Case Study
Description The Textile Empire: Inditex, Zara
Inditex, the parent company which owns Zara, one of the best known fashion brands in the world, is an apparel conglomerate, with 9 brands under its umbrella. Inditex made €1.932 billion profit with a revenue of €13.79 billion worldwide in 2011. As of 2012, there are 100,140 people working for Inditex Group across their headquarters and 6,009 stores around the world. [1][2]
Among those major 9 brands of Inditex, Zara, one of their oldest brands which was created in 1975 by Amancio Ortega, is definitely the most important contributor to the empire. With 1,751 stores (not including Zara Home) around the world, Zara made a sales of €18.088 billion in 2010, which contributed 64.5% of Inditex the whole revenue for Inditex Group. [1][2]
Within the apparel industry, where the market is huge but competition is intense, Inditex ranked #2 in the apparel industry of the world. [3] In 2000, retail spending on clothing or apparel reached approximately €900 billion worldwide. [9] With a clear vision and optimistic outlook of the future, Inditex is continuously expanding and growing their business.
The Globalization and a Constantly Changing World Values of Fashion
Back in the late 1960s and 1970s, many of the currently developed countries, including Spain, were opening up their economies and growing rapidly. It was a time when television was getting popular and penetrating into the ordinary citizens’ home. With television, people increased their exposure to foreign sociocultural customs and lifestyles, including trends in fashion. Among those people, two sectors of society in particular were displaying changes in their behaviors. One was women, who had new needs and demands for clothing as they started to work in the cities, wanted independence and to distinguish themselves from traditional housewives. The other sector was the young, who also wanted to express their independence and to distinguish themselves from
Inditex, the parent company which owns Zara, one of the best known fashion brands in the world, is an apparel conglomerate, with 9 brands under its umbrella. Inditex made €1.932 billion profit with a revenue of €13.79 billion worldwide in 2011. As of 2012, there are 100,140 people working for Inditex Group across their headquarters and 6,009 stores around the world. [1][2]
Among those major 9 brands of Inditex, Zara, one of their oldest brands which was created in 1975 by Amancio Ortega, is definitely the most important contributor to the empire. With 1,751 stores (not including Zara Home) around the world, Zara made a sales of €18.088 billion in 2010, which contributed 64.5% of Inditex the whole revenue for Inditex Group. [1][2]
Within the apparel industry, where the market is huge but competition is intense, Inditex ranked #2 in the apparel industry of the world. [3] In 2000, retail spending on clothing or apparel reached approximately €900 billion worldwide. [9] With a clear vision and optimistic outlook of the future, Inditex is continuously expanding and growing their business.
The Globalization and a Constantly Changing World Values of Fashion
Back in the late 1960s and 1970s, many of the currently developed countries, including Spain, were opening up their economies and growing rapidly. It was a time when television was getting popular and penetrating into the ordinary citizens’ home. With television, people increased their exposure to foreign sociocultural customs and lifestyles, including trends in fashion. Among those people, two sectors of society in particular were displaying changes in their behaviors. One was women, who had new needs and demands for clothing as they started to work in the cities, wanted independence and to distinguish themselves from traditional housewives. The other sector was the young, who also wanted to express their independence and to distinguish themselves from
References: 1. Inditex Group Annual Report, 2011. 2. Inditex Group Stores Around the World, 1/31/2013, http://www.inditex.es/en/who_we_are/stores/ 3. FAST RETAILING CO., LTD., Major Global Specialty Share Retailers of Private Label Apparel (SPA) Industry Ranking, http://www.fastretailing.com/eng/ir/direction/position.html 4. Zara and her Sisters, The Story of the World’s Largest Clothing Retailer, 2009, Enrique Badia 5. Design Manufacture & Engineering Management; Strathclyde University Glasgow 6. Agile Supply Chain: Zara’s case study analysis by Galin Zhelyazkov 7. CNN Money: Meet Amancio Ortega: The third-richest man in the world, http://management.fortune.cnn.com/2013/01/08/zara-amancio-ortega/ 8. Case Study: Retail @ the Speed of Fashion, Devangshu Dutta, 2002 9. Zara: Fast Fashion, Pankaj Ghemawat, Jose Luis Nueno, December 21, 2006