Thursday 22, Oct 2020, Delhi (India)
As the pandemic changes the psychology of consumer behavior, fashion giants also meander their sales and branding strategies to sell the latest fashion for women, men, and kids. Zara owned by Inditex will now boost its online sales; closing down about 1200 brick and mortar stores across the globe.
The fast-fashion brand in India and other parts of the globe- Europe, America, Australia, etc, Zara has given the fashion industry the latest fashion news that it is changing its strategy focusing more on online sales for showcasing its latest fashion for women over offline sales. With the closure of these stores, the store count would drop between 6000- 6700 respectively. It is expected that most of the closures would be in the European and Asian countries.
Although, during such times of layoffs, Zara has assured that the headcount would remain the same as profiles would be shifted to online selling, dispatching, and other E-Commerce sales profiles. As COVID 19 has dropped the sales of many fast fashion brands in India and internationally by 45% due to stores remaining closed, going and focusing more online seems the key to the new normal.
According to sources, currently, the online sales of Inditex account to about 14% which is expected to increase to 22% by 2022, after the execution of the same.
Zara is owned by Inditex, which is one of the largest fashion retailers in the world. Started in 1963, it was a family business of making the latest fashion for women, They expanded internationally post 1980’s after the success of their brand Zara.
They have a workforce of nearly 200,000 employees across the globe in brands Zara, Pull & Bear, Bershka, Stradivarius, Oysho, Zara Home, and Uterque. Founded by Amancio Ortega in Spain, it started as a workshop making dresses and opened its official first store, Zara, in 1975 making it the latest fashion news then, followed by another brand Bershka in 1998.
It was the first brand introduced and set into the market. Zara has had an interesting journey. From being established officially with a store in 1975, to expanding across the globe under Inditex in 1985. Zara has been the window for Inditex to the global market. Going on to France, Mexico, Greece, Belgium, Sweden and finally becoming a fast fashion brand in India in 2010.
Zara Home was Inditex’s first brand to go online in 2007 under zarahome.com, their online sales and journey began since then and now in 2020, they are with its thorough success and the global pandemic situation planning to focus more online taking another step into the changing digital world creating latest fashion news and more trends.