and suppliers shall communicate the Code to all employees and those in any way involved in the Inditex Supply Chain. A copy of the Code, translated into
the local language, shall be displayed in accessible locations to all workers.
14.1 Transparency
Manufacturers and suppliers shall carry out their activities in an honest, upright and transparent way,
keeping for these purposes an appropriate accounting records system 7 that facilitates the traceability of their decisions, as a preventive measure versus any type of corruption, bribe and extortion that
might arise. Manufacturers and suppliers shall not offer, grant, request or accept any gifts or donations to/from Inditex buyers which might infringe the provisions of the Inditex Code of Conduct and
Responsible Practices.
Manufacturers and suppliers shall not manipulate or influence their workers, nor shall they forge any
files or records in order to alter the verification process regarding compliance with this Code. Manufacturers and suppliers shall neither offer nor accept remuneration of any kind which seeks, or may
be perceived to seek, to affect the impartial judgment or the objectivity of such parties appointed by
Inditex to carry out inspections and compliance audits in connection with this Code.
14.2 Reference to national legislation, Conventions and Agreements.
The provisions of this Code constitute only minimum standards. Should national regulations or any
other applicable Law or any other commitments undertaken or applicable, including collective bargaining agreements, govern the same issue, the provision which offers greater protection for workers
shall apply. Inditex assumes, as part of its internal norms, the content of national and international
Agreements and Conventions to which it has adhered, and that they are applied in its relationship
with manufacturers and suppliers, committing to their promotion and compliance.
42
14.3 Verification of compliance

Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of
the Code. For these purposes, they shall provide
the required means and the appropriate access
to the facilities and documentation required to
ensure this verification.
14.4 Committee of Ethics and Whistle blowing
Channel
This Code is aligned with the principles and
values that are included in the Inditex Code of
Conduct and Responsible Practices, which regulates a Committee of Ethics and Whistle blowing
Channel to ensure its enforcement. In this sense,
and in order to ensure the enforcement of the
Code of Conduct for Manufacturers and Suppliers, the Committee of Ethics can act at its own
initiative or following a formal complaint made
in good faith by a manufacturer, supplier or other
interested third party that might have any direct
relationship or commercial or professional interest with Inditex.
To this end, any notices given pursuant to the

provisions of this Code, either reports of any
breach or inquiries regarding the Codes interpretation or application can be addressed directly to
the Committee of Ethics via:
Post: Avenida de la Diputacin, Edificio Inditex,
15142 Arteixo, A Corua ( Spain), Att: Committee
of Ethics
Email: comitedeetica@inditex.com
Fax: +34 981 186211.
43
SWOT
Strengths

India has low wages compared to China

Zara has developed good long term relationships with actual suppliers
India has a heritage of skilled labors in fabric, leather, and apparel
68% of the population can read and write
English is an official language
Well-regulated and stable financial markets open to foreign investors
5% interest in reimbursement and 10% captial subsidy for the production of equipment/
machines/devices for controlling pollution, reducing energy consumption and water
conservation.
7% infrastructure growth
Opportunities

India is the second largest population in the world

DGP growth trend = 8% annually
The goverment trend is now mored focused on international trade and stability
Zara suppliers has been trained to implement its business philosophy
High business confidence rate, 57.4%
Diaspora initiative
China production rate slow down
Trade agreements with other Asian countries
Employment intensive industries like textile and garments, leather and footwear, gems and
jewelry and food procesing industries
National investment and manufacturing zones identified
Technology and development used for controlling pollution and reducing energy consumption
44
Weakness

Active caste system in place

Lack of trade agreeement with US
Rigid labor laws
Affect of religous holidays on the work calendar
Married women work status is based on husband decision
Economic disparity between rich and poor
Middle class is increasing remarkably but it is still a developing country
Threats

Political instability in some parts of the country

The cast system affected the hiring
Diaspora, the Indian people that leaves the country to improve their education dont back
Nuclear arms, border with Pakistan
Pakistan, Macau, Cambodia, Vietnam and Bangladesh race to bottom
Weaker infraestructure than China
Need to cheap labor worldwide
Lack of transparency in legal requirements and complicated paperwork
45
Competitive advantages
India is a developing country but in the last years the country is changing the way of making business.
Nowadays these are the most important competitive advantages to take in consideration to choose
India as a sourcing partner.
Competition in the economy - India is shedding its public sector firms.
Existence of cluster firms to develop industries as an incubator.
Stable banking system with non performing assets with vast network of bank branches and
financial institutions.
Intellectual property protection.
Indian business has better (ROI) return on investment than other developing nations.
Because of its market based and fast developing spending habits of middle-class, India is a
preferred destination for investors over other major countries.
Vibrant democratic government .
Vast network of technical and management institutions that are of the highest international
standards.
The government of India has several initiatives to attract foreign investments in Indias diverse
sectors.
46
47
Section 3: Business Etiquette

