Zara'S Parent Company Changed Its Marketing Strategy In The First Half Of The Year, Earning More Than Ten Billion Yuan.

According to the world clothing and shoe net, 2017Zara's parent company Inditex said that its net profit in the first half of the year increased by 11.5% to 1 billion 370 million euros (10 billion 800 million yuan), and its sales volume increased by 9% over the same period last year, up 6% from the previous quarter.

Pablo Isala, President of Inditex, said that the gratifying market performance in the first half of 2017 was due to the strong and sustainable online and offline integrated retail mode.

In recent years, all the brands of Inditex are in the market.

As of June this year, the number of stores covering 35 countries and regions in the world has 7405, 113 more than the beginning of this year, and the speed of expansion is obvious.

Inditex also has a lot of expenses for brand development, and it is estimated that the relevant expenditure in the first half of 2017 reached 1 billion 500 million euros (about 11 billion 700 million yuan).

In addition to opening new shops, renovate old stores, updating and adding modern facilities, it also includes improving logistics platforms.

In order to enhance shopping experience, streamline shopping processes and increase logistics efficiency, Inditex has invested in high-tech facilities for stores and logistics.

For example, Zara has barcode recognition function in the automatic ordering machine inside Marineda store in Spain, which can scan two-dimensional code and PIN code.

In just a few seconds, the system can send the order data to a mailbox platform. After receiving the information, the platform will process the order by the automatic machine. The machine with a height of 8 meters and 2.5 meters can carry 700 packages at the same time.

New large stores in the region are also quite conspicuous.

For example, in the second quarter of this year, Zara in Mumbai, India, located in the long history of the Ishmael building, opened a 4800 square meters flagship store; in May this year, Zara's home brand Zara Home landed on Shanghai Nanjing road; in Japan, the "pparent" glass Nagoya flagship store in Zara was renovated and expanded just last month, and now its area is as high as 2300 square meters, with a total of 3 floors. In Tokyo, another flagship store, which is also part of Inditex group, is opened in Shibuya this month, with a total of 4 floors of up to 690 square meters.

Integrated retail mode helped Inditex open new stores in Mara Thea, Singapore, Thailand and Vietnam in the first quarter of this year.

At present, 46 of Inditex's 94 markets in the world have network sales platforms.

In October 4th, online stores will visit India.

In addition, Inditex's online shopping platform for women's underwear brand Oysho has been opened in South Korea.

The online shop has also been opened in Japan.

But Inditex group can not rest easy.

The gross profit margin of the group dropped to 54.8% in the second quarter, another fall after the lowest data in 57% years in the 2016 fiscal year.

Anne Critchlow, an analyst at Societe Generale, pointed out that a further decline in gross margin would affect the market performance of the group, especially in the second half of the year.

"The market has realized that the euro exchange rate exerts enormous pressure on sales."

She said.

Previously,

In the 2016 fiscal year, the gross margin rate dropped to 57%, which was the lowest in 8 years.

Although total sales fell by 3%, according to Pablo Isala, the gross margins of the group continued to rise, excluding currency factors.

For Inditex, good sales and adequate cash reserves are the best way to resist exchange rate fluctuations. Therefore, Inditex is still competitive compared with other fast fashion companies.

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