Fashion Company: Zara and Inditex Essay

Fashion Company: Zara and Inditex Essay

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Zara is a fashion company that runs internationally and does so being a part of five other apparel retailing chains. Inditex (Industria de Diseno Textil) of Spain is the owner of the chains with Zara being the most successful of the chains. Inditex’s founder and owner is Amancio Ortega, a man who is Spain’s richest man despite starting off as an errand boy. Inditex came out on fire with their Initial Public Offering in May of 2001. They enjoyed an increase of nearly 50% of its stock price in the next 12 months. All of that while entering into bearish stock market conditions. The one challenge that was highlighted during this was significant growth. Its future growth had to match the expectations and reach the bar set high by its initial success.
Zara has been open since the year of 1975 and provides clothing for women, men, and children. These different areas of clothing each have their own team focused on making sure they have the newest and trendiest fashion in their clothing. Zara, which started small, now has over 500 stores in 30 different countries. Zara has become the number one retail chain Inditex. This is mainly due to their short cycle time, advanced manufacturing systems, and their forward thinking global perspectives. Zara’s success has come with a lot of praises, but has a few shortcomings as well that limit the full potential it can reach. For a consumer in North America or Asia, Zara may not be very familiar to them. That is because even with the accomplishments and continued success in South America, Europe, and even the Middle East, Zara has not been able to develop a successful presence in Asia or North America. The problem immediately realized from this is the concern that a strong company is ...

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...motivated by impulse to start buying online. As Zara wanted people to impulse buy due to its quick turnover, the same will happen online and can be even more effective. The last thing implemented by Zara is the addition of greater inventory into the stores, but that can be increased over time with rising interest.
Inditex has been very successful for a long time with the business strategies they have been able to apply for years. Zara has had much success and that has been achieved even with the challenges it faces today. Implementation of a solid future strategy will have great long-term impact on Zara. Improving advertising, increasing levels of inventory, and adding more physical stores will make Zara even more successful in the future. Overall, Zara is a great company doing a lot of things right and is a prime example of what it takes to be a success.

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