Could Lefties from Inditex take on H&M and Primark in 2017?

Lefties - the lesser known and advertised sister-brand of Zara from the famed Inditex stable is ready to go head to head with popular fast-fashion brands like H&M and Primark in the New Year. Founded in Spain in an outlet format, today the brand operates approximately 134 stores. Now Lefties is getting ready for global expansion as last December the company moved out of Europe to launch its first store at Doha Mall in Qatar.

Lefties takes a front-seat among Inditex brands

The move follows on from last November, when Lefties refurbished its logo, stores as well as its online platform to change the way it appealed to the customers earlier. While the revamped website does not offer online shopping option, one can book a product online and pick it from the Lefties store in Spain. The look of its new website is quite similar to Zara. The web pages display a large selection of products from coats, denims, oversized tops, slip dresses, sportswear to shoes and accessories like glasses, belts and fashion jewellery. And like Zara, it has even published trend-based editorials like ‘Modern Countryside’ and the ‘New Athleisure’.

What was once considered a discount post-recession pop-up shop is now emerging as the most successful brand under the Inditex portfolio. The company has also said to have hired designers, pattern makers and merchandisers to infuse new life into the products retailed under this brand.

While the parent company has not revealed any definite plans or numbers for Lefties, a report from Reuters notes that it is quietly working on strengthening the brand’s product portfolio and reach. Lefties, literally originated from the phrase 'left over' is gradually gathering momentum as an independent brand, now having its own separate clothing lines for men, women and children apart from denim and sportswear. Originally launched in 1993, as a brand selling Zara's last-season rejects at low costs, Lefties has emerged as one of the most promising name under the Inditex umbrella.

Lefties ended 2015 with a turnover of 162.1 million euros (172 million dollars), 22 percent more than in the previous year with net income of 1.8 million euros (1.9 million dollars) against losses of 0.4 million euros (0.43 million dollars) the company reported in the previous year.

Lefties set to expand international presence

The company may not have immediate plans to bring the brand to USA, after expanding its presence in Mexico, Portugal, and Russia apart from its home-country Spain. But Inditex is taking all the right steps to make Lefties available across the globe posing tough competition for rivals in the same price category.

Harper’s Bazaar UK predicts that Inditex may open more Lefties stores in the international markets this year, posing competition for brands like Primark, Forever 21 and H&M. Only hitch to its buoyant expansion plans could be absence of an ecommerce platform in today’s day and age, since the current layout does not let the customers shop online, and its current brick-and-mortar stores are only available in Spain, Mexico, Russia, Portugal and Qatar.

However, this scenario may change soon. In 2014, Carlos Hernandez from retail consultancy Planet Retail had told Reuters that Inditex has every incentive to treat Lefties as a separate format - and roll it out abroad too and they could export the brand to other countries where Inditex has a large presence like the UK and Germany since Spain is not the only country where the crisis has taken its toll.

Lefties emerges as an independent label

Post 2008 recession, Lefties was definitely not a sought after label in Mexico or Spain with customers preferring to shop at outlets if other brands of the Inditex Group like Zara, Bershka or Massimo Dutti. And the Lefties stores also faced direct competition from Zara’s rivals Primark and H&M.

However, sales in 2015 showcased how this low-cost label has managed to shed its image as a leftover brand, by succeeding amid sluggish economy with its own collections. And it has opened new opportunities for the brand. The Group may now look at investing in expanding Lefties’ footprint in Mexico and Spain as well. In fact, citing rising demand, Inditex has already curtailed the number of Zara stores to focus on Lefties in Spain. In addition customers who have moved away from Zara to cheaper styles of H&M and Primark post the economic crisis are now taking a note of fresh looks and affordable under 100 dollars merchandise offered by Lefties.

Photos: Lefties SS17 campaign