AOC is sharing Inditex brand Zara’s current China drop featuring model Chen Xi lensed by Hekaituoyi [IG].

Before commenting on Zara in China, business headlines coming off Zara’s third-quarter 2024 ‘rare miss’ of 9.36 billion euros [$9.84 billion] against the expected by analysts figure of 9.51 billion caused a drop of 5% in Zara’s stock price moving into the holiday season.

Zara Results Were Impressive but Investors are Demanding

As Zara engages in a ferocious battle with low-cost competitors Shein and Temu and is delivering heroic results, it wasn’t enough for the money guys on Wall Street.

Jeffries analysts told WSJ that the results were impressive and the miss was fractional, but investors are demanding results. Seriously! Meanwhile Shein is taking a beating these days and it could again delay their IPO [initial public offering].

Zara went into the month of December strong, meeting all their goals but with no final results reported yet.

Zara’s Footprint in China

As to Zara in China, the company has downsized from 570 stores in 2019 to just 192 as of Jan. 31, 2024. Zara argues that the post-pandemic sales channels have changed in significant ways — largely driven by technology and China’s passion for live shopping shows.

Notably, Zara’s five-hour long, weekly live-broadcasts on Douyin, TikTok's Chinese sister site, have helped boost Zara's sales since they launched in November, according to retail analytics firm EDITED.

Zara’s Douyin Livestream Show Is Not Hard-Sell

Zara's Douyin show features Chinese models wearing Zara dresses, trying on shoes and jewelery in a more conversational and leisurely style. It also includes catwalk sequences and "backstage" make-up shots, again moving in a more leisurely pace in contrast to the hard-sell livestreams that hosts like "Lipstick King" Li Jiaqi are famous for, according to Reuters.

A team of 70 people works on the live show, which is streamed from a 1,000-square metre space in Shanghai, switching angles between seven cameras, Zara said. On average, it attracts around 800,000 unique viewers per show, since launching in November 2023.

Zara Is Exponentially Moving More Product in China

"Zara's livestream approach built significant brand awareness in China," EDITED analyst Krista Corrigan advises.

Zara sold out of most sizes in 50% more products in China in the first three months of this year than in the same period of 2023, according to EDITED. Based on these statistics, Zara was correct in shrinking its store footprint to move in more tech-friendly directions, driven by young Zara shoppers.

We don’t know which of these new Zara offerings will be sold on their China livestream, but it’s an exciting business model to employ during a treacherous and potentially volatile business climate in China and elsewhere. 2025 is even more complicated as everyone acclimates to the new Trump administration’s tariff threats.

China is first to show success for Zara in what will now be an international rollout of this new livestream approach.