Inditex Brands

Inditex is the Spanish fast-fashion empire which owns different brands that span from Zara to Oysho, and it generated almost €36 billion in 2023 by following a company-operated strategy, where its flagship stores drive high traffic toward its central locations across the world. In addition, post-pandemic, Inditex has been ramping up its e-commerce strategy. Indeed, by 2023, over 25% of the sales were generated online.

Understanding how Inditex works and makes money

Inditex follows a company-operated store strategy, generating most of its revenue from company-operated stores.

Indeed, Inditex generated most of its sales from company-operated stores in 2021 in the following order:

• Zara: 88% of sales from company-managed vs. 12% from franchised.
• Pull&Bear: 82% of sales from company-managed vs. 18% from franchised.
• Massimo Dutti: 84% of sales from company-managed vs. 16% from franchised.
• Bershka: 82% of sales from company-managed vs. 18% from franchised.
• Stradivarius: 77% of sales from company-managed vs. 23% from franchised.
• Oysho: 84% from company-managed vs. 16% from franchised.

Zara

Pull&Bear

Massimo Dutti

Bershka

Stradivarius

Oysho

Key Highlights

• Inditex Overview:
  • Inditex is a Spanish fast-fashion empire that owns multiple brands including Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, and Oysho.
  • The company generated nearly €28 billion in revenue in 2021.
  • Inditex’s business model relies on company-operated stores, which drive most of its revenue.
• Store Strategy:
  • Inditex’s flagship stores play a crucial role in attracting high traffic to its central locations globally.
  • The majority of the sales come from company-operated stores rather than franchised stores.
• Online Sales Growth:
  • Post-pandemic, Inditex has been focusing on its e-commerce strategy.
  • Over 25% of the total sales were generated online in 2021.
  • In 2022, online sales represented 25.5% of total sales.
• Brand Breakdown:
  • Zara: Generated €19.58 billion in revenue in 2021, witnessing consistent growth from previous years.
  • Pull&Bear: Revenue increased to €1.87 billion in 2021 from €1.42 billion in 2020.
  • Massimo Dutti: Revenue grew to €1.65 billion in 2021 from €1.27 billion in 2020.
  • Bershka: Revenue reached €2.18 billion in 2021, up from €1.77 billion in 2020.
  • Stradivarius: Revenue surged to €1.82 billion in 2021, compared to €1 billion in 2020.
  • Oysho: Revenue increased to €600 million in 2021 from €522 million in 2020.
• Online Sales Breakdown:
  • Inditex’s online global sales increased to €7.5 billion in 2021 from €6.6 billion in 2020.
  • Online sales contributed to 25.5% of total sales in 2022, a decrease from 32% in 2020.
• Continued Growth:
  • Despite challenges, Inditex’s brands have generally shown growth in revenue, both through physical stores and online sales.
  • The company’s flagship brand, Zara, remains a significant contributor to its overall revenue.
• Year-on-Year Comparisons:
  • Most of the brands within Inditex experienced revenue fluctuations from year to year, influenced by various factors including market trends, consumer preferences, and external events like the pandemic.
• Adaptation to E-commerce:
  • The company’s increased focus on e-commerce demonstrates its adaptability to changing consumer behaviors and preferences.