Oysho, the chain that was born 20 years ago to compete with Women’secret for the lingerie and swimsuit business

Oysho, the Inditex teaching centered on lingerie and swimsuits, was born in 2001 with the aim of becoming a reference in the intimate fashion business.

20 years have passed since its arrival and at this time, its growth has been unquestionable: if in 2001 its income did not reach 5 million dollars (MDD), a year later it quintupled the figure when registering 28.1 MDD.

Although discreetly, the format was year by building its business and raising its contribution to Inditex.

When, following the impact of COVID-19, its sales fell 13.6%, hasta 601 MDD.

Last year - concluded on January 31, 2021 - also closed with a fall in its commercial network, which went on to have 600 stores.That is, 77 points of sale less than a year earlier as a consequence of the operational decision of the group to retreat in the streets.

Business Insider Spain continues with Oysho a serial in which it will review which brands that make up the Inditex Empire, its model, its edges and its main challenges.

Oysho's origin and his goal

Oysho opened his first store in the late 2001 on the street of Douctor Teixeiro in Santiago de Compostela.Today its products are sold in 176 markets.In 57 it has physical stores.

Inditex created the chain to enter an unexplored market for the group until then: female intimate fashion.

To do this, he opted for a safe value and turned to Sergio Bucherm, who at that time worked at Women’secret and that started the format.

How was your evolution in these years?

Oysho, la cadena que nació hace 20 años para competir con Women’secret por el negocio de lencería y trajes de baño

Oysho's growth is unquestionable: only one year after birth, their income was quintupled, until registering 28.1 MDD.

Su ritmo no cesó en los siguientes años: solo entre 2003 y 2004 el avance fue de 49%, hasta 81 MDD.Well above 19% who grew Zara between both periods, although the inditex flagship has a much larger size.

However, growth was not always linear: if in 2012 the increase in sales was 12%, in 2015 it stood at 8.7%.It was, together with that of Massimo Dutti (6%), the slightest progression within the group.

But then the chain traced and closed the 2014 year as the second inditex brand with the greatest advance (18%), only behind Zara Home, which then lived its golden years.

How was your worst year?

En 2020, Oysho facturó 601 MDD, lo que supone hablar de una caída interanual del 13.6% for the impact of pandemic.To find a similar level you have to go back to 2016.Your benefit before taxes went from 80 to 49 million in a year.

The return on the capital employed, while, stagnated at 15%, 11 points less than a year earlier.In the previous five years, the ratio did not fall from 40%

Who is behind Oysho?

Since 2002, the firm's rudder is carried by Carmen Sevillano, who relieved Sergio Bucher, soul of the Gallego group format.

The directive already performed functions related to the Zara lingerie line during its stage in the commercial department of this teaching.

90 stores less in one year: your commercial network, at a glance

As of January 31, 2021, the Oysho commercial network was made up of 600 stores.Six months later, at the end of July, the figure was 575, which is 90 less in one year.

The largest number of establishments was achieved in the fiscal year of 2018, when it was 680.

What can you find in Oysho?

There are four sections: lingerie, pajamas, swimsuits and sport, which is gaining more time prominence.Currently, all product lines are incorporating sustainable materials as part of the Oysho Join Life Global Plan.

In parallel, there are several business alliances that the firm wove.In one of them, he joined the American company Gracce to make a collection of bottles that include quartz crystals.

Replied the movement with RIA Menorca for footwear or with we are Knitters to sell sewing kits.

Struggle against a very strong direct competitor: Women’secret

According to sources close to the group, the firm was born to face the intimate clothing business to Women’secret, belonging to the Tendam group, also owner of Cortefiel or Springfield.

However, they explain that the Inditex format was not able to win as much ground as expected and had to evolve towards the clothes of being at home and sports, a growing market niche.

According to Tendam accounts, in the first quarter of the year - understand between March 1 and May 31, 2021 - Women’secret grew 208% compared to 2020 and 4.8% If the comparison is with 2019.

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