As Chinese fast-fashion company Shein targets the European fashion market with an ultra-low-price strategy, Spanish fashion company Inditex has entered the U.K. market with its budget brand Lefties. It aims to attract price-sensitive consumers amid high inflation by promoting T-shirts for £3.99 (about 7,500 won) and jeans for £12.99 (about 24,000 won).
According to Reuters on the 27th (local time), Lefties opened its first local store in Liverpool, U.K., that day. After entering France in May, it expanded to the U.K., bringing the number of countries where it operates to 20.
Lefties originally launched as an outlet selling Zara's inventory. It later grew into an independent budget fashion brand and now operates 225 stores worldwide. Among Inditex brands, Lefties is the only one increasing its store count.
In particular, Lefties serves to draw new consumers into Inditex's eight fashion brands. The strategy is to start with the relatively affordable Lefties and then allow them to choose other, higher-priced brands. Analysts also say it could work in Lefties' favor that more consumers are mixing low- and high-priced products rather than staying loyal to a single brand.
Lefties' biggest strength is considered to be its prices. In the U.K., T-shirts start at £3.99 and jeans at £12.99. Dresses can be bought from £9.99. That is a similar price range to what consumers have seen at Primark, which dominates the U.K. budget fashion market.
Lefties' overseas expansion appears to have been influenced by Shein's rapid growth. Reuters analyzed that Shein's always-on discounts and ultra-low-price offensive lowered the price level European consumers expect for clothing. In practice, Shein has sparked a low-price battle in the European fashion market by constantly offering discounted items online. In response, Inditex is using Lefties to cover price-sensitive consumers and counter competition from ultra-cheap fashion companies.
Kristina Horbach, a brand and retail strategist and founder of SPEL Studios, said, "Lefties feels like a brand for people who want to wear Massimo Dutti or Zara but can't always afford those prices." She added that the Lefties website is composed with a vibe similar to Zara's and emphasizes style rather than low prices themselves.