Ecommerce

New ecommerce in Brazil was the key factor for the increase of Zara's profit worldwide in 2019

Zara's profits increased by 10%
  • The profits of Zara had an increase of 10% in the first trimester of 2019
  • The released of the Brazilian ecommerce of the brand was one of the highlights that thrive then into the great results in the period.

After some years of shy growth rates, Brazil’s ecommerce market is growing based in two digits rates again. In 2018, the ecommerce market increased by 12% in the country, according to the Webshoppers report. Those who turn these numbers into an opportunity to start selling online in Brazil are already seeing the profits. And Zara is a great example of it.

Last week, the Spanish group that owns the fast-fashion brand Zara reveals that the worldwide profit of the company increased by 10% in the first trimester of 2019, according to Valor Econômico. In euros, this corresponds to a value of 734 millions of euros.

The company doesn’t show regional results, but the internal report released point out the new ecommerce in Brazil as one of the highlights to explain the growth. Another important progress made by the company was the adoption of a new accounting standard, the IFRS 16.

The online fashion industry is not only taking the scene in Brazil but also in other Latin America countries, and international brands like Zara and SHEIN has a sweet spot in this market. How they are doing this? Find out which are the lessons you must learn from SHEIN in this article with an exclusive interview.