Spanish company, Inditex is the fast fashion retailer to beat, according to the Wall Street Journal. With sales up an astonishing 68% from last year, the owner of the clothier Zara boasts the largest retailer by revenue at €628.3 million. Over the years, Inditex has been diverting its markets from those in Spain and the rest of Europe to new markets in Asia and Europe. Sales in the Americas have stagnated over two years at 12%.
What is most promising about Zara and Inditex's sale composite is that there is still expansion into the Asian market; over the past two years, sales when from 12% to 15% as the total revenue for the company. East Asia's large population and demand for low-priced fashion should drive the demand for Zara's intuitively branded clothing through the roof. Similarly, North America and Latin America are nearly untapped resources for the company, who saw sliding market values at the implication that the company had softening sales. Competetion would be healthy in an American market dominated by European rival H&M and fast-fashion monolith Forever 21.
-Colin Dame
http://online.wsj.com/article/SB10001424052748704129204575507022743194954.html
Business 1.0 Blog setup by Colin Dame, Tania Dabdoub, Leah Stoltz, Bria Gutierrez, and Jacky Meltzer. Critique of the the latest news in the world of retail.
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ReplyDeleteThat is true, I have seen more Zara around, but for a while i couldnt find it anywhere but LA and New York. But the revenue is impressive. I wonder if not expanding too fast kept them with such high profits.
ReplyDelete-Jacky
It's not surprising to hear that Zara and Inditex are expanding to foreign markets. Many retailers are expanding and opening stores in foreign countries to produce more profit. Recession in American has pushed these retailers to do so. Recently I read that Home Depot was planning to open stores in Asia to boost its sales. Currently, the Asian market is very popular in the retail industry because of the slow recovering economy in the United States.
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