The headline certainly makes an impact:
“Inditex overcomes the pandemic, leading the recovery of the textile industry in sales as well as profits, all the while maintaining far greater margins than their main rivals.” Expansión – Monday 28th of March 2022
The power of this headline is self-evident.
How have they made this possible? What is the Inditex formula for success?
Let’s consider the enormous amount of talent and human capital that the largest textile industry companies have access to. Both headquarters staff (design, logistics, digital transformation managers, online staff, etc.) as well as in-store staff can play a definitive role when it comes to actively listening to customers, loyalty programs, or building a sense of belonging to a brand. However, this is the case for many companies…
Both Luis Conde – a national reference point for high-level headhunting – as well as Victor Küppers – a model for personal development- always mention in their talks that the formula for success for getting the most out of people contains an extra ingredient that makes the difference for all teams and companies worldwide:
V = [K + S] x A
A person’s value is the sum of their knowledge and personal skills, multiplied by their attitude.
Attitude is the key to success. When one goes through life with a positive attitude, life is fantastic!
However, considering that we are discussing the retail industry, the formula would be:
V = (PS + FF) x P
The value of a retailer is the sum of their accuracy with production selection and manufacturing agility (or fast fashion), all multiplied by people.
That is to say, the key is that they find the correct product that the customer wants, producing short runs with their fast-fashion model, selling the majority of their products at 100% of their value (full-price). None of this would be possible without the enormous work carried out by the staff of these companies. Indeed, people are the multiplier.
Inditex has had tremendous results in 2021. This constant level of accuracy over time combined with an efficient logistical system (known worldwide) makes it possible for them to have an operating margin of 15.45% and a net margin of 11.7%. Is it a lot or a little? It is four times greater than their direct rival, H&M. The numbers speak for themselves.
It is for that reason that we have created wemuse, in order to help every retailer find out what their customers want and to make accurate decisions when it comes to product selection. We transfer all of the input left daily by customers in stores to headquarters.
The information obtained when clients try things on, go through the checkout line, or are helped by stuff is all real and crucial information that allows you to instantly learn what customers want and what their needs are.
We have many satisfied clients who have made accurate decisions with wemuse.
Contact us if you would like a demo!