Inside the secretive world of Zara

Zara is a well-known clothing brand that has made a significant impact on the fashion industry. Recently, Emma Simpson, a business correspondent, was granted exclusive access to Zara's headquarters in Galicia, Spain. This visit was particularly special as Zara celebrates 50 years since the opening of its first store. Zara is part of Inditex, the largest fashion retailer in the world, which also owns other popular brands like Massimo Dutti and Pull & Bear. The company works with around 1,800 suppliers globally, but most of the clothing is sent to Spain before being distributed to stores in 97 countries. Zara is unique in that it does not engage in traditional advertising and rarely gives interviews, making this behind-the-scenes look quite rare. During her visit, Emma learned about the challenges Zara faces in a rapidly changing market, especially with the rise of online competitors like Shein and Temu, which offer low-priced clothing shipped directly from China. Additionally, there are concerns regarding tariffs imposed by the US. However, Oscar Garcia Maceiras, the CEO of Inditex, reassured that these tariffs would not disrupt Zara's supply chains or hinder their plans for expansion in the US, which is now their second-largest market. He emphasized the importance of diversification, stating that Zara produces in nearly 50 different markets with various suppliers, allowing them to adapt to changes effectively. Mehdi Sousanne, a designer at Zara for 11 years, shared insights into the creative process behind the brand's clothing. He explained that inspiration can come from various sources, including street fashion, cinema, and runway shows. After creating a mood board, Mehdi sketches his ideas, which are then transformed into paper samples in the pattern cutting room. These samples are fitted on mannequins, and seamstresses quickly create the first fabric samples for initial fittings. Mar Marcote, a pattern maker with 42 years of experience at Zara, takes great pride in her work. She meticulously examines each clothing item before it goes into production, expressing joy when she sees her creations sell out in stores. Zara has revolutionized the shopping experience by breaking away from the traditional model of releasing only two main collections each year. Instead, Zara introduces new items weekly, allowing them to respond quickly to the latest fashion trends. Over half of Zara's clothing is produced in nearby countries such as Spain, Portugal, Morocco, and Turkey. They even have a factory on-site at their headquarters for small production runs, enabling them to turn around products in just a few weeks. Technology plays a crucial role in Zara's success. All clothing is packaged and shipped from distribution centers in Spain and the Netherlands. Mr. Maceiras highlighted the importance of accuracy in their operations, stating that it allows them to make informed decisions based on real-time data about customer preferences. Product managers at the headquarters receive immediate feedback on how clothes are selling worldwide, which helps designers and buyers adjust their offerings throughout the season. Unlike many other retailers, Zara only discounts items during its biannual sales events. The CEO emphasized that quality, creativity, and sustainability are at the core of Zara's brand identity. However, some analysts are questioning whether Zara is losing its appeal, as the company has reported slower sales growth at the beginning of this year. William Woods, a European retail analyst, noted that the key challenge for Inditex is to remain relevant in a fashion landscape that is becoming faster and cheaper. Competing brands like H&M, Mango, and Uniqlo are also trying to catch up, while online retailers like Shein and Temu are gaining significant market share. Shein, for instance, achieved $38 billion in global sales last year, coming very close to Inditex's figures. When asked about the competition, Mr. Maceiras emphasized that Zara's business model does not solely rely on low prices. While they aim to provide affordable fashion, they prioritize offering customers high-quality, creative, and sustainable clothing. Zara has come a long way since its founder, Amancio Ortega, started the business. The Ortega family still holds the majority ownership, and his daughter Marta is now the chairwoman of the group. Even at 89 years old, Mr. Ortega remains a significant presence within the company, visiting the headquarters regularly.