Zara Is One Of The Most Efficient Retailers In China's Retail Industry.

The more the economy is, the less powerful it is.

Is it more prosperous?

The world economy is bleak, Europe.

In the pending background, the unemployment rate in Spain at the center of the storm is as high as 20%. However, the Inditex group, the parent company of Zara, has not been greatly affected. Its founder, Amancio Ortega, 76, has even become one of the few "beneficiaries" in this global crisis.

According to Bloomberg billionaire index, Inditex group's stock price has risen 32% this year, and Ortega's business has soared by 11 billion 400 million dollars, which is worth 46 billion 600 million dollars.

Buffett, a stock god, became the world's third richest man ($45 billion 700 million).

Ortega was not the only one who got promoted.

In the Asian market, including China, for the first half of the year, the growth trend of retail sales in the whole year was weak, and the "Asian engine" that even drove the growth of luxury goods industry began to be powerless.

Zara is still on the road in China. It has been crowned as king of fast fashion, king of retail gold absorption and even King of Hongkong.

In central Hongkong, one of the most expensive commercial rentals in the world, Zara has just decided to drive away its old rival H&M, which has taken about two square meters of rent, that is, the price of HK $10 million 920 thousand per month, which has taken about 2800 square meters of shops. The highest monthly rent in Central has been HK $7 million of A&F, and Zara has overhaughten this record.

It is estimated that Zara will sell 5 pieces worth HK $300 per minute to maintain profitability at this level of rent.

The bottom line of Zara is that it has been one of the highest retail outlets in China's retail sector (average annual sales per square meter), with an average of 4179 euros, 4 times that of domestic apparel companies.

And Zara is willing to invest so much, because in Ortega's eyes, China is still one of the engines of Zara's high growth.

In the past earnings conference, he announced that Inditex's 8 brands now have 275 stores in China and will continue to expand rapidly in China this year.

The sales volume of the entire Chinese market even surpassed that of the US market. In the first 5 months of this year, Zara opened 11 new stores in China, far exceeding 4 in the same period last year.

Driven by the Chinese market, Inditex group achieved a net profit of 432 million euros in the 2~4 quarter of this year, an increase of 30% over the same period last year, which is the 12 consecutive quarter of the group's growth.

Now, Zara also wants to launch online stores in China this autumn.

You know, since Zara launched online stores in Europe in September 2010, online sales have exceeded the performance of its best physical stores. In the European market, the daily turnover of Zara online stores is up to 500 thousand euro ~60, almost 3 times the average of a physical store.

Introducing online stores to China, Zara can test the three or four line market, which includes a large number of Midwestern cities, which is not the focus of Zara stores.

It's not just Zara.

Since the beginning of this year, some of the fast fashion companies, including H&M and UNIQLO, are still able to maintain strong growth of two digits.

Last year, Lang Xianping, a famous economist, predicted that China's consumption will be M shaped in the future, which means that more than 80% of the consumers are mainly concentrated in the low-end areas, while the other 20% will concentrate on high-end luxury goods consumption.

And the fast fashion brands represented by Zara will obviously be the beneficiaries of this trend.