These are good times for #Zara and its owner, Inditex. The chain is one of the lucky few outside the luxury space whose customers stayed loyal even as prices rose and Shein steamrolled other fast-fashion retailers. Zara is investing in more stores to meet surging post-pandemic demand for physical retail, and has room to grow in the US, where its brand is well known but not yet ubiquitous.
So when Inditex reports first-half results on Wednesday, expect another sunny take on the global consumer, and probably a rosy outlook for the holiday season.
The future beyond that is murkier. Consumer appetite for fast fashion looks set to grow and grow. But regulators have cheap clothes in their sights. In July, the European Commission called fast fashion “highly unsustainable.” It is drafting some 16 pieces of legislation to force retailers to assume financial and legal responsibility for environmental footprint of the clothes they produce.
As results from Zara owner Inditex are likely to reflect rising sales, BoF explores the regulatory challenges that loom. #linkinbio
✍️ Brian Baskin
📷 Zara
#FastFashion
So when Inditex reports first-half results on Wednesday, expect another sunny take on the global consumer, and probably a rosy outlook for the holiday season.
The future beyond that is murkier. Consumer appetite for fast fashion looks set to grow and grow. But regulators have cheap clothes in their sights. In July, the European Commission called fast fashion “highly unsustainable.” It is drafting some 16 pieces of legislation to force retailers to assume financial and legal responsibility for environmental footprint of the clothes they produce.
As results from Zara owner Inditex are likely to reflect rising sales, BoF explores the regulatory challenges that loom. #linkinbio
✍️ Brian Baskin
📷 Zara
#FastFashion
