“We know that running and managing a company in China requires a flexible model. And there’s a constant need to adjust to the changing environment.
In 2012, Inditex Group started going digital.
To move forward, we will do what we can to continue with the transition. By making the digital investment in our stores in China, we strengthen the digital capabilities of all our brands.”
Recently, Inditex Greater China President Va Serrano spoke to reporters about the company’s future plans in China.
Consumers may not recognize the name Inditex Group. However, they are familiar with the brands they own.
As one of the world’s leading fashion retail groups, they own some popular brands. It includes Zara, Pull&Bear, Bershka, Stradivarius, Oysho, Zara Home, and Massimo Dutti.
In May 2004, Inditex Group opened its first Zara store in China. It was at Hong Kong Special Administrative Region. In the next 16 years, Inditex Group has opened stores in Shanghai, Beijing, Guangzhou, and other places. At present, Inditex Group has stores in more than 50 cities in China.
Last year’s outbreak put a heavy toll on the global economy. It badly hit Inditex Group and its brand Zara’s physical stores. But, they are now on their way to recovery.
According to its latest earnings report, Inditex Group sales are still down a bit. The decline may be much smaller than in the first half of 2020. The e-commerce sales continue to grow rapidly.
In the quarter ending on October 31, 2020, Inditex Group sales fell 14% from a year earlier to 6.1 billion euros. Online sales rose 76% from a year earlier. Net profit fell 26% to 866 million euros but dropped only 13% at constant exchange rates.
Inditex’s third quarter shows a fair recovery compared to the 44% and 31% drop in sales for the first and second quarters.
Inditex has also stepped up when it comes to going online. And Zara is one of them.
It has achieved its goal of selling all eight of its brands online by 2020. It is also gradually uniting its online and offline store network. They can provide customers with a more digital and sustainable shopping experience, the company said.
The Chinese market is leading the world in terms of recovery speed. And Sieven said that he continues to be optimistic about its growth potential.
For Zara’s newly opened stores in China, they will make digital upgrades.
Take the new Zara concept store, which opened on Wangfujing Street in Beijing in October 2020. The store has an “online order” area and a quick payment area on each floor.
Inditex Group’s proprietary integrated inventory management technology enables in-store inventory to be used to fulfill online orders. It also makes it a small fashion distribution platform.
“As a company operating in China, our goal is to continue to create economic, social, and environmental value in China.
We hope that through online and offline services, we can meet the needs of consumers all over China and provide them with the best choice.
At the same time, to achieve the group’s sustainability goals, we also bring more local partners on board to work with us to achieve our goals.”
Sieven of Zara mentioned while sharing the company’s future goals.