Inditex: all brands to be sold online by 2020
Inditex is the undisputed king of fast fashion – now, it wants to take its leadership position into the online world. The Spanish apparel maker, which owns brands like Zara and Massimo Dutti, released a statement on Tuesday that said clothing from all its brands would be available anywhere in the world via ecommerce by 2020. That includes markets where it doesn’t have any stores.
Inditex’s fashionable innovations have taken it on a wild and lucrative ride over the years
SOURCE: Yahoo Finance
The company became a fashion innovator when it pioneered the beginnings of the fast fashion trend. That let it respond near instantly to shoppers in-store demands, and alter its offerings week by week.
However, faced with a new demographic of digital natives, and in competition with online-only merchants like Boohoo.com, the company needs to conquer the ecommerce space. When it comes to online, fast is no longer fast enough.
Inditex reported that online sales jumped by 41%, year on year, in 2017 – that puts them at about 10% of total sales. That’s a big improvement over where it was, but still lags competitors like H&M (which makes about 12% of its total sales online). Inditex operates “almost” 7,500 physical stores in 49 markets.
In a statement, the company’s chief executive, Pablo Isla, said: “We want to make our fashion collections available to all our customers, wherever they are in the world. Even in those markets which do not currently have our bricks-and-mortar stores.”
Once upon a time, Inditex was seen as the biggest and best innovator in apparel. Although it may have work to do online, it’s never quite lost that reputation – can it live up to it all over again?
Dominion holds Inditex in its Global Trends Luxury Fund.
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