Amancio Ortega opened the first Zara store in 1975 in Spain, naming it after the movie Zorba the Greek. However, due to another nearby business having a similar name, he changed the store's name to Zara. Zara slowly expanded across Spain and Europe in the following decades. Today, Zara's parent company Inditex operates over 6,000 stores globally under various brands. Zara is known for its rapid 21-day production cycle that allows it to quickly design, produce, and stock new fashion items in stores and online. This unique business model has contributed significantly to Zara's worldwide success.

1. Mr.Chethan.S

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3. The history of Zara: The
connection with Zorba the Greek
It all started in 1963 when Amancio Ortega opened a
dress-making factory, Inditex, in Spain.
In 1975, rumor has it that Amancio was armed with a
budget of only 30 euros when he decided to open a
small store selling his housecoats and robes in
northwestern Spain. He named the store Zorba, after the
famous film, Zorba the Greek.
Mr.Chethan.S

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6. The history in the making of
ZARA
As fate would have it, apparently at the time, Zorba
was a popular name for shops in Spain. Just two blocks
down the road, there was a bar named Zorba. The bar
owner approached Amancio and explained that two
Zorbas would be confusing. This put Amancio in a
predicament. He already had the molds made for his
Zorba store sign. The resourceful billionaire-in-the-
making decided to change his store’s name to Zara,
using the molds for the letters from the sign for Zorba.
It was genius, and, history in the making.
Mr.Chethan.S

7. The rise of the Zara empire
The Zara brand slowly expanded from the small town in Spain to
the rest of the country and then later to Portugal. Eventually, the
brand expanded to include stores in the United States, France and
most of Europe by the 1990s.
Zara’s store in Mallorca,
Spain
Mr.Chethan.S

8. What exactly is Zara’s secret to
success?
One way the brand differs from retail brands is also a
key reason Zara successfully triggered growth and rapid
international expansion. The brand offers something
others do not. Not only do shoppers enjoy affordable
fashion at Zara, they also have a non-stop supply of new
collections, continuously setting new trendy clothing to
purchase thanks to the innovative Zara eCommerce
strategy.
Here’s how:
Mr.Chethan.S

9. Creating new fashion trends
at the speed of light
If it seems as though Zara is
constantly displaying their newest
clothing line in their shop
windows and highlighting new
collections on their Zara
ecommerce platform, it’s because
the brand has a 21-day policy of
turning over new fashion to the
marketplace.
Mr.Chethan.S

10. The bottom line is that this policy enables Zara to
design, produce and stock a new fashion design
throughout its international stores in less than a month.
This unique fashion design process allows Zara to
utilize their brick and mortar and Zara eCommerce shop
channel by providing their shoppers with the latest
trending fashion.
Mr.Chethan.S

11. Zara’s Brisbane store
Mr.Chethan.S

12. Amancio Ortega: The man behind the
Zara
The simple man, who prefers to wear an unassuming blue blazer,
white shirt, and gray trousers — none of which are Zara products
— is truly low-profile and is known for preferring to live a
“simple lifestyle”. In fact, up until 1999, there wasn’t even a
published photograph of Ortega on record. In fact, he has only
granted interviews to three journalists throughout his entire career.
Mr.Chethan.S

13. A famous quote from the
man himself might
explain why, as he once
said, “You must appear
three times in the
newspapers: when you
are born, when you get
married, and when you
die.”
Mr.Chethan.S

14. From humble beginnings…
Fashion came into Ortega’s life from a young age. Some might call it either a twist of fate
or destiny. Ortega, the youngest of three children, was born in Busdongo de Arbás, León,
Spain.
At the young age of 14, Ortega left his formal education behind, dropping out of school to
move to La Coruña. It wasn’t long after arriving in La Coruña that he found a job as a
shop hand for a local shirtmaker called Gala. This was the beginning of the legendary
Zara which we all know today. It all started in a little corner shop in downtown A Coruña
where Amancio learned to make clothes by hand. The shop still remains today.
Mr.Chethan.S

15. From humble beginnings…
He is a man who sees beyond himself
and believes in paying it forward. In
2012 he donated about €20 million to
Caritas Internationalis, a Roman
Catholic relief organization.
Also, Amancio has found some
unique ways to spend the billions he
has reaped. He is the owner of the
Torre Picasso skyscraper in Madrid as
well as the Epic Residences and Hotel
in Miami, Florida.
Mr.Chethan.S

16. The eCommerce strategy Zara used to
scale
As Amancio Ortega once said:
“The customer has always driven
the business model…”
This is the secret to Zara’s
eCommerce and online marketing
strategy success. It takes more than
having a great product selection
with trending styles to be an
eCommerce success. Shopping has
evolved over the years and
everyone shops online.
Mr.Chethan.S

17. At the root of the marketing strategy for Zara
eCommerce is the combination of
omnichannel marketing with a sophisticated
integrated stock management system.
Mr.Chethan.S

18. Zara also incorporates the latest technology to fulfill customers’ online
orders with store stock to satisfy same-day or next-day orders. This is
accomplished using RFID and integrated stock management which is
currently available in Zara stores in 25 markets. In fact, by 2020, Isla
recently announced that all the countries in which there is a physical
store presence will adopt the integrated stock management system.
Mr.Chethan.S

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21. How exactly does Zara
continue to satisfy its online
and offline customers’ needs
of the latest trending fashion
in such a fast and efficient
manner? Simple. Zara
implements a digital
marketing strategy unlike
any other brand in the
fashion industry —
essentially using customers
as “co-creators”.
Mr.Chethan.S

22. ● By 2023 Inditex plans to have an eco-efficiency plan
operating in all of its stores around the world. The
plan aims to deliver energy and water savings of 20%
and up to 50% compared with conventional stores,
respectively.
● Inditex has already implemented its eco-efficiency
plan in 80% of its brands’ stores, including 100% of
its stores located in China
Mr.Chethan.S

23. Impressive Zara stats you didn’t know
● There are 6,000+ stores under parent company Inditex, including Zara,
Massimo Dutti, Oysho, Zara Home, Kiddy’s Class, Tempe, Stradivarius,
Pull and Bear, and Bershka — with over 92,000 employees
● Almost 80% of Inditex’s investments are for opening or refurbishing stores
● 20% of Inditex’s investments go towards building its technology capabilities
● Zara has 21 day policy for releasing new fashion designs to market
● Spain still accounts for the majority of the business Zara does with business
with 313 stores.
● China is the second largest consumer market with 193 Zara stores
● In 2017, Zara’s eCommerce revenue increased by 41% for the fiscal year
● More than 10 million shoppers visit Zara’s website each day
● Zara is ranked No. 390 in the Internet Retailer 2017 Top 500
● While its parent company, Inditex SA, is ranked No. 500 in the Internet
Retailer 2018 Top 1000
Mr.Chethan.S

24. Impressive Zara stats you didn’t know
● In 2018 Zara also opened its first pop-up store in London —
designed for collecting online orders
● By 2020 Zara and other Inditex brands will be available online
everywhere in the world — to become one of the first global clothing
brands
● ECommerce accounts for 10% of Inditex’s sales in 2018, and
increase of 40+% year-on-year
● An interesting Zara eCommerce case study shows the retail giant has
grown its brand with little to no advertising, going out of its way to
invest in prime real estate and opening flagship stores in popular and
prime locations — making them neighbors to luxury brands such as
Prada and Chanel.
Mr.Chethan.S

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