press dossier - inditex.com

PRESS DOSSIER

PRESSDOSSIER

Inditex, one of the world’s largest fashion retailers, has more

than 7,000 stores in more than 90 markets worldwide and

already operates in 29 online markets. It owns other concepts:

Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho,

Zara Home and Uterqüe.

The Group also encompasses different companies engaged

in a range of activities in the textile and fashion design,

manufacturing and distribution businesses.

Its unique management model, based on innovation and

flexibility, and its vision of fashion (creativity and quality

design, together with a rapid response to market demands)

have enabled its rapid international expansion and excellent

performance at its commercial concepts, boths in its physical

and online stores.

(1) Zara. Hong Kong

(2) Zara. Tokyo. Ginza

(3) Massimo Dutti. Casablanca. Boulevard Al Massira Al Khadra

(4) Zara Home. Barcelona. Paseo de Gracia

INDITEX

The first Zara store opened in 1975 in A Coruña (northwest

Spain), where the Group’s business began and where it is still

headquartered. Today Inditex Group stores can be found in

hundreds of cities on all five continents, always on the busiest

shopping streets.

Inditex has been listed on the Spanish Stock Exchange since

23 May 2001, following an IPO which generated great

interest among investors worldwide, with shares some 26

times oversubscribed. Inditex shares are also quoted on

leading Spanish and international stock indexes.

Inditex has grown dramatically in recent years, achieving

consolidated turnover of €20.9 billion euros in 2015 and

net profit of €2.9 billion euros. As of 31 January 2016, the

Group had 152,0854 employees worldwide.

Zara. New York. Soho The Inditex financial year runs from 1 February to

31 January of the following year

* in millions of euros.

Fiscal year 2015 2014 15/14

Turnover*

Net Profit*

Number of stores

Markets

Employees

20,900

2,875

7,013

88

152,854

18,117

2,501

6,683

88

137,054

15.4%

15%

343

8,741

( 2 ) ( 3 )

( 1 )

( 4 )

The Business ModelThe Inditex business model is characterised by a high degree of

vertical integration. It is involved in all stages of the fashion process:

design, manufacture, logistics and distribution to its own managed

both physical and online stores. It has a flexible structure and a

strong customer-centric focus across all of its business areas.

The key element for the corporation is the physical and online

store, a carefully designed space designed to make customers

comfortable as they experience our collections. It is also where we

obtain useful information for adapting our collections to customers’

tastes.

In this fully integrated model is key the ability to adapt our

merchandise to customer tastes in the shortest time possible. For

Inditex, speed is the No. 1 priority, above and beyond production

costs. Vertical integration enables us to shorten turnaround times

and achieve greater flexibility, keeping merchandise stock and

fashion risk at a minimum.

Zara. London. Park House

Design The success of Inditex’s collections lies in our ability to spot and adapt

to rapidly changing trends in fashion, designing new items constantly to

satisfy customers’ cravings. Inditex uses its flexible business model to adapt

to changes occurring within each season, reacting swiftly to deliver new

product to stores in the shortest time possible.

The merchandise for each season -over 50,000 items last year- are

developed in their entirety by creative teams at each concept. More than

600 designers -300 of them at Zara alone- draw their main inspiration from

both prevailing trends in the fashion industry and customers themselves,

through feedback received from stores.

ManufacturingInditex makes its production gradually and precisely, searching some

specific units, without production perks and always focused on sustainability.

Part of the production is made at the Group´s factories, wich are focused on

the most fashion garments.

Zara. New York. Soho

Zara. Madrid. Gran Via

Logistics All merchandise, irrespective of origin, is delivered to each concept’s

distribution hubs, from whence it is distributed simultaneously to all

stores worldwide on a very frequent and continuous basis. Deliveries

arrive in stores twice weekly and always contain new styles, to ensure

that store collections are constantly refreshed and updated.

In the same way, they distribute to the 10 stock rooms the Company

has dedicated to the online sales in different places around the world.

The logistics system, based on software designed by the company’s

in-house teams, guarantees that the time between when orders are

received at distribution centres and when merchandise is delivered to

stores is on average only 24 hours for European stores and no more

than 48 hours for American and Asian stores.

