Inditex

Industria de Diseño Textil, S.A.
Sociedad Anónima
Traded as BMAD: ITX
ISIN ES0148396007
Industry Retailing
Predecessor
  • Confecciones GOA, S.A.
  • GOASAM, S.A.
Founded Arteixo, Spain (June 12, 1985 (1985-06-12))
Founder Amancio Ortega
Rosalía Mera
Headquarters Arteixo, Spain
Number of locations
 7013 stores[1]
Area served
 Global
Key people
 Pablo Isla (Chairman and CEO)
Products Clothing & Fashion retailer
Revenue €20.900 billion (2015)[1]
€3.677 billion (2015)[1]
Profit €2.9 billion (2015)[2]
Total assets €17.357 billion (2015)[1]
Total equity €11.451 billion (2015)[1]
Number of employees
 152,854 (2015)[2]
Subsidiaries Zara, Pull & Bear, Bershka, Massimo Dutti, Stradivarius, Oysho, Zara Home, Uterqüe
Website www.inditex.com

Industria de Diseño Textil, S.A. (Inditex) (/ˌɪndɪˈtɛks/, Spanish: [indiˈteks]; Textile Design Industries) is a Spanish multinational clothing company headquartered in Arteixo, Galicia.[3]

Inditex, the biggest fashion group in the world, operates over 7,000 stores in 88 markets worldwide.[2][4] The company's flagship store is Zara, but it also owns the chains Zara Home, Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius and Uterqüe. The majority of its stores are corporate-owned, while franchises are mainly conceded in countries where corporate properties can not be foreign-owned.[5]

The company operates a unique business model, instead of committing a large percentage of production for the next fashion season the company commits a small amount and uses customer feedback and an efficient production network to replenish stores with new and different products weekly.[4] In Zara stores, it can take a new garment as little as 15 days to go from design and production to store shelves.[6]

History

Early history

In the early 1960s, Amancio Ortega got his start in the clothing industry as a teen while working for a local shirt maker in A Coruna, Spain. Ortega began developing his own designs and he and his wife, Rosalia Mera, began making clothes from their home.[5][7] Ortega had saved up enough money to open a small factory and sold garments to his former employer amongst others.[5]

In 1975, the couple opened their first store, Zara, which produced popular fashion at low prices.[5][6] The following year, Zara was incorporated and began opening more stores and factories in Spain.[5] Later that year, after Ortega noticed the growing importance of computers a local professor, José María Castellano, was hired to grow the company's computing power.[5][8]

1980-2000

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.[9] The system was designed by Castellano who became the CEO of the company in 1984. In 1985, Industria de Diseno Textil S.A. or Inditex was created as a holding company for Zara and its manufacturing plants.[10] In 1988, the company began expanding internationally with the opening a Zara store in Oporto, Portugal.[11] In 1990, the company owned footwear collection, Tempe, populated in the children's section of Zara stores.[12] In 1991, Inditex created the company Pull and Bear, a casual menswear company.[13][14] Later that year, the company also acquired a 65 percent 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.[15] In 1995, Inditex purchased the remaining Massimo Dutti shares and began expanding the brand to include a women's line.[16] In 1998, Inditex launched the Bershka brand that was aimed at urban hip fashion.[17] The company bought the Stradivarius in 1999, a youthful female fashion brand.[5]

2001-present

Inditex had its initial public offering in 2001, on the Bolsa de Madrid.[18] The IPO sold 26 percent of the company to public investors, the company was valued at US$8 billion (€9 billion at the time).[19] The same year, the company launched the lingerie and women's clothing store Oysho.[20][21]

In 2003, Inditex launched the Zara Home brand, which offers bedding, cutlery, glassware and other home decoration accessories.[22] In 2004, with the opening of store number 2,000 in Hong Kong, Inditex had established its presence in 56 countries.[23]

In 2005, CEO Jose Maria Castellano stepped down from the position to oversee expansion plans, he was replaced by current CEO Pablo Isla.[24] Inditex launched Uterque in the summer of 2008, the brand specializes in women's accessories.[25] During the same year, the company opened its 4,000th store in Tokyo after doubling in size within four years.[23] In 2011, Ortega, the founder of the business and majority shareholder, stepped down as deputy chairman and CEO Isla handles day-to-day operations.[23] Later that year, the company opened a store in Australia, a move that would put the company on five continents and in 77 countries.[26] 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.[27]