Five quick tips for doing business in India
1. Be punctual. Greet the senior people first and expect to start with some small talk.
2. Be patient. It can take a long time to complete negotiations, which will, at some point, involve the top team in a business as decision-making migrates upwards. It stands to reason
that pressure tactics and hard sales techniques are not appreciated.
3. Take tea. You may be offered a sugary, milky tea, coffee or a soft drink. Dont refuse. And
dont be fooled into thinking you can down the drink and get it over with. Your glass or cup
will be refilled as soon as it is emptied.
4. Dont be too direct. NO - is considered impolite replaced with I will try, or let me consider and come back to you.
5. Check the (local) calendar. With seven major religions and many minor ones, plus six
main ethnic groups, India enjoys countless holidays, which change depending on the year.
Arriving in India expecting to arrange business meetings during one of these festivals will
probably leave you coming home empty handed.
Westerners going to India to do business find out quickly that India is a culture where it is
absolutely impossible to just drop in to conduct business and then fly away. India is one of
the most diverse countries in the world. It is a sophisticated, modern, industrial leader that
is home to many primitive tribes and millions of poor people. Religion and language separate
people. The caste system limits social mobility (600,000 people belong to the lowest caste).
Because of disparities in distribution of wealth, a wide gap separates the few wealthy from the
many poor.
One of the major mistakes made by Western business people in India is to forget people and
concentrate on schedule, contracts, results, facts and issues.
1. Type of Culture
Indian business etiquette is quite formal, a mix of both Western and Asian culture. From
the occupation of India by the British, as a result of that connection a considerable volume
of the Indian population has been influenced by the British style of etiquette - formal and
somewhat conservative.
India has a majority Hindu population, approximately 80%, about 14% Muslim, 2.4%
Christian, 2% Sikh, 0.7% Buddhist, 0.5% Jains and 0.4% other. Of course we are aware of
the enormous impact religion has in influencing the customs, etiquette and eating habits
of its followers. For example, Hindus offer food to God first before consuming it themselves. Hindus believe that the food can have a profound impact on ones life, and appropriate
diet can help in pursuing ones chosen lifestyle. The Hindu compassion for all living beings,
leads Hindus to vegetarian practices.
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Decisions are strongly influenced from the top. Usually one person makes all major decisions. Attempt to deal with the highest-level person available.
It is considered rude to plunge into business discussions immediately. Ask about your
counterparts family, interests, hobbies, etc. before beginning business discussions.
Business is slow and difficult in India. Be polite, but persistent. Do not get angry if you are
told something cant be done. Instead, restate your request firmly but with a smile. Plan
on several visits before you reach an agreement.
You may be offered a sugary, milky tea, coffee or a soft drink. Dont refuse. Note that your
glass or cup may be refilled as soon as it is emptied
Many Indians do not wear shoes inside a home. Follow your host. Make sure your socks are
clean and do not have holes.
Apologize immediately if your feet or shoes touch another person.
Ask permission before smoking. It is considered rude to smoke in the presence of elders.
Hindi is the official language in India; the Indian business world conducts its affairs mainly
in English.
Never keep your purse or wallet in your back pocket.
Offer a glass of water (and preferably a cup of tea) to anyone who steps into your home/
office.
Stand when the national anthem (of any country) is playing. Show respect to all flags and
all religious symbols.
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2. Masculine or Feminine
India is a male-dominated society.
Indian business culture is very masculine and can be extremely difficult for woman to be
accepted.
Western women may be accepted, but must establish their position and title immediately
to warrant acceptance.
Women might not be included in social events or conversation.
Western women may invite an Indian man to a business lunch and pay the tab without embarrassment.
3. Negotiation Styles and Strategies
Meetings and negotiations are spaced over time and there are many digressions.
Indian business etiquette is formal, the social etiquette can be quite casual. When they say
drop in any time, they mean just that. Dont be surprised if they just pop in to visit without
letting you know first.
Indian people are very sensitive to refusals of their hospitality; it will be good manners and
etiquette to let them down gently with a promise to accept any future invitation
In a business meeting it is considered rude and poor etiquette to just jump in with work
related conversation. Meetings usually start with small talk about non-work related topics.
Personal questions about your family, children, trip etc., are not considered rude and prying, it is just part of the friendly, Indian social etiquette.
Give background information such as who is involved, who else has implemented such a
proposal or who higher up has endorsed - Indians understand matters in their overall context and such information is vital for them.
Dont get nervous over frequent interruptions, digressions or bargaining in negotiations.
Have several options, which you can cut in your offers as Indians interpret fixed offers as
inflexible thus unsuitable for their needs.
Dont expect quick commitment as all decisions take time and may involve.
When confronted with bureaucracy and IST (Indian Stretchable Time), maintain your
cool. Schedules are bound to go awry and government offices are notoriously inefficient,
50
so theres simply no point in losing your temper. Adopt a similar attitude that of wealthy
and important Indian men. Rather than fly into a rage, point out the lack of consideration
firmly and earnestly.
Dont expect quick commitment as all decisions take time and may involve people not present in meetings.
4. Type of Communication
All meetings start with some small talk. Indians are very curious and like to exchange views
even with total strangers. Be prepared for Indians talking about matters, which would be
considered an invasion of privacy in the west.
Do not show anger.
Never lose your temper, even when it is to your advantage to show anger.
Learn to recognize that Indians dont say NO directly, unless it is a crucial issue. When an
Indian answers, I will try, he or she generally means no. This is considered a polite no
Always be polite, although you need to be firm.
Dont point out poverty, dirt, and social ills to Indians as they might interpret it as condescending coming from a foreigner. Indians are proud of their rich history and appreciate
intelligent discussions with mutual respect, so avoid preaching about democracy and womens rights etc.
5. Social and Cultural Elements

Appropriate Business Attire:
Normal business dress for men is a suit and tie. However, since India has a warm climate,
often just a full-sleeved shirt with a tie is also acceptable. It is also important to select neutral colors, which are subdued and not very bright.
In most companies, particularly in the IT sector, however, the dress code is much more casual. It is not unusual to find people wearing T-shirts and jeans with sneakers.
Men should avoid shorts, which are considered quite bizarre in Indian culture.
Dress for women: your attire will often signal your status, and casual dress will make it
more difficult for you to get respect. Loose, cool clothing that covers up as much as possible. Exposed skin suggests that youre too poor to dress properly. The more you can disguise your shape the better.
51

For women, pantsuits or long skirts, which cover the knees, are acceptable to wear. The
neckline of the blouse or the top should be high.
For women, a salwar-suit is also acceptable for business dress.
Jeans with a T-shirt or short-sleeved shirt are acceptable as casual wear in informal situations for both men and women.
You can wear casual dress if invited to a social gathering. However, if a foreigner wears an
Indian costume [kurta-pajama for men, and sari or salwar-suit for women], this kind of
dress is also appreciated, and often seen as a gesture of friendship.
As a visitor, conservative, though not formal, dress is advisable.
Conservative pantsuits or dresses are proper attire.
Women visiting public beaches should be as discreet as possible and void sunbathing on
empty beaches.
In mosques you need to make sure your shoulders are covered.
Shoes are never worn in a place of worship, museums, churches and historical monuments.
Introductions
The first handshake could leave you vulnerable. When doing business in India, meeting
etiquette requires a handshake. However, Indians themselves use the namaste. This is
where the palms are brought together at chest level with a slight bow of the head. Using the
namaste is a sign of your understanding of Indian etiquette.
Greetings
Westerners may shake hands, however, greeting with namaste (na-mas-TAY) (placing both
hands together with a slight bow) is appreciated and shows respect for Indian customs.
Men shake hands with men when meeting or leaving. Men DO NOT touch women when
meeting or greeting. Western women may offer their hand to a westernized Indian man,
but not normally to others. Traditional Indian women may shake hands with foreign women but not usually with men.
52
Presentation of Business Cards
Business card is called a visiting card, should always be ready for presentation.
Never use left hand to give and receive business cards.
Business cards are exchanged and Indians are very conscious of the protocol. Always present business cards when introduced. English is appropriate for business cards.
Presenting and exchanging business cards are a necessary part of Indian etiquette when
doing business in India. You must bring plenty since people exchange business cards even
in non-business situations.
First Name or Title
Indian etiquette considers it important to use a persons title wherever it is possible, titles
such as doctor or professor etc. Use courtesy titles such as Mr, Mrs, or Miss for those
without professional titles and wait to be invited to use first names. Try Sir/ Maam for
strangers and Uncle/ Aunty (or Chachaji, Mausiji etc) for familiar people. For a stranger
who is not so old, it is better to suffix the name with ji, as a mark of respect.
A persons age, university education, caste, and profession often determine the level of
respect given. Be aware that government employment is considered to be more prestigious
than private business. This affects how you are addressed.
Find out how you should address the other person - naming and addressing practices vary
across the country.
Traditional Hindus do not have family surnames.
Muslim names are usually derived from Arabic. A Muslim woman is known by her given
name plus binti (daughter of) plus her fathers name.
Indian Sikhs will have their given name followed by either Singh for men or Kaur for
women.
Some Westernized Indians drop the bin or binti from their name.
Gestures
Public displays of affection are not proper.
Men dont touch women in public and vice versa.

