press dossier

INDITEX
ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME

INDITEX
Inditex, one of the world’s largest fashion distributors, has more than 3,890 outlets in 70 countries in Europe, the Americas, Asia and Africa. In addition to Zara, the largest of its retail chains, Inditex has another commercial formats: Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home. The Group also includes more than a hundred companies associated with the different activities in the business of textile and fashion design, manufacture and distribution. Its unique management model, based on innovation and flexibility, and its vision of fashion (creativity and quality design, together with a rapid response to market demands) has resulted in fast international expansion and an excellent performance of its commercial formats. The first Zara store opened to the public in 1975 in A Coruña (North-Western Spain), the place where the Group started business and where it has its central offices. Today, Inditex Group stores can be found in all the world’s major cities, always in the main shopping districts. Inditex has been listed on the Spanish Stock Exchange since 23 May 2001, after an IPO that aroused a great deal of interest among investors worldwide, with its shares being oversubscribed some 26 times over. Its shares are quoted on the main Spanish and international share indexes. Inditex has grown dramatically in recent years, achieving a consolidated turnover in 2007 of 9,435 million euros, with a net profit of 1,250 million euros. On 31st January 2008 the Group had 79,517 employees. The following table shows the Group’s most significant figures in 2006 and 2007:

Fiscal Year

2007

2006

07/06

Turnover* Net profit* No. of stores No. of countries International sales Employees

9,435 1,250 3,691 68 62.5% 79,517

8.196 1.002 3.131 64 60,4% 69.240

15% 25% 560 4

10,277

*in millions of euros **The Inditex financial year is from 1st February to 31 January of the following year

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press dossier INDITEX

above and beyond production costs. It is also where we obtain the information required to adapt the offer to meet customer demands. It has a flexible structure and a strong customer focus in all its business areas. reducing stock to a minimum and diminishing fashion risk to the greatest possible extent. a carefully designed space conceived to make customers comfortable as they discover fashion concepts.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME THE BUSINESS MODEL The Inditex business model is characterised by a high degree of vertical integration compared to other models developed by our international competitors. time is the main factor to be considered. It covers all phases of the fashion process: design. The key element in the organisation is the store. D E SI G N FACTURE MAN U AND SUPPLY RETAIL SALES D IS TRIBUTION AND LOGISTICS press dossier INDITEX 3 . Vertical integration enables us to shorten turnaround times and achieve greater flexibility. The key to this model is the ability to adapt the offer to customer desires in the shortest time possible. For Inditex. manufacture. logistics and distribution to its own managed stores.

while subcontracting the garmentmaking stage to specialist firms located predominantly in the North-West of the Iberian peninsula. distribution takes place twice a week and each delivery always includes new models. generally receive the fabric and other elements necessary for making the clothing from Inditex. constantly designing new models that respond to customer desires.000 last year. through information received from the stores. regardless of its origin. Over 300 designers -200 for Zara alone. which mainly manufacture the most fashionable garments. reacting to them by bringing new products to the stores in the shortest possible time. A further 35% of total production took place in Asia.take their main inspiration from both the prevailing trends in the fashion market and the customers themselves. Although percentages vary from season to season.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME THE BUSINESS MODEL: DESIGN The success of Inditex’s collections lies in the ability to recognise and assimilate the continuous changes in fashion. The Group takes direct control of fabric supply. a high percentage of which are European. from where it is distributed simultaneously to all the stores worldwide on a highly frequent and constant basis. THE BUSINESS MODEL: LOGISTICS All production. in 2007. is received at the logistical centres for each chain. Inditex uses its flexible business model to adapt to changes occurring during a season. The models for each season -over 30.are developed in their entirety by the creative teams of the different chains. The Group’s external suppliers. 63% of production was carried out in Europe and neighbouring countries. so that the stores are constantly refreshing their offer. marking and cutting and the final finishing of garments. 4 press dossier INDITEX . In the case of Zara. THE BUSINESS MODEL: MANUFACTURE A significant proportion of production takes place in the Group’s own factories.

INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME The logistics system. The location of the distribution centres for the different sales formats is shown below. Narón (A Coruña) Logistical Centre Arteixo (A Coruña) Logistical Centre León Logistical Centre Zaragoza Logistical Centre Sallent de Llobregat (Barcelona) Logistical Centre Tordera (Barcelona) Logistical Centre Meco (Madrid) Logistical Centre Elche (Alicante) Logistical Centre 5 press dossier INDITEX . including also future platforms planned to increase global logistics capacity. based on software designed by the company’s own teams. means that the time between receiving an order at the distribution centre to the delivery of the goods in the store is on average 24 hours for European stores and a maximum of 48 hours for American or Asian stores.

eliminating all barriers between the garments and the customers. providing feedback to the design teams and reporting the trends demanded by customers. As for the interior design. interior design. training. In 2007. logistical optimisation and so on. 88% of stores were own managed and represented 87% of the Group’s turnover. Here. Both the interior and exterior of the store design are given the highest priority. human resources. At the end of the FY2007. the Group has extended the store network through franchise agreements with leading local retail companies.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME THE BUSINESS MODEL: DISTRIBUTION IN THE COMPANY’S OWN STORES The point of sale is not the end of the process but rather its restart. This ensures uniformity in store management criteria and a global image in the eyes of customer around the world. The main characteristic of the Inditex franchisement model is the total integration of franchised stores with own managed stores in terms of product. the aim is to create a well-lit space where the clothes take pride of place. there were 455 franchised stores out of a total of 3. windowdressing. The main development strategy for the Inditex sales formats is the opening of stores managed by companies in which Inditex is the sole or majority shareholder. the shop windows play a major role.691 stores. as the stores act as market information gathering terminals. acting as authentic advertising for our chains in the world’s main shopping streets. In smaller or culturally different markets. 6 dossier de prensa INDITEX .

and in the environmental field it is defined in the Environmental Strategic Plan. a demand from our customers and society in general. open relationship to be established with all groups that hold a stake in our business. Social Dimension All of Inditex’s activities are carried out ethically and responsibly. The efforts of Inditex in this field have been recognised internationally. By implementing the strictest international standards. Transparency is Inditex’s fundamental management value and enables a sincere.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME CORPORATE SOCIAL RESPONSABILITY Inditex views social and environmental variables as a strategic factor of its management system. Sustainable growth. All of Inditex’s actions in the field of corporate responsibility are audited by external agents in order to provide greater objectivity. 7 press dossier INDITEX . control of the supply chain and the connection between out actions and the social environment. All of Inditex’s products respect the environment and health and safety. Inditex can guarantee its customers that its products meet optimal health. safety and ethical conditions. is a value that is shared internally and that the company applies to its suppliers. including actions in different areas such as health and safety of our products. This sustainability strategy is coordinated in the social field through the Internal Code of Conduct and the Code of Conduct for External Manufacturers and Suppliers.

Acceptance of this is obligatory to be able to maintain business relations with Inditex. Inditex follows this up with improvement programs for suppliers and social programs aimed at promoting education and a better quality of life in the regions in which it does business. Apart from fostering fulfilment of environmental legislation. To ensure that this code is fulfilled. corporate areas. This regularly evaluates the potential impact that the company’s activities have on biodiversity and the natural environment. independent external companies audit suppliers regularly. Therefore. logistics. This is the basis of the 2007-2010 Environmental Strategic Plan that Inditex has implemented in order to introduce the concept of sustainability in all of its activities. Environmental Policy The environmental aspect has always played an important role in Inditex’s activities. Inditex’s aims with these initiatives to offset CO2 emissions include implementing efficient energy saving habits and applying its commitment to the environment to all of its employees. the company applies its social commitment to all of these suppliers through the Code of Conduct for External Manufacturers and Suppliers.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Inditex believes that an ethical and stable relationship with its network of external suppliers world-wide is essential. 8 press dossier INDITEX . stores and a general initiative to offset carbon emissions. This policy has been implemented in recent years through an environmental management system that Inditex has designed and adapted to the requirements of its business model. The plan is realised through five projects that contribute to the environmental impact of the product. the system increases efficiency in terms of the consumption of resources and reduces the environmental impact.

