INDITEXZARA SKHUABAN PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOMETHE BUSINESS MODEL: DISTRIBUTION IN THECOMPANY’S OWN STORESThe point of sale is not the end of the process but rather its restart, as the stores act as marketinformation gathering terminals, providing feedback to the design teams and reporting the trendsdemanded by customers. Both the interior and exterior of the store design are given the highestpriority. Here, the shop windows play a major role, acting as authentic advertising for our chainsin the world’s main shopping streets. As for the interior design, the aim is to create a well-litspace where the clothes take pride of place, eliminating all barriers between the garments andthe customers.The main development strategy for the <strong>Inditex</strong> sales formats is the opening of stores managedby companies in which <strong>Inditex</strong> is the sole or majority shareholder. In 2006, 89% of stores wereown managed and represented 89% of the Group’s turnover.In smaller or culturally different markets, the Group has extended the store network throughfranchise agreements with leading local retail companies. At the end of the FY2006, there were354 franchised stores out of a total of 3,131 stores.The main characteristic of the <strong>Inditex</strong> franchisement model is the total integration of franchisedstores with own managed stores in terms of product, human resources, training, windowdressing,interior design, logistical optimisation and so on. This ensures uniformity in storemanagement criteria and a global image in the eyes of customer around the world.CORPORATE RESPONSIBILITYThe <strong>Inditex</strong> Group defines itself as a responsible and socially committed company and hastherefore developed a business model that conveys its values through the production and saleschains. Consequently, the business strategy is directed towards extensive sustainable principles,reconciling the legitimate desire for economic profitability with formulas for dialogue with itsstakeholders: the customers, employees, suppliers, shareholders and society in general.6press dossierINDITEX
INDITEXZARA SKHUABAN PULL AND BEAR MASSIMO DUTTI BERSHKA STRADIVARIUS OYSHO ZARA HOMEThe guiding principles behind <strong>Inditex</strong>’s commitment to corporate responsibility are good faithin establishing relations with stakeholders, constant dialogue with stakeholders and socialorganisations, and, finally, transparency in its business activities and, more specifically, in thedevelopment of its sustainability strategy.In recent years new management policies and systems have been designed and put into practicewhich have affected economic, social and environmental dimensions of the company’s performance.These activities are audited by external agents in order to provide greater objectivity in <strong>Inditex</strong>’sactions in the field of corporate responsibility. Transparency is <strong>Inditex</strong>’s fundamental managementvalue and enables a frank, open relationship to be established with all groups that hold a stakein our business. The efforts of <strong>Inditex</strong> in this field have been recognised internationally.Since 2002, <strong>Inditex</strong> has drawn up a Sustainability Report in compliance with the standards ofthe Global Reporting Initiative (GRI), an independent organisation committed to transparencyin business. The <strong>Inditex</strong> Sustainability Report summarises and explains <strong>Inditex</strong> activity underthe triple perspective of the economic, environmental and social dimensions.SALES FORMATSIn order to segment its approach to the market, <strong>Inditex</strong> has eight fashion distribution chains,all of which share the same commercial and managerial focus: to be leaders in their segmentthrough a flexible business model and an international scope. However, each of the chains hasa great deal of autonomy in managing its business; their management teams are independentin commercial decision-making and in the way they administer their resources.Nonetheless, the fact that they belong to a group spread over 64 countries provides a greatnumber of organisational and knowledge-management synergies. Thus, each management teamcan concentrate on developing its business in the knowledge that certain support elements arecovered by the Group’s accumulated experience.<strong>Inditex</strong>, as the parent company, is responsible for the central corporate services, i.e. thoseservices shared by the eight chains and which facilitate international growth: administration,the use of logistics technology, the general HR policy, legal issues, and financial capacity, amongothers.7press dossierINDITEX