ZARA, A TRUE SUCCESS STORY (INDITEX GROUP)

If we analyze the figures of the Inditex group, one concludes that there is something miraculous about the whole process. The store coruñesa 2,500 pesetas born with investment in 1975 is now one of the giants of the Spanish Stock Exchange after yielding a net profit of 432 million euros in the first quarter of 2013, a 30% increase in economic crisis. Its founder Amancio Ortega, one enterpreneur out of the limelight and no college, has managed to weave a major textile imperiores planet, as journalist David Martinez explains in his book "Zara, vision and strategy Amancio Ortega '( Editorial Conectal).

Martinez gives us the keys to the success of the flagship of the group and how the business model "made in Arteixo" has forever changed the way we buy clothing of millions of people around the world.Bookcover Martinez

First, the reporter noted that, contrary to what happens in other fashion houses' in Zara the customer is the center of business. " The textile multinational imposes no consumer tastes and trends, if not this is who selects and sets the tone in the workshops. To know where the demand is, they analyze daily sales in more than 1,700 shops in the world (6,000 if you include the other Inditex brands). The charge of each establishment must send a report of what was sold, information about items that are stacked on shelves and what to ask and look for customers.

From this daily communication, trends captured in the street and also the patterns displayed on the catwalk, designers take note and create each of the parts traveling from Galicia to any corner of the world with a catalog of articles overall.

Here would lie another Ortega revolutions. "Disintermediation was the first decision of this entrepreneur truly innovative," explains Martinez in his work. All garments are designed in Galicia in a commercial business in which "are integrated both fabric storage as design and cutting presses and manufacturing is outsourced to factories that work quickly."

"In Zara customer is the center of business»







Setting aside the usual couple of collections a year and the renewal of clothes twice a week is another reason for the success of Zara, that although "democratize" fashion with low prices and adapt to the demand patterns, has managed to change and "re-educate" the way consumers shop. Fast fashion customers have become accustomed to novelty and find different products on the shelves in front of the distinction made by other firms between spring-summer and autumn-winter.

To output models as quickly as possible, Inditex has ten logistics platforms that allow these to reach anywhere in the world in two days. So do not accumulate inventories and collections can be removed with no success in the market and avoid a price increase that ultimately rests with the client.

A complex plan, but based on the simplicity and the local concentration and then move to the global expansion and, on the basis of effort and humility of its founder, has achieved the unimaginable: a fashion textile emporium set to Spain.

Please check Inditex web side for information about the group and its brands.
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