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In the year 1992, Zara was expanded to Mexico, Sweden and Belgium. The first stores of Zara were opened in Singapore and Japan in 2002. Later on, the stores were opened in Russia, China, Morocco, Romania, and Hungary, along with many more countries.
Despite the setback, Ortega remains one of the wealthiest in the world. Aside from Ortega, only LVMH’s Bernard Arnault & family is included on the richest list from the fashion and retail industry. Zara recently announced that it is shutting down at least 1,000 stores worldwide in the next two years due to the changes brought by COVID-19. The store revealed some changes moving forward, including focusing on an integrated and online store to cater to current consumer demands.
In Europe, the brand planned to cut the number of retail locations beginning in 2020. As of January 2023, the clothing retailer has nearly 3000 stores, including its kids and home stores. It specialises in fast fashion, and sells clothing, accessories, shoes, beauty products and perfumes. Tadashi Yanai is the founder and owner of Japanese clothing empire Fast Retailing, the largest clothing retailer in Asia and the parent company of Uniqlo. In 1963, Ortega founded the company that grew into the retail giant Inditex as a small family workshop in his home in Spain—and within four decades, he grew the business into one of the largest fashion retailers in the world.
- At one point, Ortega owned the Pazo de Dodro farm and estate near La Coruna.
- Fast fashion is clothing design that quickly moves from idea to prototype, mass production, and consumers.
- In August 2014, Zara received criticism for selling a toddler T-shirt for closely resembling uniforms worn by Jewish concentration camp inmates.
However, in April 2020, ZARA’s owner ramped up shipment to Asia as China ended its lockdown after 76 days. In September 2013, Bangladeshi garment workers for suppliers to Zara and its parent company, https://1investing.in/ Inditex, protested following the 2013 Dhaka garment factory collapse, demanding a US$100 a month minimum wage. Inditex does not publicly disclose the factories that produce their branded clothing.
Take That, Jeff Bezos: Amancio Ortega Dethrones Amazon Founder As World’s Second Richest
These days, Amancio Ortega is the 23rd-richest person in the world, with an estimated net worth of $53.9 billion. In November 2018, Marta married Carlos Torretta,— then a modeling agent and son of designer Roberto Torrettain — at her family’s home in Galicia, Spain. Spanish publications called the ceremony, which reportedly included a socialite-studded guest list, the “wedding of the year.” Ortega and Perez share two children, including a daughter, Marta, who manages fashion merchandise at Zara. This statistic presents the brand value of Zara worldwide from 2016 to 2022.
If any style or color failed to sell, production was halted immediately. If a style or color was selling well, new colors or patterns were added to existing designs. At the turn of the 21st century, as Ortega approached retirement, he decided that taking his family-owned business to the public market was the best path forward.
Its sales were 19% down on the same period in 2019, compared to a 32% drop for Inditex, though H&M’s quarter started a month later, when more customers were visiting stores after lockdown. Inditex made a loss of 198 million euros ($235 million) in the first half of the year, it said, compared to a 1.55 billion euros ($1.8 billion) profit in the first half of 2019. A 308 million euros ($366 million) store renovation program accounts for some of those losses, it said. Gates, 61, who has pledged to give the majority of his fortune to charity, has donated Microsoft shares worth $35 billion since 1994. He made his largest gift since 2000 in June when he gave Microsoft shares valued at $4.6 billion to the Bill and Melinda Gates Foundation. The self-made fashion magnate is one of eight European billionaires that rank among the 50 richest people on earth.
Profits increased 20%.The company also opened 230 new stores across 48 markets. The fashion giant revenues were in line with what analysts expected as the company benefited from shoppers’ appetite for fashion in the post-Covid period. 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. In early 2020 due to the COVID-19 pandemic, ZARA stores worldwide had closed temporarily due to restrictions.
He initially called it Zorba after the classic 1964 film Zorba the Greek, but after learning there was a bar with the same name two blocks away, he rearranged the letters to read “Zara”. It is believed the extra a came from an additional set of letters that had been made for the company. It sold low-priced lookalike products of popular, higher-end clothing fashions. Bernard Arnault is the chairman and CEO of LVMH, the world’s largest luxury goods company. The French billionaire is the third-richest person in the world, trailing only Bill Gates and Jeff Bezos.
The Principles of Fast Fashion
Rosalia Mera, who co-founded Zara with her former husband Amancio Ortega, died in 2013 at the age o… While the other retailers take six months to get the products to stores, Zara takes only two weeks. The company managed to gain high revenue over the years and has stores all over the world. The improvements in the company include the use of advanced technology as well as a group of designers that meet the need for high-end clothing fashion of customers. The retailer’s portfolio of brands includes Pull&Bear, Massimo Dutti, and most notably, fast-fashion giant Zara. In 2019, Chief Executive Persson said the brand is waiting for more acceptable global rent levels to continue its expansion.
