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INDITEX INSIGHT DECK. Growth markets and strategic initiatives. April 2013. ISABEL CAVILL. Senior Retail Analyst. Introduction Major Strategic Initiatives Key Markets Conclusions & Implications Further Reading. Contents. All data correct at time of publishing. 1. Introduction. Inditex.
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INDITEX INSIGHT DECK Growth markets and strategic initiatives April 2013 ISABEL CAVILL Senior Retail Analyst
Introduction Major Strategic Initiatives Key Markets Conclusions & Implications Further Reading Contents All data correct at time of publishing.
1. Introduction Inditex
Industria de Diseño Textil, S.A. (Inditex) and its subsidiaries form the Inditex Group. Inditex manages these companies on a centralisedbasis by applying policies and strategies at group level. The head office in La Coruňa (Spain) sets Inditex strategy, co-ordinates the brands and provides centralised IT, HR, Logistics, design and real estate functions. Textile Sourcing Manufacturing Brand Divisions Logistics (Zara) • Corporate Structure • 1. Introduction 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 Logistica SA (La Coruňa, Spain) - 50% of Zara women and menswear, serving Iberia, Americas and Middle East Pull & Bear Zara Asia Ltd (Hong Kong) Nikole S.A (La Coruňa) Massimo Dutti Plataforma Europa SA (Zaragoza, Spain) - 50% of Zara women and menswear, serving non-Iberian Europe, Russia and Asia ITX Trading S.A (Freiburg, CH) Bershka Each Inditex brand is managed independently with its own logistics and production facilities. 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. Uterqüe S.A (La Coruňa) Stradivarius External Inditex works with around 1,500 external suppliers around the world. Lefties Espaňa (La Coruňa,) Oysho Plataforma Logistica Leon SA (Leon, Spain) Zara Home and Zara distribution Tempe S.A. (Alicante) Uterqüe Uterqüe Plataforma Logistica Meco SA (Madrid, Spain) manages Zara childrenswear Zara Home Zara Home E-commerce ITX Fashions Ltd 100% (Ireland)
Traditional model • The Inditex model of production is a reversal of traditional clothing cycles as it is a ‘pull’ type production process rather than ‘push’. • 1. Introduction • Design • Sourcing • Store • Customer • Inditex model • Zara responds quickly to demand via a pull model which responds to real-time 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. Customer Store Design Sourcing