On April 9th, it was reported by the media that Zara, a leader in the fast fashion sector, has long been scrutinized for its market strategy and performance in China.
Recently, there has been widespread attention on rumors of Zara closing many stores in multiple Chinese cities, with some even speculating about Zara gradually withdrawing from the Chinese market. However, according to statements from Zara staff, there is currently no indication that Zara will exit the Chinese market.
Indeed, the number of Zara stores in the Chinese market has decreased. For example, on April 2nd, the Baoshan store in Shanghai was closed, and on March 31st, stores in Dongguan and Huizhou were also shut down. These measures have reduced the number of stores currently in operation to 87.
Meanwhile, according to Inditex's financial reports, the global number of Zara stores has decreased by a net of 74 over the past year.
Nevertheless, Zara's performance in China has not shown a complete downward trend. In fact, according to financial reports released by its parent company, the Inditex Group, Zara's sales for the 2023 fiscal year increased by 10.4% year-on-year, with a 30.3% increase in net profit. This indicates that Zara still maintains a certain level of competitiveness and market share in the Chinese market.
Additionally, it's worth noting that Zara's founder, Amancio Ortega, has seen an increase in his ranking on the Forbes Global Billionaires list, now ranked 12th with a fortune of $111.2 billion. This also indirectly reflects the value and influence of the Zara brand.