53
Section 3: Business Etiquete

Indians generally allow an arms length space between themselves and others. Dont stand
close to Indians. Indians value personal space.
Indian men may engage in friendly back patting merely as a sign of friendship.
When an Indian smiles and jerks his/her head backward -- a gesture that looks somewhat
like a Western no -- or moves his head in a figure 8, this means yes.
Indians as no or go away frequently interpret the traditional Western side-to-side hand

wave for hello.
Use your right hand only to touch someone, pass money or pick up merchandise. The left
hand is considered unclean.
Do not touch anyones head. The head is considered sensitive.
Feet are considered unclean. Feet are sacred for holy men and women. Pointing footwear at
people is considered an insult.
Indians are very sensitive to being beckoned rudely. Hand and arm waved up and down
(Western good-bye) means come here. To beckon, extend your arm, palm down and
make a scratching motion with fingers kept together.
Never point your feet at another person as feet are considered unclean.
Standing tall with your hands on your hips is perceived as aggressive.
Pointing with your finger is considered bad manners and rude.
Whistling in public is very bad etiquette and is not acceptable.
Never point your feet at another person as feet are considered unclean.
Stand up when an elder or a guest enters the room and dont sit until youve offered them a
seat.
Dont touch a religious object with your feet or left hand.
Colors, Numbers and Their Meaning
White and black colors in wrappings are considered inauspicious.

54
Gift Giving
Give gifts with both hands. Gifts are not normally opened in the presence of the giver.
Gifts from your country are appreciated (perfume, chocolates, small china or crystal objects).
Gifts are not normally expected at the first meeting. Gifts may be given once a relationship
develops.
Wrap gifts in red, yellow, green or blue colored wrapping paper.
When invited to an Indian family home for dinner, it is considered good Indian etiquette
to give a gift, such as a box of chocolates or flowers. If your host has children, a gift for the
child [a toy or a book] is a good gesture and totally acceptable.
If you are visiting during a festival, it is customary to carry a box of sweets.
Flower etiquette is a little complex. Different flowers have different connotations across
India. If you are planning to give flowers, check with the florist as to what would be appropriate Indian etiquette.
If your host drinks and keeps drinks at home, a bottle of whisky or wine is an acceptable
gift.
Be cautious in giving a leather item as a gift. Since many Hindus are vegetarians, and part of
a dead animal would definitely be an unsuitable gift.
Time
Normal business hours are 10:00 a.m. to 5:00 p.m. (IST) However, in some large cities [e.g.,
Mumbai], some places of business start working earlier to avoid congested traffic while
commuting. Increasingly, among the business organizations, there is also a trend towards a
longer working day, which can start as early as 7:30 a.m. and last till 8:00 p.m. (IST)
Indian counterparts may not show up for scheduled meetings. Be prepared to reschedule.
Western business people find it very disconcerting that often the Indian people themselves are quite casual in keeping their time commitments. One of the reasons for this is
that in their mind, time is generally not considered as the objective yardstick for planning
and scheduling ones activities. Rather, for most, the plans and schedules are contingent
on other people and events, and therefore can-and do-get changed and you wont be kept
informed.
55
Section 3: Business Etiquete

In Indian business etiquette there is a distinct difference in the cultures of the government
departments and business organizations. Compared to a business organization, it is normally more difficult to get an appointment with officials in a government department. Also, in
the government departments, there is a greater likelihood that your appointment may be
rescheduled or that you may be kept waiting for many hours before you are actually seen.
There are seven major religions and many minor ones, plus six main ethnic groups, India
enjoys countless holidays which change depending on the year. Arriving in India expecting
to arrange business meetings during one of these festivals will probably leave you coming
home empty handed.
In India everything takes time. Indian business people like to be on time but in real life
things dont work like clockwork. Keep a lot of margin in your schedules for the unexpected
events. A Western person likes to concentrate on one thing at a time while his Indian counterparts are multitasking and attends to many things at the same time. Be prepared for lots
of interruptions all the time.
Joke Telling
There is no one-size fits all category of jokes-all jokes are not funny in all situations.
In todays litigious times, politically incorrect jokes (racist and sexist) are inappropriate.
Inclusive humor forces audience participation while situational humor (for example, jokes
on the current meltdown in the US or corruption in India) creates an instant connect with
the audience.
Work out the lowest common denominator when using humor with a diverse audience. A
joke on yourself or self-deprecating humor works best in such situations as it makes you
appear real.
In Indian workplaces, humor is in short supply. They prefer humor in our Bollywood movies, laughter shows on television or jokes circulated via email. They would rather hear or
read a joke in private than tell one at work.
As the boss, dont link humor to your current position. As a peer, dont express your negative feelings (jealousy or hostility) towards a colleague via a joke, thereby damaging relationships forever.
In international business, many senior executives have burnt their fingers with the untimely use of humor. While Americans like to infuse humor in business, to their horror
Asians take their jokes literally!
56
6. Business Entertaining
Dining/Table Manners
Initial business entertainment is done in restaurants in prestigious hotels. Business can be

