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The encyclopedia · Strategy & Leadership · Strategic decision · 2024

OYSHO went from 88 China stores to zero in three years

Inditex's sportswear brand shrank from 88 China stores to zero in three years, becoming the fourth label the group pulled from the market

OYSHO · Inditex · 2024-11

What happened

OYSHO entered China in 2011 as Inditex's sportswear and lingerie brand, growing to 88 stores by 2018. In 2021 the brand repositioned from lingerie to activewear, launching a menswear line, but the pivot confused its customer base — social media filled with nostalgia for the old睡衣 collections. By 2023 the closures had begun: Suzhou, Ningbo, Chengdu, Shenzhen stores shut one by one.

The retreat accelerated in 2024. Between January and October, OYSHO closed 21 more stores, leaving just 4 in mainland China by late October. On November 17, 2024, its Tmall flagship store — the only online channel besides the official website — stopped operations. The last Beijing store closed in March 2025. OYSHO became the fourth Inditex brand to exit China, following Bershka, Pull&Bear, and Stradivarius.

OYSHO's 2024 first-half sales of €368 million accounted for just 2% of Inditex's group revenue. The brand's global performance was strong — net revenue up 19% in FY2023 — but its China business never gained traction against local activewear brands like 蕉内 and Ubras that had already defined the category for Chinese consumers.

Why it happened

  • The 2021 repositioning from lingerie to activewear blurred the brand's identity, confusing existing customers without winning new ones in a market already served by strong local competitors.
  • OYSHO was too small within Inditex (2% of group sales) to justify the investment needed to build brand awareness in China against established local and international activewear brands.
  • Inditex's strategy of closing small stores and focusing on flagship locations for Zara and Massimo Dutti left no room for a mid-tier brand with declining China sales.
  • The brand's digital presence was thin — only a Tmall store and an official website, with no certified Douyin or Xiaohongshu accounts — in a market where social commerce drives discovery.
What it cost88 stores to zero, exited China 2024costly

The lesson

A brand repositioning that confuses existing customers without winning new ones leaves a business with neither audience — and a parent company with a clear signal to cut losses.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →