Salient points
- Inditex, Zara’s parent company, recorded its slowest growth in sales in India in the tax year 2025, with a growth of revenues lower than percent, compared to an increase of 8% of the previous year.
- Although it is facing challenges such as the high inflation that affect consumers’ expenditure, Zara continues to gain traction in level 2 and level 3 markets in India, according to P Venkatesalu, CEO of Trent Limited.
- Inditex holds an option called to acquire a 35% participation in Inditex Trent Retail and a 49% participation in Massimo Dutti India of Tata Trent of Tata Group, although no specific period has been provided for the exercise of the option.
Spain Inditex, the owner of the Zara fashion brand, saw his growing growth in the slowest sales in India, excluding the pandemic year, in the year 25 while the largest fashion group in the world has faced a growing competition from global rivals in the clothing market that is increasingly cluttered.Inditex Trent, his joint venture with nanny that manages 23 Zara stores in India, has seen a growth in revenues of less than one percent at RS 2,782 Crore The last budget, down 8% of a growth of a year ago, according to the annual report of Trent. A year ago, he had sales of RS 2771 Crore. Net profit, however, increased to RS 299 crores, an increase of 23%.
Zara had a success since her arrival in the country more than a decade ago, but after initially doubled sales every two years, the brand’s expansion rate had decreased in recent years.”Exercise 25 was once again a relatively demanding year for retail sale in India. Consumers had to face more contrary winds, including high levels of inflation that influenced discretionary expenses. However, our brands continued to obtain an encouraging traction, even in different level 3 geographies and levels that we have entered”, P Venkatesalu, CEO of Trent, said in the relationship.
Trent who runs to the west has shifted attention to his low -price quick -price fashion brand, taking the total count of the shops at 765 doors. Trent also has a separate association with the Inditex group to manage Massimo Dutti stores in India. The entity saw the revenues slightly fall to RS 100 crores in Fy25, compared to RS101 of a year ago.
Being the second most popular country in the world, India is an attractive market for clothing brands, in particular with young people who embrace more and more western clothing. Most of the back-end supply of Zara and goods are managed by Inditex, while Tata competence is mainly to identify properties and locations.
“The aforementioned entities are obliged to obtain the goods only by the Inditex group. Furthermore, the choice of the product and the related specifications are at the discretion of the latter. Furthermore, the entities depend on the Inditex group for authorizations to use the aforementioned brands in India subject to its annual terms and specifications.
In its latest annual report at the beginning of this year, the Spanish group said she was called an option to buy a 35% participation in Inditex Trent Retail and 49% to Massimo Dutti India, the two local joint ventures, from Tata Group Trent. “The operating price is set on the basis of the non -controlled fee by the shareholders of the capital invested when the call option is exercised,” said Inditex in the report.
He did not specify any time for the exercise of the options. Inditex Trent replied in India a model that worked for Zara globally, creating versions at affordable prices and a copy of the latest fashions or designer clothes and making them available for buyers in a double time. Inditex controls almost every part of its operations, from design to distribution. If a new style is not a success within a week, it goes from the shelves of their shops all over the world.
Trent also manages Hypermarket Trent, an equal joint venture between Tata and the British dealer Tesco, who recorded total sales of RS 2,743 crores, with a 24%increase.
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