ZARA-INDITEX AND THE GROWTH OF FAST FASHION

Stephanie Crofton, Luis Dopico Macrometrix
unpublished
This paper presents the "fastfashion" model, its historical development, and its prospects. Fast fashion departs from traditional norms of designer-led fashion seasons, using instead designers who adapt their creations to customer demands on an ongoing basis. From its origins in Galicia, Spain, in the 1960s fast fashion changed the fashion industry. With annual sales of $8 billion in 2005, Inditex, the leading practitioner offast fashion, is now the second-largest fashion company in the world
more » ... d operates over 2,700 stores in over sixty countries. As Inditex grows, many other fashion companies are copying its unique business model. This paper presents the "fast fashion" model, its historical development, and its prospects. This model departs from traditional norms of designer-led fashion seasons, using instead designers who adapt their creations to customer demands on an ongoing basis. Fast fashion was pioneered by reclusive entrepreneur Amancio Ortega Gaona and his companies Zara and Inditex (Industria de Diseno Textil) in Galicia, Spain. This model has changed the fashion industry. In the 1960s, Ortega's company was a local, privately-held business with annual sales of $30 million. In 2006, Inditex is the second-largest fashion company in the world, operates over 2,700 stores in over sixty countries, and is a publicly-held company valued at $24 billion, with sales of $8 billion. 1 As Inditex grows, many companies are copying its unique business model. 41 Crofton and Dopico
fatcat:eghkstqi35hxbf6ap5exze5rb4