Retail at company stores

The store both physical and online is not the end of the process, it is

the beginning, representing a vehicle for gathering market information,

sending feedback to design teams and reporting on trends requested

by customers.

Both interior and exterior physical store design are given the highest

priority. Shop windows play a major role, acting as an advertising

vehicle for our concepts in the world’s major shopping streets. On the

other hand, Internet has became a new global window for Inditex. As

for interior design, the intent is to create a well-lit space where the

clothes take pride of place, eliminating all barriers between garments

and customers.

The main development strategy for Inditex concepts entails opening stores

managed by companies in which Inditex is the sole or majority shareholder.

In smaller or culturally different markets, the Group has expanded its

store network through franchise agreements with leading local retail

companies. At the end of 2015, it had 908 franchised stores out of a

total of 7,013 stores.

The most noteworthy feature of the Inditex franchise model from a

business point of view is the seamless integration of the franchised

stores’ management in core areas such as window dressing, product,

training, logistics, etc. This ensures standardised store management

practices and a global image from the viewpoint of customers worldwide.

Arteixo

(A Coruña)

Narón

(A Coruña)

Sallent

(Barcelona)

Tordera

(Barcelona)

Palafolls

(Barcelona)

Zaragoza

Elche

(Alicante)Meco

(Madrid)

León

Cabanillas

(Guadalajara)

Pull&Bear. Marineda City. A Coruña

Corporate Social Responsibility

Inditex views social and environmental variables as a strategic vector

for its management system. Sustainable growth, which customers and

society in general increasingly demand, is a value we at the company

share and apply to our supplier relationships.

This sustainability strategy is managed in the social responsibility sphere

through the Internal Code of Conduct and the Code of Conduct for

External Manufacturers and Suppliers, and in the environmental field it is

defined by the Environmental Strategic Plan. All of Inditex’s actions in the

field of corporate responsibility are audited by external agents in order to

provide greater objectivity.

Transparency is Inditex’s core management priority and facilitates

sincere, open relationships with all of our stakeholder groups. Inditex's

efforts in this area have received international recognition.

All of Inditex’s activities are conducted ethically and responsibly,

grouped around Right to Wear philosophy, including actions in

different areas such as product health and safety, control of the supply

chain and the connection between our actions and the community.

All of Inditex’s products are respectful of the environment and health

and safety. By implementing the strictest international standards,

Inditex assures customers that its products meet stringent health,

safety and ethical standards.

Massimo Dutti. Serrano. Madrid

Inditex believes that it is essential to maintain ethical and stable relationships

with its network of external suppliers worldwide.

To this end, the company enforces its social commitment on all suppliers

through the Code of Conduct for External Manufacturers and Suppliers.

Suppliers must comply with the code before embarking on a business

relationship with Inditex.

To ensure compliance with the code, more than 3,000 independent

external and internal agents regularly audit suppliers. Inditex follows up

with improvement programmes for suppliers and social projects aimed at

promoting education and a better quality of life in the regions in which it

does business.

Oysho. Lisboa

Uterqüe. Plaza de Lugo. A Coruña

In order to segment its approach to different market niches, Inditex operates

eight fashion retail chains. They all share the same commercial and

managerial focus: to be leaders by leveraging a flexible business model and

to build a truly international reach. However, each concept has great leeway

for managing its business; management teams are independent in retail

decision-making and in their ability to administer their resources.

Nonetheless, the fact that they belong to a Group operating in more than

90 markets provides a great number of organisational and knowledge-

management synergies. Each management team can thus concentrate on

developing its business in the knowledge that certain support elements are

covered by the Group’s accumulated experience.

Inditex, as the parent company, is responsible for central corporate services,

i.e. services shared by the eight concepts which facilitate international growth;

administration, the use of logistics technology, general HR policy, legal issues,

and financial capacity, among others.

SalesFormats

ZARA (www.zara.com) opened its first store in the coastal town

of A Coruña in the northwest of Spain in 1975. Zara has over

2,100 stores strategically located in leading cities in more than 88

countries and operates in 27 online markets. Zara’s designers and

customers are inextricably linked. Specialist teams receive constant

feedback on the decisions its customers are making at every Zara

store. This feedback inspires Zara’s creative team which is made up

of over 200 professionals.

