The Spanish apparel giant Inditex SA (ITX.MC) announced that its lingerie brand Oysho will close its Tmall flagship store on November 17th. In January of this year, Oysho had already closed offline stores in multiple cities such as Suzhou, Ningbo, Chengdu, Xi'an, Shenzhen, and Shijiazhuang, and by October, the number of offline stores continued to decline.
This is the latest retreat action by the group after it announced in July 2022 the exit of four brands-Bershka, Pull & Bear, Stradivarius, and Uterqüe-from the Chinese market. In early 2021, Zara's parent company, Inditex Group, announced the complete closure of all offline physical stores in China for Bershka, Pull & Bear, and Stradivarius, retaining only online channels. By July 2022, the Tmall flagship stores of these three brands issued a closure announcement stating that their online stores would stop selling goods from July 31, 2022, marking the official exit of these three sister brands of Zara from the Chinese market. If Oysho withdraws, the group will have only two brands left in China: Zara/Zara Home and Massimo Dutti.
Compared to the peak of 88 stores in 2018, the Oysho brand has been on a downward trend over the past six years, especially during the ongoing three years of the COVID-19, with an accelerating rate of store contraction.
Oysho was established in 2001, initially positioned as a women's lingerie brand. As the brand continued to develop, its product range expanded to five series: leggings, lingerie, outerwear, homewear, accessories, and footwear. Subsequently, the brand introduced an activewear series, transforming into an athleisure brand.
In 2011, Oysho officially entered the Chinese market, then boasting 444 stores in 28 countries. The first store in China was located in Guangzhou's Grandview Mall, with an area of 172 square meters.
In 2021, Oysho launched its first men's collection, aiming to further expand the market by adding a men's business line.
