Mexico, The Jewel Of Spanish Company Zara in America

Mexico, the jewel of Zara in America
In 2010 Inditex, which operates Zara and Bershka, opened 20 stores in Mexico and plans to continue with this pace, Mexico is the most important market for the company over the United States and Canada.
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Although Zara is the format of Inditex's flagship store in the world in recent years has diversified. (Photo: Ramón Sánchez Belmont)
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By: Jesus Ugarte
MEXICO CITY (FORTUNE) - After 18 years of operations, Mexico has become the largest market in America to Inditex , one of the leading producers and distributors of fashion in the world with eight store formats, including, Zara , Pull & Bear, Massimo Dutti, Bershka, Oysho, Zara Home and Uterqüe.

To date the company of Spanish origin in Mexico operates 208 units, far exceeding the combined U.S., Canada and Brazil (just over 90 in total together).

" Mexico was the first country in which the group developed its entire international model , so after he was in New York and Paris, but you can not really talk about the internationalization until he arrived in Mexico is a rich loop (with Mexico) "said Jesus Echevarria, president of Institutional Relations and Communication Inditex.

In 2010 the company headed by Amancio Ortega Gaona (considered the richest man in Spain and one of the wealthiest in the world ) , opened in Mexico a total of 20 stores and its expansion plan for this year considered to keep a similar pace, This will depend inter alia on the locations.

"We are on the same line, at the same level, without specifying a specific number of stores, our formula is not working, it makes sense, Inditex, Zara and other formats grow store to store, just in time you have the correct location in the face of the store, until there is no such location, did not arise as a goal , "said the executive in an interview with FORTUNE.

Declined to release the mix of store formats to open in 2011. However, he said that growth will continue Uterqüe, in order to consolidate and project in Mexico as a string with great potential.

In 2009 they opened the first unit Uterqüe in Santa Fe (Mexico City) and in 2010 in Angelópolis (Puebla), Gait (Guadalajara) and is inaugurated next to Peaches in the nation's capital. " Mexico was the fourth country , after Spain, Portugal and Greece, where it opened this format, is now present in 17 countries, Mexico has had a very good reception. "

Uterqüe is the new format of Inditex dedicated to accessories, fashion accessories and a selection of textile and fur garments . The full collection designed by the creative team Uterqüe, combines the esthetics of the latest fashion trends with the exclusivity of your product. According to the website of the company's total operating units in Mexico, 24% are Zara , Bershka 21%, 17% Pull & Bear, Oysho 15%, 14% Massimo Dutti and Zara Home and Uterqüe rest.

Globally, the General Manager of Communication and Institutional Relations of Inditex in the world made it clear that the priority of the company is consolidating its European operations and accelerate its expansion in Asia (compared to other markets) .

"In recent years in China beyond the cities of Shanghai, Beijing and Hong Kong, have been opening many stores in other places (of that country.) Capillary is entering geography throughout China," he revealed Echevarría.

Stocks up 15 days

The Indetex provisioning model is based on what is called the "supply of proximity" by how fast it is made. In this sense, more than 250 company designers work once the information retrieved from the shops.

"In 15 days and not more than 20 garments are ready to refill the stores receive 2 times a week these developments," said the executive.

The supply of Inditex in Mexico combines local products imported. In footwear is an important part of Guadalajara and León (as well as garments) and another decoration for Zara Home .

"In Mexico there are 18 suppliers of shoes: 9 in Leon and Guadalajara 9 in producing a total of 4 million units in footwear. Furthermore, these products are exported to Japan, Venezuela and Colombia (both in clothing and footwear)" , explained Lizbeth Luis, the Department of Communications and Institutional Relations Inditex Mexico.

Demanding customers

The level of customer demand in Mexico is very large not only in terms of quality, but in fashion . "The client and the client are extremely knowledgeable about fashion, is a culture of high fashion and that both permanently forcing us to an improvement in the level of fashion and how quickly you should arrive at different stores "acknowledged Echevarría.

That demand comes to the design teams, who must analyze trends that are arising in the stores, together with those of other countries. This affects the supply of fashion.

In terms of output, Mexico (where it employs about 5,000 people) belongs to the American region, which had a positive performance in the first 9 months of 2010 . The year 2010 ends on 31 January and the company will be releasing the results of that fiscal year to mid-March.

The American area contributes about 10% of the income of Inditex in the world. The group opened its first Zara store in 1975 in La Coruña (Spain), which started business and where its headquarters are located . To date, operates about 5,000 stores in over 80 countries