Inditex, the parent company of Zara, has embarked on a strategic move to expand its low-priced brand Lefties in response to the growing presence of the Chinese-founded rival Shein.

Shein's rapid growth in the online marketplace has put pressure on major retailers like Inditex and H&amp;M to devise strategies to tackle its competitive edge.

Once a leader in fast fashion,&nbsp;Zara has faced challenges in maintaining its competitive pricing due to Inditex's price hikes aimed at safeguarding profit margins amidst inflation and targeting more upscale clientele.

However, Inditex is quietly strengthening its budget-friendly offerings, with the expansion of Lefties being a pivotal aspect of this strategy.&nbsp;

Lefties, originally conceived as an outlet for Zara's excess inventory, has evolved into a brand selling jeans for as low as $19.48, dresses starting from $8.65, and handbags priced at $6.48.

The expansion of Lefties extends beyond its origins, with stores now present in 17 countries, including emerging markets like Egypt, Mexico, Romania, and Saudi Arabia.&nbsp;

This strategic move signals Inditex's commitment to catering to consumers seeking value-oriented options, a market segment that Lefties aims to capture amidst the competitive landscape dominated by Shein.

Lefties' growth trajectory has been particularly noteworthy in Spain and Portugal, where it has attracted a significant customer base.

Lefties has witnessed a substantial increase in customer numbers in&nbsp;Spain, reaching close to 5 million, just behind Shein's estimated 5.2 million customers.&nbsp;

This trend underscores Inditex's ambition to diversify its consumer base and tap into market segments that may prefer more affordable options, compared to Zara's offerings.

The competition posed by Shein has prompted discussions within Inditex management regarding strategies to effectively compete against the fast-growing online retailer.

While Shein remains unlisted, its significant market share, estimated at 18 per cent by Coresight Research, emphasises the need for Inditex to devise innovative approaches to maintain its competitive edge.

Inditex's decision to keep Lefties' financial results private reflects a cautious approach aimed at allowing the brand to reach critical mass and profitability without undue pressure from competitors.

Lefties is focusing on providing a robust online service and leveraging its low-cost segment. By doing so, it aims to establish itself as a formidable player in the fast fashion market, particularly in regions where competitors like Shein face delivery challenges or lack home delivery options.&nbsp;

(With inputs from Reuters)

Inditex, the parent company of Zara, has embarked on a strategic move to expand its low-priced brand Lefties in response to the growing presence of the Chinese-founded rival Shein.

Inditex, the parent company of Zara, has embarked on a strategic move to expand its low-priced brand Lefties in response to the growing presence of the Chinese-founded rival Shein. Shein's rapid growth in the online marketplace has put pressure on major retailers like Inditex and H&M to devise strategies to tackle its competitive edge. Once a leader in fast fashion, Zara has faced challenges in maintaining its competitive pricing due to Inditex's price hikes aimed at safeguarding profit margins amidst inflation and targeting more upscale clientele. However, Inditex is quietly strengthening its budget-friendly offerings, with the expansion of Lefties being a pivotal aspect of this strategy. Lefties, originally conceived as an outlet for Zara's excess inventory, has evolved into a brand selling jeans for as low as $19.48, dresses starting from $8.65, and handbags priced at $6.48. The expansion of Lefties extends beyond its origins, with stores now present in 17 countries, including emerging markets like Egypt, Mexico, Romania, and Saudi Arabia. This strategic move signals Inditex's commitment to catering to consumers seeking value-oriented options, a market segment that Lefties aims to capture amidst the competitive landscape dominated by Shein. Lefties' growth trajectory has been particularly noteworthy in Spain and Portugal, where it has attracted a significant customer base. Lefties has witnessed a substantial increase in customer numbers in Spain, reaching close to 5 million, just behind Shein's estimated 5.2 million customers. This trend underscores Inditex's ambition to diversify its consumer base and tap into market segments that may prefer more affordable options, compared to Zara's offerings. The competition posed by Shein has prompted discussions within Inditex management regarding strategies to effectively compete against the fast-growing online retailer. While Shein remains unlisted, its significant market share, estimated at 18 per cent by Coresight Research, emphasises the need for Inditex to devise innovative approaches to maintain its competitive edge. Inditex's decision to keep Lefties' financial results private reflects a cautious approach aimed at allowing the brand to reach critical mass and profitability without undue pressure from competitors. Lefties is focusing on providing a robust online service and leveraging its low-cost segment. By doing so, it aims to establish itself as a formidable player in the fast fashion market, particularly in regions where competitors like Shein face delivery challenges or lack home delivery options. (With inputs from Reuters)

