Zara (retailer)

Zara (retailer)
Zara (retailer)
Zara (retailer)
Zara (retailer)
Zara (retailer)
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Zara SA

Logo since 2019

Type Sociedad Anónima

Industry Retail

Founded 1975; 47 years ago (as Zorba) in Spain

Founders Amancio Ortega

Rosalía Mera

Headquarters Arteixo (A Coruña), Spain

Number of locations 2,270 stores[1]

Area served Worldwide

Key people  Amancio Ortega (chairman)

 Products Clothing

Revenue €18,021 million (2018)[2][3]

Parent Inditex

Website zara.com

Zara SA (Spanish: [ˈθaɾa]), stylized as ZARA, is a Spanish apparel retailer based

in Arteixo, A Coruña, Galicia, Spain.[4] The company specializes in fast fashion, and
products include clothing, accessories, shoes, swimwear, beauty, and perfumes. [5] It is
the largest company in the Inditex group with Bershka,[6] the world's largest apparel
retailer. Zara as of 2020 manages more than 20 clothing collections a year. [7]

Contents

 1History
o 1.1Early history
o 1.2Expansion
 2Products
 3Manufacturing and distribution
o 3.1Non-toxic clothing
 4Controversies
o 4.1Exploitation and child labour
o 4.2Allegations of Anti-Semitism
o 4.3Labour practices
o 4.4Copyright infringement
o 4.5Melania Trump
o 4.6Political controversy in China
o 4.7Xinjiang region
o 4.8Allegations of anti-Palestinian bullying
o 4.9Trademark Action
 5Stores
o 5.1Fashion Music
 6See also
 7References
 8External links

History[edit]
Early history[edit]
Founded by Amancio Ortega in 1975, Zara is a flagship clothing chain store that is part
of Inditex group, the world's largest apparel retailer. Amancio Ortega opened the first
Zara store in 1975 in central A Coruña, Galicia, Spain where the company is still based.
Ortega initially named the store Zorba after the classic film Zorba the Greek, but after
learning there was a bar with the same name two blocks away, the letters were
remolded for the sign to say "Zara". It is believed the extra "a" came from an additional
set of letters that had been made for the company. [8][9] The first store featured low-priced
lookalike products of popular, higher-end clothing fashions. Ortega opened additional
stores throughout Spain. During the 1980s, Ortega changed the design, manufacturing,
and distribution process to reduce lead times and react to new trends in a quicker way,
which he called "instant fashions". The improvements included the use of information
technology and groups of designers instead of individuals.
Expansion[edit]
In 1985, Amancio Ortega set up a parent company for Zara before engaging in global
expansion, and in 1988, the company started its international expansion through Porto,
Portugal.[10] In 1989, it entered the United States, and then France in 1990.[11] During the
1990s, Zara expanded to Mexico (1992) [12] and Greece, Belgium and Sweden (1993). In
the early 2000s, Zara opened its first stores
in Brazil (2000); Japan and Singapore (2002); Venezuela, Russia and Malaysia (2003);
[13][14][15]
 China,[16] Morocco,[17] Estonia,[18] Hungary[19] and Romania (2004);[20] the Philippines,
[14]
 Costa Rica[21] and Indonesia (2005);[22] South Korea (2008);[23] India (2010);[24] Taiwan,
South Africa and Australia (2011);[25][26] and Peru (2012).[27]
In September 2010, Zara launched its online boutique. The website began in Spain, the
UK, Portugal, Italy, Germany and France.[28] In November of that same year, Zara Online
extended its service to five more countries: Austria, Ireland, the Netherlands, Belgium
and Luxembourg.[29] Online stores began operating in the United States in 2011,
[30]
 Russia and Canada in 2013,[31][32][33] Mexico in 2014,[34] South Korea in 2014,[35][36] Romania
in 2016,[37] India in 2017, Brazil in 2019 and Peru in 2020. [38]
Zara introduced the use of RFID technology in its stores in 2014. The RFID chips are
located in the security tags which are removed from clothing when purchased and can
be reused. The chip allows the company to quickly take inventory by detecting radio
signals from the RFID tags. When an item is sold, the stockroom is immediately notified
so that the item can be replaced. An item that is not on the shelf can easily be found
with the RFID tag.[39]
In 2015, Zara was ranked #30 on Interbrand's list of best global brands. [40]
In 2019, Zara updated their logo. [41] It was designed by the French agency Baron &
Baron.[42]
In 2019, the global fashion business Journal MDS stated that while the textile
commerce of the world had gone down by 2.38%, Zara's had risen 2.17%. [43]
In 2019, Chief Executive Persson said the brand is waiting for more acceptable global
rent levels to continue its expansion. In Europe, the brand planned to cut the number of
retail locations beginning in 2020. [44]

Products[edit]
Zara stores have men's and women's clothing as well as children's clothing (Zara Kids).
Zara Home designs are located in European stores. The majority of Zara customers are
aged between 18 and about 35. After products are designed, they take 10 to 15 days to
reach the stores.[45] All of the clothing is processed through the distribution center in
Spain. New items are inspected, sorted, tagged, and loaded into trucks. In most cases,
the clothing is delivered within 48 hours. Zara produces over 450 million items per year.
[46]

Zara also includes accessories, shoes, swimwear, beauty and perfumes.

