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Inditex

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Industria de Diseño Textil, S.A.
Inditex
Company typeSociedad Anónima
BMAD: ITX
ISINES0148396007
IndustryRetail
Predecessor
  • Confecciones GOA, S.A.
  • GOASAM, S.A.
FoundedA Coruña, Galicia, Spain
(12 June 1985; 39 years ago (1985-06-12))
FoundersAmancio Ortega
Rosalía Mera
Headquarters
Arteixo, Galicia
,
Spain
Number of locations
7,292 stores[1]
Area served
Worldwide
Key people
ProductsClothing & fashion
RevenueIncrease €35.95 billion (2023)[2]
Increase €6.87 billion (2023)[2]
Increase €5.38 billion (2023)[2]
Total assetsIncrease €32.74 billion (2023)[2]
Total equityIncrease €18.67 billion (2023)[2]
Number of employees
Decrease 161,281 (2023) [2]
SubsidiariesZara, Pull&Bear, Bershka, Massimo Dutti, Stradivarius, Oysho, Zara Home, Uterqüe, Lefties
Websitewww.inditex.com
Footnotes / references
[3] [2][1]

Industria de Diseño Textil, S.A. (Inditex; /ˌɪndɪˈtɛks/, Spanish: [indiˈteks]; lit. 'Textile Design Industry') is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain.[4] Inditex, the biggest fast fashion group in the world,[5] operates over 7,200 stores in 93 markets worldwide.[6][7][8] The company's flagship brand is Zara, but it also owns a number of other brands including Zara Home, Bershka, Massimo Dutti, Oysho, Pull&Bear, Stradivarius, Uterqüe and Lefties. The majority of its stores are corporate-owned, while franchises are mainly conceded in countries where corporate properties cannot be foreign-owned.[9]

Inditex's business is centred around one simple premise – to be quick at responding to the market. Whereas it would take almost a year for a traditional fashion company to get its products out, from conception to runway to stores, for Inditex, this process takes less than two months to replenish stores with new and different products weekly and respond quickly. In Zara stores, it can take a new garment as little as 15 days to go from design and production to store shelves.[10]

The Uyghur Rights Monitor, Sheffield Hallam University, and the Uyghur Center for Democracy and Human Rights have accused the company of using Uyghur forced labour through the Chinese based textile supplier Beijing Guanghua textile group.[11]

History

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1960s and 1970s

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In the early 1960s Amancio Ortega started his own business in the clothing industry while working for a local shirt maker in A Coruña, Spain.[12] Ortega began developing his designs and he and his wife Rosalia Mera started making clothes in their home.[9][13] Amancio had saved up enough money to open a small factory and sold garments to his former employer, amongst others.[9]

In 1975, the couple opened their first store, Zara, which produced popular fashion at low prices.[9][10] The following year, Zara was incorporated and began opening more stores and factories in Spain.[9] Later that year, after noticing the growing importance of computers, Ortega hired a local professor, José María Castellano, to develop the company's computing power.[9][14]

1980–2000

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In the 1980s, the company implemented a new design and distribution method that drastically reduced the time between design, production, and arrival at retail sites.[15] The system was designed by Castellano, who became the company's CEO in 1984. In 1985, Industria de Diseño Textil S.A. or Inditex was created as a holding company for Zara and its manufacturing plants.[16] In 1988, the company began expanding internationally with the opening of a Zara store in Porto, Portugal.[17] In 1990, the company-owned footwear collection, Tempe, populated in the children's section of Zara stores.[18] In 1991, Inditex created the company Pull and Bear, a casual menswear company.[19][20] Later that year, the company also acquired a 65 per cent share in the upscale Massimo Dutti brand. Inditex created Lefties in 1993; the name is taken from the term leftovers and it was created to sell old Zara clothing.[21] In 1995, Inditex purchased the remaining Massimo Dutti shares and began expanding the brand to include a women's line.[22] In 1998, Inditex launched the Bershka brand that was aimed at urban hip fashion.[23] The company bought Stradivarius in 1999, a youthful female fashion brand.[9]

