Zara launches flagship store model in China: first vending machines and Zacaffè in Asia

Spanish apparel giant Inditex has reaffirmed its commitment to China as a key market for future growth. Zara, the group's flagship brand, recently unveiled a new flagship store in Nanjing, the capital of Jiangsu province. This new location showcases latest store concept, featuring the brand's first apparel vending machines and Asia's first Zacaffè.

Located in Nanjing's Xinjiekou commercial and shopping district, the new Zara flagship spans over 2,500 square meters across two floors. The space is designed for showcasing and selling men's and women's fashion collections and accessories, creating a dynamic blend of physical and digital shopping experiences. This aligns directly with the omnichannel strategy that Zara has woven into its brand DNA and which the company considers a key growth driver for all Inditex brands.

This commitment has resulted in the new Zara store in China not only showcasing the latest iteration of the store concept, first introduced with the Plaza de España flagship in Madrid in April 2022, but also incorporating cutting-edge retail technologies. Among the innovations is the introduction of Zara's first apparel vending machines, which not only reinforce the omnichannel strategy but also provide new and complementary in-store experiences. This focus on experience has become central to all initiatives undertaken by Inditex and Zara across all channels and divisions.

The opening of the new Nanjing flagship represents another step in solidifying Inditex and Zara's commitment to the Chinese market, particularly after the somewhat disappointing results of fiscal year 2024. Results showed a 0.16 percent year-over-year decline in Inditex sales in Asia, representing a difference of approximately 9.82 million euros.

"The Nanjing-Xinjiekou flagship store is not just a new space showcasing the latest retail concepts and innovative brand experiences, but also represents a significant milestone in deepening Inditex's presence in the Chinese market and strengthening our connection with local consumers," explained Eugenio Bregolat, President of Inditex for Greater China, in a statement provided by the Spanish fashion multinational. Beyond this opening, Bregolat added, "In the future, Inditex will continue to invest heavily in the Chinese market, with a clear commitment to innovation in the retail experience, closely observing and leading local fashion trends, and actively promoting market vitality by growing together with the Chinese market."

More space for a stronger connection with the local target audience

This new Zara flagship in Nanjing-Xinjiekou also exemplifies the paradigm shift Inditex implemented in its brick-and-mortar retail strategy following the COVID-19 pandemic. The company leveraged this change to optimize its store network. In June 2020, the "Horizon 2022" strategic plan was unveiled, which included the closure of 1,000 to 1,200 stores worldwide to create larger stores capable of offering a wider product range and an enhanced shopping experience. This shift was also evident in fiscal year 2024, when the company lost a net 129 stores but increased its retail space by 2 percent.

As part of this strategy, Zara lost a total of 52 stores in 2024, ending the year with 1,759 points of sale worldwide. Nevertheless, retail space increased by 1.99 percent to 3.14 million square meters. This is the result of implementing the strategic plan, in which Inditex relies on driving omnichannel growth through stores that effectively contribute to online sales and vice versa. A key step in this direction was the opening of the Plaza de España flagship in Madrid, conceived as a large "white container" that continuously evolves its identity with changing offerings. This concept has now been further developed and adapted for the new store in China, where the architecture is less "white" but more neutral, creating a stronger connection to the local culture and environment. This is reflected in the choice of building materials and the interior design.

"The building's architecture features a harmonious façade crafted from a single material, enveloping the building's complex form and creating an elegant and stylized presence within the urban landscape," Zara reports. Thus transformed, and outwardly, into a new visual landmark for the city of Nanjing, "with a transparent glass façade, a wide staircase connecting the two floors, carefully selected urban furnishings, and a generous canopy, the Zara store in Xinjiekou fosters a deep connection with its surroundings and strengthens the interaction between the space and the vibrant urban environment."

First vending machines and new "experiential" spaces

However, it's not just the façade and construction of the new store that boasts unique features. The interior focuses on the omnichannel experience, as well as the new "Zara Salon" and "Zara Fit Check" areas, and the first-ever introduction of apparel vending machines.

A look at the innovations first reveals the technological advancements that allow customers to locate garments within the store via Zara's online platform, check stock and availability, purchase items online, and collect their orders in-store within two hours, subject to availability. This integration of physical and digital channels is supported by dedicated return points, assisted checkout, fitting rooms, and a new automated inventory management system. The goal is to optimize workflows and allow staff more time for customer service.

