Zara's parent company continues to maintain its expansion in China

Due to the declining importance of the Spanish domestic market, Inditex Group, the parent company of the Spanish fashion brand Zara, plans to continue its expansion in the Chinese market while continuing to expand its e-commerce business in the international market.

Inditex is the world's largest clothing retailer, with more than 6,000 stores in approximately 86 countries around the world. Since 2006, Inditex has opened five new stores each month in China to meet the needs of China's rapidly growing middle class.

Capital Markets director Marcos Lopez said in a telephone interview with Reuters on Wednesday: “This phenomenon has lasted for many years.” Inditex previously announced that the net profit growth for the nine months ended in October this year was 27%.

Inditex’s revenue in the Spanish market still accounts for about 20% of the total, even though Spain has been caught in the second recession in three years and the unemployment rate has climbed to 25%, making domestic consumers stretched. Inditex stated that the company will not increase its product prices due to the increase in VAT in September.

In the nine months to October this year, Inditex has opened 72 new stores in China. The total number of stores in China has reached 347, helping the company's overall net profit increase to 1.65 billion euros.

Citigroup stated: "Inditex's accelerated store construction in Asia and emerging markets and expansion of e-commerce business will continue to drive sales growth."