Zara launches recycled garments initiative in China
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Zara launches recycled garments initiative in China

The Chinese are pretty forward thinking, as far as consumerism goes. The country boasts a young, newly wealthy, middle class that has learnt all about luxury surprisingly quickly. They’ve embraced Ecommerce to a degree that is unparalleled in the west. They are environmentally conscious, with more than 70% professing to understand “sustainable consumption” according to a year-old report from the China Chain Store and Franchise Association. All this considered, it’s an understandable market for Inditex’s flagship brand, Zara, to launch a program that focuses on recycled garments.

Over the last three months, Inditex’s share price has risen by 13%

graph 2307 zara

SOURCE: Yahoo Finance

The service is an “at-home pick up” of recycled garments, and while it’s new to China, it’s not new worldwide. Inditex operates it nationwide in Spain, and a number of countries. It’s a central part of the company’s pledge to develop a “circular economy” within its business, and first appeared in 2016. To date, Inditex has been able to collect 25,000 garments across 21 markets. China could be fertile ground to quickly advance that number.

Inditex is also championing its digital strategies, with the company’s chairman and CEO, Pablo Isla, saying: “All of Inditex’s brands benefit from a robust integrated store and online platform. Last year, online sales already accounted for 12 per cent of the total in the 47 markets in which e-commerce platforms are available, representing annual growth of 41 per cent.”

This model, according to Isla, has enabled “sustained growth” alongside the creation of “economic, social, and environmental value.” Isla doesn’t plan to retire it anytime soon.


Dominion holds Inditex in its Global Trends Luxury Fund.

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