Revenue At Inditex, The Spanish Parent Of Zara, Rose 12% In The First Nine Months

Revenue at Inditex, the Spanish parent of Zara, rose 12% in the first nine months

Spanish retail giant Inditex, the parent company of Zara, released its results for the three quarters ending October 31. Inditex's net income for the previous nine months rose 12 per cent to €2.7bn from €2.4bn in 2018; Sales rose 7.5 percent to 19.8 billion euros; The gross margin is 58.2%. Pablo Isla, executive chairman of Inditex group, said the growth was driven by product innovation under Inditex brands and the high quality service and experience provided by its online and offline stores supported by digital technology.

Although like many consumer brands, the Zara also in several regions in the world opened the electric business channels, expand the scale of the brands of electrical business, but in the past 40 years, Zara once stuck to zero advertising strategy, it is because the founder ortega think, rather than spending money on media publicity and marketing campaigns, he prefer to open more stores with profit income.

The Zara founders never take the time to predict what will be popular in the future, focusing only on what is currently popular. After the emergence of popular styles, Zara only needs 4 days to complete the product layout design and 4 hours to complete the proofing. For other companies, it takes as long as 9 months from design to new product development, while at Zara, it only takes 2 weeks to complete.

So far, Zara has opened more than 7,000 stores worldwide, generating revenue of 26.1 billion euros and net profit of 3.4 billion euros (26.2 billion yuan) in 2018.