In May 2021, Zara launched its first beauty line, ZARA Beauty. [47]

Manufacturing and distribution[edit]

Reportedly, Zara needs just one week to develop a new product and get it to stores,
compared to the six-month industry average, and makes roughly 40,000 designs of
which around 12,000 new designs are carefully selected and produced each year.
[48]
 Zara has a policy of zero advertising;[8] the company preferred to invest a percentage
of revenues in opening new stores instead.[49]
Zara set up its own factory in La Coruña (a city known for its textile industry) in 1980
and upgraded to reverse milk-run-type production and distribution facilities in 1990. This
approach, designed by Toyota Motor Corp., was called the just-in-time (JIT) system. It
enabled the company to establish a business model that allows self-containment
throughout the stages of materials, manufacture, product completion, and distribution to
stores worldwide within just a few days.[50]
Most of the products Zara sells are manufactured in Spain, Portugal, Turkey, Morocco,
Bangladesh [8][51] and more recently - Armenia . While some competitors outsource all
production to Asia, Zara manufactures its most fashionable items – half of all its
merchandise – at a dozen company-owned factories in Spain (particularly
in Galicia), Portugal (northern part) and Turkey. Clothes with a longer shelf life, such as
basic T-shirts, are outsourced to low-cost suppliers, mainly in Asia. [52]
The company can design a new product and have finished goods in its stores in four to
five weeks; it can modify existing items in as little as two weeks. Shortening the product
life cycle means greater success in meeting consumer preferences. [53] If a design does
not sell well within a week, it is withdrawn from shops, further orders are canceled and a
new design is pursued. Zara monitors customers' fashion changes. [54] Zara has a range
of basic designs that are carried over from year to year, but some fashion-forward
designs can stay on the shelves less than four weeks, which encourages Zara fans to
make repeat visits. An average high-street store in Spain expects customers to visit
three times a year. That goes up to 17 times for Zara. [55]
As a result of increasing competitive pressures from the online shopping market, Zara is
shifting its focus onto online as well, and will consequently open fewer but larger stores
in the future.[56]
 

The men's department of a typical Zara store.

Almere, Netherlands
 

Zara clothing made in Portugal

 

Zara store in New York City, near One World Trade Center

 

Zara store in Brisbane

  

Zara store in Palma de Mallorca (Spain)

 

Zara store in Brussels (Belgium)

 

