Zara is a clothing manufacturer. King in clothes: how the founder of Zara became the richest man in the world. Zara success story

Spanish entrepreneur Amancio Ortega is the richest man in the world. The fortune of the owner of Inditex, which unites the brands Zara, Pull & Bear, Bershka, Massimo Dutti, Stradivarius, Oysho and others, is today approximately $72 billion. The Secret found out what rules Ortega followed to accumulate such a fortune.

Money shouldn't be the goal

Ortega is from a poor family: his father is a railway worker, and his mother is a maid; there was barely enough money for the basic necessities. One day, when he was 12 years old, he and his mother went to the grocery store, but had to leave empty-handed. He heard the seller say: “Josefa, I’m very sorry, but I can no longer sell you goods on credit.” This angered Ortega, and he decided that he didn’t want his mother to ever hear anything like that again. Soon he dropped out of school and got a job as an assistant in a sewing workshop.

And yet, according to the founder of Zara, money is not the most important thing for him; it is more important to be able to set goals and do everything to achieve them. “Running a business just for the sake of money is a waste of time. When you earn as much as we do, it’s obvious that we’re unlikely to need more. For me, money has only one meaning. They are needed to achieve goals. And if you are successful, then it is useful to help those who depend on us so that their lives become better,” Ortega assures.

Photo: Jim Hollander/EPA

Find your niche

“From the time I started working, I was obsessed with one idea: why don’t I invent something different from everything else on the market? I saw clearly that it was necessary to occupy the free space that remained in the world of the textile industry,” said Amancio Ortega in an interview with the former editor-in-chief of the Spanish magazine Telva Covadonga O’Shea.

In 1963, Ortega went into business for the first time, his wife joined him, and then his brother and his wife. They organized the production of cotton robes and nighties: they sewed them by hand, creating models similar to designer ones. “The fact that only rich ladies could dress well always seemed unfair to me,” Ortega said in 2003.

Later, Zara representatives began traveling to fashion shows around the world and sketching clothing models. Ortega’s company has been accused of plagiarism more than once, but Zara is confident that it is not copying, but catching fashion trends and using general ideas. Thus, in 2008, Zara unsuccessfully tried to sue the French shoe manufacturer Christian Louboutin - the luxury brand claimed that the retailer violated its trademark by using very high heels and red soles. The cost of Zara shoes back then did not exceed $100, and a pair of Christian Louboutin often cost more than $1000.

Do everything quickly

For Amancio Ortega, speed has always been important: speed of production, speed of delivery and speed of updating models. Ortega set a rule at Zara: the model range in stores should be updated every two weeks, and delivery to warehouses should be carried out within 48 hours.

By offering customers variety and small quantities, Zara can always count on selling out. If some things are not in demand, they are quickly replaced with more popular ones. While other clothing stores are visited by customers on average four times a year, Inditex stores are visited almost 17 times a year.

Ortega allowed his clients to regularly update their wardrobes. Back in the 90s, journalists wrote that Ortega changed people’s consumer habits: “We are already beginning to define Zara-mania in consumer habits: purchasing the most fashionable things in order to get rid of them next year with a pure heart.”

Don't delegate

“If I want everything to continue to work, I must remain in my post,” says Amancio Ortega. Friends describe him as a passionate worker, ready to spend even birthdays at the factory. A businessman likes to control everything in his company - from the search for ideas for new models to how sales assistants behave in his stores.

Ortega retired as president of Inditex in 2011 at the age of 75, but continues to regularly visit Inditex headquarters in the billionaire's home province of A Coruña. There, he most often sits at a table with designers, fabric experts and buyers for the Zara women's clothing line. Ten years ago, the businessman admitted that although he is fascinated by the entire production process, what he likes most is watching the work of his artists.

Photo: Konstantinos Tsakalidis/Bloomberg via Getty Images

Continue to grow

The first Zara opened in 1975 in La Coruña, and in the 1980s there were chain locations throughout Spain. However, this was not enough for Ortega - he wanted to conquer all the fashionable capitals. In 1988, he opened the first Zara store in Portugal, in 1989 in New York, and in 1990 in Paris. The first Zara appeared in Russia in 2003. “Even when I was a nobody and had practically nothing, I dreamed of development and growth. We have never rested on our laurels or taken the easy way out. Optimism can be a very negative emotion. You have to take risks! Every day new ideas appear and we do not have any preset plans. Growth is a survival mechanism. Without growth, a company dies,” Ortega is sure.

