Zara Fashion House
Zara is one of the largest international fashion companies. It belongs to Inditex, one of the world’s largest distribution groups.
The customer is at the heart of their unique business model, which includes design, production, distribution and sales through our extensive retail network.
For more information, please visit the Inditex Group website: www.inditex.com
Amancio Ortega opened the first Zara store in 1975 in central A Coruña, Galicia, Spain. Ortega initially named the store Zorba after the classic film Zorba the Greek, but after learning there was a bar with the same name two blocks away, they rearranged the letters molded for the sign to “Zara”. It is believed an extra “a” came from an additional set of letters that had been made for the company. The first store featured low-priced lookalike products of popular, higher-end clothing fashions. Ortega opened additional stores throughout Spain. During the 1980s, Ortega changed the design, manufacturing, and distribution process to reduce lead times and react to new trends in a quicker way, which he called “instant fashions”. The improvements included the use of information technologies and using groups of designers instead of individuals.
In 1985, Amancio Ortega set up a parent company for Zara before going for the global expansion, and in 1988, the company started its international expansion through Porto, Portugal. In 1989, it entered the United States, and then France in 1990. During the 1990s, Zara expanded to Mexico (1992), Greece, Belgium and Sweden (1993). In the early 2000s, Zara opened its first stores in Brazil (2000); Japan and Singapore (2002); Russia and Malaysia (2003), China, Morocco,Estonia, Hungary and Romania (2004);the Philippines, Costa Rica and Indonesia (2005); South Korea (2008); India (2010); Taiwan, South Africa and Australia (2011), Peru (2012).
In September 2010, Zara launched its online boutique. The website began in Spain, the UK, Portugal, Italy, Germany and France. In November that same year, Zara Online extended the service to five more countries: Austria, Ireland, the Netherlands, Belgium and Luxembourg. Online stores began operating in the United States in 2011, Russia and Canada in 2013, Mexico in 2014,South Korea in 2014, Romania in 2016,India in 2017, Brazil in 2019 and Peru in 2020.
Zara introduced the use of RFID technology in its stores in 2014. The RFID chips are located in the security tags which are removed from clothing when it is purchased and can be reused. The chip allows the company to quickly take an inventory by detecting radio signals from the RFID tags. When an item is sold, the stockroom is immediately notified so that the item can be replaced. An item that is not on the shelf can easily be found with the RFID tag.
In 2015, Zara was ranked 30 on Interbrand’s list of best global brands.
In 2019, the Global Fashion Business Journal stated that while the textile commerce of the world had gone down by 2.38%, Zara had risen 2.17%.
In 2019, Chief Executive Persson said the brand is waiting for more acceptable global rent levels to continue their expansion. In Europe, the brand will be cutting the number of locations the next year.