IDEXY - Zara's Parent Company Targets Shein With Budget Brand Lefties' Strategic Expansion | Benzinga
Industria De Diseno (OTC:IDEXY), the parent company of Zara, is launching a strategic expansion of its budget brand, Lefties, to counter the growing influence of the Chinese fast-fashion giant Shein.
What Happened: Inditex is expanding its budget brand, Lefties, in response to the competitive threat posed by Shein, a Chinese online marketplace with no physical stores, reported Reuters. Shein’s aggressive pricing has put pressure on traditional retailers like Inditex and H&M.
Zara’s prices have increased, affecting its competitiveness. In response, Inditex is quietly growing its budget ranges, with Lefties at the forefront. Lefties, initially an outlet for Zara’s leftover stock, now operates in 17 countries, including Egypt, Mexico, and Turkey.
Despite Zara’s larger sales and store numbers, Lefties is gaining traction in Spain, Portugal, and other emerging markets. This expansion is part of Inditex’s strategy to cater to value-conscious shoppers while maintaining Zara’s profitability.
Lefties adopt comparable tactics to Shein on ...