By the mid-1980s, Ortega realized that one brand was not enough to satisfy all categories of the population - Zara was mainly dressed by middle-class women. In 1991, he created the youth brand of inexpensive casual clothing Pull & Bear. Then he bought a stake in Massimo Dutti, which dresses clients with above-average incomes (the brand now belongs entirely to him). In 1998, Bershka appeared, offering clothes to young party girls, and in 1999, Ortega bought his main competitor in the teenage clothing market - the Stradivarius chain. Today Inditex is the largest group of companies in the clothing market, which includes more than 6,777 stores in 88 countries.

Sources: book “The Zara Phenomenon” by Covadonga O'Shea, Bloomberg, Forbes Cover photo: Efa via EPA

There is hardly another mass market brand like Zara, which reacts so accurately and quickly to trends from the catwalks. For example, when “ugly” shoes came into fashion several seasons ago, the Spanish brand quickly presented its version of “Birkenstocks”. And this happens with all the latest trends, be it velvet, faux fur or a print in the style of grandma’s chairs. This is, frankly speaking, why we love Zara - who else will give us the opportunity to replenish our wardrobe with the most desirable new items for reasonable money? But do we know everything about this brand? StyleNews has collected 15 facts that you might not even know about.

The first Zara store in A Coruña, Spain, 1982​

1. The first Zara store was opened in 1975 in La Coruña in Spain and is still open today.

2. The first collections of the brand featured models that were copies of the collections of famous fashion houses.

3. As of October 2015, 86 Zara stores were opened in Russia out of 2.1 thousand in total worldwide.

4. The founder of the brand, Amancio Ortega never gives interviews. In 2015, he became the richest businessman on the planet according to Forbes. The entrepreneur surpassed Bill Gates himself, the founder of Microsoft, on the list.

5. Ortega wanted to name his creation Zorba, after Anthony Quinn’s character in the film “Zorba the Greek.” But it was not possible to obtain the rights to use this name and the idea had to be abandoned.

Still from the film Zorba the Greek, 1964

6. The company employs more than 200 designers who develop men's, women's and children's clothing lines.

7. The Zara company produces on average 11,000 items per year. For comparison, competing brands do not exceed 4,000 items.

8. If any model does not sell well, it is immediately withdrawn from sale, all production orders are canceled and another design is urgently developed.

9. All brand models are in stores for no longer than four weeks. Thus, marketers encourage customers to visit the store more often.

10. The entire production cycle of Zara clothing and shoes - from sewing to appearance on the shelves - takes no more than two weeks.

11. Zara produces its most fashionable models at its own factories in Spain and Portugal. But the basic lines are manufactured in Turkey and Asian countries.

12. In 2007, a scandal broke out around Zara. The culprit was one of the bag models, on which some customers saw a hint of a swastika. The story was hushed up, and the bags were immediately removed from production.

13. Another unpleasant story for the brand occurred in August 2014. The design of the T-shirts closely resembled the uniform worn by Jews imprisoned in concentration camps: stripes and a yellow star, similar in appearance to the Star of David. Despite explanations from company representatives that the designers were inspired by the uniform of sheriffs from classic westerns, the scandalous models were withdrawn from all stores within a few hours. And the brand apologized.

14. The first Zara online store was opened on November 4, 2010 and at first operated only in Spain.

15. The company's main philosophy to ensure low prices is the use of fabrics costing less than $5 per meter.

16. “Zara does not need advertising” is another company motto that answers the question why you will never see Zara advertising posters on the streets or on the Internet. To ensure footfall, the company is opening new retail outlets near luxury stores of famous brands.

17. Even Kate Middleton wears the brand’s clothes.

Kate Middleton and Prince Charles

18. At the end of 2013, the Zara brand switched to 100% toxic-free production and signed Greenpeace's proposed zero-emissions pledge by 2020.

