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Eurochem Shanghai

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Inditex
Inditex SA is a Spanish multinational group of textile manufacturing and distribution. Inditex has its head office in Arteijo, La Coruña, Spain. Inditex has 6460 stores under the following brands: Zara, Zara Home, Massimo Dutti, Pull & Bear, Bershka, Oysho, Kiddy's Class, Uterqüe or Stradivarius, among others.
In 1963, Amancio Ortega Gaona founded a company dedicated to the manufacture of clothing that grows progressively and distributes its products to different European countries.
In 1975 opened the first store under the name Zara in a central street of La Coruña (Spain). And in 1985 he joined Zara at Inditex SA, which would be the new head of the group of companies.
In the following years the output is produced outside the Spanish borders opening stores in Porto (1988), New York (1989) and Paris (1990). In 1991 the group expanded with the creation of the Pull & Bear and the acquisition in 1995 of Massimo Dutti.
In 2001 takes place the opening of oysho entering the Spanish stock market.
Uterqüe was the last group of stores opened by the group in 2008.
Despite the failure of trying get into Italian market by the Benetton family. In 2002 it opened the first store in Milan. And the store number 45 it was opened in Moscow.
The recent opening in Australia is relevant, since they are already present in the 5 continents, but are focusing efforts especially in the Chinese and Indian markets, because they are growing markets and in the future they could get great returns.
With an army of over 500 designers in addition to fashion observers and experts, the company follows the latest trends in stores at street level and the constant trips to international fashion fairs. It currently has over 130 000 employees around the world.
According to a director: These are the same trends for the northern hemisphere and the southern hemisphere. No specific designs between one or the other, which does change the fabrics to suit the climate and seasonal factors. Although there is room for differentiation between the stores: It is designed and manufactured while sales are growing. Little production of news is sent, and we see the market’s answer.
Observers and designers try to have a proactive management anticipating trends and fashion to stand out in every season
How do the different environments affect to Inditex?
Political
⦁ Inditex has its own code of conduct which includes all the guidelines to follow in the manufacture, distribution and sale worldwide.
⦁ The main criteria that define its agreement with the Corporate Social Responsibility are: good faith, dialogue and transparency. And work with local, national and international communities in which it operates.
Economic
⦁ Despite the economic downturn and the resulting reduction in disposable income, Inditex has maintained its growth. This can be attributed to its ability to adapt to the needs of consumers.
⦁ There are differences between countries in which it operates.
Social
⦁ Inditex is known for its strong social conscience and charity. Inditex collaborates with prestigious international organizations such as Doctors Without Borders, Entreculturas or Caritas.
⦁ Inditex operates internationally which means adapting to different cultures and people of different ages in these countries.
Technology
⦁ The logistics system is based on software developed by the company equipment. This means that the time between receipt of the order in distribution center to delivery of the goods in the store is up to 48 hours.
⦁ The company has created websites for each of its brands where you can see the virtual catalogs and buy online.
Legal
⦁ Any relationship with governments, authorities, institutions and political parties is based on the principles of legality and neutrality.
⦁ The employment policy is based on the absence of any discrimination on grounds of race, disability, religion, age...
⦁ Inditex recognized: the right of association of employees and creates a work environment based on communication and personal safety.
Environmental

Inditex has created innovative projects which include reducing greenhouse gases, the use of renewable energy, energy efficiency in the production areas and training for members of staff.
Inditex has also decided develop an action to offset their CO2 emissions consisting of tree planting.
All Inditex bags work with the environment (plastic bags are made from biodegradable materials).
The way to Globalization.
-MARKET SEEKING: as the Spanish market saturated and cannot grow anymore;
- EFFICIENCY: they want to diversify their business and operate in more than one economy, and can profit from all the economies where the company is trading, adopting different strategies, such as joint venture and franchising. Production Factors that drove INDITEX toward globalization:
PULL FACTORS:
-Spain's entry into the European Union in 1986
-Globalization of the economy
-Homogenization of consumption patterns across countries, "National barriers are not impediment to sharing a single fashion culture".
PUSH FACTORS
-The limited market growth opportunities at home was the main influence on Zara's decision to expand internationally.
-Changes in consumer behavior: increased spending in their spare time on travelling and education, and less on clothes.
-Growth: need to look for international markets introducing new products;
-The firm tripled in size between 1996-2000
-Earning from $2.43 billion in 2001 to $13.6 billion in 2006

CLOSENESS TO CUSTOMERS: makes firms grow internationally and it influences the company to follow their clients to new marketplaces;
Zara does not apply any promotion through advertisements spending only 0.3% of total revenues on advertising-marketing, while other companies spend on average 3-4% on similar expenditures.

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