Intro

Today we are covering the world of fast fashion. If you don't know the name Inditex, you certainly know Zara, the core business inside Inditex. My guest, Alistair Wittet, recently launched Aecus Partners, an equity boutique specializing in European and global equities, and has followed Inditex for decades. 

He gets into how the company pivoted its business over the years from the initial store expansion, the e-commerce evolution, and what has allowed Inditex to succeed where other fast fashion peers have struggled. There are so many interesting themes here: success in no-growth industries, the power of thoughtful vertical integration, decentralized decision-making, and corporate pivots.

Please enjoy this Breakdown of Inditex.

Founders Podcast - #372 Amancio Ortega

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:06:52) Overview of Inditex and Zara

(00:09:46) The Fast Fashion Model

(00:14:27) Origins and Expansion of Inditex

(00:17:22) Navigating Financial Crises and E-commerce

(00:22:30) Supply Chain and Inventory Management

(00:24:32) Revenue and Growth Dynamics

(00:29:48) Margin and Cost Structure

(00:35:35) Inditex's Financial Management Strategies

(00:36:20) Impact of COVID-19 on Inditex's Margins

(00:37:13) Free Cash Flow and Inventory Management

(00:39:43) Competitive Landscape: H&M and Shein

(00:42:57) The Role of Culture in Inditex's Success

(00:54:51) Sustainability and ESG Concerns

(00:58:43) Investment Insights and Risks

(01:00:40) Key Lessons from Inditex