2001–present

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Inditex had its initial public offering (IPO) in 2001, on the Bolsa de Madrid.[24] The IPO sold 26 per cent of the company to public investors, the company was valued at €9 billion.[25] The same year, the company launched the lingerie and women's clothing store Oysho.[26][27]

In 2003, Inditex launched the Zara Home brand, which offers bedding, cutlery, glassware and other home decoration accessories.[28] In 2004, with the opening of store number 2,000 in Hong Kong, Inditex had established its presence in 56 countries.[29]

In 2005, CEO Jose Maria Castellano stepped down from the position to oversee expansion plans, he was replaced by Pablo Isla.[30] Inditex launched Uterque in the summer of 2008, the brand specializes in women's accessories.[31] During the same year, the company opened its 4,000th store in Tokyo after doubling in size within four years.[29] In 2011, Ortega, the founder of the business and majority shareholder, stepped down as deputy chairman and CEO Isla handles day-to-day operations.[29] Later that year, the company opened a store in Australia, a move that would put the company on five continents and in 77 countries.[32] After the 2013 Savar building collapse, Inditex was one of the thirty-eight companies who signed the Accord on Factory and Building Safety in Bangladesh.[33]

As of 2019, Inditex is the biggest fashion retailer in the world by revenue.[34]

The company's revenue fell by 18% to $1.85 billion in the final quarter of 2020, primarily due to the fall in retail sales as a result of the coronavirus pandemic. Inditex's stocks fell by 12% over the year.[35]

In May 2021, Inditex said that all its stores in Venezuela would close as it will review its agreement with its local partner Phoenix World Trade.[36]

In the three months to 30 April 2023, the group reported a 13% increase in sales to £6.54 billion and a 14% rise in profit to £3.96 billion.[37][38]

International presence

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In 1989, a year after entering Portugal, the company entered the U.S. market[39] and expanded into France in 1990.[9] Expansion continued to Mexico in 1992 and Greece in 1993. In 1994, Inditex opened stores in Belgium and Sweden.[40] By 1997, the company had expanded to Malta, Cyprus, Norway and Israel.[15] In 1998, expansion continued to the UK, Turkey, Argentina, Venezuela, the Middle East and Japan.[15] Canada, Germany, Poland, Saudi Arabia and several South American countries received stores in 1999.[40][41]

The company opened stores in Italy, Luxembourg and Jordan in 2001. In 2003, Inditex opened stores in Russia, Slovakia and Malaysia.[41] The following year Latvia, Hungary, and Panama amongst other countries where stores opened, including the 2,000th store in Hong Kong.[41] By 2006, the company had expanded into mainland China.[42] In 2010, the company opened their 5,000th location in Rome[29] and its first in India.[42] The first stores in Australia and South Africa opened in 2011.[32] The company's expansion continued to the Serbia, North Macedonia, Armenia, Ecuador, Georgia and Bosnia-Herzegovina in 2012.[41][43] In 2014, Inditex opened stores in Albania.[44] In 2016, Inditex announced that they planned to open stores in Vietnam, New Zealand, Paraguay, Aruba and Nicaragua.[7]

Online sales

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In 2007, Inditex launched the Zara Home online retail store.[45] Zara joined the e-commerce marketplace in September 2010, launching websites in Spain, the UK, Portugal, Italy, Germany and France.[46][47] In November 2010, Zara's online presence grew to include Austria, Ireland, the Netherlands, Belgium and Luxembourg.[48] In September 2011, Inditex brought Zara's e-commerce platform to the U.S.,[49] as well as adding the brands Pull and Bear, Massimo Dutti, Bershka, Stadivarius, Oysho and Uterqüe to the e-commerce space.[50] As of February 2016, Inditex operates e-commerce sites in 28 markets and plans to add 12 more by April.[51][52][53] In September 2018, Inditex announced to sell all its brands online by 2020, even in places where it does not own any stores.[54][55]

