Inditex: Agile Fashion Force
March 30, 2015
Inditex produces 948 million garments each year — or, 50,000 different
products, shipped in two deliveries per week to more than 6,500 stores
in 88 markets as well as the warehouses that support online businesses
in 27 countries.
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Most fashion businesses buy in bulk, ahead of time, because it costs
less per garment, then ‘push’ products at customers. And if the garments
don’t sell, they simply push harder, with more marketing, discounts and
special offers. On the other hand, Inditex, which doesn’t advertise,
allows its operations to be ‘pulled’ along by data collected from stores
in real time: quantitative data — how many garments are selling — and
qualitative data — why they are selling.
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While conventional high street retailers pre-commit about 60 percent of
their production, Inditex plans only about 15 percent in advance — the
rest is made in response to customer feedback. To achieve this, the
company’s production base of over 1,500 suppliers is at least 51 percent
“proximity sourced” from facilities close to its Spanish distribution
centres in countries such as Spain, Portugal and Morocco, meaning
Inditex can design, manufacture and deliver product to the shop floor,
all in three weeks.
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Currently, every Inditex product, regardless of where it is
manufactured, is delivered to distribution centres in Spain, where it is
sorted and sent on to the company’s global store network.
Currently, 70 percent of Inditex’s stores are in Europe, 9 percent are
in the Americas and 21 percent are in the rest of the world.
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