Transcript 1. Introduction

INDITEX INSIGHT DECK
Growth markets and strategic initiatives
April 2013
1
A Service
ISABEL CAVILL
Senior Retail Analyst
Contents
1. Introduction
2. Major Strategic Initiatives
3. Key Markets
4. Conclusions & Implications
5. Further Reading
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All data correct at time of publishing.
1. Introduction
Inditex
1. Introduction
Industria de Diseño Textil, S.A. (Inditex) and its
subsidiaries form the Inditex Group. Inditex manages
these companies on a centralised basis by applying
policies and strategies at group level. The head office
in La Coruňa (Spain) sets Inditex strategy, coordinates the brands and provides centralised IT, HR,
Logistics, design and real estate functions.
Corporate Structure
Textile Sourcing
Manufacturing
Brand Divisions
Logistics (Zara)
Comditel S.A (La Coruňa,)
Internal
Choolet SA, Confecciones Fios,
Gonfecciones Goa, Denlio,
Hampston, Jema Creacione
Infantiles, Samlor, Stear,
Trisko, Zintura,
Glencare, Indipunt
(all based in La Coruňa)
Zara
Zara Logistica SA (La Coruňa,
Spain) - 50% of Zara women
and menswear, serving Iberia,
Americas and Middle East
Zara Asia Ltd (Hong Kong)
Nikole S.A (La Coruňa)
ITX Trading S.A (Freiburg, CH)
Uterqüe S.A (La Coruňa)
Lefties Espaňa (La Coruňa,)
Tempe S.A. (Alicante)
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Massimo Dutti
Bershka
Stradivarius
External
Inditex works with around
1,500 external suppliers
around the world.
E-commerce
Tempe, Inditex’s footwear
company is only 50% consolidated
at corporate level, but is solely
responsible for sourcing,
manufacturing and distributing
footwear for the group.
Pull & Bear
Oysho
Uterqüe
Uterqüe
Zara
ZaraHome
Home
ITX Fashions Ltd 100% (Ireland)
Each Inditex brand is managed
independently with its own
logistics and production facilities.
Plataforma Europa SA
(Zaragoza, Spain) - 50% of Zara
women and menswear, serving
non-Iberian Europe,
Russia and Asia
Plataforma Logistica Leon SA
(Leon, Spain) Zara Home and
Zara distribution
Plataforma Logistica Meco SA
(Madrid, Spain) manages Zara
childrenswear
1. Introduction
The Inditex model of production is a
reversal of traditional clothing cycles
as it is a ‘pull’ type production process
rather than ‘push’.
 Zara responds quickly to demand via a
pull model which responds to realtime sales information from its stores.
 Small batch quantities allow the
retailer to see what items are working
with shoppers.
 A central distribution centre in
Arteixo, with strong IT systems
developed by Inditex and third
parties, back up its supply chain
model. All items are shipped back to
Spain where they are then shipped
out to stores around the world.
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Traditional model
Inditex model
Design
Customer
Sourcing
Store
Store
Design
Customer
Sourcing