PULL&BEAR (www.pullandbear.com) was created in 1991 with one

purpose – to meet the needs of young fashion lovers. Pull&Bear’s collections

have a laid back and fun feel to them.

But Pull&Bear is more than just clothing and accessories, it also creates

spaces in which to communicate its product message. Pull&Bear’s stores

blend creative installations with recycled objects to create a quirky and

comfortable space where its young customers enjoy spending time.

Pull&Bear has over 900 stores on the busiest shopping streets and in the

most important shopping centres across 68 countries and 28 online markets.

Zara is always striving to meet the needs of its customers at the same

time as helping to inform their ideas, trends and tastes. The idea is

to share responsible passion for fashion across a broad spectrum of

people, cultures and ages.

Number of storesTurnover*


(*) in million of euros (*) in million of euros

2,16213,628

9361,417

2015 2015

MASSIMO DUTTI (www.massimodutti.com) was incorporated to the

Group in 1991 and epitomises elegant and universal style that connects

with the independent, cosmopolitan men and women of today. Its

collections span from the most sophisticated of looks to more casual

styles.

Massimo Dutti always ensures it uses high quality fabrics that are also

practical and comfortable. Massimo Dutti is present in 69 markets with

a network of more than 700 stores, which are found only in the best

shopping locations and are designed with the customer’s ease and

comfort in mind and operates in 25 online markets.

BERSHKA (www.bershka.com) was set up in 1998 as an innovative

fashion retail concept which targets the youngest hipsters in the market.

There are more than 1,000 Bershka stores in 69 markets and operates in

18 onine markets.

Bershka’s urban hip style characterises its spacious stores to create a

meeting point where customers can find a blend of street fashion, music and

art. Shopping at Bershka means immersion in the very latest fashion trends.




7401,498

1,0441,875

2015 2015

STRADIVARIUS (www.e-stradivarius.com) takes a youthful and

feminine approach to fashion. It introduces new trends designs and

fabrics to its young customers.

Its elegant spacious stores offer a broad range of fashion choices for

casual young women with lots of imagination. Stradivarius’s 950 stores

are present in 60 different countries and operates in 20 online markets.

OYSHO (www.oysho.com) has different product lines such as lingerie,

gymwear , sleepwear , beachwear, accessories and footwear. Oysho’s

collections are carefully selected to offer design and fashion, combined

with garment quality and comfort. Oysho’s customers are independent,

self-confident women who appreciate quality and love dressing in the

latest fashion trends.

Oysho was founded in 2001 and nowadays is present in 44 countries

with over 600 stores worldwide. Its online store www.oysho.com is

available in 32 markets.




9501,289

607452

2015 2015

ZARA HOME (www.zarahome.com) was created in 2003 and specialises

in the latest designs for the home. Its textile ranges, which include bedding

and bed linen, tableware and bath linen, are complemented by dishware,

cutlery, glassware and home decoration objects and accessories. Zara

home is constantly refreshing its product range throughout the year.

Created in 2003, Zara Home has more than 500 stores in 53 markets

and operates in 25 online markets.

UTERQÜE (www.uterque.es) is a sophisticated fashion accessory brand

which boasts excellent quality at attractive prices. Its collections also include

clothing and leather garments and are all designed exclusively by Uterqüe’s

creative team.

Uterqüe was launched in 2008 and has gained strong customer loyalty in

the markets in which it has an established presence. Its 72 stores across

12 markets are elegant and refined in appearance and operates in 13

online markets.




502666

7275

2015 2015

The stores are our venue for meeting customers and are the

Inditex Group's best advertising vehicle. Located in major

cities worldwide, they bring our fashions to the High Street

and represent the true hallmark of the brand, always original

and unique.

Inditex applies the principles of its business philosophy

to store architecture: design, constant innovation, rapid

response time and tailored to the local needs of customers

and the community.

