By Nitant Narang

In September 2016, Microsoft founder Bill Gates slipped to #2 in Forbes’ annual list of the World’s Richest Billionaires. Gates’ premier position, which he had steadfastly maintained for many years, was usurped — if only for a few days — by an Amancio Ortega. In comparison to Gates’ public stature and celebrity, Ortega was a relative unknown and it took market watchers, entrepreneurs and business journalists a few incredulous Google searches to discover that the 80-year-old Spaniard was actually the founder of clothing giant Zara.

On closer inspection though, it seems hardly surprising that a figure as unknown and low-key as Ortega helms one of the world’s largest fashion empires. For one, Zara, in keeping with Ortega’s reluctance to do interviews or court any kind of publicity, invests little to no money in advertising. Unlike competing brands and fashion houses, Zara scarcely appears on billboards; its collections do not figure in fashion shows; neither does it lobby for Vogue’s gilded pages, nor does it associate itself with any celebrities or high-profile fashion designers.

Indeed, it bends all the rules and defies all the conventions that have endured since the time fashion, as it were, emerged from the aristocratic salons and bohemian boutiques of 19th Century Paris, and entered the mass market. And yet, Zara is thriving. With over 2,100 stores across the world and a revenue of $15.9 Billion (2016), it is one of the most valuable companies in the world.

Unlike competing brands and fashion houses, Zara scarcely appears on billboards; its collections do not figure in fashion shows; neither does it lobby for Vogue’s gilded pages, nor does it associate itself with any celebrities or high-profile fashion designers.

So how does Zara do it?

The answer is Fast Fashion. Fast Fashion, pioneered by Zara, is both the dynamo of its success and its most distinguishing factor. In contradistinction, legacy fashion brands, whose products are priced higher, follow the more orthodox and time-honored approach of Seasonal Fashion, wherein the bulk of their inventory is designed and manufactured before the beginning of every season, allowing no room for design improvements or changes mid-season.

Before proceeding, let’s strike a clear distinction between Fast Fashion and Seasonal Fashion clothing. While most apparel brands reserve 80% of their inventory towards Seasonal Fashion clothing, Zara does the opposite, reserving only 50% for its seasonal line and devoting the rest to Fast Fashion items. From hereon, all facts, figures and details will relate to Zara’s Fast Fashion clothing and not the other 50% of its inventory.

What is Fast Fashion?

Since it came en vogue, Fast Fashion has been adopted by several other brands — H&M, notably, commits up to 20% of its inventory towards Fast Fashion items — with the result that the concept has become elastic and loosely defined. We’ve, however, tried to delineate it by examining its core features.