With over €27 billion in sales in 2021, the Spanish Fast Fashion Empire, Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. The country that contributed the most to the fast fashion Empire sales was Spain, with over 15% of its revenues.
Inditex business model
Inditex is the holding that controls a set of brands, among them, Zara, one of the dominating brands in the fast fashion industry. In 2017, Inditex comprised eight brands:
- Massimo Dutti.
- Zara Home.
The holding, Inditex, continued to focus on commercial initiatives to grow the value of each brand, expand its stores worldwide, and build up its e-commerce platforms.
Let’s quickly overview each brand part of Inditex Holding.
Zara is by far the largest brand in the group, representing over 70% of the group’s net sales.
With its massive flagship stores worldwide (Madrid, Venice, Mumbai, and many others), Zara created a large, recognized brand in the fast fashion industry.
The company also extended its online presence in Southeast Asia and launched http://www.zara.com in Malaysia, Singapore, Thailand, Vietnam, and India.
Pull&Bear, with over €1.8 billion in net sales in 2021, Pull&Bear represented almost 7% of the group’s net sales.
The company has also opened up new flagship stores worldwide (like Rue de Rivoli in Paris, Ermou in Athens, and One World in Bangkok).
Massimo Dutti made over €1.6 billion in net sales in 2021, representing about 6% of the group’s net sales.
The company expanded with its new stores in Valencia and Milan.
Just like Zara’s flagship stores, Massimo Dutti positions itself in exclusive locations but with a minimalist interior design to convey a different style than the sister brands.
After Zara, Bershka is the largest of the sister brands in sales in 2021.
Indeed, the company made over €2.7 billion, representing almost 8% of the total group sales.
Like its sister brands, Bershka collaborates with influencers to enhance its brand awareness.
Like the campaign with the Italian rapper, Fedez (Fedez for Bershka).
The company also expanded its operations by opening pop-up stores in New York and Rome.
Stradivarius made over €1.8 billion in 2021, representing about 6.7% of the group’s total sales.
Like its sister brands, the company has inaugurated a new flagship store in Barcelona.
With a turnover of €600 million, Oysho represented over 2% of the group’s net sales.
The Spanish clothing retailer of women’s homeware and undergarments expanded by bringing its store to Barcelona, Madrid, Milan, Doha, Moscow, Paris, Tunisia, Istanbul, Dubai, and Bali.
Inditex values and key partners
Inditex group core values can be summarized in:
1. Strong customer focus.
The principal partners of the group are:
- Employees are considered as any person who works for Inditex Group stores, offices, or logistics centers.
- Customers, as anyone who purchases a product sold by Inditex Group’s eight sister brands.
- Suppliers as companies that are part of the Inditex supply chain.
- Community, as all people or entities that are part of the context of Inditex.
- Shareholders as any individual or entity that owns Inditex Group shares.
- Environment, as part of Inditex’s attempt to build a sustainable business model.
Inditex integrated model
Inditex follows an integrated model, where the customer journey is driven across several channels.
Still, with a continuous dialogue, from store to online channels, Inditex creates multiple touchpoints with its brands.
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