In 2023, the fast-fashion industry found itself under attack on several fronts: a growing poor reputation regarding its significant negative social and environmental impacts; the increasing prevalence of online shopping and the entrance of many new competitors who were not burdened with expensive bricks-and-mortar retail networks; and the evolution of artificial intelligence (AI) technology in helping to identify future fashion trends. Industria de Diseno Textil SA (Inditex) and its flagship brand Zara had just come off a record 2022, with industry-leading sales, gross margins, and profits. They were also ahead of the industry with 25.8 per cent of sales through their online channels. However, the challenges the fast-fashion industry faced were significant for Zara and required a long-term strategic response.
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