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Inditex Plans to Roll Out Integrated Online and Store Model in China

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Inditex chairman and CEO Pablo Isla, met with Zhong Shan China International Trade representative on Thursday to restate Inditex’s pledge to work in a market that is an increasingly essential part of the Spanish fashion retailer’s business. Isla discussed with Zhong his plans to roll out its integrated online and store model throughout China. The group has now reached 500 locations in Greater China in over 60 cities.

Online sales in China are continuously growing and being supported with the alliance between Inditex and Alibaba Group’s online sales platform, Tmall.

In October, Inditex’s Zara brand opened an online store in Tmall, where over 100,000 brands including Gap and Nike currently do business. In China, Tmall trumps Amazon as the biggest e-tailer, coming in as No. 6 on Alexa’s list of most popular websites in China.

Prior to Zara’s joining Tmall, Isla explained that joining the site mimics the sales of opening a store in a shopping mall, and said the decision to move was in respect to China’s relevance to the company and Tmall’s relevance to China.

Inditex arrived in China in 2004 with the opening of a Zara store in Hong Kong, followed by Shanghai in 2006 and Beijing in 2007. By the end of the third quarter, the company had 469 stores in the market, 157 of which are Zara brand.

During his recent trip, Isla also met with Beijing mayor Wang An Shun to discuss expanding the company’s commercial presence in the city and emphasized the importance of implementing Inditex’s eco-efficient store model, which delivers energy and emission savings of over 30 percent compared to conventional stores. The company’s green stores are outfitted with the latest lighting, climate control and water consumption systems and all the building materials used (flooring, wood, paper, plastics, and other materials) are certified and fully recyclable.

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Filed Under: China, International Business, Retail Tagged With: Alibaba Group, China, e-commerce, Inditex, Shara Beitch, Sourcing Journal, TMall, Zara

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