MIS[S] INDEPENDENT

ZARA’S CASE STUDY

GENERAL PRESENTATION OF THE FIRM
Inditex is the largest Spanish corporation , and one of the world’s largest fashion groups. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution. Amancio Ortega Gaona , Spanish’s richest man is the founder and current chairman of inditex.
Moreover, we are going to focus a little more on ZARA study in order to understand what is Inditex ‘s business model and how do the company works generally. Indeed , ZARA is the flagship chain store of the group INDITEX that also owns brands such as Bershka, Massimo Dutti, Stradivarius, Pull and Bear, Oysho and so on. The headquarter of the group is in Coruña, Galicia, Spain, and has been founded in 1975 by Amancio Ortega. ZARA is the fastest growing clothes retailer, with 899 stores in 62 countries and a new store opening every three weeks.
Moreover, it is claimed that ZARA need just two weeks to develop a new product and get it to stores, compared to a six-month industry average. The firm launches around 10.000 new designs each year. ZARA has resisted the industry- wide trend towards transferring fast fashion production to low-cost countries. Perhaps it’s most unusual strategy was its policy of zero advertising, preferring to invest a percentage of revenues in opening new stores.
Except from countries where the legislation forbids foreigner-owned stores and where the firm franchises its stores, ZARA stores are company-owned. Furthermore, dealing with manufacturing and distribution, ZARA is a vertically integrated retailer. Unlike similar apparel retailers, it controls most of the steps on the supply-chain: It designs, produces, and distributes