Fashion trailblazer Zara defiantly confronts rivals Shein and Temu, commemorates its 50th anniversary.
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Gotta Love Zara: 50 Freakin' Years and Still Slaying the Game
By Camille Harel, Head of Large Consumption/Large Distribution
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Fifi, turtlenecks, and trendy accessories oh my! The legendary Spanish brand Zara, part of the Inditex family (Pull&Bear, Bershka, Massimo Dutti...), is turning 50 this year! It all started on May 9, 1975, in La Coruña, Spain, when Amancio Ortega - today Spain's wealthiest person with an eye-popping €67 billion - opened his first Zara store. Fast forward to today, and his daughter Marta Ortega Pérez, Inditex's non-executive president since 2022, runs a global fashion empire. This colossal empire encompasses an impressive 1,800 Zara stores in 96 countries, with nearly 300 in France alone.
And you thought the fashion world was going to crap with the dramatic rise of Shein and Temu? Pfft! Tuh! The cost-of-living crisis, inflation, and the ultra-fast fashion platforms are causing some retailers to shutter their doors. But not Zara! In 2024, it's projected to report results that'll make its competitors curl up in a ball and cry - €27.7 billion in sales, up 6.6%! Meanwhile, its Swedish competitor H&M is on life support, closing 94 stores and experiencing a 1% drop in sales.
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Speed, Stock, and Sizzle
What's the secret sauce to this fabulous success story? Zara's ability to keep things fresh and moving fast. It can whip up brand-spanking-new collections in just a couple of weeks, with 50% of its items now produced in Spain, Portugal, Morocco, and Turkey. With short ranges and limited stock (just 3%), Zara knows how to create a sense of urgency while keeping sales brisk. As Olivier Salomon, partner & managing director at Alix Partners, explains, "Zara has a magical touch—it can renew part of its offer rapidly, creating an allure of scarcity in consumers' minds."
Case in point: its capsule collections. After collaborating with Italian designer Stefano Pilati and Kate Moss last year, Zara dropped a men's capsule collection signed by British artist and designer Samuel Ross in January. It's also working with the hottest new talent on the fashion scene, Georgian sensation Beka Gvishiani!
But that's not all, Zara's got moves on multiple fronts! In 2003, it successfully danced into the home decor market with Zara Home. Then in 2021, it blended sports and style with the Athleticz line, and last November, it opened its first coffee shop in Madrid—Zacaffè.
Time to Party Like it's 1975
To celebrate its golden jubilee, Zara has pulled out all the stops. Photographer Steven Meisel, who's worked with luxury powerhouses like Chanel, Calvin Klein, Valentino, and Miu Miu, created a film for the occasion, featuring icons like Cindy Crawford, Linda Evangelista, Naomi Campbell, and Carla Bruni rocking iconic Zara pieces. The best part? You can snag some of these legendary items! The special anniversary collection is available for a couple of weeks on the brand's website and in select flagship stores, including the one on the Champs-Élysées in Paris. Choose from a black bustier top for €39.95, a blazer for €89.95, a satin long dress for €59.95, leather pants for €239, and leather strap shoes for €59.95.
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But here's a dampener on the party: the tariffs that US President Donald Trump plans to slap on all European imports. If implemented, these tariffs could take a bite out of fashion consumption in the US, Inditex's second-largest market after Spain.
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- In the realm of fashion-and-beauty and pop-culture, Zara continues to captivate audiences with its collaborations featuring celebrities like Samuel Ross and Beka Gvishiani, adding a unique flair to its competitive edge.
- The runaway success of Zara can be attributed to its quick turnaround time in producing new collections, driving demand with limited stock and short ranges, which create a sense of urgency among consumers.
- As Zara celebrates its 50th anniversary, it enters into another venture, this time in the entertainment industry, with a special collaboration with renowned photographer Steven Meisel, bringing together fashion, lifestyle, and entertainment, proving that the brand still reigns as a powerhouse in the industry.