Inditex, the parent company of Zara, and Mango have achieved record sales despite the fast fashion market disruption caused by newcomers Shein and Temu, which offer extremely low-priced items. Spanish retailers have successfully differentiated themselves by focusing on higher-quality products, investing in physical retail spaces, and enhancing the consumer experience.
Zara has notably moved upmarket, offering premium items and collaborating with luxury brands, while Mango has also sought collaborations and is expanding significantly in the US. This strategic focus on quality, brand identity, and an immersive retail experience has enabled both companies to not only withstand the competitive pressure but also to thrive, underscoring the importance of differentiation in maintaining market share and achieving growth in the challenging retail landscape.