Zara, The World'S Largest Fashion Retailer, Is Hitting The Chinese Consumer Market.

The largest fashion retailer in the world.

It is optimistic about China's long-term growth and has not been affected by the economic slowdown because of its strong demand for parity products.

The Spanish Inditex group, which owns Zara chain stores, is the world's largest fashion.

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It is optimistic about China's long-term growth and has not been affected by the economic slowdown because of its strong demand for parity products.

Inditex's Zara brand launched a minimalist straight cut garment this season. Its boots and trousers are in a soft color and is very popular with shoppers.

Analysts estimate that the Chinese market accounts for about 7% of Inditex sales.

The cooling of demand in China has had an adverse effect on Western luxury brands such as Boboli and Hugo Boss, while mid-range brands such as Adidas and Zara have performed better.

In December 10th, Inditex CEO Pablo Isla told analysts: "the fashion demand in the Chinese market is huge, and our brand is becoming more and more famous in China.

We still feel optimistic about the situation in the next five years.

The group started a good Christmas season this year, and its current products made it more responsive to changes in its environment than its competitors.

According to local currency, sales of Inditex increased by 15% on -12 3 November 1st, that is, same store sales fell slightly over the previous three months.

However, analysts pointed out that Top Shop and other competitors began to slow down in the Christmas season under the influence of warm weather, so Inditex's performance remained strong.

Anne Ke Li Chi, an analyst at Societe Generale, said: "it can be said that after the fourth quarter, the performance of Inditex is as good as that in the three quarter."

In the 2-10 months of this year, the group's net profit increased by 20% to 2 billion 20 million euros (2 billion 200 million dollars), and sales increased 14 billion 700 million euros to 16%.

Isla revealed that Zara Home, Bershka and Stradivarius are relatively new.

It was particularly good.

As a matter of concern

Index, Inditex's gross profit margin was 58.8%, slightly down, because the strong dollar raised Asian clothing prices, but it had a greater impact on Inditex competitors.

Inditex has increased the volume of purchases in Europe and the surrounding area, which helps the company to adapt to changes in fashion tastes faster and quickly launch new products.

Inditex's share price has risen by 37% since the beginning of this year.

When I wrote this article, the stock price fell by 1.5%, while the European retail sector fell by 0.7%.

Many market watchers have pointed out that Inditex valuation is on the high side.

Reuters data show that the company's share price is expected to be 34 times earnings per share in 2016, while its competitor Hennes&Mauritz has a P / E ratio of 24 times.