COMPANY PROFILE -Inditex
Business Sector :Textile
Operating Geography :Spain, Global
About Inditex :
Inditex is a Spanish clothing company founded by Amancio Ortega in 1963. The company manufactures and sells clothing for men and women. Its activity includes retail distribution of clothing, footwear, accessories and household textile products through various commercial format stores targeted at different sectors of the market. The company sells in 202 markets through its online platform or physical stores. The company is involved in all the stages of the fashion process, starting from design, manufacturing and logistics, to sales. The current CEO of Inditex is Carlos Crespo and the company is headquartered in A Coruña, Spain. The company produces and distributes fashion clothing through its eight brands that include Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Inditex's shares have been listed on the Madrid stock exchange since 2001. Inditex is a market leader of the fashion industry.
Inditex Revenue :
€ 28,286 million-FY ended 31st January 2020 (YoY growth 8%)
€ 26,145 million–FY ended 31st January 2019
Competitive Analysis of Inditex
The SWOT analysis of Inditex is presented below:
Strengths | Weaknesses |
1. Global footprint of Inditex in the fashion industry
2. Diverse range of product portfolio
3. Focus on improvement of shopping experience of customers
4. Stringent testing and analysis of product quality
5. Use of RFID technology for inventory management
6. Efficient supply chain as a competitive advantage
| 1. Multiple lawsuits against Zara for infringement of designs
2. Negative publicity of Inditex due to racial discrimination complaints
|
Opportunities | Threats |
1. Greater focus on Online stores
2. Scope of Augmented Reality in retail
| 1. Financial risk due to currency exchange fluctuations
2. Business disruptions due to coronavirus outbreak
|
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Detailed SWOT Analysis of Inditex
Strength
1. Global footprint of Inditex in the fashion industry: Inditex is the parent for eight well-known brands including Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. It has been the biggest fashion retailer of the world in terms of revenue. With around 7,469 stores in 96 markets, 1,985 suppliers and 8,155 factories worldwide in 2019, Inditex is one of the world’s largest retailers in the fashion industry. The company has a strong workforce of 176,000 employees from 172 different nationalities and highly diverse cultures, religions, ethnicities and tastes. Amancio Ortega, the owner of Inditex, was the third richest man in the world in 2017 but has now slipped to number eleven in 2020 because of heavy losses suffered due to the COVID-19 pandemic.
2. Diverse range of product portfolio: Each one of Inditex’s brands targets different age groups and offers products starting from apparel, footwear, sportswear, small appliances and kitchenware, to high-quality accessories and leatherwear. While Pull&Bear is primarily intended for casualwear of young customers, Oysho specialises in lingerie, beachwear, home wear and Sportswear. The company Zara Gap, that sells Inditex’s footwear through the eight brands has become an example of how to replenish stores almost instantly and beat competitors to trends. Zara, the most famous and profitable brand of Inditex offers fashionable clothing for kids, teenagers and adults along with footwear and handbags. Inditex’s another brand, Zara Home is a bit different from others since its offerings focus more on home décor products such as bedding, tableware, bed and bath linen, along with dishware, glassware, cutlery etc. Apart from these, Zara Home also sells apparel and accessories associated with the comfort and intimacy of home life, although its prime offerings are home décor products.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE/PESTEL analysis of Inditex is presented below:
Political | Economical |
1. Possible risks arising from Brexit | 1. Business impact of COVID-19 |
Social | Technological |
1. Protecting human rights as a social responsibility
2. Consumer Sentiments and Controversies associated with apparel designs
| 1. Focus on developing and adopting new technologies
2. Use of Big Data Analytics for Sizing Tool
|
Legal | Environmental |
1. Lawsuit filed by Amiri against Zara for copying designs of Jeans
2. Design infringement allegations against Zara by Rains
| 1. Implementation of sustainable business policies
2. Environmental footprint of fast fashion industry |
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Detailed Pestle Analysis of Inditex
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Implementation of sustainable business policies: Inditex acknowledges its responsibility as a sustainable organization and hence acts accordingly to reduce its environmental impact. In 2020, Inditex showed its support to the Task Force on Climate-Related Financial Disclosures (TCFD) by making a commitment to implement their recommendations in order to promote transparency about risks and opportunities associated with climate change. The executive chairman announced that the company aims to manufacture or procure its entire range of cotton, linen and polyester for all of its eight brands from organic, sustainable or recycled resources by 2025. Inditex has pledged to completely eliminate the use of plastic bags by the end of 2020, which has already been implemented by some of its brands like Zara, Zara Home, Massimo Dutti and Uterqüe. And by 2023, the company aims to debar all single-use plastics for customer’s sales. The company is even trying to use 80% of renewable energy consumption in all facilities including main offices, logistics centers and its own stores.
2. Environmental footprint of fast fashion industry: The entire lifecycle of fast fashion clothing has an extensive environmental impact, starting from its production to disposal. Production of clothes requires a considerable amount of energy and resources, and many of the fabric dyes and chemicals used in the process are toxic and are responsible for contaminating fresh water. Fast fashion moreover not only has a negative environmental impact but also promotes poor working conditions and unfair wages for laborers. This mainly includes countries like Bangladesh, Brazil, China, India, Indonesia, Philippines, Turkey, Vietnam, etc. Leaders in the fast fashion industry such as Zara, H&M, UNIQLO, Gap, and Forever 21, competes with traditional fashion houses that continue to introduce new fashion lines on a seasonal basis. Fast fashion contributes to pollution, poor workmanship, and poor working conditions in developing countries, where many of the clothing is manufactured. As per the information revealed by the United Nations Environment Program, 10% of the total global greenhouse gas emissions come from the clothing industry. Around 20% of the total clothes produced globally are never purchased, which means resources used to produce them are completely wasted. A significant portion of these garments are made with synthetic fabrics that are non-biodegradable, which further contributes to the waste disposal problem.
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Inditex SWOT & PESTLE Analysis Report
1. Inditex Annual Report 2019 - https://www.inditex.com/documents/10279/645708/2019+Inditex+Annual+Report.pdf/688d1a9a-ad63-a4d6-8b16-cf64d8f91fba
2. Inditex history - https://www.companieshistory.com/inditex/
3. Inditex company profile - https://in.reuters.com/finance/stocks/company-profile/ITX.MC
4. Inditex company website - https://www.inditex.com/about-us/inditex-around-the-world#continent/000
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Inditex SWOT and PESTLE analysis has been conducted by Shalmali Chakraborty and reviewed by senior analysts from Barakaat Consulting.
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