The 15 Richest People in the $2 5 Trillion Fashion Industry
He owns about 60% of Madrid-listed Inditex, which has 8 brands, including Massimo Dutti and Pull & Bear, and 7,500 stores around the world. Amancio Ortega of Spain is one of the wealthiest clothing retailers in the world. Despite running a major fashion retailer for four decades, Ortega is zara owner net worth intensely private — there were no public photographs of him until 1999, and in 2012, Bloomberg noted that he had only ever granted interviews to three journalists. One Zara employee who worked with him told The Economist in 2016 that “the true story of Amancio Ortega has not been told.”
The cofounder and sole owner of the Armani empire, Giorgio Armani’s luxury fashion house has ventures in haute couture, sportswear, beauty, restaurants, interior design, hotels and resorts, and ready-to-wear fashion, among others. Arnault, the wealthiest person in France and one of the wealthiest in the world, is Chair and CEO of LVMH, the world’s largest luxury conglomerate. As of April 12, 2022, Ortega had a net worth of $46.9 billion, which made him the 25th richest person in the world, according to the Bloomberg Billionaires Index. In addition to industry-leading design-to-store turnaround speed, another strategy of Ortega’s that sets Inditex apart from competitors is that almost all advertising spending has been eliminated. After launching their first company, Confecciones GOA , in 1963, Ortega and Rosalia Mera spent the next decade expanding their client base and building their production capacity.
The business also announces profits of €3.64bn despite a €287m hit to inventories. His public appearance in 2000, as part of the warm-up prior to his company’s initial public offering on the stock market in 2001, made headlines in the Spanish financial press. However, he has only ever granted interviews to three journalists.
Rosalia Mera, who co-founded Zara with her former husband Amancio Ortega, died in 2013 at the age of 69. She was the wealthiest self-made woman in the world with a fortune estimated at $6.1 billion at the time of her death. The company has specialization in fashion and products like beauty, perfumes, clothing, and accessories that makes it one of the largest companies in the Inditex group. The headquarter of Zara is in Spain, but it serves its products all around the world.
- H&M Group, which also owns brands like Weekday, COS, and Monki, brought in more than $22 billion in net sales in 2018, according to the company’s annual report.
- In the agreement, only factory-floor employees were compensated, with “white-collar” employees not covered by the agreement.
- He has been considered for years as one of the five richest men in the world, although currently he has been left out of the top 10 millionaires worldwide.
- The Spain-based multinational clothing company, Inditex (Industria de Diseño Textil, S.A.), is the leading clothing and accessories retailer in the world.
- The improvements in the company include the use of advanced technology as well as a group of designers that meet the need for high-end clothing fashion of customers.
- Business owners need to adapt quickly to the changing times and put more focus on online retail as consumers prefer not leaving the house during the pandemic.
Since Inditex’s initial public offering in 2001, Ortega has received more than 9 billion euros, or about $10 billion, in dividends, according to Bloomberg. Marta Ortega was long considered a favorite to follow in her father’s footsteps and lead Inditex. He stepped down as Inditex’s chairman in 2011 and handed the reins to executive president Pablo Isla, but in 2022, Marta Ortega took over as Inditex’s chairwoman.
Persson stepped down as chairman in May 2020 and his son, Karl-Johan, took over the role. The list includes designers, founders, CEOs, and heiresses who have made their fortunes in fashion, from haute couture to fast fashion. As of April 2022, Inditex is the holding company for seven retail brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home) with 6,477 stores in 95 markets and an online presence in 215 markets.
Amancio Ortega Briefly Passes Bill Gates To Become World’s Richest Man
Other than posting now-unwanted Zara purchases online for sale, shoppers can book repairs and donate unwanted items online or via a store. If successful, this service will be expanded to other key markets. Zara introduced the use of RFID technology in its stores in 2014. The RFID chips are located in the security tags which are removed from clothing when purchased and can be reused.
In his pick, Ortega passed over two older children he had with his first wife, neither of whom are involved with the business. His daughter Sandra Ortega Mera, 53, is a major shareholder, inheriting a 4.5% stake after her mother and company cofounder, Rosalia Mera, died suddenly in 2013. That makes her the second-richest person in Spain, with a net worth of $6.9 billion. Mera, a trained psychologist, lives in the same coastal Spanish town of La Coruña where she grew up and where the company is headquartered with her husband and three kids. Marta Ortega Pérez, 37, will step into the position in April, according to a Tuesday statement released by the chain’s parent company, Inditex. She will replace company veteran Pablo Isla, who has worked at Inditex for nearly two decades, first as chief executive officer and most recently as executive chair.
