How Zara is taking on Shein, one of the biggest Chinese online shopping website

Inditex, the parent company of

Zara

, is taking strategic steps to counter the growing influence of Chinese-founded rival

Shein

. As Shein’s rapid expansion in the online marketplace puts pressure on major retailers like

Inditex

and Sweden’s H&M, the Spanish fashion giant is responding by expanding its budget-friendly brand,

Lefties

.
Here are the key points about Lefties and its role in Inditex’s strategy:
Lefties’ Origin and Expansion
Lefties initially emerged as an outlet for Zara’s excess inventory. It has now expanded its presence to 17 countries, including Egypt, Mexico, Romania, Saudi Arabia, Turkey, and the United Arab Emirates. The brand offers budget-friendly products such as jeans for 17.99 euros, dresses starting from 7.99 euros, and handbags priced at 5.99 euros.

Targeting the Value-Focused Market Segment
While Zara remains the flagship brand for Inditex, Lefties’ growth signifies the company’s intention to capture a share of the value-focused market segment. This expansion comes at a time when consumers are increasingly seeking budget-friendly options, particularly in markets where Shein’s aggressive pricing strategy has intensified competition. In Spain, where Lefties operates 25 stores according to its website, the brand has experienced significant growth, attracting around 5 million customers in 2023, just shy of Shein’s estimated 5.2 million customer base.

Emerging Markets and Consumer Preferences
Lefties’ presence in several emerging markets suggests it is a way for Inditex to serve shoppers who may be less willing to spend extravagantly at Zara. As Shein’s rock-bottom prices continue to put pressure on rivals, Lefties’ expansion in Spain and Portugal reflects the company’s commitment to offering affordable options to value-conscious consumers.
Strategic Response to Shein’s Impact
Shein’s impact on the fast fashion market remains a recurring theme in discussions with Inditex management. Inditex aims to find effective ways to compete against Shein’s disruptive pricing strategy while maintaining profitability and market share.