With the financial might of business tycoon Amancio Ortega behind it, the Zara net worth is the largest in the clothing industry.
Digital technology, such as television, mobile phones and the internet, allows trends to come and go quicker than ever before. The fashion industry has had to adapt, ensuring that products get from the runway into the consumer’s closet before the next big thing steals the spotlight.
This is known as ‘fast fashion’. No retailer does it better than Zara.
The company has cut their production time down to just weeks. Three to four new products are designed daily and are available to purchase within three weeks on average.
The approach works – customers are spending more and little stock ends up on the bargain rack.
As a result, Zara’s parent company Inditex is the world’s largest clothing retailer, with net sales of €20.9 billion in 2015 and profit of more than €2.5b. That revenue comes from a number of well known stores, such as Pull & Bear, Bershka and Massimo Dutti. However, Zara is Inditex’s biggest earner by far, with sales of €13.6b.
Rags to riches: How Zara took over high-street fashion
Zara founder Amancio Ortega is currently the richest man in Europe and the fourth richest in the world. Only Bill Gates, Warren Buffett and Jeff Bezos sit above him.
Incredibly, the $85b man was born into poverty, rather than riches. However, his tough start made him determined to relieve his family from such a life.
The Spanish tycoon dropped out of school at 13 and began working as a store helper in a small textiles shop. It was there where he learned how to make clothes.
23 years later, Ortega started his first business, selling quilted bathrobes, before founding Zara in 1975. Within 20 years, the retailer had spread around Europe and now has more than 2,000 stores in more than 80 countries.
What is the Zara net worth?
The Zara net worth has rocketed in recent years, as rapid expansion and a production line overhaul pulled more people into their retail stores.
As a result, Inditex’s share prices have risen by over 550% in the last decade. The company’s market cap now stands at €112b.
That includes Ortega’s many brands. However, with 65% of revenue coming through Zara stores, the fast fashion brand accounts for approximately €72.7b of Inditex’s value.