Inditex Company Briefing
Alongside international online expansion Inditex has also entered new markets with physical stores in 2012 which has fuelled brand awareness and driven sales. Markets entered include China, Bosnia, Peru and Ecuador providing it with a vast brand coverage across its fascias. This Verdict company briefing includes UK clothing sales data split down by womenswear, menswear, childrenswear and footwear.
- Benchmark Inditex's UK performance in clothing by using sales data for womenswear, menswear, childrenswear and accessories.
- Justify and inform development of having an international presence by uncovering Inditex's challenges and opportunities in the markets it operates in
- Understand Inditex's vertically integrated fashion business model to glean how investment in this area could aid your own business.
Inditex's investment in its Spanish production & distribution capacity will reinforce its advantage of speed to market by building on its existing economies of scale. It is currently distributing to its stores globally via Spain but in the long run we believe it may have to consider regional sourcing and distribution hubs to contain logistics costs
There was a slowing in the pace of turnover growth in 2011/12, to 10.1% from 13.0%. Most of the increase was driven by new space, with like-for-like growth contributing 4.0%. The fastest increase was achieved by accessories chain Uterqüe, up 15.3%. This vindicates the strategy of having faster emerging brands compensating for Zara maturing.
Inditex’s UK clothing sales performance has bounced back from its slowdown in 2010/11, but has not yet returned to its pre-recession pace. Instead it has focused on improving profit margins and with few stores being opened in the UK we expect growth to be much slower from now on.
- How have Inditex's clothing sales and densities developed and how does Verdict see this changing?
- What is Inditex's strategy for international expansion and e-commerce? And which markets is it focusing on?
- What is Inditex's share of the UK clothing market? What is Verdict's market share prediction for 2013?
Table of contents
Grows online presence internationally;
Store expansion in developing markets;
Asia and southern hemisphere targets for growth;
Centralised sourcing and distribution model helps profitability;
Heavy investment in supply chain;
Dependence on Zara increases once more.
Makes up for late entry to online
Recent key events
Maintains pace of expansion with stores and online
Return to faster growth
Pace of global space growth harder to maintain
UK space breakdown
UK clothing performance
Fails to recover to pre-recession pace
MethodologyVerdict company briefing
Market size calculation
Sales density calculation
Global Retail FreeView
Table: Inditex company information 2012
Table: Zara global retail proposition 2012
Table: Bershka global retail proposition 2012
Table: Massimo Dutti global retail proposition 2012
Table: Pull and Bear global retail proposition 2012
Table: Stradivarius global retail proposition 2012
Table: Oysho global retail proposition 2012
Table: Inditex global key operating statistics €m 2008–13e
Table: Inditex group trading record €m and UK £m 2003–13e
Table: Inditex UK key operating statistics £m 2008–13
Table: Zara trading record 2003–13e
Table: Massimo Dutti trading record 2003–13e
Table: Bershka trading record 2003–13e
Table: Pull and Bear trading record 2003–13e
Table: Stradivarius trading record 2003–13e
Table: Oysho trading record 2003–13e
Table: Inditex global store portfolio 2003 – 13e
Table: Inditex global store numbers by brand 2003 – 13e
Figure: Inditex UK fascias 2012
Figure: Inditex group sales and growth to January 2008–13e
Figure: Inditex group operating profit to January 2007–12
Figure: Zara UK clothing space breakdown 2011
Figure: Massimo Dutti UK clothing space breakdown 2011
Figure: Bershka UK clothing space breakdown 2011
Figure: Inditex clothing sales mix 2013e
Figure: Inditex UK clothing sales (ex VAT) January 2008 – 13e
Figure: Inditex clothing market shares for calendar 2008–13e
Related research categories
By company: Inditex SA