Fast Fashion Makes The World'S Richest Man.

Fast fashion changes quickly and attracts people's attention at any time. Fast fashion Zara boss returns to the richest man in the world. Let's look at tradition together. Clothing industry Big guy's miracle.

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According to the latest list of global rich list released by Forbes in October 23rd, Amancio Ortega, the second time Inditex group boss, has surpassed Bill Gate for the first time to become the richest man in the new world.

This is also the first counterattack of the traditional clothing industry in the long PK road with technology giants.

However, Amancio Ortega did not stay long in the throne of the richest man, and Gates regained his throne.

According to the real-time rich list released by Forbes magazine, Bill Gate returned to the top of the world's richest list in the afternoon of October 23rd. The wealth of Gates has reached $79 billion 400 million, which is more than Ortega's $78 billion 700 million. Though time is short, Amancio Ortega can still be a miracle by virtue of traditional manufacturing.

Inditex is a famous Spanish fashion. brand ZARA's parent company, the world's largest fashion company, has been expanding its market share for many years and its share price has risen by more than 50% in the past year. Amancio Ortega's net assets rose as a result of the surge in Inditex shares of its holding retail apparel company. The real time tracking tool of Forbes magazine shows that the net fortune of the ZARA founder has reached 79 billion 800 million dollars, surpassing Gates.

In the past 10 years, the market value of Inditex has increased by about 570%, and at the same time, it has profoundly changed people's way of life. As the founder of fast fashion, rapid product updates attract people to enter ZARA stores again and again. In Spain, for example, the average customer turnover rate in ordinary fashion stores is 3 times a year, while in ZARA, this frequency is 17 times a year.

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Inditex holds many brands such as ZARA and Pull&Bear, with sales volume of US $20 billion, which is eye-catching in the retail industry. The group is known for its quick and efficient action. It takes only a few days to design, produce, transport and sell a fashion. Thanks to this, Inditex can respond quickly to customer needs.

In 1975, Ortega and his wife co founded the ZARA company. Today, he also owns the ownership of ZARA 59%. After his daughter Sandra Ortega Mela inherited his mother's legacy, he ranked second in the Spanish rich list with $7 billion 300 million.

Ortega can get tens of millions of dollars of dividends from Inditex every year and invest his income in the real estate industry.

Despite the sluggish luxury sector and the loss of high-end store businesses, ZARA seems to be unaffected. According to the financial report, the profit of Inditex group jumped 26% in the first half of the year, and the total profit in the half year was 1 billion 290 million US dollars.

Statistics show that the whole fast fashion industry will benefit from China's slowing economy. "Usually the contraction of the market will affect the intermediary business, but the acceleration and deceleration of China's economy seems to be conducive to the development of fast fashion." Some analysts say so.

From poverty to riches

In March 28, 1936, Ortega was born in a poor Galicia area in northwestern Spain. Ortega's father was a railroad worker and his mother was a real housewife.

When Ortega was 12 years old, he dropped out of school and worked as a miscellaneous worker in a clothing store called Gala. After several years, Ortega went to a more expensive clothing company as a salesperson. Smart and smart Ortega quickly rose to the fore and was promoted to head of department.

After being the manager of a clothing store, Ortega had a clear plan for her future road, and when the boss asked Ortega to sell a beautiful and elegant lady's cotton pajamas, though this kind of Nightgown was very popular with female consumers, its price was very expensive.

Ortega came up with a whim, and this idea later became the core business idea of INDITEX company, which used cheap materials to imitate popular fashions and sell them at a lower price.

He bought a material that was quite cheap but cheap in Barcelona. He designed the sample and made a similar Nightgown on his living room table. The price could be reduced by half. With the help of Ortega's brother and sister-in-law, he began to make this cheap and fashionable fashionable nightgown and sent it to the local store for sale, which is indeed more than Ortega's expectation.

When Ortega earned the first barrel of gold. With his more than 10 years of work experience, Oman and Theo realized that a gold mine was hidden behind the design and manufacture of a piece of clothing and the store shelves.

On the other hand, they contacted their local textile producers and accumulated their own customers, plus the bank's loan of 2500 Pisa. At that time, 27 year old Oman, Theo and his brother began to set up their own home and opened a small workshop for producing women's household clothes, called "High Asia garment".

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　　 Zara What is fastidious is the word "fast".

"Fast" is an important killer of Ortega's management strategy. It takes about 2 to 3 weeks for a Zara fashion from design to production and logistics to enter the sales link, which is more than 10 times faster than that of its competitors.

When the output of the new product reaches 50% to 60% of the scheduled product, it will be sent to the store. If it fails to perform well in the first week after the shelves, it will be withdrawn immediately and will no longer be added to production.

If the sales are good, then we will complete the scheduled production in the next few weeks. But even the hot money will not stay in the shop for more than 4 weeks, which makes the customers dare not hesitate too much when they look at some clothes, because they may not see it in a few days.

In the next three weeks, every Zara store will have a new style of clothing.

Oil pollution model marketing

Zara is different from many fashion brands. It hardly advertises. In Oman and Theo's view, the store is the most important market tool for Zara, which is the best advertisement.

Every week, Zara has to open a new store. Up to now, Zara has opened about 5000 stores in more than 70 countries and regions around the world. Shop in the most prosperous section of the central area of the big city, then extend the tentacles to the smaller cities around the country, and let the brand influence radiate across the country without advertising.

The marketing strategy of this oil pollution mode also makes Zara considered by Harvard Business School to be the most worthy brand in Europe. Walton business school regards it as a classic research case in the future manufacturing industry.

For many people, Amancio Ortega is a successful businessman, but they do not know how much effort Oman Theo Ortega has made behind him, which is also unique to Oman Theo Ortega. business Eyes are inseparable.