discussed during meals. Allow your host to initiate business conversation.
Never flatly refuse an invitation to a home or dinner of a business counterpart; if you cant
make it, offer a plausible excuse.
Spouses are often included in social/business functions.
Arrive 15-30 minutes later than the stated time for a dinner party.
At a social gathering a garland of flowers is often placed around a guests neck. Remove it
after a few minutes and carry it in your hand to show humility.
Allow hosts to serve you. Never refuse food, but dont feel obligated to empty your plate.
Hindu hosts are never supposed to let their guests plates be empty.
The host pays for guests in a restaurant.
Guests give gifts to the host and the hosts children as a thank you.
You should reciprocate invitations with a meal of comparable value. Never invite someone
to a far more lavish dinner -- it might embarrass him or her.
Wash your hands before and after a meal.
Ask for whatever you want instead of reaching out directly or pointing at dishes.
Dont make too much noise; dont talk with food in your mouth.
Wait until everyone else is sitting down before starting to eat.
Help clear the dishes, unless it is not acceptable in that particular custom.
Dont talk on your cell phone during the meal and if you must get up in-between, ask to be
excused.
57

Proper Use of Utensils
Indian dining etiquette it is considered proper to eat with your hands. It is tradition and
part of the Indian culture.
Although very few people practice this part of Indian etiquette when dining in the 5 star
Western hotels and restaurants.
If dining with Indian people who do not use cutlery, make every attempt try to eat in the
traditional Indian way and fit in with Indian etiquette.
If hosts eat with hands, assure them you enjoy doing the same. If utensils are not used, use
your right hand and your first three fingers and thumb only.
Take food from communal dish with a spoon; never your fingers. Use chappati or poori
(bread) torn into small chunks to scoop up food.
In Northern India, it is impolite to dirty more than the first two segments of your fingers.
Since North Indians eat mostly rotis and drier curries, this isnt too difficult.
South India, where they eat lots more rice, and enjoy very wet curries, it is permitted to use
your whole hand.
Indian etiquette differs from region to region, so if you are not sure what to do, observe or
ask.
Never use your left hand (even if you are left-handed). In Indian etiquette this is usually
considered unclean and quite offensive.
Part of the traditional Indian etiquette and culture is to share food. Especially on long train
journeys, Indian families will be carrying heaps of food and will invite you to have some.
Even when only 2 people are dining in a restaurant it is customary to order two different
dishes and in keeping with Indian etiquette, share the dishes between you. While sharing
is an important part of Indian etiquette, it is poor and offensive etiquette to share a fork or
spoon or to drink from someones glass.
While sharing is good Indian etiquette and manners, coming into contact with anothers
spit is called jootha and is considered offensive in many parts of India.
Never offer anyone food from your thali, even if it is in one of the little bowls and you havent touched it. All the food that is placed on your thali becomes jootha. There is no precise English equivalent of jootha. I suppose contaminated comes closest in meaning.
58
This also applies to taking a bite of someone elses sandwich, ice cream or chocolate too
Never, ever double dip!
Wait to be served. Remember you are eating with your hands and your right hand will be
messy, therefore you will leave the serving spoon all sticky and messy too. Dont be tempted to use your left hand as it is bad Indian etiquette and considered offensive.
Alcoholic Beverages
Strict orthodox Muslims dont drink any alcohol. Most Hindus, especially women, do not
consume alcohol.
If your Indian host drinks and keeps alcoholic drinks at home, a bottle would be an appreciated gift.
Appropriate Conversation Subjects
Honest, direct, and spiritually stimulating conversations are three of the main descriptive
factors important to Indian managers. While these three factors are by no means a complete guide, they are helpful. By being honest, respect is shown to fellow business people. The
opposing negotiators have done their homework, and know the issues as well as you do, so
lying to them insults their intelligence and work ethic. Direct conversation does away with
most of the time-consuming kissing-up nonsense that is so common in many situations.
By turning a conversation to acknowledge the spiritual ideals of each culture, a deeper understanding can be reached. This also shows that you have done your homework into their
cultural ideals, and that you respect them that much more. These factors will go a long way
to basing a more sound business relationship with Indian mangers.
Topics to Avoid
Avoid the following three topics in the beginning of a relationship, after time, these topics may
well be openly discussed:
The poor economic and literacy value of their majority of their people as opposed to the
well-educated, wealthy few,
Current religious tensions between Muslims, Hindus and Sunnis.
Issues directly relating to British occupation before Indias declaration of independence.