Marketing strategy

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Inditex avoids magazine advertising, with print campaigns only occurring on billboards in certain regions like U.S. and in-store. Endorsements for celebrities to wear its labels are budgeted instead. The company also invests heavily in a prime commercial location with fashion-forward window displays for optimum high street visibility and product turnaround.[citation needed]

Plagiarism

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Zara has been accused of copying artwork.[56]

In 2017, Zara Home Belgium was convicted of plagiarism by a Brussels Court,[57][58][59][60][61] which was claimed to have been the first plagiarism conviction of a fast retailer.[62]

Brands

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Under the Inditex umbrella are several brands that offer a variety of products aimed at different markets.[63]

Company No. of stores[64][65] Year of creation[66] Market Notes
Zara 1,939 1975 Fashion for men, women and children
Pull and Bear 964 1991 Casual laid-back clothing and accessories for young women and men
Massimo Dutti 682 1991 (acquired) Clothing and accessories for cosmopolitan men and women
Lefties 135 1993 Affordable fashion Active in sixteen markets: Spain, Portugal, Andorra, Mexico, Qatar, Saudi Arabia, Morocco, Tunisia, the United Arab Emirates, Egypt, Israel, Bahrain, Tunisia, Oman, Romania and Turkey
Bershka 971 1998 Blends urban styles and modern fashion for young women and men
Stradivarius 915 1999 (acquired) Casual and feminine clothes for young women
Oysho 556 2001 Lingerie, casual outerwear, loungewear, gym wear & swimwear and original accessories for women
Zara Home 482 2003 Home goods and decoration objects
Uterqüe 82 (closed) 2008 High-quality fashion accessories at attractive prices Inditex integrated Uterqüe into Massimo Dutti in September 2021.[67]

Corporate affairs

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Board of directors

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Bold indicates a company shareholder and the representative will be listed below.

Member Title(s) Member Since Shares Held Notes
Marta Ortega Chairman of Inditex April 2022 42,511 [68]
Óscar García Maceiras CEO of Inditex November 2021 8,570
Jose Arnau Sierra Deputy Chairman of Inditex
First Executive of Grupo Pontegadea
Director of GARTLER, S.L.
Member of the Board of Trustees of Fundacion Amancio Ortega Gaona 		June 2012 30,000
Amancio Ortega Founder & Board Member of Inditex June 1985 1,848,000,315
Pontegadea Inversiones, S.L.
Ms. Flora Perez Marcote 		Board Member of Inditex December 2015
Baroness Kingsmill CBE Board Member of Inditex
Member of the supervisory board of EON
Non-executive director of International Airlines Group SA
Chairman of Mondo
Member of the International Advisory Board of the Spanish Business School (IESE) 		July 2016
Jose Luis Duran Schulz Board Member of Inditex
Independent Director & Member of the Audit Committee of Orange 		July 2015 3,106
Rodrigo Echenique Gordillo Board Member of Inditex
Chairman of NH Hoteles 		July 2014 20,000
Emilio Saracho Rodriguez de Torres Board Member of Inditex
Head of Investment Banking of JPMorgan Europe, Middle East, & Africa, Ltd.
Executive Committee Member of Investment Bank
Executive Committee Member of JPMorgan Chase
Deputy-CEO of EMEA 		June 2010
Pilar López Álvarez Board Member of Inditex

Deputy Chair of Microsoft Western Europe

July 2018 4,000
Anne Lange Board Member of Inditex

Member of the boards of Orange, Pernod-Ricard, and FFP.

