Spain's Fast Fashion Brand Zara Britain's Market Revenue And Earnings Both Grow At A High Speed.

High street in England

When the industry continues to decline, "invaders"

But it's strong. Spain's fast fashion.

Britain's market revenue and earnings both grow at a high speed.

In the 2015 fiscal year ended January 31, 2016, the Zara market recorded a sales of 535 million pounds in the UK market, up 8% from the same period last year, while the pre tax profit rose 18.5%, from 49 million 200 thousand pounds in the 2014 fiscal year to 58 million 300 thousand pounds.

In the 2015 fiscal year, Zara UK paid 47 million dividends to the Spanish parent company, up 9.3% annually.

The strong performance of the UK market is another good news after Zara's strong performance in Australia.

Group Zara Australia 2015 revenue recorded a 222 million Australian dollar income, an increase of 24% over the previous year, net profit of 15 million 260 thousand Australian dollars, an increase of 49.6% over the same period last year.

At present, Zara UK is responsible for the former Zara Australia general manager I n Igo de Llano, who was pferred from Australia to the UK in 2015.

Behind the strong performance of Zara in the UK market is the decline of the overall market, which is trampled on the corpse of the British counterparts. Before that, because of the gradual loss of consumers, department store brand BHS and menswear brand Austin Reed went bankrupt, and BHS had a huge pension shortfall.

The decline of the high street market in the UK is mainly due to economic recession and deflation. On the other hand, the development of e-commerce and the intensification of competition from foreign brands can not be ignored.

In the hands of many competitors, Zara is undoubtedly the best. Its fast fashion mode has become a target of retail competition and business schools competing research, but its industry status can not be surpassed, especially in the current difficult retail environment.

Sanford C. Bernstein analyst Jamie Merriman said that Zara has the best business model, and the gap between its competitors and it will only widen.

She said that the Inditex SA India India Textile Group, from design to production to stores and final consumer terminals, has formed a virtuous cycle of focusing on full price sales, enabling the group to have the industry's leading profitability because of its superior customer loyalty and frequency of purchase.

Jamie Merriman also said that under the pressure of the development of the e-commerce industry, many retailers based on physical businesses were subjected to pressure of profits, shutting down stores or reducing the sales area. However, the development of Inditex SA Indo Textile Group is deeply affecting the development of e-commerce, and it is the most balanced retailer in many channels.

Zara's US competitor, Forever 21, is now facing Jamie difficulties as well as financial problems, as Jamie Merriman said.

On Wednesday, Zara parent Inditex SA (ITX.MC) India India Textile Group released its first quarter results for the first 2016 fiscal year in 2-4. The group maintained a rapid growth pace in the first quarter, and sales and profits both exceeded market expectations.

In the first quarter, Inditex SA, India and India Group achieved a net sales of 4 billion 879 million euros, up 11.5% from 4 billion 374 million euros a year ago, and increased 17% after excluding the exchange rate.

The two quarter results of the 2016 financial year of the group, the largest competitor of the group and H&M Hennes & Mauritz AB (HMb.ST), the second largest clothing retailer in the world, showed that the total sales of Hennes & Mauritz AB in the two quarter amounted to 46 billion 874 million krona, a 2.2% increase compared to the same period last year, while the sales of tax based sales were only 5% increase based on the local exchange rate.

Next PLC (NXT.L) has become the most profitable clothing group in the UK.

In the British home market, Zara's rival Marks & Spencer Group PLC (MKS.L), Marsha general store, M&S, and the same name clothing brand has been languishing for the past four or five years and its market share has been eroded. The new CEO Steve Rowe of the department store is currently undergoing a reform of the garment business in a thunderous attempt. However, its latest redevelopment plan has been hit by the market in a season and has been punished instantly in the open market.

In addition, Next PLC (NXT.L), which is strong in recent years and has jumped to be the most profitable clothing brand in the UK, is also facing downside risks.

The company lowered its annual forecast twice in 45 days.

Next PLC now expects annual sales growth to range from -3.5% to 3.5%, which was expected to be -1% to 4%, initially estimated at 1% to 6%.

Next PLC said the expected downward adjustment is based on concerns that domestic consumption may further slow down and the market's overall demand for clothing will decline.

Recently, with the British close to the EU referendum approach, the industry is worried that the British retail market will encounter further shocks in the future, and the specific impact of the referendum results still need to be observed for further assessment.

At present, in the UK market, the Irish / British brand Primark, which is superior to Zara, may only win the price. (Penneys)