59
Section 4: Import/export agreements

Part 1: Trade Agreements Specific to the Country in their dealings with the
United States
Bilateral trade between India and the US reached US$ 63.7 billion in 2013, registering a growth of
about 1.7% over the previous year. Indian exports accounted for US$ 41.8 billion; whereas, US exports
stood at US$ 21.9 billion. India - U.S. bilateral merchandise trade during the period January-October
2014 amounted to $55.86 billion with a trade surplus of $20.97 million in favor of India. During this
period, Indias merchandise exports to the U.S. grew by 6.8% from $35.97 billion in the corresponding
period in 2013 to $38.42 billion, while US exports of merchandise to India fell by 5.36% from $18.43
billion to $17.44 billion. During the year 2012 (the latest year for which complete data on services
trade is available), bilateral trade in services totaled $58.76 billion, of which U.S. exports of services to
India amounted to $30.17 billion and Indias exports of services to the U.S. added up to $28.59 billion.
During Prime Ministers visit to the U.S. in September 2014, the two sides set a target to increase
bilateral trade in goods & services to $500 billion.
According to the US Bureau of Economic Analysis, U.S. direct investments in India is estimated at $24
billion. As per Indian official statistics, the cumulative FDI inflows from the US from April 2000 to
September 2014 amounted to about US$ 13.19 billion constituting nearly 6 % of the total FDI into
India, making the U.S. the sixth largest source of foreign direct investments into India. In recent years,
growing Indian investments into the US, has been a novel feature of bilateral ties. More than 65 large
Indian corporations, including Reliance Industries Limited, Essar America, Tata Consultancy Services,
Wipro and Piramal, have together invested about US$ 17 billion in the U.S.
There are several dialogue mechanisms to strengthen bilateral engagement on economic and trade
issues, including a Ministerial level Economic and Financial Partnership (last met in Washington in
October 2013) and a Ministerial Trade Policy Forum (last met in New Delhi in November 2014). India
and U.S. are negotiating a Bilateral Investment Treaty (BIT). Both countries have committed to work
through Trade Policy Forum to promote mutually attractive business/investment environment. A
high-level IP Working Group has been established as part of Trade Policy Forum to foster innovation
led economic growth. There exists a Commercial Dialogue (with tenure until March 2016) which
provides the framework for both Governments and the private sector to collaborate on trade and
commercial issues of mutual interest with a view to facilitating trade and investment opportunities
across various sectors. For greater involvement of private sector in discussion on issues involving
trade and investment, the bilateral India-US CEOs Forum was reconstituted in 2009 and had its last
round of meeting in July 2013 in Washington D.C.
During Prime Minister Modis visit in September 2014, it was decided to establish an India-US
Investment initiative, with a special focus on facilitating FDI, portfolio investment, capital market
development and financing of infrastructure. The newly established US-India Infrastructure
Collaboration Platform seeks to deploy cutting edge U.S. technologies to meet Indias infrastructure
needs. US firms will be lead partners in developing Allahabad, Ajmer and Vishakhapatnam as Smart
60
Cities. USAID will serve as knowledge partner for the Urban India Water, Sanitation and Hygiene
(WASH) alliance with to help leverage business and civil society (Gates Foundation) to facilitate access
to clean water, hygiene and sanitation in 500 Indian cities.
A briefly explanation of the main agreements:
The Bali agreement would shield Indias stockpiles for food security from a legal challenge even if
the program distorts trade and exceeds Indias agreed subsidy limits, according to the WTO. India
last year allocated 1.25 trillion rupees ($20 billion) for its public food distribution system to help
more than two-thirds of its 1.2 billion people who eat less than the minimum target set by the
government.
The India and US Trade Policy Forum (TPF), is a forum founded in July 2005. Every year both
countries arrange different events to discuss their trade policies.
The India and USA Dialogue was signed in July 2005 and its functions are: facilitate regular discussion to deepen ties between the Indian and the American business communities, emerging issues
affecting their bilateral trade, and maintain close contact with enterprises and business associations to bring Indian and US business representatives together.
b.
Part 2: Laws of the United States That Affect the Importation of the Products
Before Englands Industrial Revolution, Indias cotton textiles dominated world trade. Much has
changed from then to now.
The Multi-Fiber Agreement (MFA) of the 1970s and 1980 allowed Indias economic policies to
encourage the textile industry geared toward providing employment to village hand weavers
and providing low-cost cotton cloth to its own population. Indias exports were generally anemic
during that period, and its MFA quotas often went unfilled.
The 1990s brought Indias economy dramatically reoriented toward exports, and Indias export
capacity has surged. As a result, Indias exports of other textile products have grown, and it is well
positioned to take advantage of the MFAs phase-out. However, before the end of MFA, its access to
the U.S. market for numerous products was encumbered by the outcome of negotiations concluded many years before. During the first 9 months of 2005, imports from India rose 100 percent.
The lifting of United States quotas did not alone impact Indias increase in US exports, the India
government change in position toward trade directly influenced the increase in exports.
Section 5: Classifiying the import

The items that Zara is going to produce in India are leather shoes, with 100% material or rubber
soles.
Both items are included in the chapter XII of the Harmonized Tariff Schedule that is the specific chapter for: footwear, headgear, umbrellas, sun umbrellas, walking sticks, whips, riding-crops and parts
thereos: prepared feathers and articles made therewith; artificial flowers; articles of human hair
The heading for the items is: 6403
The subheading for the sandals is:

6403.20.00
The tariff item: 6403.20.0000
The subheading for the leather

clogs shoes is: 6403.99.10
The tariff item: 6403.99.1060
62
63
Section 6: Cost sheets
Printed: 3/8/15
COST SHEET
STYLE # 2568/001
Generation:
SEASON: Spring 2015 Description:
COMPONENT COSTS:
Fabrics: 100% black Cow leather
100% brown cow leather
Lining:
Yds/Qty
Unit Prc
$ Amt
0.75
12
$9.00
0.25
10
$2.50
(TOTAL FABRICS)
Trims: (use back for additional)
Insole
Rivets
Sole 100% vulcanize rubber
Cloves
Wood platform
Wood heel
22
$11.50
2
24
2
19
2
2
1
0.01
0.5
0.01
1
1
$2.00
$0.24
$1.00
$0.19
$2.00
$2.00
(TOTAL TRIMS)
51
3.52
$7.43
1
1
3
3
2
2
1
1
$2.00
$2.00
$3.00
$3.00
$10.00
2
2
0.1
1
$0.20
$2.00
0.75
$0.75
$2.95
$31.88
$39.23
23%
$119.00
67.04%
CMT COSTS:
Grading:
Marking:
Cutting:
Sewing and gluing:
Wash/Type
Press/Trim
QE/Bag & Tag
(TOTAL LABOR)
PACKING MATERIALS:
Tissue
Polybag
Inner Box
Outer Box
(TOTAL PACKING)
(TOTAL COST):
WHOLESALE PRICE
WHOLESALE MARGIN
RETAIL PRICE
RETAIL MARGIN
64
Size Category: USA sizing

Size Range: from 6 to 10
Black high-heeled clogs.Stud detail and contrast brown edging.Wooden heel.
Forms for Profit, Harder Publications

www.FashionForProfit.com
$60.00
$31.52
Front Sketch
Back Sketch
Comments:
Zara Leather clog CostSheet_2.xlsx
Printed: 3/8/15
COST SHEET
STYLE # 1681/001
SEASON: Sring 2015
COMPONENT COSTS:
Fabrics: 100% Cow leather
Yds/Qty
Generation:
Description:
Unit Prc
Size Category: USA sizing

