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THE MAN FROM ZARA: THE STORY OF GENIUS BEHIND THE INDITEX GROUP
COVADONGA O'SHEA
Zara: A New Fashion Culture Takes its Place in the 21st Century Ortega Always Pursued Excellence
Once, a business expert visited the office and said that it was a tremendously innovative textile distribution company. Thus, the company adopted the name Inditex. Who knew the company would become the eighth most successful company in the world in a few years? Zara's manager, José Mariá Castellano, joined the company in 1974. At that time, Zara did not exist. Ortega wanted José to continue working with him, but he was working as a professor of economics. José turned Ortega down and joined the company later in 1984. Since then, the two, along with the employees, have only worked to put the company before themselves. There are several exciting stories the company is full of. I also had the opportunity to ask Ortega about various things and understand his perspective.
I asked him about the stock exchange, and he had quite a different answer. Ortega didn't want to put the company on the stock exchange. This was because he didn't like the idea that he would have to take into account external opinions. Ortega is someone who knows his business well and likes order. When there would be more stakeholders in the business, he would have to acknowledge the opinions of so many more people. But since he is a great businessman, he liked his organization the best. Ortega is someone who has the mentality of a shop assistant. He has a tremendous sensitivity to what people like. The owner of the shop is very different from a shop assistant. The owner of a shop pays attention to the things he likes. The shop assistant, on the other hand, has no part in displaying what he likes; his only goal is to sell. This is helpful for someone who owns this company as he will choose to sell what the customers like. Individual preferences will not play any part. This is how Amancio Ortega has managed to build an empire. His experience as a shop assistant helps him know how to sell. He always keeps his customers' preferences at the top.
Inditex- International Expansion The Customer is King
Inditex began in Spain and soon spread to Paris. Amancio's European dream was slowly coming true. In 1989, Inditex was launched in New York. Amancio flew to Manhattan and couldn't believe his eyes. Customers of all ages flocked to the place. This was an emotional moment for him, and he had to lock himself in the bathroom so that no one could see him crying. This wasn't possible in the coming years. Inditex had openings in so many countries that it was impossible to be in hundreds of places. Currently, the international expansion is focusing on Asia. Amancio doesn't attend the opening of the latest shops but ensures he asks his managers about what sells and what doesn't. Lastly, the company isn't advertised. There are no standard channels that commercialize Inditex or Zara. Instead, efficient services help with advertising and gain customer loyalty.
As long as the customers like the products and like how the managers and shop assistants treat them, they continue to be loyal. They also manage to advertise the products by telling other people they're content with the service. I've noticed that Zara shops in any city in the world are never empty. Many assistants claim that Ortega was seen in the shops incognito a lot of times. He wouldn't come to see how the work was going but encouraged his people. He isn't a typical bossy man who orders people around. Instead, he's someone who has a word with every employee of his and says a kind word to all. Ortega's second wife, Flori, does the same. Sometimes, she comes up only to say hello. Six fundamentals govern the attention the workers have to pay to the customers. Ortega teaches them too.
These are; Always have a good expression. A kind expression helps people to communicate with the store managers and shop assistants and convey what they like or dislike. Smile at the cash desk. Just a sweet, simple smile is enough for people to make another visit to the store. Have a pen. Having a pen is one of the basic things every store employee should have. The manager should attend to the customers. When managers attend to the customers, they feel important and that their word is taken seriously. The challenging rooms are an important point of sale. Wherever there is more crowd, the sales will also grow. Patience. Patience is the key to every door any employee would face at the company. Soon after Zara's unstoppable success, Zara Home was launched, which focused on manufacturing home textiles. Today, the company has 408 stores in 48 countries!