Inditex, owner of the well-known European fashion retail brand Zara earned a place in the 100 billion club while its co-founder Amancio Ortega becomes the second wealthiest man in the world. What's the secret behind Zara?
Zara puts emphasis on maintaining a high-quality clothing line with a steady stream of the latest fashion trends and designs. Its strategy ushered Inditex, its parent company, to surpass a 100 million euro valuation mark on Wednesday. The company is now considered as Spain's most valuable company and since last year, Inditex shares are up 36%. Its growth rate earned Inditex the ticket to the 100 billion club.
Inditex is now in league with the likes of Apple Inc, Google, Microsoft and JP Morgan & Chase Co. While Inditex, the owner of Zara, Massimo Dutti, and Berksha enjoys its new place in the world market, its founder Amancio Ortega ranks as second richest man in the world. His $72.3 billion net worth is next to Bill Gates's $85.3 billion.
After 30 years of perfecting the art of retail fashion,Amancio Ortega becomes the second richest man in the world. Ortega's clothing empire is led by 66% sales from its flagship Zara. Zara is a prominent clothing line famed for its designs and quality.
However, a closer look at its business model reveals that its focus is more than just fashion. Its clothing line is refreshed as fast as every three weeks based on runway designs with limited stocks that call for urgent attention from avid shoppers. Zara's clothing line retains classic pieces and styles that its customers look for.
Based on Zara's success, a business thrives indefinitely through a combination of dedication to the craft and its market. Despite the harsh economy, the company's 36% growth is a testament that great products and business practices can deflect the odds.
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