Euromonitor’s analysts have predicted strong growth for Spanish Inditex in its home market, thanks to a good mixture of fast-fashion and more expensive brands.
Growth in Western Europe as well
According to analysts, Inditex’ turnover will grow 3.8 billion dollars (3.4 billion euro) in Spain between 2015 and 2020. Zara and Massimo Dutti’s parent company will benefit a lot from Spanish growth, because it still generates about 20 % of its turnover in its own territory.
Its turnover in the rest of Western Europe should also grow another 7 billion dollars (6.2 billion euro) in the next few years as Inditex takes advantage of the surge after the economic crisis. There may be huge differences when looking at separate countries. Euromonitor expects a 1.6 billion dollar (1.4 billion euro) drop in France, while Turkish turnover should grow 2 billion dollars (1.8 billion euro).
Online presence
Aside from its good mixture of fast-fashion and more expensive brands, Inditex’ strong online presence is also beneficial to the company. Currently, the Spanish fashion company has web shops in 29 countries, much better than its competitor H&M, which lags behind in the online world.
Inditex also jumped at the occasion to enter emerging markets and is now reaping the rewards of that expansion. However, analysts feel the company still could do much better in the United States.