is responsible for the central corporate services. the use of logistics technology. legal issues. However. i. 9 press dossier INDITEX . all of which share the same commercial and managerial focus: to be leaders in their segment through a flexible business model and an international scope. their management teams are independent in commercial decision-making and in the way they administer their resources. Thus. as the parent company. the general HR policy. Inditex has different fashion distribution chains. Inditex. each management team can concentrate on developing its business in the knowledge that certain support elements are covered by the Group’s accumulated experience. those services shared by the eight chains and which facilitate international growth: administration. the fact they belong to a group spread over 70 countries provides a great number of organisational and knowledge-management synergies. among others.e. each of the chains has a great deal of autonomy in managing its business.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME COMMERCIAL FORMATS In order to segment its approach to the market. Nonetheless. and financial capacity.

despite their differences.com). transmitting the demands and concerns of the customers. ideally located in major cities. cultures and generations that.4 * in millions of euros 10 press dossier INDITEX . Information travels from the stores to the design teams. production. dressing the ideas. logistics.264 72. whose first store opened in 1975 in A Coruña (Spain).zara. With a creative team of more than 200 professionals. Its international presence clearly shows that national frontiers are no impediment to sharing a single fashion culture. all share a special feeling for fashion. Its model is characterised by continuous product renovation: new articles reach the stores twice a week. ZARA 2007 Nº of stores Turnover* % international sales % of Inditex 1. This is the key to its success among people. its shop windows and interior decor.361 6. and locates them in the best sites of major shopping districts. Zara moves with society. trends and tastes that society itself has created. Zara pays special attention to the design of its stores. Zara’s design process is closely linked to the public.400 stores. The vertical integration of activities (design.0 66. is present in 68 countries.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Zara (www. and sales in the company’s own stores) means Zara is flexible and fast in adapting to the market. Its central services are located in Arteixo (A Coruña). with a network of more than 1.

INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Pull and Bear (www.3 6. Pull and Bear aims to be something more than just a point of sale.5 * in millions of euros 11 press dossier INDITEX . and is now a clear point of reference for casual. to create the kind of surroundings that young people love. Since its creation. As well as the clothes and accessories. its fashion concept has known how to adapt to the needs of young people.pullandbear. Its central services are located in Narón (A Coruña). the chain offers special spaces in the stores in which the display fixtures are combined with recycled elements from the past. laid-back clothing. PULL AND BEAR 2007 Nº of stores Turnover* % international sales % of Inditex 519 614 45. Pull and Bear has more than 540 stores in 35 countries.com) was set up by the Inditex Group in 1991.

women and children.3 7. MASSIMO DUTTI 2007 Nº of stores Turnover* % international sales % of Inditex 426 696 51. it has more than 430 stores in 34 countries. with a variety of collections that range from sophisticated urban fashions to casual wear.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Massimo Dutti (www. Massimo Dutti offers quality international fashion design for men. Today. Its central services are located in Tordera (Barcelona).4 * in millions of euros 12 press dossier INDITEX .com) was founded in 1985 and acquired by Inditex in 1991.massimodutti.

Since 2002 it has also sold men’s fashion.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Bershka (www. targeting the young female market.bershka. They are designed as meeting points for fashion. Its central services are located in Tordera (Barcelona).6 9.8 * in millions of euros 13 press dossier INDITEX . Bershka stores are large and spacious with a cuttingedge look. music and street art. BERSHKA 2007 Nº of stores Turnover* % international sales % of Inditex 510 925 49. The chain has more than 530 stores in 35 countries.com) was founded in 1998 as a new store and fashion concept.

e-stradivarius. with a casual and imaginative style. Its central services are located in Sallent de Llobregat (Barcelona).5 Nº of stores Turnover* % international sales % of Inditex * in millions of euros 14 press dossier INDITEX . brings the latest trends in design.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME S tradivarius (www.com). fabrics and accessories to a young female public. a chain acquired by Inditex in 1999.9 5. dynamic design and offer a wide range of fashion possibilities. Its spacious stores (over 400 in 25 countries) have a modern. STRADIVARIUS 2007 381 521 24.