July 2020

Ownership

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The largest shareholders in early 2024 were:[69]

Shareholder Ownership stake (%) Value in € bn.
Pontegadea Inversiones, S.L (Amancio Ortega) 50.1% €68.9
Partler 2006 SL 9.3% €12.8
Sandra Ortega Mera 5.06% €7.0
Capital Research and Management Company 1.71% €2.4
BlackRock, Inc. 1.41% €1.9
The Vanguard Group, Inc. 1.33% €1.8
Norges Bank Investment Management 1.01% €1.4
Amundi Asset Management SAS 0.74% €1.0
Fidelity International Ltd 0.45% €0.625
Walter Scott & Partners Limited 0.32% €0.442

See also

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References

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  1. ^ a b "Financial Data" (pdf). Inditex. Retrieved 27 February 2018.
  2. ^ a b c d e f g "ITX - FY2023 Results" (PDF). www.inditex.com.
  3. ^ "Article - inditex.com". www.inditex.com.
  4. ^ Butler, Sarah (14 December 2013). "Inditex: Spain's Fashion Powerhouse You've Probably Never Heard Of". The Guardian. Retrieved 20 April 2016.
  5. ^ "Inditex, king of fast fashion".
  6. ^ "International presence - inditex.com". www.inditex.com. Archived from the original on 10 September 2016. Retrieved 16 March 2017.
  7. ^ a b "Zara Owner Inditex Sees Profits Jump as Sales Soar". BBC. 9 March 2016. Retrieved 16 March 2016.
  8. ^ Abnett, Kate; Amed, Imran (30 March 2015). "Inditex:Agile Fashion Force". Business of Fashion. Retrieved 20 April 2016.
  9. ^ a b c d e f g h "Industria de Diseno Textil S.A. History". Funding Universe. Retrieved 8 April 2016.
  10. ^ a b Frayer, Lauren (12 March 2013). "The Reclusive Spanish Billionaire Behind Zara's Fast Fashion Empire". NPR. Retrieved 20 April 2016.
  11. ^ Tailoring Responsibility: Tracing Apparel Supply Chains from the Uyghur Region to Europe (PDF). Uyghur Rights Monitor, the Helena Kennedy Centre for International Justice at Sheffield Hallam University, and the Uyghur Center for Democracy and Human Rights. December 2023. p. 20.{{cite book}}: CS1 maint: date and year (link)
  12. ^ "Amancio Ortega Gaona is One of the 500 People Shaping the Global Fashion Industry in 2018". The Business of Fashion. Retrieved 17 August 2018.
  13. ^ Baigorri, Manuel (15 August 2013). "Rosalia Mera, Who Was Spain's Richest Woman, Dies at 69". Bloomberg Business. Retrieved 20 April 2016.
  14. ^ Buck, Tobias (18 June 2014). "Fashion:A Better Business Model". Financial Times. Archived from the original on 10 December 2022. Retrieved 20 April 2016.
  15. ^ a b c Ozkurt, Tolga (2010). The Last Retail Evolution. Editrice Le Fonti. pp. 47–49. ISBN 978-88-6109-075-0.[permanent dead link‍]
  16. ^ Hansen, Suzy (9 November 2012). "How Zara Grew Into the World's Largest Fashion Retailer". New York Times Magazine. Retrieved 8 April 2016.
  17. ^ Ryan, Orla (23 May 2001). "Spain's Retail Success Story". BBC News. Retrieved 8 April 2016.
  18. ^ "Company History". Tempe Groupo Inditex. Archived from the original on 9 April 2016. Retrieved 8 April 2016.
  19. ^ "Company History". Pull and Bear. Retrieved 8 April 2016.
  20. ^ "Pull and Bear First UK Store". Fashion United. Retrieved 8 April 2016.
  21. ^ Sowray, Bibby (19 March 2014). "Lefties:The Zara Outlet You Never Knew About". The Telegraph. Archived from the original on 28 June 2015. Retrieved 4 November 2015.
