The secret of Zara's success
Behind the success of the Spanish fast fashion chain Zara and its parent company Inditex is a business strategy rather than a secret. This strategy is called vertical integration and has been increasingly applied in the clothing industry for several years. Zara, however, is one of the pioneers and has managed to make the company model for itself and its image, and ultimately as the basis for its success. Vertical integration means that Zara retains control over the entire value-added process of its processes at all times, ie, independently controls every production element, from design to production to sales. In contrast to traditional traders, Zara is not dependent on actors of upstream or downstream production stages, eg the producers or suppliers, and has thus been able to develop a business strategy which is perfectly tailored to the needs of its target groups over the years. The control of the processes, which is integrated with vertical integration, makes it possible for Zara to launch an above-average number of new designs every year, as well as to provide its customers with new fashion inspired by the world's major catwalks in the shortest possible time. As a result, Zara customers not only have an incredibly wide selection when they enter a Zara Store, but they also feel the pressure to access through the rapid collection changes. Finally, the new collection will soon hang in the stores - and that too much affordable prices, which are a result of increased control of vertical integration and mass production.
Amancio Ortega - the man behind the fast fashion giant Zara
Amancio Ortega, the founder of Zara and the parent company Inditex, which includes Pull & Bear, Bershka, Stradivarius, Massimo Dutti, Oysho, Uterqüe and Zara Home, is currently holding $ 83.7 billion (August 2017) the richest man in Europe, and the fourth man in the world - and yet surprisingly little is known about him. Born in 1936 in the Spanish Busdongo de Arbás, León, Amancio Ortega grew up in modest family conditions. When he is 14 years old, the family moves to A Coruña, where Ortega is learning to sew clothing by hand. Later, he founded the company Confecciones Goa, which focuses on the production of quilted bathrobes. 1975 Ortega finally opened its first clothing business, Zara, which is growing rapidly and initially nationally and ultimately also internationally strongly expands. Despite his great success, Ortega still maintains a cautious and modest lifestyle and rarely makes himself available for interviews and other press events. He is, however, known as a workaholic, who hardly takes holidays and despite his status with the employees in the cafeteria. The story of Amancio Ortega is often used as an example for the typical "Von Tellerwäscher zu Millionär" (in this case, even billionaire) story, but also critically criticized voices of the business strategy of Ortega and his company Inditex with regard to, among other things, sustainability and fair working conditions.