Zara’s India profit drops as it faces competition from other brands

Spanish fast fashion brand Zara has reported a 13.4 per cent drop in its net profit over the last financial year in India, reflecting increased competition and a drop in demand during the period. The loss came despite a 17.7 percent increase in sales over the year to Rs 1,438 crore (208 million dollars), which suggests the company has been heavily discounting to maintain stock turnover. Inditex, the owner of Zara fashion brand, is facing increasing competition in India from global rivals including Hennes & Mauritz. Inditex operates in the country through two JVs with Trent, the Tata Group's retail arm, one for Zara and another for bridge-to-luxury label Massimo Dutti.