Spanish Inditex will open a Zara store on Tmall, Alibaba's virtual shopping center, which should help the company reach more people in China. It is the first time Inditex will open a Zara web shop at a third party.
More online sales in China
Zara hopes to generate more Chinese online sales through Tmall, as it is not really successful there at this point. It has its own Chinese website, but it is not even in the top 10,000 of most popular websites in China, while Tmall (which already offers more than 100,000 brands) is at number 7.
Analysts think more Western brands will try to use Tmall to launch in China, particularly as it now forces companies to prove they do not sell counterfeit products.
Zara expected, prior to the launch, that Chines sales would grow 20 % and Tmall's online presence should help boost that number even more. Currently, Inditex gets 8 % of its sales from China and it also has a Tmall spot for two of its other brands, Pull & Bear and Bershka.