1A Service

INDITEX INSIGHT DECKGrowth markets and strategic initiatives

April 2013ISABEL CAVILL

Senior Retail Analyst

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1. Introduction

2. Major Strategic Initiatives

3. Key Markets

4. Conclusions & Implications

5. Further Reading

ContentsContents

All data correct at time of publishing.

1. Introduction

Inditex

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Corporate Structure

1. Introduction1. Introduction

E-commerceITX Fashions Ltd 100% (Ireland)

Manufacturing

InternalChoolet SA, Confecciones Fios,

Gonfecciones Goa, Denlio, Hampston, Jema Creacione

Infantiles, Samlor, Stear, Trisko, Zintura,

Glencare, Indipunt (all based in La Coruňa)

ExternalInditex works with around

1,500 external suppliers around the world.

Industria de Diseño Textil, S.A. (Inditex) and its subsidiaries form the Inditex Group. Inditex manages these companies on a centralised basis by applying policies and strategies at group level. The head office in La Coruňa (Spain) sets Inditex strategy, co-ordinates the brands and provides centralised IT, HR, Logistics, design and real estate functions.

Zara Home

Uterqüe

Logistics (Zara)

Zara Logistica SA (La Coruňa, Spain) - 50% of Zara women

and menswear, serving Iberia, Americas and Middle East

Plataforma Europa SA (Zaragoza, Spain) - 50% of Zara women and menswear, serving

non-Iberian Europe, Russia and Asia

Plataforma Logistica Leon SA (Leon, Spain) Zara Home and

Zara distribution

Plataforma Logistica Meco SA (Madrid, Spain) manages Zara

childrenswear

Textile Sourcing

Comditel S.A (La Coruňa,)

Tempe S.A. (Alicante)

Nikole S.A (La Coruňa)

Zara Asia Ltd (Hong Kong)

ITX Trading S.A (Freiburg, CH)

Uterqüe S.A (La Coruňa)

Lefties Espaňa (La Coruňa,)

Tempe, Inditex’s footwear company is only 50% consolidated at corporate level, but is solely responsible for sourcing, manufacturing and distributing footwear for the group.

Brand Divisions

Zara

Oysho

Stradivarius

Pull & Bear

Bershka

Massimo Dutti

Zara Home

Uterqüe

Each Inditex brand is managed independently with its own logistics and production facilities.

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Traditional modelThe Inditex model of production is a reversal of traditional clothing cycles as it is a ‘pull’ type production process rather than ‘push’.

1. Introduction1. Introduction

Design

Sourcing

Store

Customer

Inditex model

Zara responds quickly to demand via a pull model which responds to real-time sales information from its stores.

Small batch quantities allow the retailer to see what items are working with shoppers.

A central distribution centre in Arteixo, with strong IT systems developed by Inditex and third parties, back up its supply chain model. All items are shipped back to Spain where they are then shipped out to stores around the world.

Sourcing

Design

Store

Customer