High End Brand ZARA Store Tide Is A Little Luxury And Fast Fashion Day

Inditex, the parent company of Zara, will continue to implement the strategy of closing small stores and opening large stores in busy commercial areas of major cities.

Zara parent Inditex announced its first quarter results in fiscal 2018, mixed.

In 2018 2~4, its sales volume was 5 billion 700 million euros, an increase of 2%.

This has been affected by the strong euro.

In terms of local currency, sales actually rose by 7%.

But it is slower than double-digit growth.

But the gross profit margin has been optimized, reaching 58.9%.

The profit was 668 million euros, a slight increase of 2.1%.

Inditex did not disclose changes in same store sales (i.e. sales of stores over a year). Analysts estimate that the index is about 5%, slightly slower than 6% a year ago.

Inditex continues to adjust its offline stores: there are 7448 stores in the world, 27 fewer than in the previous quarter.

The store's declining brands include Zara kids, and several younger cards such as Pull & Bear, Bershka and Stradivarius, which are younger than Zara.

The main brand Zara and the high-end line Massimo Dutti, home store Zara Home, the flagship.

And the number of pajamas brand Oysho stores is increasing.

The main brand Zara has contributed more than 60% revenue to Inditex.

Inditex will continue to implement the strategy of closing small stores and opening large stores in busy commercial areas of major cities.

The company's chairman and chief executive, Pablo Isla, said at a meeting of analysts that their store area actually did not decrease or increase. This year, it is expected to increase by 6% of the store area. After that, the growth rate will be around 4~6%.

He gave an example. In Bilbao, Spain, Zara closed 3 stores, but opened a flagship store, which had an area larger than the total number of 3 stores closed.

Inditex did not announce the growth of e-commerce business in this quarter.

According to data released last year, electricity providers account for 10% of its total business, and online business grew by 41% last year.

This is slightly lower than H&M 12.5%'s electricity supplier level, but higher than that of UNIQLO's parent company's penetration rate of 7%.

The company's main brand Zara has expanded its AR and holographic technology to display products in global stores.

For now, Zara AR is like a marketing that attracts consumers to interact.

Their new store in Britain played such a "gimmick": robots pick up orders for customers who place orders online.

Another performance of Inditex in recommending digital and electric business is to let Microsoft Lopez President Pilar Lopez Alvarez join the board of directors.

Earlier this year, Inditex hired Spain's founder of CartoDB, a geographic information system start-up, to help develop digital business.

CartoDB is also one of Spain's largest technology start-ups.