The international growth of fast fashion retailers: the Inditex case

The case examines the process of internationalisation of Inditex Group in the past and the challenges for a further growth, in the context of a more general expansion of major fashion retailers in all the global markets. Inditex was trying to develop its sales in China and had to choose which kind of strategy to adopt to reach its goals. Even though Inditex was widespread all over the world, there was a great disparity between its commercial presence in Europe and other regions. Moreover, Inditex’s manufacturing facilities and suppliers’ network were concentrated in Spain, close to the company’s headquarters (HQs). Inditex’s management was aware that expanding in the Chinese market could require it to do offshoring and shift a part of production and purchasing there to be competitive in terms of pricing and delivery time. However, this would involve profound and risky changes in the overall business model.