Zara stores will use RFID radio frequency identification technology to improve the supply chain
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Inditex SA, the world’s largest fast fashion group, held its 2014 shareholders’ meeting on July 15.RFID) Radio frequency identification technology to improve the group’s supply chain.
Inditex SA is one of the first apparel retailers to use RFID radio frequency identification technology. Currently, approximately 700 Zara stores worldwide use this technology. Pablo Isla said that the full adoption of this technology is an important landmark change in the use of Inditex stores, and that RFID radio frequency identification technology is an important innovation in the new generation of store management. RFID radio frequency identification technology will start tracking the product when it leaves the logistics center, and can quickly obtain product sales data, and further replenish or update. This technology can also further improve the user experience and implement the connection between stores and online stores.
Although Inditex SA’s supply chain management has become a benchmark for the entire industry, in the face of fierce competition and slow economic recovery, it is still necessary to improve responsiveness and inventory through technology. There is no data from China Fashion.com, Inditex SA recorded the lowest profit growth rate in five years in the 2013 fiscal year. The net profit for the full year ended January 31, 2014 only increased by less than 1% from the 2012 fiscal year to 2.38 billion euros. The reason was attributed to the devaluation of currencies outside the euro zone and increased store spending during the renovation period, but the level of 2.38 billion euros basically reached the 2.39 billion euros predicted by analysts. Full-year net sales increased by 4.9% year-on-year to 16.724 billion euros, in line with analysts’ expectations, with an increase of 8% in local currency and a 3% increase in same-store sales. Gross profit margin fell by 50 basis points to 59.3%, and EBITDA core profit reached 3.9 billion euros, which was the first time since its listing in 2001 that it was the same as the previous year. This week, John Bason, the chief financial officer of Primark’s parent company Associated British Foods PLC (ABF.L), was interviewed by the media after the release of the third-quarter earnings report. It also said that Primark has surpassed the world’s largest fast fashion group Inditex SA in the Spanish market in terms of revenue and brand. (ITX.MC)’s brand.
In addition, Inditex SA seems to be unable to do well in e-commerce business in emerging markets. Inditex SA stated in its first quarter earnings report that the group’s main brand Zara will enter the Alibaba Group’s Tmall platform in the fall. This rare move shows that it has to rely on third parties. The platform strengthens China’s e-commerce business. At present, its competitors Uniqlo and Gap have established sales platforms on Tmall, while H&M currently does not have e-commerce business in China. The use of RFID radio frequency identification technology is also conducive to the unified management of Inditex SA’s online and offline connections, self-operated e-commerce and B2C platforms.
The general meeting of shareholders also approved the previously proposed stock split plan. Inditex SA will conduct a 1 split 5 stock split after the market closes on July 25. Existing shareholders will receive 5 new shares by then, and the new share award will be available on July 28 Trading.
Pablo Isla also summed up Inditex SA’s 50% revenue growth over the past 4 years. The sales area increased by 1,093,261 square meters, and 5 billion euros were invested to create 36,000 jobs. The group also invested 1.24 billion euros in 2013 to expand its modern logistics management center. Contribute to Spain’s economic revitalization and employment.
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