Zara Encountered New Troubles: The Walls Outside The Walls Were No Longer Fragrant.

The days of fast fashion brands are no longer good.

For the Zara parent company Inditex, the growth bottleneck that has been discussed for a long time has now come to the bottom: the Spanish National Securities Market Committee said that the growth rate of the Spanish domestic market of Zara parent Inditex is declining, which has begun to drag the overall growth of the group's performance.

According to fashion news website Fashion Network, Spain's national securities market committee confirmed that Inditex's performance in Spain has been on the decline since 2015.

In 2018, the group's revenue growth in Spain was 3%, compared with 4% in 2017 and 6.2% in 2016.

In 2015, the group's performance reached a record high and its performance in Spain also increased by 8%.

Before that, Inditex has been questioned by many parties about its commercial potential because of the overall slowdown.

In March 13, 2019, Inditex released its group's 2018 financial year performance report.

The report shows that Inditex's net sales in the global performance group rose 3% to 26 billion 140 million euros, the first time it exceeded 26 billion euros, and the group's gross profit in the 2018 fiscal year rose 4% to 14 billion 800 million euros; the profit before interest tax depreciation amortization increased 3% to 5 billion 460 million euros compared with the previous year, and net profit rose 2% to 3 billion 440 million euros compared with the previous year.

This makes even group CEO Pablo Isla stress that "the group is more dynamic than ever before, but investors are still worried about the future of the group."

The group's share price fell more than 4% on the day of its earnings announcement.

Investment institutions such as Morgan Stanley, Credit Suisse and berlberg have held a negative attitude towards the growth prospects of Inditex. They believe that the company has entered a mature period and is no longer a high growth company.

In fact, the weak growth of Inditex in the Spanish domestic market is comparable to the fact that the group is betting its future growth on the online channel - Inditex plans to cover the world through online channels by 2020.

Isla has revealed that over the past 5 years, the group's total investment in online channels has exceeded 7 billion 700 million euros, of which 1 billion 500 million euros has been designated for upgrading technology and logistics.

Take group head brand ZARA as an example, in November 2018, ZARA launched online shopping channels in 106 markets at one go.

In the 2018 fiscal year, the number of ZARA online markets has increased to 202.

Isla also mentioned in the aforementioned earnings report that "the pition to Inditex in 2018 is the key year".

This is why he thinks that it is a good thing to maintain the current profit performance after the company has made some important investments.

For the whole fast fashion industry, the performance and pformation attempt of the industry leader Inditex has the significance of the vane.

In addition to its own problems and its unfriendly relationship with the environment, Inditex's revenue growth slows down. The early frenzied shop and consumer awareness of environmental protection have made fast fashion brands no longer popular as early as two years ago.

And when Inditex is also weak in its most mature Spanish local market, participants in the industry should be vigilant.

This is why, whether it is for its own rainy day, or unwilling to be too far away from the competitors on the track, many fast fashion brands are all on the overweight line to prepare for the new round of war.