Zara store in Columbus, Ohio

Non-toxic clothing[edit]
In 2011, Greenpeace started a dialog with Zara to ban toxics from the clothing
production.[57] Greenpeace published its "Toxic threads: the big fashion stitch-up" report
in November 2012 as part of its Detox Campaign identifying companies that use toxic
substances in their manufacturing processes. [58] Nine days after the report was
published, Zara committed to eradicating all releases of hazardous chemicals
throughout its entire supply chain and products by 2020. [59] Zara became the biggest
retailer in the world to raise awareness for the Detox Campaign, [60] and switched to a
fully toxic-free production.[57]
Controversies[edit]
Exploitation and child labour[edit]
In 2016, BBC News stated they found evidence of child labor and exploitation in
factories in Turkey. Zara replied that there were some issues in June 2016 in one single
factory and, instead of solving these issues immediately, they have given a period of six
months to solve them.[61]
Allegations of Anti-Semitism[edit]
In 2007, Zara withdrew a handbag from its shelves after a customer noticed
a swastika on the bag's design. The bag came from an external supplier, and Zara
claimed the symbol was not visible when the handbag was chosen. Zara withdrew the
product from stores, and spokesperson Susan Suett said the bag would not have been
sourced had the symbol been apparent.[62]
In August 2014, Zara received criticism for selling a toddler T-shirt for closely
resembling uniforms worn by Jewish concentration camp inmates. The T-shirt was
striped and featured a yellow star similar to the Star of David. Zara said the design was
inspired by "the sheriff's stars from the classic western films". Zara removed the shirt
from sale a few hours after they appeared for sale, and apologized. [63] Zara received
criticism for selling the T-shirt in Israel because the country does not have sheriffs.
Additionally, the word "Sheriff" is outlined in transparent letters on the bright yellow star.
[63]
 The Anti-Defamation League responded to the shirt, saying that it was offensive, but
welcomed Zara's recognition of the potential imagery and removing the shirt from sale. [64]
Labour practices[edit]
In August 2011, a Brazilian television show accused the company of
using sweatshops for their outsourced production. The Regional Superintendency of
Labour and Employment of São Paulo, Brazil, closed a factory that produced Zara's
clothing for its poor labour conditions.[65] Zara's representatives said the accusations
of slave labour made against the retailer represent a breach of the code of conduct for
workshops of Inditex. The company also states factories responsible for unauthorized
outsourcing have been asked to regularize immediately the situation of the workers
involved.[66]
In September 2013, Bangladeshi garment workers for suppliers to Zara and its parent
company, Inditex, protested following the 2013 Dhaka garment factory collapse,
demanding a US$100 a month minimum wage. [67] Inditex does not publicly disclose the
factories that produce their branded clothing.[68]
In November 2017, customers shopping at Zara stores in Istanbul, Turkey, found
handwritten notes purportedly from Turkish workers in the pockets of in-store garments
asking shoppers to pressure Zara into paying them unpaid wages. [69] The company
clarified the unpaid wages were due to a third-party manufacturer Bravo Tekstil, [70] who
had failed to pay their employees. The company said they would help to provide
compensation to employees who weren't paid.[71] In the agreement, only factory-floor
employees were compensated, with "white-collar" employees not covered by the
agreement.[72]
Copyright infringement[edit]
In July 2016, complaints were made against Zara that they had been stealing designs
from multiple independent designers for their products. One of the designers, Tuesday
Bassen, who previously worked with brands including Urban Outfitters and Nike,
contacted Zara. The company responded Bassen's designs were not distinctive enough,
and they received only a handful of complaints given the large volume of traffic they
receive on their site. When the news was eventually picked up by media outlets, and
Inditex, Zara's owning company, was asked to comment on the issue, Inditex replied
that the items in question have been suspended from sale, and that they are in contact
with Bassen's lawyer to clarify and address the issue. [73][74]
As of April 2018, MaXhosa by Laduma is taking legal action against Zara for copying its
designs.[75] Zara responded to complaints from the designer by removing socks that
resembled his artistic style.[76]
Melania Trump[edit]
In June 2018, a Zara jacket with "I really don't care, do U?" emblazoned on the back
became controversial after it was worn by Melania Trump when she visited a detention
center for migrant children separated from their parents. [77]
Political controversy in China[edit]
In January 2018, Shanghai's internet authority summoned representatives of Zara,
chastising the company for listing Taiwan as a "country" and ordering it to rectify the
situation immediately.[78]
In September 2019, Zara supported Hong Kong strikes; however after pressures from
Chinese social media Zara was forced to issue a statement expressing its support of the
"one country, two systems" policy adopted by China in ruling Hong Kong, and its
disapproval of anti-government strikes. [79]
Xinjiang region[edit]
In 2020, the Australian Strategic Policy Institute accused at least 82 major brands,
including Sharp Corporation, of being connected to forced Uyghur labor in Xinjiang.[80]
Allegations of anti-Palestinian bullying[edit]
In June 2021, the company's womens' head fashion designer Vanessa Perilman made
comments blaming terrorism in Gaza on Palestinians in response to Palestinian model
Qaher Harhash.[81] After receiving backlash for her comments when they were made
public by Qaher, Perilman apologized and Zara later asked Qaher to post Perilman’s
apology on his social media.[82] Because of Zara's delayed response, and decision to not
fire Perilman, calls to boycott Zara emerged through social media. [83][84]
Trademark Action[edit]
In April 2022 it was reported that Zara had taken legal action against "Tara Sartoria", a
small clothing company owned by Vietnamese citizen Tara Nguyen. Ms Nguyen's
company sells products made by disadvantaged women in Indonesia and Vietnam. [85]
Stores[edit]
There are 2259 Zara stores in 96 countries. [86][87][88]
In early 2020 due to the COVID-19 pandemic, ZARA stores worldwide had closed
temporarily due to restrictions. However, in April 2020, ZARA's owner ramped up
shipment to Asia as China ended its lockdown after 76 days. [89]
Fashion Music[edit]
In 2021, Kandra has already provided over 2.7 million views to Zara's fashion playlists
on its YouTube channel, representing over 20% of their current zara-style audience.
Currently Kandra's channel provides playlists for luxury stores and department stores
around the world, such as H&M, Bershka, Chanel, Balenciaga and more. [90][91]

See also[edit]
 Spain portal

 Companies portal
 Fashion portal

 Bonds (clothing)
 Calvin Klein
 Desigual
 European Retail Round Table
 Gap Inc.
 H&M
 List of companies of Spain
 Retail
 Tommy Hilfiger

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90. ^ ZARA 2022 fashion music playlist. 28 March 2022.

External links[edit]
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 Companies based in Galicia (Spain)
 Retail companies established in 1975
 Inditex brands
 Spanish companies established in 1975
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 This page was last edited on 5 May 2022, at 02:18 (UTC).
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