ZARA’S

SUCCES
S STORY

MBA GROUP -6
ENTREPRENEUR WEEKLY TASK
27-DEC-2020
ZARA

• Zara, Inditex is the world's second largest company in its field, with a presence in more than fifty
countries and a market capitalization of nearly 32 billion (around $45 billion).
• One of the firms that seem to have succeeded embracing this balancing act, even in an industry
where local preferences can be especially critical for long-term success, is the Spanish firm Zara,
the world's largest clothing retailer.
• As founder of the low-cost & fast fashion empire Inditex Group which includes the worldly
famous brand ZARA, this Spanish fashion entrepreneur stands as Spain's richest man and the
seventh richest man in the world (2011).The Inditex Group now has 6000 stores and over
92,000 employees worldwide.
WHAT START?

• He left school and moved to A Coruna at the age of 14, due to the job of his father, a
railway worker. Shortly after, he found a job as a shop hand for a local shirtmaker called
Gala, which still sits on the same corner in downtown A Coruña, and learned to make
clothes by hand
HOW START?

• With only $25 in startup capital and working out of his sister’s home, Ortega’s vision was
to replicate popular fashions using affordable materials, creating high demand clothing
that could be sold at lower prices. He sold his gowns, housecoats, and lingerie to his
former employer and other local shops. By 1963 he had opened his first factory, and by
the early 1970s began dabbling in retail (Geller, 2013).
• In 1972, he founded Confecciones Goa to sell quilted bathrobes.
• In 1975, he opened his first Zara store with his wife Rosalía Mera
WHAT FAILURE?
(MAY FACE FAILURE COZ OF BELOW FACTS)
• As study, do not see his failure time.
Below Facts may face failure in fruiter
Inditex signed an agreement with the Brazilian labour ministry in 2011 to improve
conditions for workers, but the ministry found evidence that 7,000 workers had been
poorly treated since 2012. (turnover problem)
Zara spent only 0.3% of its revenue on media advertising, compared with 3-4% of most
specialty retailers.
WHEN SUCCESS??

• 1963 start the success that can establish the COA, 12 year laters Zara first sore. 1976,
very popular among customers . Year on year success until today.
• Main key success:
Customer focused — follow your customer’s wants/ need instead of what your competitors
are doing
Have a short supply chain to keep up with our quick and ever changing lifestyles, sources the
majority of its materials/ products from Spain and Portugal, shortening the supply chain
keep working until you can
THANKS
MBA GROUP - 6