The Inditex origin is here.
Who is who in the textile universe: Inditex, where Zara is everything and to which she still has to prove.
Inditex is one of the largest fashion distributors in the world. Its conglomerate includes Zara, but also 8 other brands: Zara Home, Stradivarius, Pull and Bear, Bershka, Massimo Dutti, Oysho, Lefties and the recently disappeared Uterqüe.
The international expansion of its first company, at the end of the 80s, is the reason why Inditex is today a key player in the textile industry.
Many things have happened since, in 1963, Amancio Ortega, started his career in a workshop specialized in the manufacture of women's clothing. The main one is to have achieved unprecedented success with Zara, a firm that has more than 2,000 physical stores and is present in 96 countries.
Despite the diversification of its portfolio, Zara remains the brand that sustains the group. In the 2021 fiscal year - concluded on January 30 -, it contributed 70% of total revenues: 19,586 million euros.
The rest of his signatures follow him light years away. A situation that explains the recent withdrawal of the group's young fashion ensigns from a market as decisive as the Chinese one.
Inditex origin
The origin of Inditex is, logically, linked to that of its most important brand: Zara.
His name is due to a title: Zorba, the Greek. A novel by the writer Nikos Kazantzakisen from 1946 adapted to the cinema in 1964. That's how Ortega thought to call his first point of sale, but a nearby bar beat him to it. After rearranging the letters, he constructed the word closest to the original: Zara.
With this store, which is still open at 64 Juan Flórez de La Coruña Street, in Galicia, the foundation stone of a textile empire that employs more than 165,000 people was laid.
However, we would have to wait until 1985 for Inditex to be born. Under this umbrella, and only 3 years later, the international expansion of Zara started.
With the main signature of the group already settled, the rest began to emerge. 2 ensigns, Massimo Dutti and Stradivarius, were acquired by the textile giant. Pull&Bear and Bershka, both focused on young audiences, are the work and grace of Inditex.
Then, it would be followed by Lefties, as an outlet; Oysho, for lingerie; Zara Home, dedicated to decoration; and Uterqüe, la benjamina — born in 2008—, which has already ceased operations.
Inditex origin ownership
Who owns and runs Inditex?
The largest shareholder of Inditex, with almost 60% of the capital, is precisely the one who made it possible, Amancio Ortega.
He is the holder of 1,848 million titles of the company, so, in addition to a more than structural fortune, he receives important benefits in terms of dividends that he ends up reinvesting, mostly, in Pontegadea, the investment arm for the real estate sector and other sectors.
With an estimated fortune of 48,200 million dollars (48,094 million euros), Ortega is the 23rd richest person in the world and the most powerful in Spain, according to Bloomberg.
Inditex origin company
With regard to his activity in the company, Ortega was president until 201, the year in which he delegated the operational functions.
The first one to exercise them was José María Castellano. Director of Inditex since 1985, he became vice president and CEO in 1997. During his time at the helm of the company, it went abroad and debuted on the stock market on May 23, 2001. Today, despite the corrections suffered, it is the Spanish company with the largest market capitalization: about 75,000 million euros.
In 2005, the first turning point occurred: Pablo Isla arrived as CEO and, subsequently, was appointed president. The until that moment president of the multinational tobacco company Altadis is credited with the complete professionalization of Inditex.
On April 1, the rudder turned again. Marta Ortega, daughter of the founder, took the reins of the group. Of course, he does so without assuming executive responsibilities — a function that falls to the also newly appointed CEO, Óscar García Maceiras.
Inditex origin summary
- Spain reviews which are the giants that move the threads of the textile sector and analyzes their origin, their business model and their main challenges.
- Inditex, now in the hands of Marta Ortega, is made up of 8 brands. Among them is the popular Zara, which contributes 70% of revenues.
- With more than 6,400 stores and 165,000 employees, its strength is as unquestionable as the challenges it faces.
