Inditex is a global specialty
retailer that designs, manufactures, and sells apparel, footwear, and
accessories for women, men and children through its chains around the
world. Zara is the largest and most internationalized of the six
retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear,
Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507
stores around the world, including Spain
Of Inditex’s total employees,
over 80% of them are part of the retail sales force and 8.5% are in
manufacturing, design, logistics, and distribution. The remaining 11.5% are
part of the corporate headquarters of Inditex, which is located in the region
of Spain called Galicia
The role of the corporate
center at Inditex’s headquarters is that of a “strategic controller” only, and
is involved in setting the corporate strategy, approving the business
strategies of the individual chains, and controlling their overall performance
rather than as an “operator” functionally involved in running the chains.
This gives Zara autonomy to operate independently and be responsible for its
own strategy, product design, sourcing & manufacturing, distribution,
image, personnel and financial results.
With this freedom, Zara was
able to make major investments in manufacturing, logistics, and IT, including
establishment of a just-in-time manufacturing system and a 130,000 square meter
warehouse close to its corporate headquarters. Zara manufactured its most
fashion-sensitive products internally and its designers continuously tracked
customer preferences and placed orders with internal and external suppliers
based on this information. Due to its unique needs, Zara chose to
internally develop its business systems. Zara is now able to originate a
design and have finished goods in stores within weeks for entirely new designs
and take even less time for modifications of existing products.
