Zara

Zara: Fast Fashion
Inditex: Company Structure

Inditex is a global specialty retailer that designs, manufactures and sales apparel, footwear, and accessories for women, men and children, throughZara and five other chains around the world. Inditex, by the end of 2001, operated 1.284 stores around the world, covering a selling area of 659.400 square meters. Up to 2009, it now operates 4.780stores around the world, incluiding spain, with 92.301 employees and 2.348.708 covering area square meters.

The six retailing chains are organized as separated business units within an overallstructure that also includes six business support areas and nine corporate departments or areas of responsibility. Each of the chains operates independently and is responsible for its own business strategy.While the corporate center is an “strategic controller”, invlolving the corporate strategy, approving business stratefues of the individual chains, and controlling their performance.

Zara is thelargest chain of inditex, and represents about 60% of its total income. With 1.608 stores, €7.077 million on sales and 15.6% of EBIT margin.

Share price: €57, 00.- (103.525.000 shares)

Naturalezade la demanda

Tamaño de la demanda

Key International Competitors

There are three closest comparable worldwide competitors, The GAP, H&M and Benetton. All three has narrower vertical scopethan Zara, which owns much of its productions and most of its stores. While The Gap and H&M owns most of their stores but outsource all production. Benetton, in contrast, invests heavily inproduction, but licensees ran its stores.

The GAP
Described as “unpretentious real clothes stance”, The GAP has an internationalized production, but most of its store operations are US-Centric. ItsInternational store expansion is limited by difficulties finding locations in markets such as UK, Germany, and Japan, adapting to different customer sizes and preferences, and dealing with more severe...