International presence

In 1989, a year after entering Portugal, the company entered the U.S. market[28] and expanded into the France in 1990.[5] Expansion continued to Mexico in 1992 and Greece in 1993. In 1994, Inditex opened stores in Belgium and Sweden.[29] By 1997, the company had expanded to Malta, Cyprus, Norway and Israel.[9] In 1998, expansion continued to the UK, Turkey, Argentina, Venezuela, the Middle East and Japan.[9] Canada, Germany, Poland, Saudi Arabia and several South American countries received stores in 1999.[30][29]

The company stores opened in Italy, Luxembourg, Puerto Rico and Jordan received stores in 2001. In 2003, Inditex continued its expansion to Russia, Slovakia, and Malaysia.[30] The following year Latvia, Hungary, and Panama amongst other countries received stores, including the 2,000th store in Hong Kong.[30] By 2006, the company had expanded into continental China.[31] In 2010, the company opened their 5,000th location in Rome[23] and its first in India.[31] The first stores in Australia and South Africa opened in 2011.[26] The company's expansion continued to the Republic of Macedonia, Armenia, Ecuador,Georgia (country) and Bosnia-Herzegovina in 2012.[30][32] In 2014, Inditex opened stores in Albania.[33]

Online presence

In 2007, Inditex launched the Zara Home online retail store.[34] Zara joined the e-commerce marketplace in September 2010, launching websites in Spain, the UK, Portugal, Italy, Germany and France.[35][36] In November 2010, Zara's online presence grew to include Austria, Ireland, the Netherlands, Belgium and Luxemborg.[37] In September 2011, Inditex brought Zara's e-commerce platform to the U.S.,[38] as well as adding the brands Pull and Bear, Massimo Dutti, Berska, Stadivarius, Oysho and Uterqüe to the e-commerce space.[39]

Brands

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

Company No. of shops[40] Year of creation Market
Zara 2,143 1975 Fashion for men, women and children
Pull and Bear 922 1991 Casual laid back clothing and accessories for the young
Massimo Dutti 729 1995 (acquired) High end clothing and accessories for cosmopolitan men and women
Bershka 1,032 1998 Blends urban styles and modern fashion for young women and men
Stradivarius 937 1999 (acquired) Casual and feminine clothes for young women
Oysho 598 2001 Lingerie, casual outerwear, loungewear and original accessories
Zara Home 481 2003 Home goods and decoration objects
Uterqüe 71 2008 High-quality fashion accessories at attractive prices

Corporate Governance

Board of Directors

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

Member Title(s) Member Since Shares Held Notes
Mr. Pablo Isla Chairman & CEO of Inditex
Board Member of Telefónica, S.A.		 June 2005 1,805,302 [41]
Mr. 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
Mr. 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 1,558,637,990
Mrs. Irene R. Miller Independent Director & Board Member of Inditex
CEO of Akim, Inc.
Board Member & Chairman of the Audit Committee of Coach, Inc.
Board Member of Toronto-Dominion Bank Financial Group		 April 2001 66,200
Mr. Jose Luis Duran Schulz Board Member of Inditex
Independent Director & Member of the Audit Committee of Orange		 July 2015
Mr. Rodrigo Echenique Gordillo Board Member of Inditex
Chairman of NH Hoteles		 July 2014
Mr. Carlos Espinosa de los Monteros Bernaldo de Quiros Board Member of Inditex
Chairman of Fraternidad-Muprespa
Board Member of Acciona, S.A.
Board Member of Schindler Espana
Board Member of Yell Group		 May 1997 150,000
Mr. 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