Size Range: from 6 to 10
Women's Leather Gladiator Sandals
15
$ Amt
$15.00
Lining: 100% Cow leather
5.25
$5.25
Other: Sole 100% vulcanize rubber
1.5
$1.50
(TOTAL FABRICS)
Trims: (use back for additional)
Insole
Cords
Zipper "16
21.75
$21.75
1
2
1
1.5
0.25
0.2
$1.50
$0.50
$0.20
(TOTAL TRIMS)
1.95
$2.20
1
1
3
3
2
2
1
1
$2.00
$2.00
$3.00
$3.00
2
2
0.1
1
$10.00
$20.00
$0.20
$2.00
0.75
CMT COSTS:
Grading:
Marking:
Cutting:
Sewing and gluing:
Wash/Type
Press/Trim
QE/Bag & Tag
(TOTAL LABOR)
PACKING MATERIALS:
Tissue
Polybag
Inner Box
Outer Box
(TOTAL PACKING)
(TOTAL COST):
WHOLESALE PRICE
WHOLESALE MARGIN
RETAIL PRICE
RETAIL MARGIN
$15.00
$29.70
$0.75
$2.95
$36.90
$48.60
29%
$159.00
76.79%
Front Sketch
Back Sketch
Comments:
65
Forms for Profit, Harder Publications
www.FashionForProfit.com
NatashaCostSheetUpdated.xlsx
Section 7: Shipping route

Part 1: Ocean Freight: N/A
Part 2: Air Freight
767-300 Cargo Aircraft
20 Foot Container
Max Cargo Weight - 38,000
17,236 KGS
Aircraft Configuration
Main Deck: 96 X 125
Lower Deck: 96 X 125
Pallet Capability
Main Deck: 27 Pallets
Lower Deck: 10 Pallets
10 Pallets Per Container

4 Pallets Shoe#1
5 Pallets Shoe#2
1 Pallet Collapseable Shoe Boxes
Box Dimensions (10X13X17.5)
Collapsable Shoe Boxes - 33X19X10.06CM

805 Pairs of shoes per pallet
Total Shipment: 29,785 pairs of shoes
Distribution Plan
USA - 59 Stores (11,914 units)
Mexico - 46 Stores (11,914 units)
Canada - 25 Stores (5,957 units)
Products will flight from New Delhi Airport to

JFK, after US customs, products will go to the Zara
distribution center for shipment to stores in USA,
Canada and Mexico.
66
767-300 Cargo Aircraft. To hold 1 20 Container with 11

pallets inside. Capacity to hold 200 pallets.
Part 3: Air Time line

Total delivery timeline - 36 Hours Air - 3 Hours
Ground
1. Cargo leaves manufacturer.
2. Cargo arrives at New Delhi.
3. Cargo arrives at Newark International Airport
4. Cargo goes through US Customs.
5. Cargo transported by truck to Zara Distribution Center.
6. Cargo transported by truck to stores in USA,
Canada, and Mexico.
Air Freight Cost
$200,000
7299 Miles From India to NYC
$20,000 Fuel Cost
The manufacturer is located in Panchkula,

Haryana, India. The merchandise will leave by
truck to New Delhi airport.
Flight route from New Delhi to New York. Once the merchandise arrive to New York (JFK), they will
go through customes and on to the warehouse distribution center for shipment to stores in USA,
Canada and Mexico.
67
Importers Documents
68
DEPARTMENT OF HOMELAND SECURITY
1. Filer Code/Entry No.
U.S. Customs and Border Protection

ENTRY SUMMARY
Form Approved OMB No. 1651-0022

EXP. 10-31-2017
2. Entry Type
3. Summary Date
4. Surety No. 5. Bond Type 6. Port Code
7. Entry Date
8. Importing Carrier
9. Mode of Transport
10. Country of Origin
11. Import Date
12. B/L or AWB No.
13. Manufacturer ID
14. Exporting Country
15. Export Date
16. I.T. No.
17. I.T. Date
21. Location of Goods/G.O. No.
18. Missing Docs 19. Foreign Port of Lading
22. Consignee No.
23. Importer No.
25. Ultimate Consignee Name and Address
City
27.
Line
No.
State
Zip
City
A. Entered Value
B. CHGS
C. Relationship
35. Total Entered Value
$
36. DECLARATION OF IMPORTER OF RECORD (OWNER
OR PURCHASER) OR AUTHORIZED AGENT
Importer of record and that the actual owner,
or purchaser or agent thereof. I further declare that the merchandise
33.
A. HTSUS Rate
B. ADA/CVD Rate
C. IRC Rate
D. Visa No.
Zip
34.
Duty and I.R. Tax
Dollars
CBP USE ONLY
Total Other Fees
purchaser, or consignee for CBP purposes is as shown above, OR
State
32.
I declare that I am the
24. Reference No.
26. Importer of Record Name and Address
28. Description of Merchandise

29.
30.
31.
A. HTSUS No.
A. Grossweight
Net Quantity in
B. ADA/CVD No.
B. Manifest Qty. HTSUS Units
Other Fee Summary for Block 39
20. U.S. Port of Unlading
Cents
TOTALS
A. LIQ CODE
B. Ascertained Duty
37. Duty
REASON CODE
C. Ascertained Tax
38. Tax
D. Ascertained Other
39. Other
E. Ascertained Total
40. Total
owner
was obtained pursuant to a purchase or agreement to purchase and that the
prices set forth in the invoices are true, OR

was not obtained pursuant to a purchase or agreement to purchase and the statements in the invoices as
to value or price are true to the best of my knowledge and belief. I also declare that the statements in the documents herein filed fully disclose to the best
of my knowledge and belief the true prices, values, quantities, rebates, drawbacks, fees, commissions, and royalties and are true and correct, and that all
goods or services provided to the seller of the merchandise either free or at reduced cost are fully disclosed.
I will immediately furnish to the appropriate CBP officer any information showing a different statement of facts.
41. DECLARANT NAME
TITLE
42. Broker/Filer Information (Name, address, phone number)
SIGNATURE
DATE
43. Broker/Importer File No.
CBP Form 7501 (06/09)
69
1. Goods consigned from (Exporters business name, address,
country)
Reference No
GENERALIZED SYSTEM OF PREFERENCES
CERTIFICATE OF ORIGIN
(Combined declaration and certificate)
FORM A
2. Goods consigned to (Consignees name, address, country)
Issued in ..................................................................................
(country)
See notes overleaf
3. Means of transport and route (as far as known)
4. For official use
5. Item 6. Marks and 7. Number and kind of packages, description of goods

numnumbers of
ber
packages
8. Origin
criterion
(see Notes
overleaf)
9. Gross
weight
or other
quantity
10. Number
and date
of invoices
11. Certification
12. Declaration by the exporter
It is hereby certified, on the basis of control carried out,

that the declaration by the exporter is correct.
The undersigned hereby declares that the above details

and statements are correct; that all the goods were produced in
...................................................................................................
(country)
and that they comply with the origin requirements specified for
those goods in the Generalized System of Preferences for
goods exported to
.
...................................................................................................
(importing country)
.............................................................................................................
Place and date, signature and stamp of certifying authority
70
................................................................................................................
Place and date, signature of authorized signatory
71
Freight Carriers Documents
BILL OF LADING
Account Name and Logo Here (include phone, fax and OTI license number)
BOOKING NO:
SHIPPER/EXPORTER (provide complete name and address)
BILL OF LADING NO:
EXPORT REFERENCES:
FORWARDING AGENT / FMC NO:
CONSIGNEE (please provide complete name and address)
POINT AND COUNTRY OF ORIGIN:

NOTIFY PARTY (please provide complete name and address)
FOR DELIVERY OF GOODS PLEASE PRESENT DOCUMENTS TO:
MODE OF INITIAL CARRIAGE
PLACE OF INITIAL RECEIPT
DOMESTIC ROUTING/EXPORT INSTRUCTIONS
VESSEL NAME
PORT OF LOADING
FREIGHT PAYABLE AT
PORT OF DISCHARGE
TYPE OF MOVEMENT
PLACE OF DELIVERY BY CARRIER

PARTICULARS FURNISHED BY SHIPPER
MARKS & NOS/CONT. NOS
NO. OF PACKAGES
DESCRIPTION OF PACKAGES AND GOODS
GROSS WEIGHT
MEASUREMENT
TOTAL NUMBER OF PKGS.
Liability Information
Clause 20 on the reverse side hereof limits the carriers liability to a maximum of US$500 per package or customary
freight unit by incorporation of the Carriage of Goods by Sea Act. To protect for a higher value, you may declare a
higher value and pay the ad valorem freight charge or purchase cargo insurance.
Declared Value:
The shipper may increase the carriers liability by declaring a higher value in the Declared Value box
to the right and paying the additional charge that accompanies this.
Insurance:
The shipper may also purchase insurance on the goods listed on this bill of lading by indicating this in the box to
the right and paying the additional premium.
FREIGHT RATES, CHARGES, WEIGHTS AND/OR MEASUREMENTS
SUBJECT TO CORRECTIONS
PREPAID
COLLECT
DECLARED VALUE: $__________

If shipper enters a value, carriers limitation of
liability shall not apply and the ad valorem rate will
be changed.
SHIPPER REQUESTS INSURANCE:

Yes
No Must check one box!
Amount: $________________________________
RECEIVED FOR SHIPMENT from the MERCHANT in apparent good order and condition unless otherwise stated herein, the GOODS mentioned above to be transported as provided herein, by any mode of
transport for all or any part of the Carriage, SUBJECT TO ALL THE TERMS AND CONDITIONS appearing on the face and back hereof and in the CARRIERS applicable Tariff, to which the Merchant agrees
by accepting this BILL OF LADING.
Where applicable law requires and not otherwise, one original Bill OF LADING must be surrendered,
duly endorsed, in exchange for the GOODS or CONTAINER(S) or other PACKAGE(S), the others to
stand void. If a Non-Negotiable BILL OF LADING is issued, neither an original nor a copy need be surrendered in exchange for delivery unless applicable law so requires.
BY ____________________________________________
AS CARRIER
DATED _________________________________________
72
Shipper's Domestic Truck Bill of Lading--Non Negotiable

B/L #:
Date:
Vehicle #:
Carrier's #:
RECEIVED, subject to the "Common Carrier Rate Agreement" or the CONTRACT between the Shipper and Carrier in effect on the date of shipment, the property described below,
received in good order, except as noted (contents and condition of contents of packages unknown), marked, consigned, and destined as shown below. This Bill of Lading is not
subject to any tariffs or classifications whether individually determined or filed with any federal or state regulatory agency, except as specifically agreed to in writing by the Shipper
and Carrier. Rate individually determined and NOT subject to filed tariffs.
From:
Consigned to:
$0.00
C.O.D. amount $
Bill to:
Remit C.O.D. Amount To:
C.O.D. Fee To Be Paid By:

Pieces:
HM
Consignee
Description
Shipper
Marks and
Numbers
Schedule B
Weight
Rate
Freight Charges
Prepaid
Collect
Third Party
Subject to Section 7 of the
agreement between
Shipper and Carrier, if the
shipment is to be delivered
to the consignee without
recourse of the consignor,
the consignor shall sign
the following statement.
The carrier shall not make

delivery of this shipment
without payment of freight
and all other lawful
charges.
(Signature of Shipper)
Copy
1 2 3
Received
on
Carton(s)
Special Instructions:
Shipper
Carrier
Driver Signature
Date
Exceptions
The agreed on declared value of the property is hereby specifically stated by the shipper to be not exceeding
These commodities,
technology or software were
exported from the United
States in accordance with the
Export Administration
Regulations. Diversion
contrary to U.S. law prohibited.
per pound for each distribution package.
Mark with "X" to designate Hazardous Materials as defined in the Department of Transportation Regulations governing the transportation of hazardous materials. The use of this column is an OPTIONAL
method for identifying hazardous materials on bills of lading per section 172.201 (a) (1)(iii) of title 49, Code of Federal Regulations. Also, WHEN SHIPPING HAZARDOUS MATERIALS the shipper's certification
statement prescribed in Section 172.204 (a) of the Federal Regulations must be indicated on the bill of lading, unless a specific exception from this requirement is provided in the Regulations for a particular
material.
Page 1 of 1
73
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the
terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
CONTACT
NAME:
PHONE
(A/C, No, Ext):
E-MAIL
ADDRESS:
PRODUCER
FAX
(A/C, No):
INSURER(S) AFFORDING COVERAGE
NAIC #
INSURER A :
INSURED
INSURER B :
INSURER C :
INSURER D :
INSURER E :
INSURER F :
COVERAGES
CERTIFICATE NUMBER:
REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR
TYPE OF INSURANCE
ADDL SUBR
INSR WVD
POLICY NUMBER
POLICY EFF
POLICY EXP
(MM/DD/YYYY) (MM/DD/YYYY)
GENERAL LIABILITY
COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE
OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

PROPOLICY
LOC
JECT
AUTOMOBILE LIABILITY
ANY AUTO
ALL OWNED
AUTOS
HIRED AUTOS
LIMITS
EACH OCCURRENCE
DAMAGE TO RENTED
PREMISES (Ea occurrence)
MED EXP (Any one person)
PERSONAL & ADV INJURY
GENERAL AGGREGATE
PRODUCTS - COMP/OP AGG
$
$
COMBINED SINGLE LIMIT