3 * in millions of euros 15 press dossier INDITEX .9 2. OYSHO 2007 Nº of stores Turnover* % international sales % of Inditex 290 213 24.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Oysho (www. It has more than 320 stores in 22 countries. offering the latest trends with quality products at reasonable prices. Its central services are located in Tordera (Barcelona).oysho. This format brings the philosophy of the Inditex Group to the women's lingerie and underwear sector.com) started business in 2001.

9 2. cutlery. focussing on textiles. table and bathroom linen. Zara Home offers design.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Zara Home (www.1 * in millions of euros 16 press dossier INDITEX . ZARA HOME 2007 Nº of stores Turnover* % international sales % of Inditex 204 201 44. glassware and decorative items. It has more than 220 stores in 22 countries. quality and innovation at competitive prices. such as bed.zarahome. Its central services are located in Arteixo (A Coruña). It specialises in home furnishings.com) is the latest chain to be created by the Inditex Group. complemented by tableware.

Asia and Africa. Chile and Uruguay Andorra. It sucess among people. Hungary. Lithuania and Panama Costa Rica. Venezuela. Croatia and Oman Korea and Ukraine 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 The first Zara store opened to the public in A Coruña (North-Western Spain) in 1975. Dominican Republic. Saudi Arabia.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME INTERNATIONAL EXPANSION Timeline of Inditex´s entry into international markets: 1975 1988 1989 1990 1992 1993 1994 1995 1996 1997 Spain Portugal USA France Mexico Greece Belgium and Sweden Malta Cyprus Norway. Lebanon. This was the beginning of a process leading up to the current presence in 70 countries in Europe. and in the next few years. Tunisia and Mainland China Guatemala. Brazil. Slovenia and Slovakia Hong Kong. Ireland. Jordan. Singapore and Switzerland Russia. Finland. Iceland. Latvia. in New York (1989) and Paris (1990). Philippines and Indonesia Serbia. all share a special feeling for fashion lies in the conviction that national frontiers are no impediment to sharing a single fashion culture. Estonia. Austria and Denmark Puerto Rico. Romania. Germany. Over the following decade it continued to open new stores throughout Spain. despite their differences. Czech Republic and Italy El Salvador. Canada. cultures and generations which. Poland. Morocco. the first stores were opened outside the Iberian Peninsula. Thailand. Bahrain. Turkey. In 1988 it debuted in Porto (Portugal). Qatar. Colombia. United Kingdom. United Arab Emirates and Kuwait The Netherlands. the Americas. Malasya. Japan and Israel Argentina. Monaco. 17 press dossier INDITEX . Luxembourg.

8 % Europe (ex-Spain) 9. accumulating experience which has helped the later implementation of the rest of the concepts.4% Spain America Rest of the world 42.5% 37 10 . This accumulated experience has also allowed the accelerated international expansion of the more recently created chains. that is one of their fundamental characteristics. In most cases. SALES BY GEOGRAPHICAL AREAS / 2007 .4% 18 press dossier INDITEX . As a result.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME The usual way of entering a new market is to start with a small nember of stores. The new formats incorporated into the Group since 1991 share the same international approach as Zara -in fact. all of them have grown simultaneously in Spain and in other countries. which can explore the possibilities of a specific country in order to gain a critical mass of customers. Zara has been the first chain to break into new countries.

In 2001 the Amancio Ortega Foundation was set up. until he was appointed in the Altadis group. a garment manufacturing company. He went on to be appointed General Director of State Assets at the Ministry of Economy and Finances. the first store of the Zara chain opened on a central A Coruña street in 1975. He is a graduate of Law from the Complutense University of Madrid and State lawyer. In 1998. He was Chairman of the Board of Directors of Altadis and co-CEO was joint-president of this group from July 2000. After working with two well-known establishments in A Coruña. press dossier INDITEX 19 . education. chairman and founder of Inditex. in 1963. Amancio Ortega integrated Zara in a new holding company. First Deputy Chairman and CEO of Inditex. he ventured out with a business project of his own. was born in Madrid in 1964. was born in 1936 in Busdongo de Arbas. In 1985. of the company Confecciones GOA. His first steps culminated in the creation. From 1992 to 1996 he was Director of Legal Services for Banco Popular. a private non-profit organisation aimed at promoting all types of activities in the fields of culture. León. Industria de Diseño Textil. Following an initial stage of growth in the area of production. he rejoined Banco Popular as General Counsel. research and science.A.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME Amancio Ortega Gaona. He moved to A Coruña with his family at an early age. INDITEX S. Pablo Isla. and it was there that he began his business activities in the textile sector.