References

  1. 1 2 3 4 5 "Financial Data" (pdf). Inditex. Retrieved 16 March 2016.
  2. 1 2 3 "Zara Owner Inditex Sees Profits Jump as Sales Soar". BBC. 9 March 2016. Retrieved 16 March 2016.
  3. ↑ Butler, Sarah (14 December 2013). "Inditex: Spain's Fashion Powerhouse You've Probably Never Heard Of". The Guardian. Retrieved 20 April 2016.
  4. 1 2 Abnett, Kate; Amed, Imran (30 March 2015). "Inditex:Agile Fashion Force". Business of Fashion. Retrieved 20 April 2016.
  5. 1 2 3 4 5 6 7 8 "Industria de Diseno Textil S.A. History". Funding Universe. Retrieved 8 April 2016.
  6. 1 2 Frayer, Lauren (12 March 2013). "The Reclusive Spanish Billionaire Behind Zara's Fast Fashion Empire". NPR. Retrieved 20 April 2016.
  7. ↑ Baigorri, Manuel (15 August 2013). "Rosalia Mera, Who Was Spain's Richest Woman, Dies at 69". Bloomberg Business. Retrieved 20 April 2016.
  8. ↑ Buck, Tobias (18 June 2014). "Fashion:A Better Business Model". Financial Times. Retrieved 20 April 2016.
  9. 1 2 3 Ozkurt, Tolga. The Last Retail Evolution. Editrice Le Fonti. pp. 47–49. ISBN 978-88-6109-075-0.
  10. ↑ Hansen, Suzy (9 November 2012). "How Zara Grew Into the World's Largest Fashion Retailer". New York Times Magazine. Retrieved 8 April 2016.
  11. ↑ Ryan, Orla (23 May 2001). "Spain's Retail Success Story". BBC News. Retrieved 8 April 2016.
  12. ↑ "Company History". Tempe Groupo Inditex. Retrieved 8 April 2016.
  13. ↑ "Company History". Pull and Bear. Retrieved 8 April 2016.
  14. ↑ "Pull and Bear First UK Store". Fashion United. Retrieved 8 April 2016.
  15. ↑ Sowray, Bibby (19 March 2014). "Lefties:The Zara Outlet You Never Knew About". The Telegraph. Archived from the original on 2015-06-28. Retrieved 4 November 2015.
  16. ↑ "Annual Report Massimo Dutti" (PDF). Inditex. 1998. Retrieved 8 April 2016.
  17. ↑ "Bershka About". Inditex. Retrieved 8 April 2016.
  18. ↑ Vitzthum, Carlta; Ascarelli, Silvia (29 April 2015). "Inditex Sets IPO Price Range Amid Strong Market Demand". The Wall Street Journal. Retrieved 8 April 2016.
  19. ↑ Heller, Richard (28 May 2001). "Inside Zara". Forbes. Retrieved 8 April 2016.
  20. ↑ "About Oysho". FashionBi. Retrieved 8 April 2016.
  21. ↑ Loeb, Walter (30 March 2015). "Zara Leads in Fast Fashion". Forbes. Retrieved 8 April 2016.
  22. ↑ 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.
  23. 1 2 3 4 Gomez, Luis (14 August 2012). "The Man Who Dresses the World". El Pais. Retrieved 8 April 2016.
  24. ↑ Crawford, Leslie (26 September 2005). "Castellano Steps Down From Inditex". Financial Times. Retrieved 8 April 2016.
  25. ↑ Moreau, Raphael (22 September 2008). "Retail in Practice:H&M and Inditex's Global Expansion Strategies". The Retail Digest.
  26. 1 2 Tartaglia, Lisa (18 April 2011). "Zara's Australian Entrance to Challenge Local Retailers". The Conversation. Retrieved 8 April 2016.
  27. ↑ 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.
  28. ↑ Lauren Sherman (March 24, 2015). "America's Favorite Foreign Retailers". Forbes. Retrieved April 14, 2016.
  29. 1 2 "Fashion Chain Zara Reclaims the Glory of Spain". Wharton University of Pennsylvania. April 24, 2003. Retrieved April 14, 2016.
  30. 1 2 3 4 "Inditex: Our History". Inditex. Retrieved April 14, 2016.
  31. 1 2 Saumya Roy (July 29, 2010). "Fast Fashion: Zara in India". Forbes. Retrieved April 14, 2016.
  32. ↑ "Inditex to Open Stores in Bosnia and Herzegovina". RetailWeek. February 23, 2012. Retrieved April 14, 2016.
  33. ↑ Lukasz Izakowski (April 3, 2014). "Inditex Enters the Albanian Market". Retail Net. Retrieved April 14, 2016.
  34. ↑ "Zara Home to Launch its Online Platform in Australia". Retail News Asia. July 12, 2015. Retrieved April 14, 2016.
  35. ↑ Sarah Morris (March 18, 2015). "Zara-Owner Inditex to Trim Investment After Strong Sales". Reuters. Retrieved April 14, 2016.
  36. ↑ Lauren Sherman (June 9, 2010). "Zara Will Finally Offer E-Commerce, But Not to US Customers". Fashionista. Retrieved April 14, 2016.
  37. ↑ Christopher Bjork (September 22, 2010). "Zara Tries a Fast One on the Net". Wall Street Journal. Retrieved April 14, 2016.
  38. ↑ Allison Enright (September 6, 2011). "Zara Launches E-Commerce Operations in the U.S.". Internet Retailer. Retrieved April 14, 2016.
  39. ↑ Olivier Guyot (September 18, 2011). "Inditex Repartriates its E-commerce Services". Fashion Mag. Retrieved April 14, 2016.
  40. ↑ "Presencia internacional". inditex.com. 2016. Retrieved 8 April 2016.
  41. ↑ https://www.inditex.com/our_group/board_members

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