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Swot Analysis Of Inditex

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Inditex and its brands
Inditex has 8 brands, namely: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. All offer various kinds of clothes, from elegant, clothes, trendy accessories to shoes for sophisticated fashion lovers, the youngest hipsters, children, women and men. Inditex brands are present in more than 88 countries with more than 7000 of Inditex stores in 2016. Since 1975 the company has been continuously expanding and trying to satisfy the different demand of fashion lovers under the name of new brands. These brands are always reflecting to the demand of a well-defined target group and all of them have their own story.

Zara
Zara opened its first store in A Coruña in the north-west of Spain in 1975. …show more content…

Among the three segments, women considered as a majority with 78% in the target market. Zara customers are young, sensitive and highly interested in the latest fashion trends and design. Zara did not have an explicit target age, because it aims to reach a broader market with their products. Zara tries to identify quickly the customer demand in parallel with the latest design, and provides clothes at an affordable price using cutting edge strategy.

Pull&Bear
Pull& Bear targets youngsters who live in their community, and who are interested in the latest street fashion trends. Pull& Bear transform the latest design into a more comfortable way. The brand is always watching the latest trends and mix it with Californian city style. In its pricing strategy, it is visible, that it offers products at a much lower level than Zara, and Stradivarius. The price range is very similar to Bershka’s. …show more content…

In 2001 Inditex 's shares began trading. Sales has doubled between 2007-2015, from 9.4 billion euros to 20.9 billion euros. The EBIT, the net income and the cash flow also doubled. The number of stores is constantly increasing. There were 3691 stores worldwide in 2007, while more than 7000 stores were counted last year, in 2016. Moreover, the presence in Spain is significant, regarding the company’s culture and origin. For instance, there were 1826 stores in Spain and 5187 stores abroad out of 7013. The ROE is constantly changing from year to year, and that could be a problem towards investors. In 2007, the ROE was 33% and in 2015, it dropped to 26%. The lowest ROE was in 2014, with 25% and the highest was 33%. The ROCE (EBIT on average capital employed) was last year 34% while in 2007 it was 43%. We can conclude a slightly fluctuating pattern, with the highest percentage in 2007, and the lowest with 33% in 2014. The net gearing and the net income on net sales are

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