Spain'S Fast Fashion Giant Inditex Expects 10% Of Its Products To Be Recycled Or Organic.

Zara parent company, Spain

Inditex expects 10% of the products to use recycled or organic fabrics to cultivate consumers' habit of wearing environmentally friendly recycled clothing.

Recently, Inditex announced the joint development of Massachusetts Institute of Technology's (MIT) research and development of new high quality recycled fabrics as an important step for the company to implement the environmental strategy in 2020.

The research and development project

To provide funding, MIT will organize a competition for R & D teams in various universities in Spain. The winning team won the funding and was supported by MIT experts to develop this new environmental protection fabric.

Inditex said the company hopes to build experts in this field and develop new recycling technologies and fabrics.

With regard to the scheme to recycle old clothes, Zara has already reached an agreement with Caritas, a charity, to collect the old clothes purchased by customers from the public storage boxes on the next line.

Caritas annual recovery of 25 thousand tons of old clothes, of which 180 tons from Inditex.

Some of them are sold to the poor consumers in the form of second-hand goods, and another part of Inditex is recycled to make new fabrics.

Inditex has also worked with Caritas to set up 2000 boxes for recycling old clothes in public areas. The charity that they cooperate with includes Oxfam and the Red Cross.

In addition to using recycled fabrics, Inditex also hopes to use more sustainable raw materials, including:

Organic cotton grown without pesticides and fertilizers.

Artificial cellulose fiber fabric made from recycled cotton and wood pulp (Lenzing).

Hilaturas Ferre regenerated yarn made from recycled cotton.

The plan to use recycled fabrics is part of the "circular economy" program. The ultimate goal is to reduce the environmental impact of all processes of clothing production to store operations: by 2020, 100% stores had achieved environmental protection operation and reduced carbon emissions by 55%.

Inditex group

Inditex group is a leading global apparel sales company. Its headquarters office is located in La Coruna, Spain, where more than 500 professionals work for every company under the group, engaging in design, production and sales.

The group was first established in 1963, mainly for garment wholesalers to manufacture women's pajamas and women's underwear.

In 1975, when a German customer cancelled a large order, the company was forced to open its first retail store in La Coruna.

The purpose of setting up a retail store is to sell wholesalers' stock after cancelling orders, but this experience has made Inditex aware of the importance of maintaining good relations between manufacturers and retailers.

Since then, the company has started a new development course.

As a senior executive executive emphasized in 2001, "for Inditex, the key is to have both hands hard, not only to grasp factory production, but also to grasp market sales and grasp the feeling of customers".

From 6 chain stores in 1979 to 1980s, Inditex has established chain stores in all major cities in Spain.

In 1988, the first overseas chain store was set up in Portugal, and then a chain store was set up in New York and Paris, France in 1989.

The large-scale international operation began in 1990s. The Inditex group entered 29 countries in Europe, the Americas and Asia (especially from 1998 to 2001, and entered 21 of 29 countries).

Along with international operations, the group began to run multi brand operations (such as Pull, Bear, Massimo Dutti, Bershka, Stradivarius) to meet the needs of different market segments.

Each brand operates independently, with its own chain stores, ordering systems, warehouses and pportation systems, different distributors and organizational structures.

But each brand operates around the "affordable fashion", and implements the same management mode and unified supply chain control to maximize the response speed to the market.

However, people really began to pay attention to ZARA and Inditex. In 2001, Inditex offered 25% of its shares to the public, and the subscription amount on the day of issue was more than 26 times that of the issue. This alone raised 2 billion 300 million euros for the company.

At that time, ZARA's sales accounted for 80% of the company's total sales.

Inditex shares are so popular that they can be so popular with investors. These are mainly due to ZARA, which has a better profitability than its competitors, and a sustainable profit management mode.

After raising funds through the international market, Inditex started a larger expansion plan.

After the first public offering in 2001, there was no cash left in the company.

Inditex group adopts a business mode of negative working capital, in which the cash income of the company is greater than its cash expenditure.

From the development of Inditex group's sales scale, we can see the success of this business mode. Sales rose from 1991 Euro 367 million to 3 billion 250 million euros in 2001, and net profit also increased from 3 billion 100 million euros in 1991 to 345 million euros.

In 2001, many enterprises in the industry were faced with the predicament of declining sales. However, sales of Inditex group increased by 27% compared with the previous year, and profits increased by 32%.

By 2002, Inditex group had opened 1284 chain stores in 39 countries.

In May 21, 2004, Inditex opened a store in Hongkong, the 2000th branch it opened in the world.

As of 2006, Inditex has become a group company with a market value of more than 8 billion dollars, ranking first in Spain and third in the world. It has more than 2500 branches in more than 60 countries.

Its brands include ZARA, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, ZARA Home, and Oysho and so on, among which is the most famous and the flagship brand of the group.

Act as

Its flagship brand, ZARA, was founded in 1975. It is both a clothing brand and a retail brand specializing in ZARA brand clothing chain stores.

At present, ZARA has more than 1000 branches in 60 countries around the world, and is growing at a rate of around 70 per year.

Although the ZARA brand chain accounts for only 1/3 of the total number of Inditex companies, its sales account for about 75% of the company's total sales.

For more information, please pay attention to the world clothing shoe and hat net information report.