Inditex

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Industria de Diseño Textil, S.A.
Sociedad Anónima
Traded as BMADITX
ISIN ES0148396007
Industry Retailing
Predecessor
  • Confecciones GOA, S.A.
  • GOASAM, S.A.
Founded Arteixo, Spain (June 12, 1985 (1985-06-12))
Founder Amancio Ortega
Rosalía Mera
Headquarters A Coruna, Spain [1]
Number of locations
6683 stores (January 31, 2015)
Area served
Global
Key people
Pablo Isla (Chairman and CEO)
Ignacio Fernández (CFO)
Products Apparel/footwear specialty, other specialty
Revenue 16.72 billion (2013)[2]
€3.070 billion (2013)[2]
Profit €521 million euros(2015, 1Q)[3]
Total assets €13.756 billion (2013)[2]
Total equity €9.278 billion (2013)[2]
Number of employees
140,000(2015) [4]
Subsidiaries Zara, Pull & Bear, Bershka, Massimo Dutti, Stradivarius, Oysho, Zara Home, Uterqüe, Tempe
Website www.inditex.com

Industria de Diseño Textil, S.A. (Inditex) (/ˌɪndɪˈtɛks/, Spanish: [indiˈteks]; Textile Design Industries) is a Spanish multinational clothing company headquartered in Arteixo, Galicia. It is made up of almost a hundred companies dealing in activities related to textile design, production, and distribution. Amancio Ortega, Spain's richest man, and currently the world's fourth richest man,[5] is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. The company is a component of the Euro Stoxx 50 stock market index.[6]

Inditex, the biggest fashion group in the world, operates over 6,600 stores worldwide[7] and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius, Zara, Tempe, and Uterqüe, and also a low-cost brand Lefties. The majority of its stores are corporate-owned; franchises are only conceded in countries where corporate properties can not be foreign-owned (in some Middle Eastern countries, for example).

The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores.

Most of the company's manufacturing is done in countries with low labour costs, mainly in Bangladesh, India, Morocco, China and Turkey, although some production continues in Spain, Brazil and Portugal, particularly for its Zara brand. In addition, Inditex has a factory for shoe design, production and distribution in the town of Elche, on the Spanish Mediterranean coast.

History[edit]

The company started by introducing a new concept of fashion design: instead of long-lasting pieces of clothing, they offered a great variety at affordable prices. In the beginning, Zara became famous by offering clothing at low prices and then slowly worked its way up to match the quality of today's best brands.

The group started its activity in 1963 as a dress maker, but it wasn't until 1975 that Zara shop opened its doors in A Coruña (Galicia, Spain), the city which saw the group's early beginnings and which is now home to its central offices.

The international expansion of the group began in 1988, with Inditex opening its first foreign store in Oporto, Portugal. Today, Inditex's stores can be seen in places like New York's Fifth Avenue, Milan's Piazza Duomo, London's Regent Street and Oxford Street, Frankfurt's Zeil, Shanghai's Nanjing West Road, Tokyo's Shibuya, Istanbul's Nişantaşı, Seoul's Myeong-dong, and Vienna's Kärntner Straße.

In the 1990s, Inditex began creating or acquiring subsidiaries to manage different collections: Bershka, Pull and Bear, Massimo Dutti, and Stradivarius.

In May 2001, Inditex turned into a publicly traded company, being valued at US$8 billion (€9 billion at the time).[8]

Inditex won the 2006 Wharton Infosys Business Transformation Award for their innovative and successful implementation of information technology to drastically decrease the time it takes to get new merchandise from the design stage to the in-store stage.[citation needed]

In 2008, Inditex launched Uterqüe, the new accessories brand of the company. Three inaugural flagship stores were opened in Madrid (Calle Serrano), Barcelona (Passeig de Gràcia) and A Coruña.

On 22 September 2008, Inditex opened its 4,000th store in the Ginza in Tokyo, considered one of the most important shopping areas in the world.[citation needed]

In 2010, Zara had sales of €12.5 billion, with only twice a year newspaper advertisements.[9]

On 20 April 2011, the first Zara store opened in Australia. Thus, the Inditex group was present for the first time on five continents, and in 86 countries.

After the 2013 Savar building collapse, Inditex was one of the thirty-eight companies who signed the Accord on Factory and Building Safety in Bangladesh.