According to Business Insider, he temporarily unseated Bill Gates as the richest person in the world in 2015. Due to the variations of his business, the Zara founder typically earns $400 million in dividends per year. Despite losing $351 million and counting, due to the crisis, Ortega remains ahead of India’s Mukesh Ambani and Google’s Larry Page in the money rankings. Uniqlo sets itself apart from its fast-fashion competitors H&M and Zara with a focus on everyday clothing essentials at affordable prices. Its ‘LifeWear’ aesthetic will distance it further in the post-pandemic fashion market.
It was revealed in July 2020 that Ortega’s property holdings, through his investment company Pontegadea, were worth $17.2 billion. Ortega is the executive chairman of Pontegadea, and real estate assets in his portfolio include Manhattan’s Haughwout Building and Southeast Financial Center. In 2019, the company completed a $72.5 million deal for a downtown Chicago hotel, which followed purchases of a building in Washington’s central business district and two Seattle office buildings.
A primary-school dropout born to a poor family, Ortega was a complete mystery before a photo of him was released publicly for the first time in 1999 in advance of Inditex’s initial public offering. Fiercely private and press averse, Ortega reportedly paid off a paparazzi in 2012 to prevent photos of his daughter Marta on her honeymoon from being released, according to Wealth-X. Zara founder Amancio Ortega grew his company from a tiny dress shop into one of the most-recognized brands in the world.
Other statistics on the topic
In the year 2015, Zara has ranked as one of the best global brands at the 30th rank. In the year 2019, Zara got its logo updated, and in the same year, it’s business rose with 2.17%. In the year 2019, CEO Persson started accepting more global rent to increase expansion in the world. Ortega owns 59% of Inditex, the world’s largest clothing retailer. Besides Zara, he owns Pull&Bear, Bershka, Massimo Dutti, Stradivarius, among others. The Spanish fashion retailer, which also owns Pull&Bear and Bershka, reported net sales of 4.7 billion euros ($5.6 billion) in the May-to-July quarter, up from 3.3 billion euros ($3.9 billion) the previous quarter.
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. Former chairman of best-selling fashion retailer H&M, Stefan Persson owns a 36% stake in the company.
Alain Wertheimer co-owns the French fashion house Chanelwith his brother, Gerard.Alain serves as Chanel’s chairmanwhile Gerard manages the company’s watch department in Switzerland. Yanai opened the first Uniqlo store in 1984 and has expanded the brand to more than 2,000 stores in at least 20 countries. Sandra inherited the title of Spain’s richest woman after her mother’s death. While she isn’t involved with the company, Sandra holds a roughly 4.5% stake in her father’s business,Inditex, according to Forbes.
Products
In 2016 the company received more than $1.2 billion in dividends. Zara stores have men’s and women’s clothing as well as children’s clothing . After products are designed, they take 10 to 15 days to reach the stores. All of the clothing is processed through the distribution center in Spain. The wealthiest person in fashion is Bernard Arnault, the chairman of LVMH, the world’s largest maker of luxury goods that’s behind brands such as Louis Vuitton, Dom Perignon, Christian Dior, and as of November 2019, Tiffany & Co.
From that point on, the Zara brand launched Ortega on a trajectory that would make him the most successful fashion retailer in the world. New Zara stores opened across Spain in the 1980s, followed by the incorporation of Inditex in 1985, and a series of international store openings, brand expansions, and acquisitions throughout zara owner net worth the 1990s. Ortega started the business in 1975 with then-wife Mera, who stitched some of their first pieces of clothing by hand at home. Ortega went on to become a pioneer in the fast fashion industry, strategically keeping inventory levels down and prices low by spinning out styles much faster than competitors.
Just this week, authorities in the French city of Bordeaux rejected plans by a Zara store to double its floor space, over allegations the fashion label may have profited from the forced labour of Uighurs in China. Her new job will be as the company’s chairwoman, helping steer a retail behemoth with nearly 7,000 stores, more than 8,000 factories and a market value of $100bn. Most of its clothing is made close to its Spanish headquarters or in nearby countries such as Portugal, Morocco and Turkey, helping the firm to achieve its famously fast reaction times to new fashion trends.
Inditex said it had reached a “turning point,” reporting a quarterly net profit of 214 million euros ($254 million). The details about yacht ownership as stated on this site and in our Yacht Owners Register are sometimes based on rumors. Often actual yacht ownership by the private individuals mentioned can not be confirmed, at least from a legal point of view. We are active on social media including Facebook, Instagram, YouTube, Twitter, and TikTok. Ortega is an active philanthropist through hisAmancio Ortega Foundation. That was to acquire the latest breast cancer screening technology for public hospitals across Spain.