The world of retail is changing and companies must adapt
Sometimes, they have real "lucky shots" that help to achieve the goal
Zara had it with a US $ 49.99 polka dot dress that is so popular that everyone wants to wear it
The retail world is in trouble in the world and Zara knows it. New consumer buying trends, the rise of online sites and fears of a recession resulting from the US-China trade war have cooled the market, at least in most countries.
In that context, retailers from all sectors move, including the giants of the fast fashion, as Zara (Inditex), H&M and Forever 21, for example.
However, always there are surprises in the business world And sometimes they are positive for brands.
Let's look at the case of Zara and the polka dot dress That is a sensation in Europe, especially in Spain, where Inditex has most of its annual sales.
Indeed, Inditex reported a 7% increase in sales and “analysts point out that the polka dot dress was key for the world's largest clothing retailer to resist the difficulties of the global retail market, ”published Financial Times.
That's right, according to the company's report, the Spanish group generated US $ 14,000 million in sales in the first semester thanks to the fact that sales increased 5% and gross profits 7%, to US $ 8,035 million. Earnings, before interest, taxes, depreciation and amortization, increased by 8%.
New markets for Zara
It was a semester in which Zara landed in other markets with its site (zara.com). He did it in Brazil last March, and then in Saudi Arabia, United Arab Emirates and Morocco.
“The polka dot dress that has a sale price of $ 49.99 It was so popular that he opened his own Instagram account. Users say that it is comfortable and easy to use, adapts to the different shapes of the bodies, and that it can be used on the beach, at weddings or at work, ”says the English media.
Apparently, it became a must. So much, that he received the cult status and sold out at points of sale.
There was something strange: people did not worry that they all looked the same in the same dress, on the contrary, They understand that they are "part of a club."
See this post on Instagram
Inditex's strategy to open more physical stores in so many new markets seems to go against what the industry is doing, especially because of the increase in commercial rates and salaries, which push with the rise in expenses.
However, this would not be a problem, for now, for the Spanish company.