Zara, the Inditex-owned (ITX.MC) fast-fashion retailer, opened a new Asia flagship store in Nanjing, China. Zara calls it a “new-style” store. The company is cutting underperforming shops globally and focusing on larger retail formats.
The Spanish company has integrated more digital elements. They have designed spaces to encourage shoppers to spend more time in the store. Zara will trial these features in China before considering expanding them to other markets.
The need to revitalize Zara’s retail network is clear in China. Multinational brands targeting Chinese middle-class consumers have faced pressure. A broader spending slowdown and increased competition from local brands are factors. Local brands have nimble domestic supply chains and strong digital presences.
The Zara store in Nanjing’s Xinjiekou spans two floors and measures 2,500 sq m (26,909 sq ft). It includes a salon for private shopping experiences, complete with a lounge area and personal change rooms.
The store also features a “fit check” studio with multiple cameras and lighting settings. Customers can shoot video content and download it to their phones directly. They can book both the salon and studio via WeChat.
The downstairs area has the first Zacaffe coffee shop concept outside of Spain.
Zara has experimented with new concepts in China before exporting them. Its popular livestreamed shopping shows on Douyin, the Chinese version of TikTok, led the brand to experiment with similar livestreams in Europe and the U.S. last year.
Inditex has been shrinking its global store footprint for years. They are optimizing selling space by focusing on flagship outlets in prime locations and increasing online sales.
In 2019, Inditex had 570 stores in China. It was their largest physical presence after Spain. As of January 31 this year, the number had fallen to 132.
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