Look At The Operation Mode Of Domestic Brand Service Enterprises From The Success Of Inditex

Headquartered in Spain, InditEX (ZARA's parent company) is currently the largest in the world. Clothing brand Retailer. Since its listing in 2001, the annual compound growth rate of operating income and net profit is 16.17% and 19.83% respectively. In the same period, the company's share price grew by 175%, far ahead of the IBEX35 growth rate of 14.66% in the same period. The valuation level of the company's stock price has reached 60 times in the fast growth stage, and the average level is about 25 to 30 times. By the end of 2010, the company's total market capitalization reached 34 billion 970 million euros, second only to H&M in the industry.

We believe that the company's successful business model is made up of five main points: customers, stores, design / production, logistics and team. Specifically, the following aspects: (1) customers are the center of everything. (2) channel is the best platform for brand communication. (3) fast design / production originates from customer needs is the key to business. (4) Efficient operation The logistics center is a necessary condition for success. (5) to meet the needs of customers, the team is a successful organization to protect the company.

Through the study of Inditex company, we believe that the operation of domestic brand clothing enterprises has the following enlightenment: (1) from the perspective of brand long-term development, we recognize the strength of domestic companies to buy a small number of core business district stores, but also fully consider the purchase price ratio of shops to make rational decisions. (2) the growth of brand enterprises is not only an extension of the number of channels, but also an important direction for the improvement of the benefits of single stores. There is still much room for domestic enterprises to do so. (3) every brand enterprise will experience certain business fluctuations during the development process. How to deal with it quickly and turn it quickly is crucial to the company. (4) the channel itself is a good platform for brand promotion. However, in the current domestic business environment, for the vast majority of domestic brand enterprises, it is still an important way to promote sales through the necessary advertising input while opening the exclusive stores in the core business circle. (5) whether the enterprise is directly run or franchised is in line with the development mode of the enterprise and the current business environment. The proportion of joining and direct operation is not the key to decide whether the brand can grow or expand.

Through studying the relationship between Inditex company's stock price performance and business performance, we think that there are important revelations for investing in brand apparel stocks in the capital market: for a fast-growing enterprise, as long as the overall upward trend of the company or industry has not fundamentally changed, the stock price has dropped due to short-term business fluctuations or market systemic adjustment, which is the best opportunity for value investors.

Conclusion: the success of Inditex has proved once again that the mass brand clothing area like the company is the most easily generated giant company. We believe that there is not a brand clothing enterprise with such excellent brand operation ability and supply chain system in China. The most close to the enterprise temperament is the American state dress, but this is also the development space of the local brand clothing enterprises. After all, we are in the fastest growing and most dynamic clothing and consumer market in the world. After all, our local brand clothing enterprises have accumulated good brand foundation, channel resources and market experience after 15 to 20 years, and the capital market has provided them with a broader development platform. We firmly believe in domestic brand clothing enterprises, and think that its sustained and rapid growth will provide investors with considerable compounding. Rate of return 。