Product details

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Abstract

Zara, a Spanish multi-national retail clothing chain founded way back in 1975 had grown to become a highly popular fast fashion giant. Zara's business model involved producing millions of garments every year, which was causing more harm than good to the environment. Like other fast fashion brands, Zara had also come under scrutiny for causing adverse environmental impact. Meanwhile, Zara's parent company Inditex was making huge efforts to focus more on sustainability. The company had pledged to produce all its collections from 100% sustainable fabric by 2025. However, Zara was accused of falling far behind other brands in terms of sustainability. Zara got a new ray of hope after Marta Ortega (Ortega) took the reins of the company in April 2022. Ortega's role was crucial for the company's future as it was planning to increase its sustainability initiatives. Incorporating sustainability without impacting Zara's rapid growth was a huge challenge. Would Zara under the leadership of Ortega overcome the industry-specific challenges and succeed in fighting the Climate Change Crisis?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

About

Abstract

Zara, a Spanish multi-national retail clothing chain founded way back in 1975 had grown to become a highly popular fast fashion giant. Zara's business model involved producing millions of garments every year, which was causing more harm than good to the environment. Like other fast fashion brands, Zara had also come under scrutiny for causing adverse environmental impact. Meanwhile, Zara's parent company Inditex was making huge efforts to focus more on sustainability. The company had pledged to produce all its collections from 100% sustainable fabric by 2025. However, Zara was accused of falling far behind other brands in terms of sustainability. Zara got a new ray of hope after Marta Ortega (Ortega) took the reins of the company in April 2022. Ortega's role was crucial for the company's future as it was planning to increase its sustainability initiatives. Incorporating sustainability without impacting Zara's rapid growth was a huge challenge. Would Zara under the leadership of Ortega overcome the industry-specific challenges and succeed in fighting the Climate Change Crisis?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

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