Flagshipstores,a Group trademark

(1)

(2) (3)

Store creation is seen as a constant and open process,

which is key for our business and results from cross-

departmental cooperation. While sharing the same

principles, each store is unique and adapted for different

cultures and environments. Our architectural projects

sometimes involve renovation and preservation of historic

buildings, with detailed renovation projects for unique sites.

(4)

(1) Zara. Fifth Avenue. New York. (2) Zara Home. Milano. (3) Pull&Bear. Shanghai. (4) Zara. Brussels

Zara. Salamanca. Calle Toro

(6) Zara. Tokyo. Ginza. (7) Zara. New York. Fifht Avenue

Zara. Shanghai. Nanjing Road

(9) Zara. Milan. Corso Vittorio Emanuele II. (10) Zara. Madrid. Serrano

InternationalExpansionThe first Zara store opened in A Coruña (northwest Spain) in 1975. Over

the following decade Zara continued to open stores throughout Spain.

It debuted in Porto (Portugal) in 1988, and in the next few years,

the first stores opened outside of the Iberian Peninsula, in New

York (1989) and Paris (1990).This began a process culminating in

our current presence in 88 markets worldwide. Its success, among

people, cultures and generations which, despite their differences,

all share a special fondness for fashion, lies in the conviction that

national frontiers are no impediment to sharing a fashion culture.

The usual way of entering a new market is to start with a small number of

stores, which test the waters in each country before attaining a critical mass

of customers. The new concepts added to the Group since 1991 share

the same international approach as Zara -in fact, it is of their fundamental

characteristics. As a result, all brands have expanded simultaneously in

Spain and abroad. In most cases, Zara was the first concept to disembark

in new countries, gaining experience that facilitates the subsequent

rollout of the other concepts. This accumulated experience has also

enabled the accelerated international expansion of the newer concepts.

Sales by geographical area/2015

Europe ex-Spain

Spain

Asia

The Americas

1975 Spain

1988 Portugal

1989 United States

1990 France

1992 Mexico

1993 Greece

1994 Belgium and Sweden

1995 Malta

1996 Cyprus

1997 Norway and Israel

1998 Argentina, United Kingdom, Venezuela, Turkey,

Lebanon, U.A.E, Kuwait and Japan

1999 The Netherlands, Germany, Poland, Saudi

Arabia, Bahrain, Canada, Brazil, Chile and Uruguay

2000 Andorra, Qatar, Austria and Denmark

2001 Puerto Rico, Jordan, Ireland, Iceland,

Luxembourg, Czech Republic and Italy

2002 El Salvador, Finland, Dominican Republic,

Singapore and Switzerland

2003 Russia, Malaysia, Slovenia and Slovakia

2004 China, Morocco, Estonia, Latvia, Lithuania,

Hungary, Romania and Panama

2005 Philippines, Thailand, Monaco, Costa Rica and

Indonesia

2006 Serbia and Tunisia

2007 Guatemala, Croatia, Colombia and Oman

2008 South Korea, Ukraine, Egypt, Honduras and

Montenegro

2009 Syria

2010 Bulgaria, Kazakhstan, India

2011 Australia, Taiwan, Azerbaijan, South Africa and

Peru.

2012 Armenia, Bosnia-Herzegovina, Ecuador, Georgia

and the former Yugoslav Republic of Macedonia

2013 Argelia

2014 Albania

19%

21%

14%

46%

Zara. Kracow

Pablo IslaAmancio Ortega

Pablo Isla Álvarez de Tejera, Chairman and CEO of Inditex since 2011. He

has been the Deputy Chairman and CEO since 2005.

He is a graduate in Law from the Complutense University of Madrid and

Abogado del Estado (State lawyer).

From 1992 to 1996 he was Director of Legal Services for Banco Popular.

He went on to be appointed General Director of State Assests at the Ministry

of Economy and Finances.

From July 2000 to 2005 he was Chairman of Altadis group.

Likewise, he sits on the Board of Directors of Telefónica, S.A.

He was re-elected to the Board of Directors by the AGM held on 13 July

2010 and 14 July 2015.

He holds 1,805,320 shares in the company.