In 2015 Inditex bought commercial properties in Soho, New York City for over $280 million. They plan to open Zara and other stores on Broadway.[citation needed]

In the first quarter of its fiscal year 2015, Inditex recorded an attributable profit of 521 million euros, which represents an increase of 28 percent over the same period last year in 2014.[10]

Subsidiaries[edit]

Inditex Global Presence
  • Zara - Flagship brand.[9] It encompasses many different styles, from daily clothes, more informal, to the more serious or formal, through dresses and suits for festival events. Fashion for women, men and children.
  • Zara Kids - Kids Clothing from 0 to 14 years old.
  • Pull and Bear - This brand focuses on casual, laid-back clothing and accessories for young people with a very urban style, at accessible prices.
  • Bershka - Starting in 1998, this store began distributing fashion for girls, and, more recently, for boys too. It also has a youthful style, although not as urban as Pull & Bear.
  • Massimo Dutti - The highlights of this chain are more elegant, classic, and studied designs, for daily and formal clothes. It is more expensive than the rest of stores of the group. It offers fashion for women, men and, recently, for children.
  • Stradivarius – This brand has an innovative concept in fashion,[citation needed] targeting young women with clothing garments and accessories.
  • Oysho - Women's homewear and undergarments.
  • Zara Home - Domestic merchandise
  • Uterqüe - Accessories and garments
  • Tempe - Footwear
Company No. of shops 31/10/2015 Year of creation
Zara 2143 1975
Bershka 1032 1998
Stradivarius 937 1999 (acquired)
Pull and Bear 922 1991
Massimo Dutti 729 1995 (acquired)
Oysho 598 2001
Zara Home 481 2003
Uterqüe 71 2008
TOTAL 6913

Corporate Governance[edit]

Board of Directors[edit]

Bold indicates a company shareholder and the representative will be listed below.

Member Title(s) Member Since Shares Held Notes
Mr. Pablo Isla Chairman & CEO of Inditex
Board Member of Telefonica, S.A.
June 2005 1,805,302 [11]
Mr. Jose Arnau Sierra Deputy Chariman of Inditex
First Executive of Grupo Pontegadea
Director of GARTLER, S.L.
Member of the Board of Trustees of Fundacion Amancio Ortega Gaona
June 2012 30,000
Mr. Amancio Ortega Founder & Board Member of Inditex June 1985 1,848,000,315
Pontegadea Inversiones, S.L.
Ms. Flora Perez Marcote
Board Member of Inditex December 2015 1,558,637,990
Mrs. Irene R. Miller Independent Director & Board Member of Inditex
CEO of Akim, Inc.
Board Member & Chairman of the Audit Committee of Coach, Inc.
Board Member of Toronto-Dominion Bank Financial Group
April 2001 66,200
Mr. Jose Luis Duran Schulz Board Member of Inditex
Independent Director & Member of the Audit Committee of Orange
July 2015
Mr. Rodrigo Echenique Gordillo Board Member of Inditex
Chariman of NH Hoteles
July 2014
Mr. Carlos Espinosa de los Monteros Bernaldo de Quiros Board Member of Inditex
Chairman of Fraternidad-Muprespa
Board Member of Acciona, S.A.
Board Member of Schindler Espana
Board Member of Yell Group
May 1997 150,000
Mr. Emilio Saracho Rodriguez de Torres Board Member of Inditex
Head of Investment Banking of JPMorgan Europe, Middle East, & Africa, Ltd.
Executive Committee Member of Investment Bank
Executive Committee Member of JPMorgan Chase
Deputy-CEO of EMEA
June 2010

Headquarters[edit]

Inditex headquarters are located in Sabón industrial park in Arteixo, a small industrial town in the A Coruña metropolitan area.

Shareholding[edit]

The majority shareholders of Inditex are its founder, Amancio Ortega, and the heirs of his deceased ex-wife, Rosalía Mera; Ortega owns 59% of the company through Gartler, S.L. (50%) and Partler, S.L. (9%) and Mera's heirs own 6% of the company through Rosp Corunna Participaciones Empresariales, S.L.

References[edit]

  1. ^ https://www.inditex.com/en/our_group/facilities
  2. ^ a b c d e "Annual Report 2013" (pdf). Inditex. Retrieved 18 December 2014. 
  3. ^ Gonzalez-Rodriguez, Angela (June 11, 2015). "Euro's depreciation suits Inditex well in the first quarter". FashionUnited. Retrieved July 1, 2015. 
  4. ^ http://www.inditex.com/en/our_group/at_glance
  5. ^ "The Forbes World's Billionaires list is the definitive list of the world's wealthiest people, profiling and ranking billionaires from 70 countries by their estimated net worth.". Forbes. Retrieved 2015-12-02. 
  6. ^ Frankfurt Stock Exchange
  7. ^ "Grupo INDITEX - Our group". Inditex. Retrieved 2015-02-28. 
  8. ^ Inside Zara Forbes Global
  9. ^ a b Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. ISBN 978-1-118-17176-9. 
  10. ^ Gonzalez-Rodriguez, Angela (June 11, 2015). "Euro's depreciation suits Inditex well in the first quarter". FashionUnited. Retrieved June 18, 2015. 
  11. ^ https://www.inditex.com/our_group/board_members

External links[edit]

Official
Financial
Articles