Inditex to expand 'Lefties' to counter competition from Shein

Inditex SA, the Spanish owner of the clothing brand Zara is currently facing two days of strikes in its region when the unions and management failed to reach a settlement. Spain is the largest market for Inditex.&nbsp;

Nearly 11 shops in the Galician province were closed on Thursday (Nov 24) as workers refused&nbsp;to work. The strikes have affected Bershka, Stradivarius, Pull&amp;Bear, Massimo Dutti and Oysho brands along with impacting the Black Friday sales, being one of the important days for retailers, Bloomberg reported.&nbsp;

<a href="https://www.wionews.com/world/as-inflation-soars-to-41-year-high-of-111-uk-nurses-union-announces-its-first-strike-in-106-years-537248">Also read |&nbsp;British nurses to go on strike for two days in December over pay dispute</a>

The Confederacion Intersindical Galega union stated that nearly 44 stores across Inditex's brands including the Zara store are expected to close on Friday as a result of the strikes.&nbsp;

The strike demonstrates rising demands for salary rises from Spanish employees in the face of rising prices. The workers demanded a €440 ($458) salary raise.

<a href="https://www.wionews.com/world/us-largest-rail-union-rejects-biden-administration-labour-deal-what-could-happen-next-536243">Also read |&nbsp;US: Largest rail union rejects Biden administration labour deal. What could happen next?</a>

Last week, Inditex met trade unions and maintained its request to boost monthly compensation by €182 ($189.8). After the negotiations collapsed, the retailer negotiated an agreement with UGT and CCOO, two additional unions, providing a one-time incentive of up to €1,000 ($1,042) for workers to stores that meet their sales targets.

The CIG and local UGT members have chosen to continue the strikes. &nbsp;&nbsp;

Despite the surging cost-of-living problems, the Spanish company was able to record its highest profit margins in seven years.&nbsp;

(With inputs from agencies)

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Inditex SA, the Spanish owner of the clothing brand Zara is currently facing two days of strikes in its region when the unions and management failed to reach a settlement.

Inditex SA, the Spanish owner of the clothing brand Zara is currently facing two days of strikes in its region when the unions and management failed to reach a settlement. Spain is the largest market for Inditex. Nearly 11 shops in the Galician province were closed on Thursday (Nov 24) as workers refused to work. The strikes have affected Bershka, Stradivarius, Pull&Bear, Massimo Dutti and Oysho brands along with impacting the Black Friday sales, being one of the important days for retailers, Bloomberg reported. Also read | British nurses to go on strike for two days in December over pay dispute The Confederacion Intersindical Galega union stated that nearly 44 stores across Inditex's brands including the Zara store are expected to close on Friday as a result of the strikes. The strike demonstrates rising demands for salary rises from Spanish employees in the face of rising prices. The workers demanded a €440 ($458) salary raise. Also read | US: Largest rail union rejects Biden administration labour deal. What could happen next? Last week, Inditex met trade unions and maintained its request to boost monthly compensation by €182 ($189.8). After the negotiations collapsed, the retailer negotiated an agreement with UGT and CCOO, two additional unions, providing a one-time incentive of up to €1,000 ($1,042) for workers to stores that meet their sales targets. The CIG and local UGT members have chosen to continue the strikes. Despite the surging cost-of-living problems, the Spanish company was able to record its highest profit margins in seven years. (With inputs from agencies) WATCH WION LIVE HERE

Inditex, Zara's Spanish owner, faces workers' strike over demand for more pay

Fashion giant Zara's owner Inditex has reported an 80% jump in first-quarter profit on the back of soaring sales as consumers refreshed their wardrobes after months spent stuck at home during the pandemic lockdowns.

Zara owner Inditex bucks retail trend, gross margin at 10-year high

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