Created from cotton extracted from other used jeans, Zara has launched a denim line ‘Denim from Denim’. This is the first collection of the brand using denim waste. Also Zara will start retailing Zara Home, though this fusion will not mean the closure of all Zara Home independent stores. In the last couple of months, the home line has added elements like sunglasses and phone cases, and reinforced its garment offer, limited up until now to sleepwear. Zara Home was the chain with the best performance in 2016. Competitors have been unable to fully replicate Inditex’s business model, which takes clothes from design to rack in weeks. However the crucial profitability metric has fallen somewhat in recent years. Zara’s growth is flagging because of heightened competition, which is forcing the company to lower prices of clothes and footwear and to put more apparel on sale. Growth in online sales is also chipping away at profitability, because it is more expensive to ship internet orders. Inditex, based in Spain, owns Zara and seven other brands such as Massimo Dutti and Bershka. The biggest contribution to Inditex’s revenue comes from Zara. This year Inditex has launched a new decorating service for restaurants, hotels and companies.
Zara has launched a denim line ‘Denim from Denim’
