Inditex, one of the world’s largest fashion distributors, has more than 4,780 stores in 77 countries in Europe, the Americas, Asia and Africa. In addition to Zara, the largest of its retail chains, Inditex has other commercial formats: Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. The Group also includes more than a hundred companies associated with the different activities in the business of textile and fashion design, manufacture and distribution.
Its unique management model, based on innovation and flexibility, and its vision of fashion (creativity and quality design, together with a rapid response to market demands) has resulted in fast international expansion and an excellent performance of its commercial formats. The first Zara store opened to the public in 1975 in A Coruña (North-Western Spain), the place where the Group started business and where it has its central offices. Today, Inditex Group stores can be found in all the world’s major cities, always in the main shopping districts.
PULL AND BEAR
The business model
Inditex has been listed on the Spanish Stock Exchange since 23 May 2001, after an IPO that aroused a great deal of interest among investors worldwide, with its shares being oversubscribed some 26 times over. Its shares are quoted on the main Spanish and international share indexes.
Turnover* Net Profit* Number of stores Number of countries International sales Employees
11,084 1,314 4,607 74 68% 92,301
10,407 1,253 4,264 73 66% 89,112
7% 5% 343 1 3,189
The key to this model is the ability to adapt the offer to customer desires in the shortest time possible. For Inditex, time is the main factor to be considered, above and beyond production costs. Vertical integration enables us to shorten turnaround times and achieve greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent.
The Inditex financial year is from 1st February to 31 January of the following year * in millions of euros
OYSHO ZARA HOME
The key element in the organisation is the store, a carefully designed space conceived to make customers comfortable as they discover fashion concepts. It is also where we obtain the information required to adapt the offer to meet customer demands.
PULL AND BEAR
D IS T RIB U TI O N
D E SIG N
Inditex has grown dramatically in recent years, achieving a consolidated turnover in 2009 of 11,084 million euros, with a net profit of 1,314 million euros. On 31st January 2009 the Group had 92,301 employees. The following table shows the Group’s most significant figures in 2009 and 2008:
The Inditex business model is characterised by a high degree of vertical integration compared to other models developed by our international competitors. It covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. It has a flexible structure and a strong customer focus in all its business areas.
The business model
Logistics Location of the distribution centres Arteixo (A Coruña) Narón (A Coruña) León Madrid Onzonilla (León) Meco (Madrid) Tordera (Barcelona) Palafolls (Barcelona) Sallent de Llobregat (Barcelona) Zaragoza Elche Zaragoza Elche Stradivarius Zara All concepts (shoes) 75.000 m2 175.000 m2 45.000 m2 Zara Pull and Bear Zara Massimo Dutti/Oysho Bershka 40.000 m2 175.000 m2 65.000 m2 Zara/Zara Home/Uterqüe 160.000 m2 280.000 m2 m 0 5 0 2 . Main format served Surface
The success of Inditex’s collections lies in the ability to recognise and assimilate the continuous changes in fashion, constantly designing new models...