What: The Economist wonders to what extent Inditex is equipped to face the next challenges approaching.

Why it is important: Identified challenging factors are inflation, Shein, Chinese and Russian markets evolution. Not a word for the western customers’ increasing hunger for CSR.

Inditex (owner of Zara) is fully enjoying the revenge shopping spree that customers are currently experiencing in the wake of the pandemic, with sales up 36% year on year to €7.2bn  and profit 80%. Stores are more than compensating the small online sales dip, and China has reopened, boosting sales as well.

However The Economist points outs that there are some questions on the durability of such a situation: Russia and China are becoming difficult markets, Shein represents a fierce competition, and inflation will inevitably lead to increasing retail prices as a reflect of the material prices hike.

But in the eyes of the newspaper, Inditex seems to be best placed than other fast fashion players, since 2/3 of its production is made in the Mediterranean sea (H&M produces 80% of its collections in Asia). This might help being resilient, agile and, in the end, able to face Shein’s next moves.

Fast Fashion is in party mode… for how long?