  22. ^ "Annual Report Massimo Dutti". Inditex. 1998. Retrieved 8 April 2016.
  23. ^ "Bershka About". Inditex. Retrieved 8 April 2016.
  24. ^ Vitzthum, Carlta; Ascarelli, Silvia (29 April 2015). "Inditex Sets IPO Price Range Amid Strong Market Demand". The Wall Street Journal. Retrieved 8 April 2016.
  25. ^ Heller, Richard (28 May 2001). "Inside Zara". Forbes. Retrieved 8 April 2016.
  26. ^ "About Oysho". FashionBi. Archived from the original on 29 September 2018. Retrieved 8 April 2016.
  27. ^ Loeb, Walter (30 March 2015). "Zara Leads in Fast Fashion". Forbes. Retrieved 8 April 2016.
  28. ^ Barker, Barbara (16 June 2003). "Spanish Clothing Manufacturer Inditex Enters New Territory With Zara Home". HFN the Weekly Newspaper. Home Furnishing Network. Retrieved 8 April 2016.
  29. ^ a b c d Gomez, Luis (14 August 2012). "The Man Who Dresses the World". El Pais. Retrieved 8 April 2016.
  30. ^ Crawford, Leslie (26 September 2005). "Castellano Steps Down From Inditex". Financial Times. Archived from the original on 10 December 2022. Retrieved 8 April 2016.
  31. ^ Moreau, Raphael (22 September 2008). "Retail in Practice:H&M and Inditex's Global Expansion Strategies". The Retail Digest. {{cite journal}}: Cite journal requires |journal= (help)
  32. ^ a b Tartaglia, Lisa (18 April 2011). "Zara's Australian Entrance to Challenge Local Retailers". The Conversation. Retrieved 8 April 2016.
  33. ^ Burke, Jason; Hammadi, Saad; Neville, Simon (13 May 2013). "Fashion Chains Sign Accord to Help Finance Safety in Bangladesh Factories". The Guardian. Retrieved 8 April 2016.
  34. ^ "Fast Retailing overcomes H&M as world's second-largest fashion retailer". www.themds.com. Retrieved 16 October 2019.
  35. ^ "Inditex Profit Drops as Consumers Spend Less in Second Lockdowns". Bloomberg.com. 15 December 2020. Retrieved 4 January 2021.
  36. ^ "Zara owner Inditex to close all stores in Venezuela, local partner says". Reuters. 22 May 2021. Retrieved 22 May 2021.
  37. ^ Wright, Georgia (7 June 2023). "Zara owner Inditex's profits continue to soar as it eyes 'strong growth opportunities' - Retail Gazette". www.retailgazette.co.uk. Retrieved 23 August 2023.
  38. ^ Pons, Corina; Reid, Helen; Pons, Corina; Reid, Helen (7 June 2023). "Zara-owner Inditex enjoys strong start to summer". Reuters. Retrieved 23 August 2023.
  39. ^ Lauren Sherman (24 March 2015). "America's Favorite Foreign Retailers". Forbes. Retrieved 14 April 2016.
  40. ^ a b "Fashion Chain Zara Reclaims the Glory of Spain". Wharton University of Pennsylvania. 24 April 2003. Retrieved 14 April 2016.
  41. ^ a b c d "Inditex: Our History". Inditex. Retrieved 14 April 2016.
  42. ^ a b Saumya Roy (29 July 2010). "Fast Fashion: Zara in India". Forbes. Retrieved 14 April 2016.
  43. ^ "Inditex to Open Stores in Bosnia and Herzegovina". RetailWeek. 23 February 2012. Retrieved 14 April 2016.
  44. ^ Lukasz Izakowski (3 April 2014). "Inditex Enters the Albanian Market". Retail Net. Retrieved 14 April 2016.
  45. ^ "Zara Home to Launch its Online Platform in Australia". Retail News Asia. 12 July 2015. Retrieved 14 April 2016.
  46. ^ Sarah Morris (18 March 2015). "Zara-Owner Inditex to Trim Investment After Strong Sales". Reuters. Retrieved 14 April 2016.
