ZARA BRAND HISTORY
This Spanish brand got its famous name “Zara” quite by accident. Its founder, Spanish businessman Amancio Ortega, wanted to give his company a different name Zorba, in honor of the hero of the film “The Greek Zorba”. But this was not possible, and Ortega chose another, somewhat consonant word “Zara”. Zara in Persian means gold, and the business that received this name has fully justified it for 40 years.
The personality of the founder played a decisive role in the success of the Spanish brand Zara, under the brand of which women, men, children’s clothing and footwear, various accessories and interior items are produced. The idea of making high fashion democratic, which would turn the brand into gold, could not have occurred to a person who was rich from birth.
Amancio Ortega Gaona
A difficult year for Spain in 1936. In the provincial village of Buzdongo de Arbas, a son was born to a railway worker and a housewife, the future tycoon Amancio Ortega Gaona. But hardly anyone could guess about such future success of their fellow countryman. Then, as a fourteen-year-old teenager, Amancio left school and began working as a messenger, then continued as a salesman in a haberdashery shop. It was there that he met his future wife Rosalia Mera.
They say that it was during a romantic walk with her that the young man had an idea that brought him success. Rosalia saw a beautiful silk peignoir in the window of the boutique, but her companion did not have the means for such a luxury. He could not afford to buy a peignoir, but Ortega remembered the model and in a couple of days created a similar one for his girlfriend. Realizing that he was not the only one who found himself in a situation where not everyone can sew the thing they like, Ortega decided to create his own atelier. In this atelier, he began to create exquisite, but inexpensive lingerie, and this brought him his first recognition.
Already in this little story, the main secret of Amancio Ortega’s success is visible. Someone else would take it as a personal defeat to be unable to buy their woman what she likes. Ortega, on the other hand, took it as a challenge, and by answering it he conquered the circumstances. Likewise, from this, almost defeat, his first store was born.
Ortega and his wife Rosalia decide to open their own store
The following story also speaks of the strength of spirit of the now eminent fashion designer. In 1975, a customer from Germany did not buy a batch of clothes, on the production of which the entrepreneur spent all his free funds. This could lead to ruin for another person, but Ortega and his wife Rosalia decide to open their own store and sell their products themselves. It happened in May 1975 on the main street of the city of A Coruña. This city today remains the heart of the already international trading empire of Ortega. It is here that the head office of the group of companies producing the famous brand is located today.
Zara clothing prices
From this shop, where doubles of dresses of famous high fashion houses were sold at affordable prices, the glory of the Zara brand began.
The production of affordable copies in the style of high fashion, even if successful, is not what allows Zara to be considered real gold and made the brand world famous.
Before Ortega, the sewing production was built in such a way that from the development of the design of the model to the receipt of the finished product on sale, at least six months passed. Consequently, in one year, buyers were presented with two, maximum three collections.
Instant fashion concept
Ortega came up with the concept of “instant fashion”, requiring a change in both the design process and product distribution. His meeting with Jose Maria Castellano, who at that time was a good IT specialist, helped to make the idea a reality. Their joint work began in 1984.
Castellano created a unique product development and distribution system that dramatically reduced this process from six months to just ten to fifteen days. Thanks to the use of computer technology in the development of models, this has become much less time. Another feature of the scheme used in “Zarya” was that the collection was developed not by one designer. But by a created team, which by the beginning of the new millennium numbered two hundred masters. The company’s designers come up with new models based on popular trends, but in their own original design.
Such collective work made it possible to promptly respond to the emergence of new trends in world fashion. At the same time and to improve already popular models, changing details, prints and fabrics, delighting customers with novelty.
The second component of the success of the growing brainchild of Ortega was the introduction of information technology not only directly into the production process, but also into the sales organization. Reorganization of the inventory system. Accounting using computer advances made it possible to avoid the risks of overstocking with models that have lost popularity. This has become another principle of the company. As soon as sales of a model fell, it was discontinued.
The developed unique system of production, warehousing and sales, which allowed to reduce the production time of new models to two weeks, helped to make products in the spirit of high fashion accessible to a wide range of people.
The Zara brand managed to achieve a relatively low cost, unlike many other firms, without locating production in Asian countries, where there are cheap labor. One of the secrets of why Amancio Ortega succeeded was the elimination of advertising costs. The founder of the brand argued that the best advertisement would be the showcase of the Zara store.
Distribution of the brand in different countries
The high quality and fast updating of the models made the brand popular. Stores opened throughout Spain and other European markets. By this time, the company already bore the name Industria de Diseno Textile S.A., or Inditex. In the early 90s, the brand was making an attempt to enter the American market. But success is not easy in this oversaturated market. At the beginning of the new millennium, there were six Zara stores in the United States.
In Europe, at this time, new countries were conquered France, Portugal, Greece, Belgium, Great Britain, Malta, etc. The Zara brand became famous in other parts of the world Israel, Japan, Turkey, Mexico, Argentina, Venezuela. Today more than one and a half thousand Zara stores operate in 77 countries of the world. They also opened in Russia.
The buyers of these countries now also know about the specific “Day-Z”. This name was given by visitors to the days on which the goods are updated in stores and boutiques of this brand. This happens every two weeks. Models are sewn in small batches in workshops and at home. As soon as the demand for a particular model falls, it is discontinued. All this forces buyers to hurry up: after all, if you do not buy a dress you like today, it may never be there! The knowledge that every two weeks in the store you can see something completely new also becomes a good incentive in Day-Z to approach familiar shop windows again and again.
Time passes, changing the world and people, bringing experience, but taking away strength. Ortega, who began his career as a simple messenger, in the new century is one of the ten richest people in the world according to Forbes magazine.
In early 2011, Ortega retires, the company is replaced by a change of leadership. He resigned as chairman of the board of the Inditex group of companies, although he retained more than 59 percent of the shares. He should be replaced by the eldest daughter Marta. Who has been working in the management of funds dealing with the family’s assets since 2007. Replaced Amancio Ortega as chairman of the board of Pablo Isla. He is not a random person in an organization. Pablo Isla had already been working at Inditex Group for 5 years by this time. During this time, he made famous Zara brands in Asia, opened an online store. Where the brand’s products became available to any remote customer.
Change of leadership
Under the new leadership, the Zara brand maintains the traditions laid down by the founder, while remaining at the forefront of fashion.
What does Zara offer to the consumer? The most expensive line of the brand is intended for women of the most active age from 25 to 45 years old. They are sewn only from natural, comfortable for the body fabrics in a style that combines sophistication and business elegance.
Children’s clothing Zara
The base line of the brand is more democratic, where men’s, women’s and children’s clothing is designed for everyday life. It is made from fabrics that include synthetic and natural fibers. The quality of tailoring is maintained the same as in expensive models.
The next line is for young people, boys and girls. In it, designers are not afraid to experiment with color and cut. Addressed to young people, for all its brilliance and courage, it is quite inexpensive.
Zara fashion designers also develop men’s and children’s lines from natural fabrics.
For the home, the Zara brand produces various stylish and pleasant little things designed to beautify everyday life.