Ambitious to surpass Shein, Inditex expands its affordable fashion brand Lefties
May
The expansion of Lefties plays a significant role in Inditex’s competitive strategy – the parent company of Zara – against fast fashion rivals like Shein and Temu.
Last autumn, Inditex reported outstanding business performance due to significant price hikes. Inditex has held the title of the world’s richest fast fashion company for many years, but since platforms like Shein and Temu became popular with consumers, the company realized the need to differentiate its brands from competitive rivals.
Lefties has 17 stores in the Middle East and South America and 25 stores in Spain. After the price increase, Inditex saw its stock rise by 30%, and now they are preparing to counter Shein and Temu’s low-price strategy by launching a new brand. Lefties was introduced twenty years ago as a Zara outlet but has now become an independent brand with practical designs like jeans, dresses, and accessories priced below 20 euros (equivalent to about 530,000 VND).
Lefties has 17 stores in the Middle East and South America and 25 stores in Spain. In Inditex’s homeland, from 2019 to 2023, Lefties’ customer base has grown from 3.5 to 5 million, demonstrating the parent company Zara’s savvy business move.
Inditex’s decision to revive Lefties aligns with changes made in Zara’s communication and production activities. By increasing retail prices and “elevating” the creativity of brand communication strategies to try to reach the luxury taste market by collaborating with renowned photographers like Steven Meisel and Alasdair McLellan, Zara now targets a higher-end customer base than Shein and Temu.
Inditex’s goal for Lefties seems to be to regain millions of customers currently interested in investing in cheap fast fashion brands. By focusing on improving delivery speed, a feature that Chinese competitors in Europe are struggling with, Lefties has ample opportunities for growth. The brand also uses marketing methods similar to its competitors and collaborates with micro-influencers on social media to promote products, turning affordability into the brand’s competitive advantage.
Lefties has achieved initial success in Portugal, where it recorded more customers than Zara last year, in Romania and Turkey, where it opened its first stores, and in the United Arab Emirates, where it operates under a franchise model.
At the same time, many brands owned by Inditex are facing difficulties in many stores worldwide. Specifically, in 2023, two subsidiary brands, Bershka and Pull&Bear, closed 585 branches.
