Inditex's Competitive Advantage

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Less (time) is more. Founded by Amancio Ortega Ganoa in La Coruna, Spain, Inditex group (Industria de Diseño Textil, SA) is the holding company of eight different fashion distribution chains: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. The company operates in textile, design, manufacturing and distribution, allowing full control of product creation, from conceptualization to when the item hits the floor. The group currently operates over 6,000 stores in 86 countries. Its international success has been made possible through a unique business model and globally well-perceived concepts. The key factors to Inditex’s fast growth are based on synergized management on five areas: customer analysis, inventory management, design production, real-estate investment and centralized distribution. Many retailers would claim the corporate cliche “the customer is the king," but only a few actually live by the promise. Inditex surely is at the front-line of meeting customer satisfaction. As the main company in the group with over 66% of sales contribution in 2012, Zara has been developed to have quick response to market demands. Store managers are trained to provide information on customer preferences. They have the capacity and technology to exchange data and information in real-time, allowing efficiency in managing work-flow between the corporate services and the stores. By reducing the lead-time, Zara is able to change their inventory within only a couple of weeks. Items that are not selling are immediately removed in exchange for new popular products. They work under the concept of short shelf live equals to less inventory risk while at the same time draws more customers. The quick turnaround on merchandise allows customers to constantly return to stores to browse new items. Their admirable management of inventory of over 30,000

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