Amancio Ortega Gaona, Founder of Inditex, was born in 1936 in

Busdongo de Arbas, León. He moved to A Coruña with his family at an

early age, where he began his business activities in the textile sector. After

working with two well-known establishments in A Coruña, he launched

his own business venture.

His first project culminated in the creation, in 1963, of Confecciones

GOA, a garment manufacturing company. Following an initial stage of

growth in manufacturing, the first Zara shop opened on an A Coruña city

centre street in 1975. In 1985, Amancio Ortega added Zara to a new

holding company, Industria de Diseño Textil, INDITEX S.A.

The Amancio Ortega Foundation was established in 2001 as a private

non-profit organisation dedicated to sponsoring a variety of activities in

the fields of culture, education, research and science.

Zara Home. Osaka

1963 Amancio Ortega Gaona, chairman and founder of Inditex, launches

his business as a clothing manufacturer. The business grows steadily

over the next decade until it owns a number of textile factories, which sell

their merchandise in several European countries.

1975 Zara is founded with the opening of the first store on A Coruña

(Spain) city centre street.

1976 The Zara fashion concept is well received by the public, allowing it

to expand its network of stores to major Spanish cities.

1985 Inditex founded as the head of the corporate Group.

1986 Group manufacturing companies sell all of their output to Zara

and lay the groundwork for a logistics system capable of addressing

expected rapid growth.

1988 The first Zara store outside Spain opens in December 1988 in

Porto (Portugal).

1989-1990 The Group expands to the United States and France

with the opening of stores in New York (1989) and Paris (1990).

1991 Launch of Pull&Bear. The Group acquires 65% of Massimo

Dutti Group.

1995 Inditex buys 100% of Massimo Dutti’s share capital.

1998 Bershka launches, targeting a younger female market.

1999 The acquisition of Stradivarius makes it the Group’s fifth

concept.

2000 Inditex moves its headquarters into a new building in Arteixo

(A Coruña, Spain).

2001 Launch of the Oysho lingerie brand. On 23 May 2001 Inditex

goes public and is listed on the stock market.

2003 The first Zara Home stores open, the Group’s seventh brand.

Inditex inaugurates its second Zara distribution centre, Plataforma

Europa, in Zaragoza (Spain), supplementing the Arteixo logistics hub

(A Coruña, Spain).

2004 The Inditex Group opens store number 2,000 in Hong Kong,

bringing its presence to 50 countries in Europe, the Americas, Asia

and Africa.

2006 Inditex opens store number 3,000 in Valencia (Spain), a Zara

Home store in one of the city’s busiest shopping areas.

2007 The Group adds two news logistics platforms in Onzonilla

(León) and Meco (Madrid), both in Spain. Inditex has eight logistics

platforms in Spain.

2008 Launch of fashion accesories concept Uterqüe, the company’s

eighth chain. Inditex opens the store number 4,000, this time in

Tokyo.

2009 Stradivarius, Bershka and Pull&Bear open their first stores in

China. Zara reaches 50 stores in Japan.

2010 The Group reached the 5,000-store mark with the launch of a

cutting-edge, eco-efficient Zara store in the heart of downtown Rome

(Italy). In September, Zara began selling its products online and by

year’s end the online store was available in 16 European countries.

2011 All the Inditex concepts have online stores.

For more information.

Communication and Institutional Relations Corporate

Division

INDITEX

[email protected]

+34 981 185 400

Inditex landmarks

2012 Zara renewal its store´s image. Inditex opens store number 6,000.

2013 Zara opens its first store in Algeria. The Group continues to

expand its brands online in new markets such as Canada and Russia.

2014 Zara opens its first store in Albania. The Group continues to

expand its brands online in new markets such as Mexico and South

Korea.

2015 Inditex is over 7,000 stores, with the opening of Zara in Hawai,

and reaches 29 online markets -with the incorporation of Hong Kong,

Macao and Taiwan- which drive a fully integrated and sustainable

model. The company added 330 stores. Financial year-end 2015

marked the end of phase one of the extraordinary profit-sharing plan

announced by the Group, that payed out €37.4 million to the 78,000

employees of stores, factories, logistics, brands and subsidiaries.

press dossier - inditex.com

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