The opening of the first Zara store outside Spain occurs in December 1988 in Porto (Portugal). The Zara fashion concept is well received by the public. Founding of the Pull and Bear chain and the purchase of 65% of the Massimo Dutti Group. The Group expands to the United States and France with the opening of outlets in New York (1989) and Paris (1990). begins his business activities as a clothing manufacturer. Germany. The business grows steadily over the next decade until it has several production centres. Bahrain. allowing it to expand its network of stores to the main Spanish cities. in Cyprus. Inditex open stores in new countries:The Netherlands. Turkey. 1999 20 press dossier INDITEX . Poland. This year also sees the opening of the first store of the Group in Malta and. Kuwait and Lebanon. The acquisition of Stradivarius makes it the fifth concept of the Group. and Belgium and Sweden in 1994. Inditex acquires the whole of the share capital of Massimo Dutti. Venezuela.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME INDITEX 1963 1974 1975 1976 1984 1985 1986 1987 1988 1989 1990 1991 1992 1994 1995 1996 1997 1998 GROUP TIMELINE Amancio Ortega Gaona. distributing their products to different European countries. targeting the younger female market. Norway and Israel join the list of countries in which Inditex is present. Greece in 1993. Canada. United Arab Emirates. chairman and founder of Inditex. Japan. Inditex continues to open new international markets: Mexico in 1992. Zara is founded with the opening of its first store in a central street in A Coruña (Spain). begins activity in a year which also sees the opening of stores in new countries: United Kingdom. The manufacturing companies in the Group direct their total production to the Zara concept and establish the basis for a logistics system to match the expected high growth rates. Argentina. The Bershka concept. Brazil. Chile and Uruguay. in the following year. Creation of Inditex as the head of the corporate group. Saudi Arabia.

Spain). Dominican Republic and Singapore. Iceland. The Inditex Group opens store number 2. The opening of the first Zara Home stores. 2001 2002 2003 2004 2005 2006 2007 2008 Inditex concepts opened stores in 50 countries. Lithuania and Panama. Switzerland.com This press dossier has been updated at 7th June 2008 21 press dossier INDITEX . Spain). Asia and Africa. In this year the first store also opens in Morocco. Austria. Puerto Rico and Jordan. Denmark and Qatar. This year first openings take place in: Andorra. The Group opens its first stores in Finland. Czech Republic. Slovakia. Luxembourg. Monaco.INDITEX ZARA PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOME 2000 Inditex moves its headquarters into a new building in Arteixo (A Coruña. Launching of the Oysho lingerie concept. Mainland China.Philippines and Indonesia. Work begins on the new Zara logistical centre in Zaragoza (Spain). Guatemala and Oman The Group opens it first stores in Korea and Ukraine For further information: INDITEX Dirección GenCommunication and Institutional Relations Corporate Division +34 981 185 400 comunicacion@inditex. Italy. The Americas. Plataforma Europa. Inditex inaugurates its second Zara distribution centre. El Salvador.000 in Hong Kong. Latvia. Romania. in Zaragoza (Spain). On 23 May 2001 Inditex goes public and is listed on the stock market. The Group opens its first stores in Costa Rica.Thailand. Tunisia and Serbia join the list of countries in which Inditex is present. thereby reaching a presence in 50 countries in Europe. Hungary. Russia and Malaysia. Colombia. Estonia. The first stores of the Inditex Group are opened in Slovenia. During this year four new markets were entered: Croatia. complementing the activity of the Arteixo logistical centre (A Coruña. the last concept in the Group. During this year the Group expands into: Ireland.

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