(Ea accident)
BODILY INJURY (Per person)
SCHEDULED
AUTOS
NON-OWNED
AUTOS
$
$
BODILY INJURY (Per accident) $

PROPERTY DAMAGE
(Per accident)
$
$
UMBRELLA LIAB
OCCUR
EACH OCCURRENCE
EXCESS LIAB
CLAIMS-MADE
AGGREGATE
DED
RETENTION $
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
Y/N
ANY PROPRIETOR/PARTNER/EXECUTIVE
N/A
OFFICE/MEMBER EXCLUDED?
(Mandatory in NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
WC STATUTORY LIMITS
$
$
OTHER
E.L. EACH ACCIDENT
E.L. DISEASE - EA EMPLOYEE $

E.L. DISEASE - POLICY LIMIT
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required)
CERTIFICATE HOLDER
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
ACORD 25 (2010/05)
1988-2010 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD
Clear All
74
75
76
Manufacturer documents
PACKING LIST
SHIPPER
Invoice No:
Page _____ of _____
Invoice Date:
Ship Date:
File Number:
CONSIGNEE:
BILL TO:
SHIPMENT INFORMATION
Customer PO No:
Letter of Credit No:
Mode of Transportation:
PO Date:
Currency:
Transportation Terms:
Ref No:
Payment Terms:
Number of Packages:
AWB/BL No:
Incoterms Desc.:
Gross Weight(Kg):
QUANTITY
UNIT
DESCRIPTION
NO.
PKGS
GROSS WEIGHT
LBS KGS
NET WEIGHT
LBS
KGS
TOTAL:
77
Manufacturer documents
PROFORMA INVOICE
BILL TO:
Company Name
SHIP TO:
Zara United States
Company Name
Kim Abercombie
Contact Person
Kim Abercombie
Address
1234 First Street
Address
1234 First Street
City, State, ZIP

Country
New York, NY
City, State
USA
Country, ZIP
New York, NY
USA
Phone
360-555-0150
Phone
360-555-0150
Fax
360-555-0152
Fax
360-555-0152
Email
Business ID
kim@fabrikam.com
1025945
SHIP VIA:
SHIP BY DATE:
Air
3/14/15
PRODUCT
CODE
DESCRIPTION OF ITEMS
QTY
REMARKS:
PRICE USD
CARTON
QTY
CODE NUMBER:
INVOICE NUMBER:
3493865-00
2234
SHIPPING OR MISC INSTRUCTIONS:
CREDIT REVIEW:
Leave at the back door.
ORDER ISSUED BY:
APPROVED:
Kim Abercrombie, Fabrikam, Inc
Hazem Abolrous
Page 1 of 1
78
Zara United States
Contact Person
CARTON
WEIGHT
UNIT
TOTAL
WEIGHT

Edificio Inditex
Avenida de la Diputacion c/n
14142 Arteixo, A Coruna, Spain
jpolo@initex.com
To: Zara
500 Fifth Avenue, Suite 400
10110 Nueva York, NY
Phone 212 355 1415
Fax 212 754 1128
Invoice #: [100] Date: [00/00/000] Customer ID: [ABC12345]

Quantity

Description

Unit Price

Sub Total
Sales Tax
Total
Line Total

Signature: _____________________
79
Banking Document: Letter of credif
80
81
References

inditex.com
tempe.es
makeinindia.com
U.S. Customs Deparment
indiaembassy.org
globalmes.com
vsc.itm.ac.in
tradingeconomics.com
Going Global
ustr.gov/trade-agreements
CIA World Fact Book
World Bank
India Profile BBC News
India at the UCB Government Library
Hunger and Poverty in South Asia, J.A. Rorabacher
The World in 2050: The Accelerating Shift of Global Economic Power: Challenges and Opportunities
The Longest Constitutional Document, M.V. Pylee
82
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LXFM 720 - Supply Chain Management

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Zaras Business Model

Zaras Value Chain

Section 1: Profile of the country

Section 3: Business etiquette

Section 4: Import/Export agreements

Section 7: Shipping route

The Groups brands strive to sell fashionable

Amancio Ortega - Inditex Group Founder

Inditex Groups Brands

Zara is the Inditex Groups main brand and

Inditex Group revenues based on a constant

True to its commitment to Eco-efficiency, at the

Tempe business model is established under the

Although the headquarters is in Elche (Spain),

Zaras revenues (64% total Inditex Group)

Evolution on the Zaras stores

1975 . - Zaras first store was opened in Coruna,

1976 - 1984. - Zara begun its expansion for

Spain thanks to the success its stores. In 1984

1988. - Zara opened its first international store

1989. - Zara arrived to the USA with the first

1990. - Zara arrived to France with the opening

1992 - 1998. - Zara continued its expan-

sion opening stores in Mexico, Greece, Belgium,

2001. - Inditex Group was listed in the Stock

2003. - Inditex opened its European Platform in

2004. - The Group opened its store number

2007. - Zara opened its 1,000 store in Florence,

2008. - Inditex Group arrived to the 4,000

2010. - Zara online was launched and avaiable

2011 - Pablo Isla became the President of Inditex Group.

2012. - Inditex Group opened its store number

Zara business model

Zaras Value Chain

Each product line has a basic subcollection and

Importing buying plan

Section 1: Profile the country

Section 1: Profile the country

Official Name: Republic of India

Pranab Mukherjee, President of India

Section 1: Profile the country

India is the worlds most populous democracy. A

Section 1: Profile the country

Narenda Modi, Prime Minister of India

GDP Growth Rate 3.2%

Agriculture products: Rice, wheat, oilseed, cotton, jute, tea, sugarcane,

Industries: Textiles, chemicals, food processing,

Time Zone IST (UTC+5:30)

Section 1: Profile the country

Section 1: Profile the country

Land frontier of 15,200 km (9,445 mi) and a

western border with Pakistan lies in the Punjab

India dominates the South Asian subcontinent;

Section 1: Profile the country

Terrain: Upland plan (Deccan Plateau) in South,

Natural Resources: Coal (4th largest reserve in

International Environment Agreements: Party

Section 2: Country analysis

Import partners: China 10.7%, UAE 7.8%, Saudi

National highways and expressways: 155,716

Foreign-Owned: 10 (China 1, Hong Kong

India is ranked 134th out of 189 economies in