After China, Zara Expands Live Shopping Experiment to Europe, US

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
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After China, Zara Expands Live Shopping Experiment to Europe, US

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)

Zara will expand its live shopping broadcasts to the UK, Europe and the United States this year, testing a format that is already wildly popular in China but one with which Western shoppers are less familiar.

The fast-fashion brand, whose parent Inditex reports quarterly results on Wednesday, is investing in new ways to engage shoppers as analysts expect sales to grow less strongly after an extraordinary post-pandemic surge.

Five-hour long live shopping shows in China, broadcast weekly on Douyin, TikTok's Chinese sister site, have helped boost Zara's sales since they launched in November, according to retail analytics firm EDITED, Reuters reported.

"We want to take this to the Western countries, where livestream is not as popular...but we think why not – from an entertainment perspective this is like an evolution," said a Zara spokesperson for the initiative, which is expected to launch between August and October.

Shopping as entertainment isn't new - TV shopping channels where viewers phoned in to buy featured products were popular for decades - but social media and ecommerce have triggered a new era of livestreaming, led by China where influencers sell everything from cosmetics to snacks at a frenetic pace.

Brands looking to create a more rarified experience have sought to do live shopping differently.

Zara's show on Douyin features Chinese models wearing Zara dresses, trying on shoes and jewellery. It also includes catwalk sequences and "backstage" make-up shots, while its conversational, leisurely style is in contrast to the hard-sell livestreams that hosts like "Lipstick King" Li Jiaqi are famous for.

A team of 70 people works on the live show, which is streamed from a 1,000-square metre space in Shanghai, switching angles between seven cameras, Zara said. On average, it attracts around 800,000 unique viewers per show.

"Zara's livestream approach built significant brand awareness in China," EDITED analyst Krista Corrigan said.

Zara sold out of most sizes in 50% more products in China in the first three months of this year than in the same period of 2023, according to EDITED data.

The livestream also allows Zara to reach shoppers even as its physical presence in China has shrunk from 570 stores in 2019 to just 192 as of Jan. 31 this year.



Zara Owner Inditex Meets Quarterly Sales Forecast but Recent Sales Slow

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
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Zara Owner Inditex Meets Quarterly Sales Forecast but Recent Sales Slow

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. (Reuters)

Zara owner Inditex on Wednesday reported sales for its fourth quarter ending January 31 in line with analysts' expectations, sealing another year of strong growth for the world's biggest listed fast-fashion retailer.
Inditex's first quarter started more slowly, though, with sales up just 4% in currency-neutral terms over the February 1 to March 10 period, compared to 11% growth a year ago, Reuters said.
Sales grew 10.5% in currency-neutral terms, to 38.6 billion euros ($42.07 billion) for the year, Inditex said, as fourth-quarter sales came in at 11.2 billion euros.
"The main concern will be a softer exit rate of 4%" compared to analysts' forecast of 8.8% growth for the first quarter, Bernstein analyst William Woods said. "This requires a significant acceleration in the rest of the quarter," Woods said, noting Inditex said sales in its most recent week were up 7%.
Zara's growth may have been boosted recently by consumers shifting from more high-end brands to Zara during the cost-of-living crisis, and that trading down might not happen to the same extent in the coming years, said Morningstar analyst Jelena Sokolova.
In comments on its 2025 outlook, Inditex said it had a "strong commitment to profitable growth" after net profit for 2024 grew 9% to 5.9 billion euros.
"The excellent sales and profit figures show the solidity of the Inditex Group's profitable growth," Chief Executive Officer Oscar Garcia Maceiras said in a statement.
Inditex, which also owns Bershka, Pull&Bear, Massimo Dutti, Stradivarius, and Oysho brands, said it would hike its dividend by 9% to 1.68 euros per share.
Inditex's consistent growth, outpacing rivals, such as H&M, has driven a strong run in its share price, which is now more than double of where it was three years ago, but the stock has struggled to gain further ground since September last year.
Inditex plans capital spending of 1.8 billion euros this year, unchanged from 2024, as it invests in store refurbishments, technology and improving its online platforms.
After investments in logistics and expanding warehouses, Inditex said a second distribution center in its logistics hub of Zaragoza will open this summer.
The retailer, which operates in 214 markets around the world, plans to open its first stores in Iraq this year. Its brand aimed at younger shoppers, Bershka, will launch in Sweden, and sportswear and loungewear brand Oysho is set to open for the first time in the Netherlands and Germany.