A recent issue of Business Week has a feature story on Inditex, one of the biggest fashion distributors in the world and the parent company of the famous Zara stores which currently occupies 64 countries around the world. This article in Business Week focuses on the growth spurt of the company and analysts are wondering if Inditex is moving too fast for its own good. Chief Executive Pablo Pisa is quoted as saying, “We 
think we can keep up the pace of expansion without endangering profits.”
Much of Inditex’s success can be attributed to its ability to save money. Instead of spending millions of dollars on advertising like many retailers do, they opt for top locations in the world and rely on their customers for word-of-mouth advertising.
All of the company’s activities are concentrated in a 11,000 square foot space where buyers, designers, and production planners collaborate and work closely to produce pieces much faster than average retailers. Where many companies become frantic when inventory sells out, their approach and attitude when selling clothes is one of “when it’s gone, it’s gone”. It keeps customers coming back to the store more often because they don’t want to miss out on something cute! Pretty smart strategy, if you ask me...
There’s no doubt that Inditex has established itself in the industry and it doesn’t look like the company is going to slow down, despite the criticism of expanding too quickly. I’m sure they know something that we don’t ;)
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