single items per year running through their stores (Zara: Cool Clothes Now‚ Not Later). History of Zara Zara’s history begins with the owner of the company‚ The Inditex Group. Inditex Group is a large company founded in Spain made up of more than 100 companies operating in textile design‚ manufacturing and distribution. Inditex operates over 5.693 stores in 85 markets. The best well-known brands are: Massimo Dutti‚ Bershka‚ Oysho‚ Pull and Bear‚ Zara‚ Zara Home and Stradivarius (Official website
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By 2005‚ Zara’s 723 stores had a selling area of 811‚100 square metres in 56 countries. With sales of e3.8 billion in the financial year 2004‚ Zara had become Spain’s best-known fashion brand and the flagship brand of e5.7 billion holding group Inditex. Inditex’s stock market listing in 2001 turned Amancio Ortega‚ its founder and a self-made man‚ into the world’s twenty-third richest man‚ with a personal fortune that Forbes magazine estimated at $12.6 billion. Among the keys to Zara’s success
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with 546 stores in 30 countries today ?from which 340 are outside Spain- and ?2914‚3 millions of total sales in 2002‚ is undoubtedly the group?s locomotive (Inditex‚ 2003). In 2002 it represented 33% of the group?s total stores‚ accounted for 72% of the group?s total sales and contributed to the holding?s total profits for ?540.4 millions (Inditex FY2002 Results Presentation‚ 2003). Moreover‚ Zara with 75-90 new stores within 2003 takes the lion?s share in group?s current year store openings (total
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INTRODUCTION ABOUT ZARA • Established in 1975‚ Zara is the flagship of Inditex (Industria del Disen˜o Textil‚ SA). • Inditex has become the world’s second largest clothing retailer with 2‚692 stores spread across 62 countries worldwide by the end of January 2006. • In addition to Zara‚ which accounted for 66 percent of the group’s turnover in 2005 • Inditex owns seven other clothing chains: Kiddy’s Class (children’s fashion) Pull and Bear (youth casual clothes)
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Journal of Economic Geography Advance Access published October 23‚ 2007 Journal of Economic Geography (2007) pp. 1–18 doi:10.1093/jeg/lbm035 Global sourcing: insights from the global clothing industry—the case of Zara‚ a fast fashion retailer Nebahat Tokatli* Abstract Until recently‚ Zara‚ a major international clothing retailer and pioneer of ‘fast fashion’ principles‚ kept almost half of its production in Spain and Portugal‚ earning the reputation of being one of the exceptions to globalization
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It is estimated that 80 precent of Zara’s production is carried out in Europe which is within the small radius of its headquarters in Spain. In fact‚ almost half of its production is in owned or closely-controlled facilities. Counter-intuitively Inditex has also gone the route of owning capital-intensive manufacturing facilities in Spain. In fact‚ it is a vertically integrated group‚ with up-to-date equipment for fabric dyeing and processing‚ cutting and garment finishing. 3.2 Supercharged
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ZARA CASE 1. Which theory is the best representative of Zara’s (Index’s) internationalization? Zara has applied the Uppsala internationalization model to their strategy‚ and even more than that. This theory shows that international activities require both general knowledge and market-specific knowledge. Therefore‚ the more understanding the company has in a specific market‚ the more value and succeed they can create. That is also exactly what Zara applied to their internationalization strategy during
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procession of provisions of Inditex and the predicament its Information Technology (IT) section is sensing on improving its Point-of-Sale (POS) workstations. In 1975‚ Zara was originated by Amancio Ortega. During 1985‚ Inditex was shaped as an investment business atop Zara‚ erstwhile retail trading handcuffs and a system of on the inside possessed traders. Castellano who served as an IT Manager‚ get connected with this firm in the same year and became the CEO of Inditex in 1997. The conviction at
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delivering them‚ rather than on promoting predicted season’s trends via fashion shows and similar channels of influence‚ which the fashion industry traditionally used." 5 Zara‚ the fashion retail chain‚ is a subsidiary of Inditex Group owned and managed by Spanish tycoon Amancio Ortega. Inditex includes several major brands‚ namely‚ Zara‚ Massimo Dutti‚ Pull and Bear‚ Oysho‚ Bershka‚ and Stradivarius. The group headquarters is located in La Coruna‚ Spain. It was here where the first Zara store was launched
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entrepreneur Armancio Ortega Goana‚ founder of Inditex‚ now one of the world-leading fashion group with 8 well-known brands‚ $10 Billion in revenues‚ about 4000 stores and nearly 90000 employees. The group structure is designed as such to ensure a balance between a corporate-driven control‚ maintained to achieve coherent brand identities and culture across all stores worldwide‚ and autonomy of the essential entities of the group. As a result‚ Inditex centralizes at the headquarters strategy‚ brand
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