Fashion Zara plagiarism pays big losses in the UK suffered huge losses

ZaraUK (Zara UK), a subsidiary of the Spanish fashion giant Inditex Group, fell all the way last year. The huge amount of traffic and purchasing power does not seem to make people believe that even clothing brands that are so popular with people around the world are facing a potential crisis. Indeed, last year Zara's Inditex Group suffered a pre-tax loss of up to 20 million pounds in the UK, and only received a weak profit of 4.5 million pounds, which was a lot less than the same period of last year.

According to the data provided by CompaniesHouse, last year Zara’s group had an increase of up to 16% in overall sales. This was mainly due to the large scale expansion of the Group's store last year, including Zara's flagship store in Westfield, London, and the Massimo Dutti flagship store in London's Oxford Street and the first Pulland Bear store on Oxford Street. There are as many as 63 sister brands. Of course, Zara has not invested less in the re-beautification and functionalization of the store, attracting more customers. However, the gross profit margin has dropped from 58.3% to 51.5%, which is actually a big change for a large garment company, and this is mainly related to changes in the exchange rate under the influence of the financial crisis. Relevant representatives of Zara said: “In 2009, the overall retail trade situation in the UK was very difficult and not very stable, and clothing was like a roller coaster and it was never able to keep up with changes in the consumer environment and consumer mindset, and consumer confidence declined. Less.” However, Zara still insists on the constant improvement of brand image in such a negative environment, and still does not disappoint consumers.

In China, Zara has been welcomed by white-collar workers and fashion-loving young people because its international background and brand characteristics are not comparable to other low-end clothing brands. Therefore, Zara's sales in China are in an ideal state. . In the United Kingdom, mid-end brands such as NEXT, H&M, and GAP are in the same market level as Zara, and their scale is comparable. Therefore, Zara’s competitiveness in the UK apparel market is slightly lacking, which may also be the result of Zara’s performance in the UK. One reason for slipping.

However, one thing must not be overlooked, that is, Zara's huge amount of compensation for plagiarizing big names every year makes the company's profitability greatly threatened. However, it seems that the main reason why consumers favor Zara is its high ability to impress brand-name products. So does Zara continue to carry the fine of one year and continue to plagiarize new products on T station, or is it necessary to reform its own design team to carry out a product transformation? In the end, what is the status of this growing Spanish clothing group?