19. Zara stores are open in 88 countries, 55 of them in the USA.

20. Spanish tycoon Amancio Ortega also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Zara Home, Uterqüe, Stradivarius, Lefties and Bershka.

The creator of the greatest modern brand Zara, the Spaniard Amancio Ortega, as befits all conscientious millionaires, comes from a poor family. In the book “The Zara Phenomenon” (hereinafter in the text the book is quoted in italics), he recalls an incident that turned his life upside down:

“I remember one afternoon after school I went with my mother to get food. I was very young, and she met me at school. Therefore, very often I went shopping with her. The store we went to was one of those big grocery stores with such a high counter, so high that I didn't actually see who was talking to my mother, but I heard a man's voice say what I had been carrying inside me. time and never forget: “Joseph, I’m very sorry, but I can no longer sell you goods on credit.” I was shocked. I was only 12."

Amancio Ortega, creator of the Zara brand

Photo Gettyimages

Despite this, Amancio claims that he was able to achieve unprecedented heights in the industry only because he did not have the goal of making a ton of money:

“If it's true that I earned a lot of money, it's because it was never my goal,” he told me just recently. “I’ll go further - in my opinion, anyone who gets into business with the sole purpose of making money is not a real businessman.”

After the incident at the grocery store, Amancio Ortega dropped out of school and got a job as a sales assistant in a store-atelier - all to ensure that the same story would never happen to his mother again. Here he learns the basics of cutting, sewing and running a business:

“I was not educated at school. But what matters is the ability to set goals and do everything to achieve them.”

What followed were years of hard work. At the age of 17, the future tycoon left for the position of assistant at the La Maja company, where his older brother and sister already worked. The young man’s talent was noticed and he was soon promoted to manager. By the way, 16-year-old Rosalia Mera Goyenchev took his place, whom he would marry two years later.

During his time at La Maja, Amancio generated many fresh ideas. He decided to implement one of them himself, namely, to sew clothes by hand, but from factory fabric. He quit and founded a home-tailoring shop in 1963 with his brother Antonio. They had less than 20 euros in their account, but this did not frighten the young people. In a small workshop, the family produced fashionable quilted robes, which were sewn by Amancio’s first wife and his half-sister. The guys had that same commercial streak, so things went uphill. Soon they bought and began to export clothing from other Spanish brands. And now it’s not far from your retail store.

Although how to say “not far” - 10 years. The first Zara retail store was opened in 1975 on the main street in La Coruña, Amancio's hometown.

Posted by ZARA Official (@zara) Sep 21, 2016 at 1:57 PDT

One collection every 10 days

Amancio originally wanted to name the company Zorba after his favorite actor Anthony Quinn's character in the film Zorba the Greek. But copyright on a character's name is a stubborn thing. Zara is like Zara:

“Network names should be one word because it makes them easier to remember. And it’s good if they are short and sound normal in other languages. The problem is that when you find a good word, you need to make sure that it is not registered as another trademark. Sometimes it's surprisingly difficult."

The first Zara boutique featured copies of clothes from popular fashion houses, but for less money. This gained fame among the local population - and who doesn’t want, for example, a Chanel dress for a penny? So the business had to expand and open new stores.

At the same time, Amancio Ortega became concerned with creating a new business model, which later became a breakthrough. He was not happy that there was a whole six-month period between the creation of the design and the collection going on sale! It was necessary to somehow speed up this process, because 2-3 collections a year is too little for an ambitious guy. A major role in this matter was played by José Maria Castellano, who began working with Ortega in 1984 and took upon himself the development of a computerized distribution scheme for goods. And he did it! Now the clothing line hit store shelves within 10-15 days! Just think about these numbers: 10 days versus six months.

Zara's operating principle is a breakthrough!

Zara brand designers constantly study fashion magazines and attend fashion shows

Photo Gettyimages

The company, of course, does not disclose all the details of its success, but it is known that only at the end of the 20th century they recruited more than 200 designers who developed collections based on current trends. Large staff, modernized production - and now the new Zara collections are selling like hot cakes. By the end of 1985, the company had more than 80 of its own stores in Spain, in which the assortment changed every two weeks. This did not leave fashionistas any time to think about whether to take it or not, but, on the contrary, forced them to visit their favorite boutique more often.

