The story of Zara founder Amancio Ortega is like a dream. Who could ever imagine a young boy, at the age of 16 from a non-wealthy family could be one of the richest men in the world today.
We all know Zara, the Spanish company, with stylish, office friendly and affordable items. Multiple shops seen in every city, they’re not spending thousands of dollars on their marketing, and if you’re a regular visitor, aware of the usual long lines in front of the cash desks and ‘friendly’ sales staff.
Amancio Ortega is the richest man in Europe, with a net worth estimated at $57.5 billion
Founder Amanda Ortega is the third richest man on the planet. When I read this, I know I must have a weekly positive influence on his bank account — but that’s beside the point, I’m actually fascinated about his success story, and decided to do some research behind his success. There are basically 5 facts behind his success:
At the age of 16, Ortega decided that he could start a company and make real money. By actually REALLY selling things. Compete with his competitors by giving customers exactly what they wanted, quickly instead of buying up inventory and hoping it would sell. A total new business model with an impressive supply chain. In 1975, he opened his first store, and 10 years later his first international store in Portugal.
‘Ortega built his empire on two basic rules: Give customers what they want, and get it to them faster than anyone else. These principles have made the company an optimal supply chain different from traditional retailers.’ His approach sounds like pure logic to me, but as a matter of fact, very few companies are adopting this very successful business model. Why would you ‘guess’ and hope customers will buy your products if you can do it the other way around and give them exactly what they want!
Very few companies can challenge Inditex at this time. The company is in a race with themselves rather than anything else
His story is like a fairytale and we can definitely learn something from Mr. Ortega’s approach.
What do you think? Does it seems that most extremely wealthy people don’t care about the money in the first place, but followed their passion? Let us know.