The clothing retailer has more than 2.200 stores in 96 countries and is the flagship of the INDITEX GROUP .
Zara added a net of 51 stores in 2017, plus 38 Zara Home locations. Spain is the biggest market with 563 stores (including Zara Kids and Zara Home), followed by China (223 stores), France (150), Russia (144) and Italy. The U.S. has 87 stores as of January 2017.
FORBES say that Brand Value is $ 13 B .
Zara founder Amancio Ortega is currently the richest man in Europe and the fourth richest in the world. Only Bill Gates, Warren Buffett and Jeff Bezos sit above him.
Incredibly, the $85b man was born into poverty, rather than riches. However, his tough start made him determined to relieve his family from such a life.
The Spanish tycoon dropped out of school at 13 and began working as a store helper in a small textiles shop. It was there where he learned how to make clothes.
23 years later, Ortega started his first business, selling quilted bathrobe, before founding Zara in 1975.
What is the Zara net worth?
The Zara net worth has rocketed in recent years, as rapid expansion and a production line overhaul pulled more people into their retail stores.
As a result, Inditex’s share prices have risen by over 550% in the last decade. The company’s market cap now stands at €112b.
That includes Ortega’s many brands. However, with 65% of revenue coming through Zara stores, the fast fashion brand accounts for approximately €72.7b of Inditex’s value.
Spanish retailer Amancio Ortega is the newest challenger to Bill Gates’ position as the richest person in the world.
Ortega’s fortune has risen 117 percent since the 2012 debut of the Bloomberg index, compared with a 36 percent rise for Gates. Bezos’s net worth has risen 353 percent.
In-house production enables the business to be flexible in the amount, frequency, design and variety of the new styles they produce. It also helps create a rapid product turnover since the manufacturers can easily keep a close watch on the production process and strictly control inventories as well.
The company has the ability to come up with a new style and have finished goods in its stores in four to five weeks and also modify existing items in less than two weeks.
During the first week, if a design does not sell like hot cakes, it will be withdrawn from stores immediately, further orders are called off and a new style will take up the place.
Zara is one typical example of the businesses who truly understand and tailor their customers. The company focuses on responding to actual fashion needs rather than forecasting fashion trends for a distant future: 85% of its production is done during the season, which allows the chain to constantly offer very up-to-date styles.
The entire product development cycle begins with market research.
This combines information from surveys and interviews conducted on university campuses, discos, and other music venues to find out what are all the rage at the moment, from daily feedback from the stores, and from the sales reports.
If a style or design becomes the in thing on the street, Zara gets to work. Store managers usually ask for customer feedback on what shoppers like, what they dislike, and what they’re looking for.
That data is instantly sent back to Zara’s designers.
Designers sketch upon customers comments or even a new style that a customer might be wearing which could be replicated for Zara’s stores. These necessary information can be hardly fought out in all of the traditional daily sales reports.
Zara is unique in the way that it does not spend money on marketing but concentrates on opening new stores instead. Their brave experiments have led them to be considered as one of the most innovative brands in the world.
It has an advantage over many competitors due to its low advertising costs.
Zara’s advertising investment is 0-0.3% while traditional retailers expend 3 – 4%. Zara’s cuts in advertising investments reduce total expenses, which makes the international expansion more economical.
What is more brilliant is, Zara relies mainly on its stores to promote their brand awareness. Yet the company has a department, which exclusively works in acquiring global prime real estate locations for its stores all over the world.
Thanks to thinking out of the box, choosing to handle in-house production and supply chain by themselves, Zara has successfully built a renown international brand without any budget for marketing.
The company has brought a new business model to the apparel manufacturing and industry, which allows them to not only instantly understand customer needs, but also react much faster than their competitors.
Even when you are reading this article, Zara has still kept opening on average 2 stores every single week.
How incredible it is! Bernstein, an analyst at The Wall Street Journal once commented that this Spanish fast-fashion brand has the “best business model in apparel“. Sometimes going beyond the crowds helps achieve more success than it was thought.
Zara spends 6 months in advance to only 15 to 25 percent of a season’s line. And it only creates 50 to 60 percent of its product line by the beginning of the season, which means up to 50 percent of its items are designed and manufactured right in the middle of the season!