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© Minder Chen, 1993-2011
Fashionable But Not Pricy
• In the early 1960s Ortega became the manager of a local clothing shop, where he noticed that only a few wealthy residents could afford to buy the expensive clothes. Thus he started
• In 1963, he started his own lingerie production firm. • 1975, he started Zara
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• In 1972 he founded Confecciones Goa, S.A., the first garment-making factory of Inditex
• • /user/zara#p/u/4/fm0TpEMKDFI (Store in Sydney)
le beginning: Amanciao Ortega Gaona • At age of 13, worked as a gofer in a shirt store
© Minder Chen, 1993-2011
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Impacts of Amanciao Ortega’s Earlier Experiences
• When Amanciao Ortega was 13 years old he worked as a delivery boy for a shirt maker who produced clothing for the rich. He later worked as a draper's and tailor's assistant. In seeing firsthand how costs mounted as
Read more: Amancio Ortega 1936— Biography - Early career, The zara phenomenon, Inditex
/biography/M-R/Ortega-Amancio-1936.html#ixzz1bfL4MMA6 -7© Minder Chen, 1993-2011
garments moved from designers to factories to stores, Ortega learned early on the importance of
delivering products directly to customers without using outside distributors. He would later employ such a strategy with great success at Zara, attempting to control all of the steps in textile production in order to cut costs and gain speed and flexibility.
producing similar items at lower prices,
purchasing cheaper fabric in Barcelona and cutting out pieces by hand using cardboard patterns. Ortega then sold his items to local shops; he used the profits to start his first factory in 1963 at the age of 27.
Chapter 3: Zara: Fast Fashion from Savvy Systems
A Zara store in Manhattan
© Minder Chen, 1993-2011
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Why Study Zara? • To understand and appreciate :
– The counterintuitive and successful strategy of Zara
When a German wholesaler suddenly canceled a big lingerie order in 1975, Amancio Ortega thought his fledgling clothing company might go bankrupt. All his capital was tied up in the order. There were no other buyers. In desperation, he opened a shop near his factory in La Coruña, in the far northwest corner of Spain, and sold the goods himself. He called the shop Zara.
– The technology, which has made all of this possible
© Minder Chen, 1993-2011
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© Minder Chen, 1993-2011
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Latest Fashion
• ZARA ·Fall / Winter 2011 - TRF - Young http://youtu.be/pyMQ3eOwwx0 • "TRF" is short for Trafaluc- offered by Zara for the youth/teenage