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  • When we think at some of the greatest companies in the world, we think of examples such as

  • Google, Amazon and so on.

  • But one of the richest men in the world has made his fortune through the most traditional

  • business you can think about - selling clothes.

  • In fact, in the summer of 2017, the shares of his company soared and for a couple of

  • hours and he held the title of the richest man in the world.

  • But Gates claimed back his position later on the same day.

  • Without any formal education except for the first few years in school, he has built the

  • largest clothing company in the entire world.

  • It all started in Spain.

  • Back then child labor was normal.

  • So Amancio left school at the age of 13 to start working as a delivery boy in a local

  • shirtmaker shop.

  • Where he learned to make clothes by hand.

  • He loved his job and started excelling at it, so much that by the time he was 24, he

  • was appointed as a manager.

  • Not bad for the 1960s, right?

  • Ortega realized that only the wealthy residents could afford their clothes so he started working

  • on his own designs that are more affordable.

  • He started producing pretty similar designs but at a much lower cost targeting the rest

  • of the residents.

  • His strategy work out and he successfully sold all of his designs and used the earnings

  • to open his first factory in 1963

  • Finally, in 1975, he decided to establish his own brand and named Zara.

  • Zara's strategy was absolutely simple, sell quality products for a reasonable price so

  • that everyone could afford them.

  • This strategy seems so obvious, why others didn't use it.

  • When Ortega was working in that shirtmaker store.

  • He realized that how the cost of the garments significantly increase when they move from

  • designers to factories to stores.

  • He learned the importance of delivering products directly to consumers without third-party

  • distributors.

  • So Zara started doing everything by itself.

  • This reducing the cost

  • But Ortego's ambitions didn't stop there, it was time to go international.

  • He established his first store outside Spanish borders in Portugal, in 1988.

  • And a year later In New York.

  • And since then the company has been unstoppable.

  • Ortega realized he can't target all the segments of the market through Zara.

  • So he acquired many different brands such as Pull&Bear, Bershka, Massimo Dutti and so

  • on.

  • And formed them all under a holding company - Inditex.

  • But Zara is the biggest of them, it accounts for over 60% of total sales.

  • Unlike other brands, Zara didn't waste money on advertisements.

  • It knew that as long as there are quality clothes for affordable prices, people are

  • going to buy them, so they kept opening new stores instead.

  • By the year 2000, Zara had stores all around North America and Europe.

  • So it was time to invade Asia and the rest of the world.

  • Inditex has over 7000 stores now.

  • What also sets them apart is that, since everything is done in-house.

  • Zara can design a product and get them into stores in less 2 weeks compare to 6 month

  • which is industry average.

  • Ortega followed just in time production strategy.

  • That means they made their supply chain so effective that they could supply their stores

  • in less than 48 hours.

  • Which means, they don't need to order more than they need and if something is selling

  • too good.

  • They know that they can have it back on the shelves in 48 hours.

  • That provided Zara with absolutely unique advantage.

  • This incredible success story started with a 13-year-old kid who simply had a dream and

  • didn't have any formal education.

  • It seems like nothing is impossible as long as you are patient, dedicated and hard working.

  • But in today's world with the rise of the internet, the first thing you have to do when

  • you start a project is to register your domain.

  • Imagine starting your business but then finding out that your domain is already taken.

  • That's exactly why you need Hover because registering a domain through Hover is much

  • easier than you think.

  • You can do it right now with a few simple clicks and get 10% off using the link hover/proactive

  • thinker.

  • With over 400 domain extensions, you will definitely find what will fit your business

  • or project.

  • I personally use Hover because, they have an amazing support team in case if get confused

  • with something, which doesn't really happens because they have made everything easy and

  • simple.

  • So, definitely it worth checking them out and giving them a try.

  • At the same time, you will be supporting this channel.

  • Remember, the link is in the description.

When we think at some of the greatest companies in the world, we think of examples such as

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A2 zara domain clothes strategy started world

How ZARA Took Over The Fashion World

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    Summer posted on 2020/12/03
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