Spanish garment retailer Inditex will pilot at-home pick up service for recycled garments in China this September. The initiative, which currently operates nationwide in Spain, is a central part of the group’s strategic commitment to the so-called circular economy. It has enabled the collection of more than 25,000 tons of garments in 21 markets since launching in 2016.
The company’s integrated store and online model has boosted Inditex’s sustained growth. All of Inditex’s brands benefit from a robust integrated store and online platform. Last year, online sales accounted for 12 per cent of the total in the 47 markets in which e-commerce platforms are available, representing annual growth of 41 per cent.
The model has enabled sustained growth over the years, coupled with the consistent creation of economic, social and environmental value. Inditex owns international fashion brand Zara. Inditex has also recently embarked on a refurbishment drive for its entire global network of more than 7400 stores, accompanied by considerable growth in the Zara online platform.
Competitors have been unable to fully replicate Inditex's business model, which takes clothes from design to rack in weeks. The company’s gross profit margin is expected to bottom out this year as currency headwinds ease.