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.



Hugo Boss Sees Broadly Stable 2025 Sales, Flags Muted Demand in 1st Quarter

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
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Hugo Boss Sees Broadly Stable 2025 Sales, Flags Muted Demand in 1st Quarter

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo

Hugo Boss said muted consumer sentiment was having an impact on its business in the current quarter as it forecast 2025 sales broadly in line with last year's level on Thursday.
The upmarket fashion company has sought to boost the popularity of its brand through selected marketing investments, while increasing profits by limiting costs, despite weakening consumer demand and a polarization of consumer preferences towards either high-end luxury or cheaper fast-fashion offers.
It sees annual sales development between a 2% decline and a 2% increase, to a range of 4.2 billion to 4.4 billion euros ($4.57 billion to $4.79 billion), following 3% growth to 4.3 billion euros in 2024, Reuters reported.
"Macroeconomic and geopolitical volatility remains high, weighing on consumer sentiment and impacting our business performance since the beginning of the year," CEO Daniel Grieder said in a statement.
Analysts had estimated annual sales of 4.26 billion euros for 2024 and 4.44 billion euros for 2025, a company-provided poll showed.
The Hugo Boss shares were up 3.8% in early Frankfurt trade despite the cautious comments, with Baader Helvea's analyst Volker Bosse pointing to a solid outlook for operating profit.
The company expects full-year earnings before interest and taxes (EBIT) to rise between 5% and 22%, coming in between 380 million and 440 million euros, compared to a 12% decline to 361 million euros last year.
At its midpoint, the guidance would imply EBIT of 410 million euros, against analysts' estimate of 414 million euros.
The company also said sales growth was "particularly robust" in the last three months of 2024, boosted by a successful holiday season.
Group sales were 1.25 billion euros in the fourth quarter, beating analysts' expectations of 1.20 billion euros, with currency-adjusted sales in the Americas region rising 8% helped by a high single-digit percent uptick in the key US market.
"Sales in China remained below the prior-year level, reflecting overall muted local consumer demand," it added.