Inditex SA, which owns the Zara clothing brand in Spain, has bounced back from the first loss and showed better first-quarter earnings. The estimated sales in the first quarter were 4.88 billion-euro and the actual sales figure was close to 4.94 billion euros. Last year, the company faced a net loss of 409 million-euro and this year, it had a net income of 423 million euro. Inditex SA could bounce back quickly due to the reduced Covid-19 restrictions in the country, which enabled the company to open most of its shops back again.
The sales of Inditex SA have been rising since the reopening of the shops and James Grzinic commented that the company’s sales figure is showing a strongly improving picture. The sales grew by 50% and online sales in local currencies also improved by 67%. The gross margin touched 59.9% after implementing a new business model that involved a digital transformation strategy. Commenting on the wonderful performance of Inditex, Pablo Isla, executive chairman of Inditex, commented, “our differentiation and strategic transformation towards a fully integrated, digital and sustainable model continues to bear results, supported by the commitment displayed by all the people who work at Inditex”. Even after unavailable trading hours due to lockdown and various restrictions due to Covid-19, Inditex showed tremendous growth.
Also, it should be noted that Inditex SA is using innovative methods to connect to young buyers. Recently, it has collaborated with both Facebook and Instagram to create “Pacific Game”. The motive behind designing the game is to lure the young buyers of the country to buy more of its Pull & Bear brand. Zara has never shown any advertisement on billboard and television and still rose up to become the biggest clothing company in the world. However, now it is using video games to market its products like jackets, jeans and dresses to young consumers.
With the rise of the gaming industry, many clothing brands have previously tried their hands to flaunt their products in video games and haven’t been disappointed. Few of the luxury brands that have previously flaunted their collection in video games include Burberry, Louis Vuitton, Adidas and Puma. Inditex SA’s take is unique because they are not showcasing their products in any video game, but they are creating their own game to attract more website traffic and increase the download of the mobile app. During the pandemic, the gaming industry saw a blockbuster year. There has been a rise in the download of popular games and further, there has been an increase in free online gaming websites like Poki and Kizi, where players can play the game online in any browser without downloading any app on the device for free.
The company further believes that the primary purpose for the step is not to gain direct sale but to create a relationship with the young customers of the Generation Z of the brand. The “Pacific Game” can be accessed from Instagram by turning on the front camera and the required filter, taking the customer on a virtual journey from California to Tokyo. In the journey, the players have to overcome obstacles by moving their hand and earn points by collecting them on the way. It is a revised version of classic arcade games. The game is currently available on Pull & Bear’s official website and on Facebook and Instagram pages. Facebook further collaborated with Frontera VR to develop the game. Frontera VR is a gaming studio with a specialization in immersive content. The game is designed as such that it requires no download, it allows the users to interact with the filter instantly and further makes it easy to share with friends. In the pandemic stricken world it was vital to capture the online audience as most of the offline consumers has shifted to online platforms for their shopping requirement.
Pull & Bear is a clothes brand founded in early 1991 and it mainly targets the young generation. Currently, it has a commercial network of approximately 950 stores. It further is available as an e-shop. In the financial year of 2020-2021, even though its parent company Inditex saw a fall in sales by 28%, but Pull & Bear saw an increase in sales.