ZARA Responds to Discount Stores in China

The fast-fashion giant zara, who has been on his own line, is stuck in the quagmire of “discount stores” in China and was exposed to open “authorized” discount stores in China in order to digest the inventory. Mario, a brand agent from Italy, stated that Zara’s parent company, Inditex’s Spanish headquarters, authorized it to open zara discount stores in China. However, the reporter called the inditex China to find out that he was unaware of the matter and had already been handed over to the company's legal department for follow-up action. The relevant person in charge of zara China also cleared up the relationship with this company in an interview with reporters. In addition, both Inditex and Zara China emphasized that their stores in China are direct sales stores and do not accept any form of affiliation and agency.

“Zara has always been low-key, so discount store investment does not have a great deal of action.” According to the head of the Mario company, discount store authorization issues are all responsible for the headquarters of inditex, and “authorized” discount stores will be run in parallel with Zara’s direct sales stores in China. It said that the Milan headquarters of the company had obtained authorization from inditex headquarters in October last year, and had started a cooperation program for "authorized" discount stores in China. At present, cooperation agreements have been signed with merchants in Guangxi, Zhoushan, Zhejiang and Yantai, Shandong.

The reporter learned from Mario's company that if the merchant pays a 50,000 Euro deposit, he can obtain exclusive regional licenses and can open branches within the contract area, not limited to the number of stores. At the same time, the authorized partner will be protected by the brand of Mario Ltd., guaranteeing that Zara will not open a regular-priced store in the area, and other businesses will not open discount stores. After obtaining the "authorization", Zara will sell inventory goods to partners at low prices. According to the "Zara Authorized Discount Store Rules" provided by Mario, the discount store must be located 70 kilometers away from the Zara authentic store, and the zara door cannot be hung, but the store layout can be exactly the same as that of the zara store, and the corresponding inditex can also be used. Group logo. At the same time, all discounted merchandise cannot be sold on the Internet. This condition makes its discount stores generally open only in the second and third tier cities.

According to the above-mentioned head of Mario, the authorized party can sell mixed stocks of zara and inditex's massimo dutti, pull and bear, and bershka brands in discount stores. The wholesale price of these brands is 45 yuan/piece. It is understood that massimo dutti is a high-end sister brand of zara, priced at around $1,000. Bershka and pull and bear also belong to Inditex, single product prices in the hundred or so. Previously, a company named Zhiji International Trading (Hong Kong) Co., Ltd. also claimed to cooperate with Zara's Spanish headquarters to open discount stores in China.

A person close to Zara revealed that Zara's product update cycle is generally more than 10 days, and it can even be reached once a week at the fastest, but at present, most Zara stores in China are still unable to do so. According to the forecasts of the head of Mario, if inditex's stock is sold in China, there should be no problem opening more than 20 discount stores. According to Margaret, an independent clothing commentator, after inditex had digested inventory, he had set up discounties lefties in Portugal and other countries. However, this news was not confirmed by inditex.