What is the significance of Industria de Diseño Textil S.A. (Inditex) in the clothes industry?

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Industria de Diseno Textil, S.A. – Inditex – is one of the largest textile manufacturers in the world.  Founded and headquartered in Spain in 1975 by Amancio Ortega, who would become one of the wealthiest individuals in the world, Inditex specializes in what has been labeled “disposable chic fashions that are here today and gone tomorrow.”  Rare within the fashion industry, Inditex is a vertically-structured multinational corporation that is involved in every aspect of the design, manufacturing, distribution and retail sale of its product.  It maintains over 6,200 stores worldwide divided into eight different labels, ranging from footwear to women’s business lines to children’s clothing.  Its line targeted towards youth, Pull & Bear, as with the other branches, specializes in developing styles while conforming to the latest fashion trends, and Inditex prides itself on its ability to quickly adapt to changing tastes and styles.  Its global reach has made it an influential component of the fashion industry.

Inditex's success has enabled it to become active in charitable and humanitarian activities, including support for Doctors Without Borders and for educational programs in Latin America, where its natural linguistic and cultural ties have made it particularly prominent.  

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What was the signficance of the Industria de Diseño Textil S.A. (or Inditex Group) in the textil industry?

Industria de Diseño Textil, S.A. is a Spanish manufacturer of textiles based in Galicia. Its founder is a world-class mogul named Armancio Ortega Gaona, who used his vast fortune to design a formula for production that confections clothing much faster, much easier, and with the highest standards of quality. So much quality indeed, that it serves as a study in business colleges everywhere since its business model has produced a never-before seen 5,000 stores world-wide. The secret behind the model is the that Ortega Gaona is able to provide the latest, most exact technology, and lots of it, due to his being able to fund the industry 200%. 

The large amount of stores provide employment to hundreds of thousands of people who avidly enjoy the use of the new technologies, and who share the same love for fashion that the business model demands from its employees. 

With the implementation of the Industry's first store, Zara, the corporation utilized a vertical model of sales. This meant that the industry produced, sold, and obtained full earnings from the clothing made by their own machinery. The business model for Zara, however, was different than other stores of the time: it catered for young college students who had limited funds to spend on clothes, but who were preoccupied with the latest fashions. Zara, produced by its parent manufacturer Inditex, had the luxury of producing clothing that met the standards of current fashion in terms of colors, styles, and textiles, but the ease of production made it possible for the store to sell at a much cheaper price than the competitor stores. As a result, Zara became the absolute best-selling store of its kind, bringing profits consistently and prompting the opening of yet more stores.

As of 2014, you can find Zara, and the multiple additional brand names that have been created throughout the world in platforms that include countries in every single continent.  It is the combination of the business model, the appropriate funding, the competitive plan, the product offering, and the initial audience that it attracted what makes Inditex a business model that is studied at the college level. 

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