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Inditex Analysis 1. Introduction to the firm and its market Shops around the world *Last update: 19/02/2008 Source: Inditex Website Brand Quantity Zara 1,134 Pull
Zara analysis Turning the Fashion World Upside Down 13 December 2007 Introduction ZARA is the flagship chain store for the Spanish Inditex Group owned by Spanish
remain sustainable? Question 1 ? Zara's Business Model and Competitive Analysis Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group,
I will then attempt to offer some recommendations that could benefit Zara and Inditex and its long term success. Analysis of the external environment of the firm:
Analysis and Comparison To prove Zara has the prospect of sustainable growth in the international apparel market, it is important to understand and compare the financial
Submitted by perside on July 26, 2008
Category: Business
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1. Introduction to the firm and its market
Shops around the world
*Last update: 19/02/2008
Source: Inditex Website
Brand Quantity
Zara 1,134
Pull and Bear 520
Massimo Dutti 426
Bershka 510
Stradivarius 383
Oysho 293
Zara Home 205
Kiddy's Class/Skhuaban 230
TOTAL 3,701
Inditex, as stated on its website, is one of the world’s largest fashion distributors: nearly 6 million of items were put on the market in 2006 (Figure 1). With eight sales concepts Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Kiddy's Class they boast nowadays 3,701 stores in 68 countries, distributed as shown in Table 1.
In their own words: “Inditex’s philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast international expansion and excellent response to their sales concepts.”
In this assigment, I will try to provide some facts to support this strategy and to point out some exposures which could jeopardise Inditex’s future success.
Table 1: Inditex shops distribution
Since the first Zara shop (the most important concept of the group, with 72.3% of total Inditex sales in 2006) was opened in 1975, the company has expanded quiet heavily within the so called “Fast Fashion” clothing sector, especially from 2001 (Figure 1). In May of that year, Inditex made an initial public stock offering, and was by then, the world’s third largest clothing retailer.
No less significant is their strategy of diversification, which differentiates the business model of Inditex from other competitors like H&M. In parallel with its overseas expansion, Inditex has been continuously adding new brands to the original Zara. Some of them of new creation: Pull and Bear, Bershka, Oysho, Kiddy’s Class and Zara Home; other have been through acquisitions:...
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