The Principles of Fast Fashion
In 1985, as Ortega was preparing to launch the Zara brand internationally, Inditex was officially incorporated as the parent company for Zara. The first Zara store outside of Spain opened in Portugal in 1988, followed quickly by New York ; Paris ; Mexico City ; Athens ; Belgium and Sweden ; Malta ; Cypriot ; Norway and Israel . According to the only authorized biography of Ortega, his lifelong drive for success was triggered by a traumatic incident that happened https://1investing.in/ shortly after the family arrived in their new town. One evening, as he was walking home with his mother, he witnessed her pleading for credit to buy groceries and coming out of the store empty-handed because the store owner refused to extend her line. At that moment, Ortega was so humiliated that he decided he would drop out of school and start working—a decision that turned out to be the first step in one of the greatest retail careers in history.
Zara Net WorthAs of May 2023, The net worth of Zara company is around $70 billion. The founder of the company also earns through lingerie and bathrobe manufacturing company. He also launched INDITEX, which is a holding company to expand fashion brands, including Stradivarius, Massimo Dutti, Pull&Bear, and Bershka. The company reported 27.7 billion euros in revenue – $29.1 billion at current exchange rates – during the 2021 fiscal year and online sales surged, nudging the company closer to becoming one of the world’s largest e-commerce sellers. In July 2016, complaints were made against Zara that they had been stealing designs from multiple independent designers for their products.
Most of the products by Zara are supplied based on customer trends. It contains clothing for both men and women as well as for children. The distribution center of Zara is in Spain, and the clothing is processed there only. The reason due to which the company has been able to reach a higher platform is all because of the hard work done by Ortega. If you want to know about the history and evolution of this company, then continue reading ahead for more details.
Rather than cutting costs by outsourcing to China and waiting months for delivery like their competitors, Inditex drives profit by selling at full price and rarely getting stuck with unwanted stock. Since that first brainstorm, Ortega has never veered from the two core principles—customer preference and speed—that enabled him to build the retail conglomerate Inditex. Getty ImagesThe move brings the chain back under the family’s control, after a decade of being run by outsiders. Founder Amancio Ortega, 85, relinquished day-to-day management duties when he stepped down as chair in 2011. However, he remains the company’s controlling shareholder, with a 60% stake in the company, making him one of the wealthiest people on the planet with a fortune of $73 billion.
This marked the company’s first full year since Marta Ortega, daughter of founder Amancio Ortega, assumed leadership of the company. Another company locked in the same dispute with Zara is Tara Sartoria, which sells a small range of hand-made silk products made by disadvantaged women in Indonesia and Vietnam. In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including Zara, of being connected to forced Uyghur labor in Xinjiang. In January 2018, Shanghai’s internet authority summoned representatives of Zara, chastising the company for listing Taiwan as a “country” and ordering it to rectify the situation immediately. In 2017, BBC News states that workers that workers from local company’s which produced clothes for Zara had left complaints on tags in of clothing.
Bershka, which is the second-largest chain by store count in Inditex’s entire operation, with its sales representing 9% of the total revenue for the group … The net worth of the Spanish billionaire is estimated at $62 billion. The 10 themes in The State of Fashion 2023, the authoritative annual report from The Business of Fashion and McKinsey & Company, highlight how businesses can deploy realistic yet bold strategies to drive growth, even amid challenging times. NEW YORK, United States — Spanish retailer Amancio Ortega is the newest challenger to Bill Gates’ position as the richest person in the world. His jaw-dropping wealth could easily have made Ortega a media magnet, but he’s craftily avoided the spotlight his entire life.
What Is Ortega’s Net Worth?
Amancio Ortega, a reclusive billionaire who doesn’t speak with the press, has amassed a sprawling global real estate portfolio after making a fortune in apparel. With the majority of the top fast fashion stores closed for at least a few weeks, the inventory is not selling at the same pace and it is unlikely that e-commerce sales can make up the loss in revenue. It is no secret that Inditex have invested heavily in their operations, delivering fast fashion rapidly and connecting consumers with stock via a seamless online/in-store offer. In the year 2010, he divided his investment holdings in real estate.
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Ortega’s fortune has risen 117 percent since the 2012 debut of the Bloomberg index, compared with a 36 percent rise for Gates. Routinely eating lunch with his employees in the company cafeteria and sticking to a simple uniform of a white shirt and blue blazer. Sign Up NowGet this delivered to your inbox, and more info about our products and services. The company net income soared to 4.1 billion euros ($4.40 billion). In August 2014, Zara received criticism for selling a toddler T-shirt for closely resembling uniforms worn by Jewish concentration camp inmates.