Zara’s owner becomes world’s second richest man

We often hear about the self-proclaimed tug of war between the world’s two richest men, Bill Gates and Warren Buffet. A Spanish businessman is now the world’s second richest person – Amancio Ortega. His brand “Zara” witnessed an upward surge in sales of over 14% resulting in the profits massively enhancing by a whopping 28%.

zara store
With Zara taking most of the market share, other retailers are struggling to keep customers inbound. So what’s different about Zara? Analysts say their business model is as simple as it can get and also serves as a reason for extra ordinary performance. They keep limited stock and update collections very often; an important concept for the fashion clothing industry. It is a simple strategy that ensures repeat customers and purchases. Although competitors follow the practice, Inditex (parent company) had realized the need to brand and hence created “Zara”. With successful branding, profits automatically paved their way.
zara brand identity
Brand Identity Prism for Zara.
Today, Zara is one of the most successful clothing brand we see in the world because of which competition stays on their toes. It is their phenomenal branding efforts that have ensured success. And it is this ability to brand that has made Amancio Ortega world’s second richest man surpassing Warren Buffet.

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