The Gore Family

Topic in Applied Finances |
Inditex



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Table of contents

* Who is Inditex

* Business Model

* History

* Inditex in the Stock Market

* Going Public

* Inditex Going Public


Who is InditexInditex is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 5.221 stores in 78 countries.

The Inditex Group is made up of more than 100 companies operating in textile design, manufacturing and distribution.The group's success and its unique businessmodel, based on innovation and flexibility, have made Inditex one of the biggest fashion retailers in the world.(*www.inditex.es)

The first Zara store opened in 1975 in A Coruña (northwest Spain), where the Group’s business began and where it is still headquartered. Inditex Group stores are today found in all of the world’s major cities, always in major shopping areas. inditex has beenlisted on the Spanish Stock Exchange since

23 May 2001, following an IPO which generated great interest among investors worldwide. Inditex has grown dramatically in recent years, achieving consolidated turnover of 12,527 million euros in 2010, and net profit of 1,732 million euros. As of 31 January 2011, the Group had 100,138 employees worldwide.

The Inditex business model is characterised by ahigh degree of vertical integration.

It is involved in all stages of the fashion process:
design, manufacture, logistics and distribution to its own managed stores. It has a flexible structure and a strong customer-centric focus across all of its business areas.

The key element for the corporation is the store, a carefully designed space created to make customers comfortable as theyexperience our collections. It is also where we obtain useful information for adapting our collections to customers’ tastes.

The important to this model is the ability to adapt our merchandise to customer tastes in the shortest time possible. For Inditex, speed is the No. 1 priority, above and beyond production costs. Vertical integration enables us to shorten turnaround times and achieve greaterflexibility, keeping merchandise stock and fashion risk at a minimum.
(*Inditex press dossier)

Business Model
Manufacturing
Most of the production is done in factories own. The Company controls fabric supply, marking and cutting and the final finishing of garments. Subcontracting is performed confection phase.

Logistics
All merchandise, irrespective of origin, is delivered to eachconcept’s distribution hubs, from whence it is distributed simultaneously to all stores worldwide on a very frequent and continuous basis. Deliveries arrive in stores twice weekly and always contain new styles, to ensure that store collections are constantly refreshed and updated.

Retail at company stores
The store is the beginning of the process, is the vehicle for gathering market information,sending feedback to design teams and reporting on trends requested by customers.

The main development strategy for Inditex concepts entails opening stores managed by companies in which Inditex is the sole or majority shareholder. In 2010, it had 710 franchised stores .
The main characteristic of the Inditex franchise model is the total integration of franchised stores.This ensures standardisedstore management practices and a global image from the viewpoint of customers worldwide.

History(*blogger-index.com)
The beginning of Zara

In 1963 Amancio Ortega starts a little company called GOA that produces and markets several kinds of clothes. The sales of the firm grow slowly, and it opens new production centers to get more capacity and versatility. The company soon starts to export...