SPANISH high-street clothing empire Inditex's success lies in its 'swift production speed', says a London business college professor.
Speaking of sportswear brand Adidas' recently-announced plans to centre its operations on manufacturing in Europe, marketing tutor Vince Mitchell of Cass Business School says the textile firm owned by Spain's richest man, Amancio Ortega had paved the way for global success by concentrating on getting its goods made and on the shelves in record time.
He referred especially to budget label Zara, the main Inditex brand known outside of Spain, although the company's practices work similarly for its other lines - mid-upper high-street ranges Uterqüe and Massimo Dutti, quality interiors chain Zara Home, cut-price streetwear label Pull&Bear, underwear branch Oysho, and the cut-price versions of Zara - Bershka and Stradivarius, which are marketed for teenagers spending their pocket money.
And now German sports firm Adidas has taken its lead from the Galician empire - it is testing automated production units which, when combined with existing human staff's efforts, would make manufacturing faster and allow customers to seek a personal touch when buying goods.
So far, however, automated production has failed to convince investors outside of Europe or to keep rival brand Nike from encroaching on its market share - although it did cause an increase in share prices in Frankfurt.
To this end, Adidas wants to continue along the same lines, but focus manufacturing on Europe.
Marketing, design and production will expand outside of the 'old continent', in Los Angeles and New York - the idea being that 'global cities' influence global opinion and success in either or both of these means success in the USA as a whole - as well as Shanghai and Tokyo, but a greater investment in operations in London and Paris will be made.
Adidas has not said whether it intends to bring more of its factories into Europe, and if so, where they will be, but the brand already has a strong presence in Spain on the high street.
