ZARA Has Been Firmly In The Position Of Fast Fashion.

Since the fall of this year, global apparel retailers have been negatively affected by the exceptionally warm weather, but Inditex group, the parent company of Zara, seems to have not been troubled by such problems. Its performance in the first nine months of this year has continued to grow strongly. Data show that the Inditex group opened 144 new stores in the third quarter. As of now, the group has 7240 stores in 93 markets worldwide, including Turkey, which has just opened its e-commerce business. The group business has already covered 41 countries in the world.

According to the earnings data released by the group today, from February to October, the income rose by 11% to 16 billion 400 million euros, or about $17 billion 440 million over the nine month period, and the profit rose 9% to 2 billion 210 million euros, or 2 billion 350 million US dollars, and gross profit increased by 15%, which was in line with analysts' expectations.

The group said that the main driving force for the rise in performance was strong. Same store sales 。 Some people have commented that the autumn and winter products of Inditex group's main brand Zara can always accurately locate and seize the needs of consumers, including velvet elements, asymmetrical tailoring, sequins, back dress and so on. The group revealed that group sales were well before the peak season of holiday sales, and sales increased by 16% during the period from November 1st to December 12th.

Zara's unique business model is weighing on its competitors H&M and UNIQLO, and analysts say in a report that Inditex group can rely on its rich brand portfolio and strong capabilities. business model Continue to grow. Bernstein analyst Jamie Merriman and Jennifer Wong pointed out in a research report earlier: "when most fashion retailers complain about the negative effects of weather on the sales environment, the performance of Zara parent group Inditex proves the strong power of the business model and its ability to create outstanding performance."

In addition, the ultimate speed is Zara Created the ultimate profit. It takes an average of 2 weeks from a design to a store for Zara, and this is known as the "leading time miracle" in the clothing industry. In general, clothing brands generally require 6-9 months of guidance and stockpiling. Analysts and analysts pointed out that half of the products of the Inditex group are produced in Europe in their main markets, and can update products faster than major competitors such as H&M and Primark. Thus, they can circumvent the risks brought about by exchange rate fluctuations and weather changes to a certain extent, and benefit from flexible mechanisms.

It is noteworthy that the stock rate of Zara has always been maintained at around 15%, and all the clothes in its headquarters warehouse will not stay longer than 3 days. On average, only 15% of the clothes will be discounted every quarter, and the other brands will be 50%.

In the capital market, Inditex group's share price has also gone all the way. Benefiting from this, the Group founder Oman Theo Ortega once won the world's richest man in the September for 79 billion 500 million dollars and surpassed Bill Gates, who also surpassed Bernard Arnault, the boss of LVMH, the world's largest luxury group.

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