Inditex Confident on Long-term Rise in China

Published By : 10 Dec 2015 | Published By : QYRESEARCH

Inditex, the biggest fashion retailer and the owner of Zara (clothing Brand), has recently stated that it is confidant regarding its long-term development in China, even after the slowdown in the economy, as the demand for its products is still high and this trend is likely to continue in the coming years.

The Spanish company generates around 7% of its total revenue from China. Various Western brands Such as Hugo Boss and Burberry are facing severe challenges from the slowdown in Chinese economy, as it is directly affecting their demand. However, the mid-market brands such as Zara and Adidas have been doing well so far.

Mr. Pablo Isla, the Chief Executive Officer at Inditex stated on Dec 09th, 2015 that they don’t have any doubt on the voracious appetite for fashion that Chinese people have. Their brands are good and are very popular in China and hence, they are very optimistic on the progression of their brands over the next five years.

The company has initiated the Christmas season vigorously, as its current offerings permits it to acclimate better than its peers. The sales from November 1st, 2015 to December 3rd, 2015 saw an increment of 15% in Yuan but exhibited a slight decline in the same-store sales from the past 3 months. Analysts, however, are suggesting that it was a better-than-average performance.

In the 9 months that ended in October 2015, the net profit increased by a 5th to €2.02 bn (US$2.2 bn) on the sales volume up 16% to 14.7 bn.

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