Industria de Diseño Textil, S.A. (Inditex; , ; ) is a Spanish
multinational clothing company headquartered in
Arteixo
Arteixo () is a municipality in the Province of A Coruña, part of the autonomous community of Galicia in northwestern Spain. Its area is 93.76 km2 and its population is 31,005 (2013). Its population density is 317.43 people/km2.
It is an ...
,
Galicia
Galicia may refer to:
Geographic regions
* Galicia (Spain), a region and autonomous community of northwestern Spain
** Gallaecia, a Roman province
** The post-Roman Kingdom of the Suebi, also called the Kingdom of Gallaecia
** The medieval King ...
, in
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = '' Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, ...
. Inditex, the biggest
fast fashion
Fast fashion is a term used to describe the clothing industry's business model of replicating recent catwalk trends and high-fashion designs, mass-producing them at a low cost, and bringing them to retail stores quickly, while demand is at it ...
group in the world, operates over 7,200 stores in 93 markets worldwide.
The company's flagship store is
Zara, but it also owns a number of other brands such as
Zara Home,
Bershka
Bershka () is a clothing retailer company created in 1998 in Spain. It is part of the Spanish Inditex group (which also owns brands such as Zara, Massimo Dutti, Pull&Bear, Oysho, Uterqüe, Stradivarius and Zara Home).
The company was created in ...
,
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.
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. This is not without consequences on the earth and people, as it is the biggest fast fashion brand in the world.
New styles are prototyped in just 5 days, and 60% of the manufacturing happens locally to shorten lead times. In Zara stores, it can take a new garment as little as 15 days to go from design and production to store shelves.
History
Early history
Amancio Ortega started in the
clothing industry in the early 1960s while working for a local shirt maker in
A Coruña
A Coruña (; es, La Coruña ; historical English: Corunna or The Groyne) is a city and municipality of Galicia, Spain. A Coruña is the most populated city in Galicia and the second most populated municipality in the autonomous community and ...
, Spain. Ortega began developing his designs and he and his wife,
Rosalia Mera, started making clothes from their home.
Amancio had saved up enough money to open a small factory and sold garments to his former employer amongst others.
[
In 1975, the couple opened their first store, Zara, which produced popular fashion at low prices.] The following year, Zara was incorporated and began opening more stores and factories in Spain. 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.
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. The system was designed by Castellano who became the CEO of the company in 1984. In 1985, Industria de Diseño Textil S.A. or Inditex was created as a holding company for Zara and its manufacturing plants. In 1988, the company began expanding internationally with the opening of a Zara store in Porto
Porto or Oporto () is the second-largest city in Portugal, the capital of the Porto District, and one of the Iberian Peninsula's major urban areas. Porto city proper, which is the entire municipality of Porto, is small compared to its metropo ...
, Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of th ...
. In 1990, the company owned footwear collection, Tempe, populated in the children's section of Zara stores. In 1991, Inditex created the company Pull and Bear, a casual menswear company. 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. In 1995, Inditex purchased the remaining Massimo Dutti shares and began expanding the brand to include a women's line. In 1998, Inditex launched the Bershka brand that was aimed at urban hip fashion. The company bought Stradivarius in 1999, a youthful female fashion brand.
2001–present
Inditex had its initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
(IPO) in 2001, on the Bolsa de Madrid. The IPO sold 26 per cent of the company to public investors, the company was valued at €9 billion. The same year, the company launched the lingerie and women's clothing store Oysho.
In 2003, Inditex launched the Zara Home brand, which offers bedding, cutlery, glassware and other home decoration accessories. In 2004, with the opening of store number 2,000 in Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a List of cities in China, city and Special administrative regions of China, special ...
, Inditex had established its presence in 56 countries.
In 2005, CEO Jose Maria Castellano stepped down from the position to oversee expansion plans, he was replaced by Pablo Isla
Pablo Isla Álvarez de Tejera (born 22 January 1964) is a Spanish businessman and a State lawyer who served as chairman and CEO of Inditex, a large Spanish corporation and the world's largest fashion group, from 2005 to 2022.
Early life and edu ...
. Inditex launched Uterque in the summer of 2008, the brand specializes in women's accessories. During the same year, the company opened its 4,000th store in Tokyo after doubling in size within four years.[ In 2011, Ortega, the founder of the business and majority shareholder, stepped down as deputy chairman and CEO Isla handles day-to-day operations.][ Later that year, the company opened a store in ]Australia
Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
, a move that would put the company on five continents and in 77 countries. 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
The Accord on Fire and Building Safety in Bangladesh (the Accord) was signed on 24 April 2013. It is a five-year independent, legally binding Global Framework Agreement between global brands, retailers and trade unions designed to build a safe ...
.
As of 2019, Inditex is the biggest fashion retailer in the world by revenue.
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.
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.
International presence
In 1989, a year after entering Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of th ...
, the company entered the U.S. market and expanded into France in 1990.[ Expansion continued to ]Mexico
Mexico (Spanish language, Spanish: México), officially the United Mexican States, is a List of sovereign states, country in the southern portion of North America. It is borders of Mexico, bordered to the north by the United States; to the so ...
in 1992 and Greece
Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders wi ...
in 1993. In 1994, Inditex opened stores in Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to ...
and Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic countries, Nordic c ...
. By 1997, the company had expanded to Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
, Cyprus
Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is ...
, Norway
Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...
and Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
.[ In 1998, expansion continued to the UK, ]Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula ...
, Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the List of South American countries by area, second-largest ...
, Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
, the Middle East and Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...
.[ ]Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
, Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwee ...
, Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...
, Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the Ara ...
and several South American countries received stores in 1999.
The company opened stores in Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
, Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
and Jordan
Jordan ( ar, الأردن; tr. ' ), officially the Hashemite Kingdom of Jordan,; tr. ' is a country in Western Asia. It is situated at the crossroads of Asia, Africa, and Europe, within the Levant region, on the East Bank of the Jordan Rive ...
in 2001. In 2003, Inditex opened stores in Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
, Slovakia
Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...
and Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federal constitutional monarchy consists of thirteen states and three federal territories, separated by the South China Sea into two regions: Peninsular Malaysia and Borneo's East Mal ...
.[ The following year ]Latvia
Latvia ( or ; lv, Latvija ; ltg, Latveja; liv, Leţmō), officially the Republic of Latvia ( lv, Latvijas Republika, links=no, ltg, Latvejas Republika, links=no, liv, Leţmō Vabāmō, links=no), is a country in the Baltic region of ...
, Hungary
Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
, and Panama
Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Co ...
amongst other countries where stores opened, including the 2,000th store in Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a List of cities in China, city and Special administrative regions of China, special ...
.[ By 2006, the company had expanded into mainland ]China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
. In 2010, the company opened their 5,000th location in Rome
, established_title = Founded
, established_date = 753 BC
, founder = King Romulus ( legendary)
, image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg
, map_caption ...
[ and its first in ]India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
.[ The first stores in ]Australia
Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
and South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring coun ...
opened in 2011.[ The company's expansion continued to the ]Serbia
Serbia (, ; Serbian: , , ), officially the Republic of Serbia ( Serbian: , , ), is a landlocked country in Southeastern and Central Europe, situated at the crossroads of the Pannonian Basin and the Balkans. It shares land borders with Hu ...
, North Macedonia
North Macedonia, ; sq, Maqedonia e Veriut, (Macedonia before February 2019), officially the Republic of North Macedonia,, is a country in Southeast Europe. It gained independence in 1991 as one of the successor states of Socialist Feder ...
, Armenia
Armenia (), , group=pron officially the Republic of Armenia,, is a landlocked country in the Armenian Highlands of Western Asia.The UNbr>classification of world regions places Armenia in Western Asia; the CIA World Factbook , , and ''O ...
, Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ' ...
, Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
and Bosnia-Herzegovina
Bosnia and Herzegovina ( sh, / , ), abbreviated BiH () or B&H, sometimes called Bosnia–Herzegovina and Pars pro toto#Geography, often known informally as Bosnia, is a country at the crossroads of Southern Europe, south and southeast Euro ...
in 2012.[ In 2014, Inditex opened stores in ]Albania
Albania ( ; sq, Shqipëri or ), or , also or . officially the Republic of Albania ( sq, Republika e Shqipërisë), is a country in Southeastern Europe. It is located on the Adriatic and Ionian Seas within the Mediterranean Sea and share ...
. In 2016, Inditex announced that they planned to open stores in Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making ...
, New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...
, Paraguay
Paraguay (; ), officially the Republic of Paraguay ( es, República del Paraguay, links=no; gn, Tavakuairetã Paraguái, links=si), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to t ...
, Aruba
Aruba ( , , ), officially the Country of Aruba ( nl, Land Aruba; pap, Pais Aruba) is a constituent country of the Kingdom of the Netherlands physically located in the mid-south of the Caribbean Sea, about north of the Venezuela peninsula of P ...
and Nicaragua
Nicaragua (; ), officially the Republic of Nicaragua (), is the largest country in Central America, bordered by Honduras to the north, the Caribbean to the east, Costa Rica to the south, and the Pacific Ocean to the west. Managua is the coun ...
.[
]
Online sales
In 2007, Inditex launched the Zara Home online retail store. Zara joined the e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manag ...
marketplace in September 2010, launching websites in Spain, the UK, Portugal, Italy, Germany and France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
. In November 2010, Zara's online presence grew to include Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
, Ireland
Ireland ( ; ga, Éire ; Ulster-Scots: ) is an island in the North Atlantic Ocean, in north-western Europe. It is separated from Great Britain to its east by the North Channel, the Irish Sea, and St George's Channel. Ireland is the s ...
, the Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
, Belgium and Luxembourg. In September 2011, Inditex brought Zara's e-commerce platform to the U.S., as well as adding the brands Pull and Bear, Massimo Dutti, Bershka, Stadivarius, Oysho and Uterqüe to the e-commerce space. As of February 2016, Inditex operates e-commerce sites in 28 markets and plans to add 12 more by April. In September 2018, Inditex announced to sell all its brands online by 2020, even in places where it does not own any stores.
Marketing strategy
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.
Plagiarism
Zara has been accused of copying artwork.
In 2017, Zara Home Belgium was convicted of plagiarism by a Brussels Court, which was claimed to have been the first plagiarism conviction of a fast retailer.
Brands
Under the Inditex umbrella are several brands that offer a variety of products aimed at different markets.
Corporate affairs
Board of Directors
Bold indicates a company shareholder and the representative will be listed below.
See also
*
References
External links
*
*
{{Authority control
Clothing companies of Spain
Companies based in Galicia (Spain)
Clothing companies established in 1985
Spanish companies established in 1985
Companies in the Euro Stoxx 50
Companies listed on the Madrid Stock Exchange
IBEX 35
Multinational companies headquartered in Spain
2001 initial public offerings