Zara begins to sell its products online in September and by the end of the online platform is live in 16 European markets. We mark our 5,th store with the opening of an eco-efficient Zara store in Rome, and present our new Environmental Strategy Plan, called Sustainable Inditex In the same year, we launch online platforms for all our brands and Zara begins to sell its fashions online in the US and Japan. We achieve presence in 82 markets. We build a cutting-edge logistics centre in Tordera, Barcelona, the first of its kind in Spain to be granted LEED gold environmental rating.
We are among the first signatories of the landmark Accord on Fire and Building Safety in Bangladesh to improve conditions there. We continue to integrate the expansion of our online and offline capacity, with new flagship stores, extension and refurbishment of existing facilities and entrance into new markets.
Our new Technological Center is inaugurated. Zara in Hawaii, one of new stores this year, becomes our 7,th store. Five new markets get their first Inditex stores and we enter eight new online markets. In line with our integrated model of stores and online, we begin selling throught zara. From a commercial perspective, among many other initiatives, we increase the Zara Join Life sustainable collections and spread out this initiative to Massimo Dutti and Oysho.
The evolution of our integrated store and online model prompted the expansion our online presence. Zara launched its global online store zara.
The revenues of Inditex was USD The other fashion brands in the Inditex portfolio are:. Zara Home: Home goods and decoration objects founded in Operating in markets, 70 of them with stores. Operates in markets, 75 of them with stores. Massimo Dutti: High end clothing and accessories for cosmopolitan men and women acquired in Operates markets, 74 of them with stores.
Bershka: Blends urban styles and modern fashion for young women and men founded in Operates in markets, 74 of them with stores. Stradivarius: Casual and feminine clothes for young women acquired in Operates markets, 67 of them with stores. Oysho: Lingerie, casual outerwear, lounge wear and original accessories founded in Operating in markets, 58 of them with stores.
Operating in markets, 17 of them with stores. These corporate properties house large companies including Facebook, Amazon and Apple, and prestigious luxury and retail brands. Its core values are found in four simple terms: beauty, clarity, functionality and sustainability. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed.
This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two.
In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.
It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors.
Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards. Shorter lead times and more fashionable clothes : Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time e.
While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.
Lower quantities through scarce supply : By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items and more specifically luxury , the lesser the availability, the more desirable an object becomes.
Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat. More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12, a year.
Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer. Zara only allows its designs to remain on the shop floor for three to four weeks. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.
In , a lady named Miko walked into a Zara store in Tokyo and asked the store assistant for a pink scarf, but the store did not have any pink scarves. The same happened almost simultaneously for Michelle in Toronto, Elaine in San Francisco, and Giselle in Frankfurt, who all walked into Zara stores and asked for pink scarves.
They all left the stores without any scarves — an experience many other Zara fans encountered globally in different Zara stores over the next few days. They sold out in 3 days. How did such lightning fast stocking of pink scarves happen? Customer insights are the holy grail of modern business, and the more companies know about their customers, the better they can innovate and compete. But it can prove challenging to have the right insights, at the right time, and have access to them consistently over time.
The brand uses cutting-edge systems to track the location of garments instantly and makes those most in demand rapidly available to customers. Additionally, it helps to reduce inventory costs, provides greater flexibility to launch new designs, and allows fulfillment of online orders with stock from stores nearest to the delivery location thereby reducing delivery costs.
Zara empowers its sales associates and store managers to be at the forefront of customer research — they intently listen and note down customer comments, ideas for cuts, fabrics or a new line, and keenly observe new styles that its customers are wearing that have the potential to be converted into unique Zara styles.
In comparison, traditional daily sales reports can hardly provide such a dynamic updated picture of the market. In the fashion world, a trend starts small, but develops fast. Zara employees are trained to listen, watch and be attentive to even the smallest seismographic signals from their customers, which can be an initial sign that a new trend is taking shape. Zara knows that the quicker it can respond, the more likely it is to succeed in supplying the right fashion merchandise at the right time across its global retail chain.
Zara has set up sophisticated technology driven systems, which enable information to travel quickly from the stores back to its headquarters in Arteixo in Spain, enabling decision makers to act fast and respond effectively to a developing trend.
Its design teams regularly visit university campuses; nightclubs and other venues to observe what young fashion leaders are wearing. In its headquarters, the design team uses flat-screen monitors linked by webcam to offices in Shanghai, Tokyo and New York the leading cities for fashion trends , which act as trend spotters.
Almost a quarter of its shops remained closed by 8 June. However, online sales growth made up for some of the sales weakness, Inditex said. Bricks and mortar retailers around the world have been forced to re-evaluate their business models during the pandemic, amid expectations of lower footfall in stores for a significant amount of time.
In the UK fashion brands Monsoon Accessorize and Quiz said on Wednesday they would close branches, with hundreds of jobs lost.
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