Regarding the new "Zara Salon" and "Zara Fit Check" areas, Zara describes the former as a compact version of the "Zara Apartment," specifically designed for the brand's fashion collections. Currently, there are only two of these "Apartments" worldwide, one in A Coruña and one in Paris. In Nanjing, this concept is scaled down and offered as a "Salon," where Zara provides an exclusive experience with a limited fashion collection and personalized styling services, accessible only by appointment. This space aims to offer a unique shopping experience combined with the regular omnichannel experience.

Additionally, the second floor houses the "Zara Fit Check" area, where customers can try on the latest fashions and record high-quality videos that they can instantly save and share on social media. These new "experiential" areas are complemented by the "Boutique" area on the second floor, showcasing the brand's shoes and accessories.

One of the major innovations in this Zara flagship is the introduction of the first apparel vending machines. These machines stock a selection of men's and women's T-shirts, allowing customers to purchase T-shirts in their preferred size, freshly packaged – an initiative aimed at making the shopping experience quicker and easier, without having to queue at the checkout.

"For the first time worldwide, Zara has introduced apparel vending machines, offering more flexible purchasing options," explains the brand's management. These machines, stocked with a selection of men's and women's T-shirts, allow customers to purchase directly, increasing the autonomy and convenience of the in-store shopping experience.

First Zacaffè in Asia

Another highlight of this Nanjing flagship is the opening of Zara's first Zacaffè in Asia. This opening follows the debut of the world's first Zacaffè last November at the new Zara Man store on Calle Hermosilla in Madrid.

The design agency Art Recherche et Industrie, led by artist and creative director Ramdane Touhami, was commissioned to design the world's second Zacaffè. As part of the planned global expansion of this new Zara café chain, the creative studio drew inspiration from traditional Chinese architecture. This traditional element is honored through the use of bricks from old buildings in Nanjing to create a monumental staircase that acts as a large tree, enveloping the entire café. The brand clearly intends to further develop this concept while a legal dispute with the Italian company Zicaffè regarding the "Zacaffè" trademark, already filed by the European Union, is ongoing.

"The design of this new café is the result of a careful selection of materials inspired by local craftsmanship and the region's historical roots, enriched by conversations with the local community," explains Zara. These diverse influences led to the creation of a "flawless interior" that reflects the brand's modernity. Simultaneously, the structure and wall cladding are made of bricks sourced from various old buildings, evoking memories of the city's past. These elements, in dialogue with each other, contribute to creating a "perfect space for customers to relax and unwind," fostering a harmonious connection between commerce and leisure.

Expanded offerings for a more immersive (and locally focused) experience

In conclusion, the new Nanjing store further strengthens the commercial offering with the store's fashion selection, the "experiential" atmosphere, and the connection to the local audience. In addition to the regular fashion collection, special items developed in collaboration with Chinese artist Jujuwang are also being offered as part of the opening. She has created an immersive art installation inspired by the famous Chinese musical composition "Three Variations on the Plum Blossom."

Installed at the store's entrance and accompanied by digital screens and traditional Chinese background music, Jujuwang's installation presents itself as an immersive experience, an allegory of the Chinese plum blossom – the flower of Nanjing, where the store is located. This is another cultural element that Zara utilizes to strengthen its local connection while broadening its regional perspective. This expansion is also reflected in the exclusive collections offered in this new store. These include a collaboration with the South Korean fashion brand Andersson Bell. This collection is complemented by Zara's "Seoul Edition," inspired by the urban culture of Seoul, as well as the limited edition menswear collection "90s Archive" and the "Zara Origins" collection, now available for the first time in Nanjing.

"With this initiative, Zara subtly and artistically integrates fashion with the city's cultural heritage," emphasize Zara representatives. This underscores the strategy that is becoming increasingly clear with the opening of this new store in Nanjing. The store, which has also been optimized in terms of resource utilization – a goal that Zara and Inditex aim to implement at all levels of their structures and value chains – "operates with some of the most advanced energy systems, demonstrating Zara's firm commitment to sustainability," they further emphasize. These measures include "highly efficient heating and cooling systems, energy-saving LED lighting, and the use of materials with lower environmental impact."