One year as non-executive chairman Inditex, the world’s largest fashion retail group, Marta Ortega is trying to change its image while boosting profits and sales to unprecedented levels. World famous belongs to this group Zara, which has been associated for many years with accessible, ever-changing fashion and haute couture-inspired design. According to analysts and investors, Ortega’s goal is to appeal to consumers with high demands for elegance and luxury. This strategy has already helped Inditex increase its sales and profits by passing on the higher cost of apparel and accessories to consumers through higher prices. Inditex ended the leadership succession and passed the baton to a younger generation when Marta Ortega, the youngest of billionaire founder Amantio’s children, took over as non-executive chairman on April 1 last year, just months after the appointment of Oscar Mateiras. to the position of Managing Director.

Ortega’s strategy is paying off as the group recorded record profits and sales last year.

Amantio Ortega created the first Zara store in A Coruña in northwestern Spain in 1975 and began his career as a shirt tailor. The group now includes seven brands, including Pull & Bear, Stradivarius and Bershka, but the flagship Zara accounts for 73% of sales. Marta Ortega started at the bottom of the Inditex family group, arranging clothes on the shelves of Bershka when she was 23 years old. Her appointment was initially met with reservations, but since the 39-year-old took over as non-executive chairman, Inditex’s share price has surged by about 50%, with sales in 2022 the highest ever. Like other publicly traded family companies, Inditex must strike a balance between family interests and a clear corporate governance structure that shareholders can trust. According to Josep Tapies, professor at the IESE business school in Spain, the transition to Inditex’s leadership went smoothly because the family of its founder, Amantio Ortega, entrusted their day-to-day activities to professional leaders.

However, some shareholders would like to know more about Marta Ortega’s thoughts on the presidency. CEO Oscar Mateiras, a lawyer and former general counsel for Inditex, told reporters that his relationship with the president is “unhindered and based on trust.” Ortega works out of the public eye, while an Inditex spokesperson said she is focused on “defining Zara’s brand and product strategy.” In conclusion, according to Patricia Tifuentes, Investment Banking Analyst at Spain’s Bestinver, “Marta Ortega boosted Zara’s position a bit, strengthening its image as a fashion company and not just clothes – and this allowed the Inditex group as a whole to raise prices and protect profits in the face of an inflationary storm.”