Inditex defies Victoria’s Secret angels: launches intimates’ chain Oysho in the US
The number one fashion retailer in the world will make a soft landing in the us, where it already operates with Zara, Zara Home, Massimo Dutti, Bershka and Pull&Bear.
Inditex challenges L Brands at its local territory. The Spanish fashion retailer, number one in the sector by revenue has launched today Oysho’s online platform for the US market. The intimate concept is the sixth chain of the group to disembark in the United States.
The group continues this way its progress in the Amercian market, where it has a moderate presence. Inditex operates in the country with 98 Zara stores, three Massimo Dutti stores and one Bershka store.
In the online channel, the group operates with the home decoration and fashion chain Zara Home and the young fashion concept Pull&Bear, which entered online in the United States last February. Now, the group adds the Oysho ecommerce platform, which has started operating today.
Inditex is present in the United States with 102 stores
In 1989, just over two decades after its founding, the company opened its second international store in New York, on Lexington Avenue, only after the one in Portugal, opened in 1988. Until five years ago, Zara was the only group chain present in the United States.
In recent years, Inditex has accelerated its presence in the country with the first online and then offline landing of Bershka. The group opened a Bershka pop up store last year on a temporary basis, but ended up becoming a permanent point of sale. In December 2018, the company opened its 100th store in the country.
Inditex will be present with six of its concepts in the United States with the landing of Oysho
Oysho closed 2018 with a revenue of 585 million euros, 2.6% more than in the previous year. The intimate chain was the one that grew the most last year. Inditex closed 2018 with a growth of 3.2%, up to 26.1 billion euros. The company’s profit increased 2.3%, to 3.4 billion euros.
War in the heaven of intimate
With its landing in the United States, Oysho will seek to take a place in the intimate market. The chain will compete against Victoria’s Secret, owned by L Brands, and newly created innovative companies like Third Love or Fenty.
Oysho comes to the sector at a time when the intimate in the United States is in full transformation. Victoria’s Secret, the historic queen of this segment, is in crisis because of the difficulty of adapting to a new type of client that values other factors such as inclusiveness or functionality.
At the same time, in recent years new companies have entered the market with more basic products, similar to Oysho’s offer. This is the case of companies like Aerie or True&Co.
Oysho will have to compete in the realm of athleisure with its Oysho Sport concept
The last to brand to disrupt this sector has been Savage X Fenty, founded by singer Rihanna. The company, whose fashion show in New York Fashion Week has been well received by the public and critics, offers styles similar to those that made Victoria’s Secret popular, but at more affordable prices and with greater inclusiveness.
On the other hand, Oysho will have to compete in the kingdom of athleisure with its Oysho Sport concept that in recent years has gained its own entity and that includes offer for sports such as boxing, running, and practice such as fitness and yoga.
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