Zara orders House of Zana to drop name over trademark row
bbc.co.uk
bbc.co.uk
Mrs Kotrri seems like a nice lady, but this was probably a mistake. She had no requirement to tell them anything, and this was never going to make their lawyers back down. The lawyers will just pull out any detail that might help them in their future case, and ignore any and all details that don't.
I expect it probably would have been best to just send back a letter from a lawyer-for-hire denying any hint of infringement, and then shut off communication.
The only way to win this fight as a small business is to make enough PR trouble that the marketing department of the big business tells the legal department to find a way to get the story out of the news.