Zara has launched its Australian online store -- here's its biggest advantage over The Iconic

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  • Zara has launched an online store in Australia.
  • The competitive delivery options could see it dominate the local market.
  • It comes at a time when domestic online sales account for more than half of total retail sales growth in Australia.

  • Spanish fast-fashion retailer Zara launched its online store in Australia today, March 14.

    Here’s what it looks like:

    Screenshot/ Zara

    The delivery offering is one of the site’s best features.

    Next day delivery is available in six capitals – Sydney, Melbourne, Adelaide, Perth, Canberra, and Brisbane – between Monday to Friday for $7.95, or free on orders over $75.

    Same day delivery is also available in Sydney when orders are placed on weekdays before 2pm. Deliveries are made between 6-9pm to residential addresses only.

    The best part, however, and the feature that gives it a competitive edge over its biggest rival, The Iconic, is that orders can also be picked up in store free of charge, 1-4 working days after placing an order.

    That solves a common grievance with Zara customers: As the stores became more popular, the quality of the service and shopping experience declined.

    While the clothes are popular, customers struggled to justify whether waiting in lengthy lines or sifting through mountains of items was worth it.

    The new click and collect system could solve that.

    Exchanges and returns are also free of charge and must be made within 30 days of the e-mail confirming shipment.

    It’s been seven years since Zara launched in Australia, going on to establish 15 Zara fashion stores nationally and two separate Zara Home outlets, although in recent months, the brand has reportedly been in discussions about closing poor performing outlets.

    The local online retail market is currently led by The Iconic, however Zara newest offering could change that. It’s also expected to be another blow for bricks and mortar brands already losing the battle to online merchants.

    While Australian retail sales have been pretty weak recently, increasing by just 2.1% in the year to January, continuing the deceleration seen in the past few years, domestic online sales are currently growing at 32% per annum and account for more than half of total retail sales growth in Australia.

    “A year ago the share was half that, and two years ago it was less than 10%,” says Macquarie Bank.

    “If you needed a statistic to summarise the disruption currently occurring in Australian retail, it is this.”

    Zara has also been trialing a number of digital shopping strategies in other international markets, the latest is augmented reality displays in its stores. The retailer is expected to launch this in 120 stores worldwide from April as part of an effort to lure millennials.

    Zara has more than 2200 stores globally generating $US9 billion in revenue each year.

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