Zara Is Expected To Slow Down Expansion Of Stores And Increase E-Commerce Efforts

We reported earlier.

With rapid growth, the parent company has become a fast fashion giant.

However, the pformation of fast fashion is also around the corner. Zara parent company takes the initiative to make adjustments to its existing goals.

Although annual sales climbed by 15.4%, the overall revenue in the fall could reach as high as $1 billion.

Only one Zara brand has a 17.5% increase in sales.

However, its

The growth rate continued to slow down, although it could still record a growth rate of 6% to 8%, but it still did not meet market expectations.

Therefore, the Zara parent company will make strategic adjustments this year. It plans to slow down the expansion of stores and focus on the operation of large flagship stores and electronic business platforms.

However, despite the adjustment of the strategic objectives, Zara

There is still no ambiguity. It is estimated that the new 280 to 360 stores will open in 5 markets in Vietnam, New Zealand, Paraguay, Aruba and Nicaragua.

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Although it is a rare thing in the fashion industry to say that a unique talent is in the fashion industry, Zara Inidtex SA group has once again laid the status of its fast fashion king with its outstanding performance.

Recently, Inidtex SA group released its full year 2015 earnings report.

In the 2015 fiscal year ending January 31, 2016, sales of Inidtex SA group for more than one year (including one year) accounted for 78& of annual net sales, while a 8.5% increase.

The annual net sales are more than 20 billion euros (20 billion 900 million euros).

For the start of the 2016 fiscal year, that is, from February 1st to March 7th, after the impact of various exchange rate factors, sales increased by 15%, far exceeding the market expectations of 12%, compared with the largest competitor H&M group, the latter 2016 fiscal year beginning, December and January respectively recorded 10% and 7% growth.

However, even if we stand fast for the position of fast fashion king, Inidtex SA group still needs to be alert to the favorable challenges from cheap and fast fashion brands such as Primark.

Therefore, Zara's strategy is to reduce the price of the product.

In the first 18 months to November 2015, Zara lowered the price of high-end products in the UK market by 17%, and the price of parity products reached a high level of 36%.

Although this good news is a good thing for the group, but because it did not give investors greater surprise, therefore, in the opening day, Inidtex SA shares opened only 1% higher.