  47. ^ Lauren Sherman (9 June 2010). "Zara Will Finally Offer E-Commerce, But Not to US Customers". Fashionista. Retrieved 14 April 2016.
  48. ^ Christopher Bjork (22 September 2010). "Zara Tries a Fast One on the Net". Wall Street Journal. Retrieved 14 April 2016.
  49. ^ Allison Enright (6 September 2011). "Zara Launches E-Commerce Operations in the U.S." Internet Retailer. Retrieved 14 April 2016.
  50. ^ Olivier Guyot (18 September 2011). "Inditex Repartriates its E-commerce Services". Fashion Mag. Retrieved 14 April 2016.
  51. ^ "Zara Owner Inditex Profits up 5%". BBC. 18 March 2015. Retrieved 17 June 2016.
  52. ^ Alonso, Triana (14 December 2015). "Inditex to Consolidate Its E-commerce Business in 2016". Fashion Mag. Retrieved 17 June 2016.[permanent dead link‍]
  53. ^ "Inditex Launches New Online Stores in Denmark, Ireland, Italy, Luxembourg, Poland, Romania and Sweden Today". Inditex. 4 February 2016. Retrieved 17 June 2016.
  54. ^ Reuters Editorial. "Zara owner Inditex to sell all its brands online by 2020". U.S. Retrieved 5 September 2018. {{cite news}}: |author= has generic name (help)
  55. ^ CNBC (4 September 2018). "Zara owner Inditex to sell all its brands online by 2020". CNBC. Archived from the original on 5 September 2018. Retrieved 5 September 2018.
  56. ^ "Zara stealing designs copying independent artists". Bored Panda. 25 July 2016. Retrieved 16 June 2020.
  57. ^ "Zara Home co-opts design by Flemish artisan | Flanders Today". www.flanderstoday.eu. Archived from the original on 16 June 2020. Retrieved 18 May 2020.
  58. ^ Bradshaw, Lisa (2017). "Belgian artisan wins Zara plagiarism court case". The Bulletin.
  59. ^ "Limburgse houtsnijder dwingt Zara op de knieën". Het Laatste Nieuws. Retrieved 18 May 2020.
  60. ^ "Vlaamse houtsnijder dwingt modeketen Zara op de knieën". Het Nieuwsblad Mobile (in Flemish). 4 July 2017. Retrieved 18 May 2020.
  61. ^ Nederlandstalige Rechtbank van Koophandel Brussel Read online
  62. ^ "Limburgse houtsnijder dwingt Zara op de knieën". De Tijd. "Het is een uniek precedent in die zin dat het, wellicht tot ver buiten België, de eerste keer is dat een fast retailer voor iets dergelijks door een rechtbank werd veroordeeld." ("It is a unique precedent in the sense that, perhaps far beyond Belgium, it is the first time that a fast retailer has been convicted of something like this by a court of law.")
  63. ^ "International presence - inditex.com". www.inditex.com. Archived from the original on 10 September 2016. Retrieved 16 July 2016.
  64. ^ "Inditex Annual Report 2021" (PDF). inditex.com. 2021. Retrieved 24 January 2023.
  65. ^ "Lefties Make It Easy, Make It Simple". www.linkedin.com. Retrieved 15 March 2023.
  66. ^ "Our History - inditex.com". www.inditex.com. Retrieved 21 February 2017.
  67. ^ Martinez, Jaime (15 September 2021). "Inditex integrará Uterqüe en Massimo Dutti". FashionUnited (in Spanish). Retrieved 18 June 2022.
  68. ^ "Our Board - inditex.com". www.inditex.com. Retrieved 18 June 2022.
  69. ^ "Industria de Diseño Textil, S.A. Insider Trading & Ownership Structure". Simply Wall St. Retrieved 10 April 2024.
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