Zara: the Technology Giant of the Fashion World

Topics: Inditex, Wal-Mart, Fashion Pages: 6 (1855 words) Published: April 14, 2011



Zara brand is the flagship chain store of Inditex Group; the Inditex Group is integrated by: ZARA, OYSHO, UTERQÜE, BERSHKA, STRADIVARIUS, MASSIMO DUTTI, and PULL AND BEAR. The owner of Inditex Group is the tycoon Amancio Ortega, the group headquarter is located on Coruña, Galicia, Spain, this was the place where the first Zara store opened in 1975. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. Its first store featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega started opening more Zara stores in Spain. During the 1980s, Ortega started changing the design, manufacturing and distribution process to reduce lead times and react to new trends in a quicker way, in what he called "instant fashions". The company based its improvements in the use of information technologies and using groups of designers instead of individuals. In 1980, the company started its international expansion through Porto, Portugal. In 1989 they entered the United States and in 1990 France. This international expansion was increased in the 1990s, with Mexico (1992), Greece (1993), Belgium and Sweden (1994), etc. until the current presence in over 73 countries. As of 2007 Zara stores have men's clothing and women's clothing, each of these subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and Complements, as well as children's clothing (Zara Kids). Zara can offer considerably more products than similar companies. It produces about 11,000 distinct items annually compared with 2,000 to 4,000 items for its key competitors. The company can design a new product and have finished goods in its stores in four to five weeks; it can modify existing items in as little as two weeks. Shortening the product life cycle means greater success in meeting consumer preferences. If a design doesn't sell well within a week, it is withdrawn from shops, further orders are canceled and a new design is pursued. No design stays on the shop floor for more than four weeks, which encourages Zara fans to make repeat visits.


Amancio Ortega is a Spanish fashion entrepreneur, he is the founder, with his wife Rosalía Mera, of Inditex s.a. (industrias de diseño textil), nowadays he is the chairman of the Inditex Group. Starting as a gofer in various shirt stores in A Coruña, Galicia, in 1963 he founded Confecciones Goa (his initials in reverse), which made bathrobes. In 1975 he opened the first store in what would grow into the enormously popular chain of fashion stores called Zara. He owns 59.29% of the Inditex group.

First Chairman and CEO of Inditex, he is graduated of Law from the Complutense University of Madrid and State lawyer. He was Chairman of the Board of Directors of Altadis and co-CEO was joint-president of this group from July 2000.


Inditex: Is a conglomérate of brands that have something in common, fashion clothes, those brands are Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarious, Oysho, Zara Home and Uterque, The philosophy of the enterprise is based on flexibility, fashion, and the power to change the market and balance fashion, distribution, production and price, those competences have convert Index in one of the most important fashion enterprise in the world. Zara: is a public enterprise of the fashion industry founded in La Coruña, Spain in the year 1975 by Amancio Ortega, is a worldwide fashion brand that sales clothes, is part of Inditex Enterprise, the web page is, the concept of Zara was at the beginning was to sell clothes with a low prices that actually look...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Zara Fast Fashion Giant Essay
  • Case Study Zara the Technology Giant of the Fashion World Essay
  • Fashion and Zara Essay
  • Fashion and Zara Essay
  • Essay about Zara Fashion
  • Zara Fashion Essay
  • Essay about Zara: It for Fast Fashion
  • Zara Fast Fashion Essay

Become a StudyMode Member

Sign Up - It's Free