Why Does ZARA Refuse To Be Called Fast Fashion?

As the largest apparel group in the world,

The success of SA (ITX.MC) Indo Textile Group, especially the largest and fortune brand Zara of the group, will be the relish of the industry, media and business schools.

On Wednesday, Bloomberg published an article entitled "Zara 's Recipe for Success: More Data, Fewer Bosses".

The success of "secret".

For the success of Zara and Inditex SA Indo textile, the Group Chairman and chief executive Pablo Isla commented that the success is not due to any magic mode or superstar, but through the ability to respond to the data and turn it into a fashionable product and then pass it on to consumers.

As the largest clothing group in the world, it has been rare. More importantly, in the past two years, Inditex SA India textile is the fastest among its giants.

According to the data, as of the first half of July 31st, the net sales of Inditex SA, India and India group increased by 11.1% to more than 10 billion euros compared with the same period last year. By virtue of the investment in e-commerce and large stores, the profits kept stable and rapid growth.

In the first 7 weeks of the three quarter of August 1st -9 18, group sales increased by 13% at local exchange rates, slower than the 16% growth rate in the first half of the year, but far higher than the 7% growth of Hennes second & Mauritz AB (HMb.ST), the second largest clothing retailer in the world in 8 months.

As of July 31, 2016, Inditex SA Indo Textile Group has 7096 stores worldwide, opened 83 stores in the first half, and passed Zara in September 8th.

After entering Vietnam for the first time, the global retail territory expanded to 92 markets. Online sales in the first half of the year in 11 new areas have also laid out 39 markets.

Visited the Inditex SA Indo textile group at the headquarters of Arteixo in La Coruna, and witnessed how Zara brand buyers and design teams decide on a product. Bloomberg concluded that the trend trend is easy to imitate, but brand culture is not easy to copy.

Unlike rival Gap, H&M and even Primark, Zara has no chief designer, and the level of designers is weak. The 350 designers have the right to speak on the product.

Every day, designers will monitor unmarketable products and best sellers based on real-time sales data.

For unsalable products, it is easy to handle. For the best selling products, the design team will try to put more effort into the supply chain and design, and provide more cost-effective, more frequent similar products.

The company revealed that in May this year, a $102 jacket was sold, and the design team used it as a model to design similar fabrics and printed products, ranging from US $69 to US $-189.

In addition to the ability to respond to data, Inditex SA Indo textile production and supply chain capabilities are also strongest in the industry.

The product delivery cycle of Inditex SA & amp; Indo Textile Group 2/3 is 20% shorter than that of its peers.

However, Pablo Isla, chairman and CEO of Inditex SA Indo Textile Group, refused the label of "fast fashion" on Zara.

He said that analysts paid too much attention to the supply chain of Inditex SA India India Textile Group, which did not reflect the brand's response capability to time and design - "no design, nothing."

Unlike most of the fast fashion brands that will produce more than 80% of the market in Asia, the supply chain of Inditex SA Indo Textile Group is located in Spain, Portugal, Morocco and other European and African countries, and only about 40% in Asia.

Inditex SA, CEO of Indo Textile Group, Pablo Isla

On the occasion of the crisis of Inditex SA printing group, the growth of Pablo Isla was slowed down, while H&M Hennes & Mauritz AB (HM-b.ST) Hayne Maurice group and Uniqlo uniqo parent Co.

Amancio Ortega Gaona, founder of Zara and Inditex SA Indo Textile Group, gave up the management power in 2011, giving the chief executive's position entirely to Pablo Isla, and even the chairmanship of the founder of the general family business, who also retained the basic position of the board of directors.

Pablo Isla, a legal professional, has served Banco Popular Spain Volkswagen bank, the Spanish Ministry of Finance and tobacco companies Altadis group.

Under the leadership of Pablo Isla, Inditex SA India Textile has resumed rapid growth, and many brands have been developing evenly. In the past two years, competitors have been firmly left behind.

And the price of Inditex SA, India and di textile continues to grow, and let the Amancio Ortega, who dare to give up power, become the richest holder in the world in the overall downturn of the apparel industry.

UBS AG (UBSN.VX), UBS analyst Andy Hughes, commented on the success of India's Inditex SA SA printing industry. All competitors in the industry tried to replicate Zara's design capability, but no company matched the gap.