Fashionistas all over the world love Zara because it allows you to wear what was recently presented on fashion catwalks. And not a year later, when trends will descend to the common man, but at the same time with those who can afford Gucci and Dior. And the difference is almost invisible! That’s why Zara clothes, shoes and accessories are loved by both celebrities and you and me. Everyone wants to look good and save money at the same time.

“Zara does not copy, as some suggest, but is inspired by what it sees.”

To stay ahead of the curve, Zara has a special department that studies fashion magazines, attends shows, and cuts clothes from other brands to adopt, for example, cool cuts for its products. They also travel around the world, studying what people wear in different countries, what colors and cuts they prefer, and which trendsetters they follow as examples.

Zara claims that it does not copy, but is inspired by what it sees. On the left is an item from the Armani collection, on the right is Zara

So, when we have decided on the trends, it’s time to create a prototype of the collection. These things are tested on real people. Those that pass the tests successfully fall into the hands of fashion designers who prepare patterns. Next is obtaining approval for the production of a thing, searching for the most profitable options for its production. Approximately 25% of the collection is produced before the start of the season.

“We have the ability to drop a line completely if it doesn't sell, and we can fill collections with new colors and create new styles in just a few days.”

Amancio Ortega's customer focus did not allow him to stop only at Zara for middle-class women. In 1991, he founded the Pull & Bear brand for young people. Later he bought a share in the more expensive Massimo Dutti, but after five years he already fully owned this brand. In 1998, Bershka opened - also clothing for young people, but more festive than Pull & Bear. In 1999, the Stradivarius brand arrived again in the teenage regiment. In the 2000s, the company launched the accessories brand Uterqüe. All companies are united under the Inditex flag.

Specializes in the production of inexpensive wardrobe items, created, however, taking into account the latest trends in the fashion world. Both natural and synthetic materials are used. Quality ranges from mediocre to good. Prices in Russia are average, in Europe they are rather low. The assortment is wide.

Story

Inditex was founded by Spanish entrepreneur Amancio Ortega and his wife Rosalia Mera in 1975. ZARA became the company's first brand; the first company store was opened the same year in the Spanish city of La Coruña. It is there that the headquarters of Inditex is located to this day.

At first, the company was actually engaged in copying clothes from high fashion houses. Copies were sold at low prices, which made ZARA popular among low-income people who dreamed of wearing fashionable clothes. Currently, ZARA is no longer engaged in simple copying, but creates new models on its own, but taking into account the latest fashion trends.

The uniqueness of the company lies in the extremely high degree of sophistication of the production chain: clothes are created (designed) very quickly, put into production very quickly and end up in retail stores. The whole process takes about two weeks, which is an extremely short period of time. This “speedy” model was developed by Amancio Ortega and Jose Maria Castejano in the 1980s and provided ZARA with enormous success, because it became possible to respond very quickly to changes in demand, to new collections of leading designers, and so on.

By the end of the 80s, ZARA stores operated in 80 Spanish cities, in 1988 international expansion began - a store opened in Porto (Portugal), in 1989 the first store opened in the USA, in 1990 - in France. Inditex and its main brand have grown rapidly.

In 2000, ZARA entered the Ukrainian market, and in 2003 - into the Russian market. Currently, there are 1,671 brand stores in 76 countries around the world. There are 9 stores in Ukraine, 58 in Russia.

Range

ZARA's assortment includes men's, women's and children's clothing in a wide variety of styles, styles, and colors. In addition, at ZARA you can also find shoes (both formal and casual, and even sports) and accessories. ZARA Home stores sell bed linen and other home textiles.

Clothes are made from both inexpensive natural materials (cotton, wool, leather) and artificial ones (viscose, leatherette, polyester). Mostly budget materials are used (leather is mainly the cheapest - pork and bovine), which allows you to keep prices at a relatively low level. At the same time, it must be added that in Russia prices at ZARA are greatly inflated, while in Spain they are noticeably lower; in general, in Europe this clothing is more likely for the poor. Therefore, I do not advise you to be proud of ZARA clothes in front of Europeans or in general in front of anyone.

One of the main advantages of ZARA is diversity. In the stores of this brand you will find a wide variety of clothes in a variety of styles, colors and sizes. Moreover, the collections are regularly updated - something new appears approximately every two weeks.

The quality of clothing varies quite a lot: you can buy very good things and very mediocre ones. In most cases, you can tell by the appearance of a thing whether it will last a long time or whether it will soon lose its appearance. Carefully inspect the products before purchasing, choose the best copy available.

Regarding men's clothing, I can say the following: ZARA has very mediocre suits (and mostly made of synthetics), good, sometimes very good shirts and shirts, good jeans with a good price-quality ratio.

I would call the quality of the shoes very mediocre; for cheap shoes, mainly synthetic materials are used, as well as short-lived polished leather and velor (read more about the types of leather). For more expensive models, although smooth leather is used, it is usually cow leather - it is tough, and creases and folds may appear on it.

Well, in any case, remember that ZARA specializes in “fast fashion”, that is, it is expected that customers will constantly update their wardrobe, trying to follow the latest fashion trends, and will not wear the same thing for years. Accordingly, ZARA clothes are simply not designed for long-term wear.

Personal impressions. Reviews

In my opinion, you can find some pretty good things at ZARA - if you look for them. It is best to come during sales, then you can buy, for example, a good 100% cotton shirt for 600-700 rubles - this is a very attractive option. I have no complaints about ZARA shirts; their quality is quite consistent with the price (however, there are also some pretty ugly ones, you have to look carefully).

But suits are a different matter; I have seen ZARA suits that lost their appearance within six months after purchase. Moreover, they are mostly synthetic, and this is immediately obvious. Their prices are not so low; This, by the way, also applies to business trousers.

Reviews on the Internet vary. Many people like the opportunity to buy really bright and fashionable clothes for relatively little money. Others are outraged by the quality. On my own behalf, I can add that, for example, in Moscow, ZARA clothing is already perceived as consumer goods and with its help you are unlikely to stand out, especially in the eyes of those who wear more expensive things. If you are not interested in fashion, but just want good, modest clothes, then it’s better to go to GAP - there, of course, the design is boring, but the clothes are high quality and durable, very wear-resistant.

Brief summary:

• Clothing styles : classic, strict casual, club casual.
• Range : almost all items of clothing (from underwear to jackets and coats; from jeans to suits), shoes (sneakers, shoes, boots), various accessories (belts, bags, etc.).
• Clothfor men, women, children . Textiles for home.
• Dimensions : women's - from XS to XXL, men's - from S to XXL.
• Materials : natural - cotton, wool, leather, artificial - polyester, elastane, viscose, etc.
• Price category : average, sometimes above average (in Europe - rather lower).
• Discount program : absent.

Approximate prices (as of October 2012) for women's clothing:

• T-shirts, T-shirts - 500-2000 rubles (on average - 800).
• Shirts, blouses - 1500-4600 rubles (on average - 2000-3000).
• Dress - 2000-6000 rubles.
• Skirt - 1500-5000 rubles.
• Jeans - 1900-3000 rubles.
• Trousers - 1900-3000 rubles.
• Jackets - 2000-7600 rubles.
• Pullovers, cardigans, sweatshirts - from 800 (cotton) to 4600 (woolen) rubles.
• Jackets - 2000-16000 rubles.
• Raincoats - 5000-7600 rubles.
• Boots - 3800-9000 rubles.
• Low shoes, ankle boots - 3800-7600 rubles.
• Sneakers - 1400-2000 rubles.
• Shoes - 2000-4400 rubles.
• Belts, belts - 900-2600 rubles.
• Umbrella - 800-900 rubles.
• Bags - 1500-8000 rubles (average 3000-3800).
• Caps, hats - 500-1700 rubles.
• Scarves and shawls - 1000-3000 rubles.
• Gloves - from 1000 (knitwear) to 1700-2000 (leather) rubles.
• Socks - 400 rubles per pair, stockings - 600-900 rubles.

Approximate prices (as of October 2012) for men's clothing:

home » Useful » Zara is a clothing manufacturer. King in clothes: how the founder of Zara became the richest man in the world. Zara success story