Sara. ZARA is a subsidiary of Inditex Group (stock code ITX) established in Spain in 1975. It is both a clothing brand and a chain retail brand specializing in ZARA brand clothing. ZARA is the third largest clothing manufacturer in the world and the first in Spain, with more than 2,000 clothing chain stores in 87 countries.

ZARA’s first store was opened in La Coru?a, Spain in 1975. It currently has more than 1,900 stores in commercial centers in major cities in 87 markets around the world. On January 12, 2018, because Zara referred to Taiwan as a "country" on its website, the Shanghai Cyberspace Administration ordered it to immediately change the illegal content and publish an apology statement on the official website before 18:00 on the 12th (that day).

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In the first three quarters of 2018, Zara’s parent company Inditex Group’s revenue increased by 3% year-on-year to 18.4 billion euros, compared with 10% in the same period in 2017. Net profit increased by 4% year-on-year to 2.4 billion euros, compared with 6% in 2017.

In fact, Inditex has already shown signs of weak performance, and its gross profit has been declining since 2015. Affected by exchange rates and store rentals, net profit growth in the first half of 2018 was only 3%, compared with 11.5% in 2017.

In the December 2018 conference call, analysts were generally concerned about why Zara did not participate in the promotion. From September to December every year, merchants hold discounts and promotions, but Zara rarely participated in it in 2018. CEO Pablo Isla said that he does not participate in promotions and discounts because he is very confident in product quality, business model and execution capabilities.

Zara is the backbone of Inditex Group, accounting for more than two-thirds of its revenue. As of November 2019, Inditex Group has brands such as Bershka, Massimo Dutti, Zara Home, and Oysho, and has opened 7,442 stores in 96 countries and regions around the world, including more than 2,000 Zara stores.

On the surface, there is a conflict between Zara’s weak performance and the company’s management’s self-confidence. In fact, Zara is in a period of transformation. As the leader of fast fashion brands, how to break through the existing difficulties has reference significance for the entire industry.

People's Daily Online-Zara bids farewell to its golden era, how to break through in the fast fashion winter?

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