ZARA is the flagship brand under the Indetex Group, which is known worldwide by its fast fashion products. Their core competitive strategy is developing the new product and getting it to stores within 15 days. The uniqueprocessing model ensures ZARA occupied the market advantage among the fashion industry. Subcontractors
Although ZARA manufacture approximately half of its products in their own factories, they use subcontractors for all sewing operations. These factories are managed as independent profit centers. There are about 500 sewing subcontractors close to La Coruña, and they work exclusively for ZARA. Under the closely monitors and sampling methodology controls by ZARA, the products quality can be guaranteed.
The remaining half of ZARA products are produced from 400 outside suppliers, 70% of which are in Europe, and most of the rest in Asia. Since the majority of suppliers are in Europe and many of them are based in Spain and Portugal, ZARA takes this geographical advantage to respond the orders in short time, which ensures its fast fashion products.
ZARA responds to government’s call actively, participating in social investment with collaborating organizations on community development, sponsorship and patronage. The company also donated money for emergencies situation such as Columbia Earthquake and Japanese Red Cross for people who are in need.
Inditex, the parent company of ZARA, committed to customers in their social responsibility policy that inspires all the activities from the store, where their requirements are noted; to the table of the designers, who transform those wishes into fashion proposals; and including the production processes to make the garments and the logistical distribution, carried out in accordance with the highest standards of safety.
The company also tries to help the sustainable developments of the society and the environments with which it interacts. They complete their commitment in many ways, such as recycling hangers, using paper or biodegradable plastic bags, introducing biodiesel fuel in transportation, etc.
Financial liabilities, including trade and other payables, are initially recognized at fair valueless any transaction costs that are directly attributable to the issue of the financial liability. Based on the annual report of 2011, the Group’s financial liabilities are measured at amortized cost using the effective interest method.
LIABILITIES 31-01-2012 31-01-2011 CURRENT LIABILITIES 2,702,774 2,674,907 Trade and other payables 2,475,140 2,419,583 Financial debt 686 2,682 Other financial liabilities 22,880 39,274 Income tax payable 204,068 213,368 NON-CURRENT LIABILITIES 800,827 728,005 Financial debt 1,544 4,172 Deferred tax liabilities 182,531 172,648 Provisions 147,318 156,610 Other non-current liabilities 469,434 394,575
Inditex, the head office of ZARA, had 60,341 shareholders according to data from form X-25 which the company requested from Iberclear for the 2011 Ordinary General Shareholders Meeting. Of these 50,304 were individual shareholders and the remainder institutional investors. With the incorporation of significant holdings registered in the Spanish National...