Heroes, villains and tall tales
Who doesn't love a tale of robbing the rich to feed the poor? The baddies are defeated, the meek are protected, and the only evidence of the hero's presence at the scene is perhaps a 'Z', symbolising that "Zorro woz 'ere". But you could re-word the title of that swashbuckling story of Don Diego's alter ego, to reflect the great deeds of one of Spain's modern day fashion heroes.
The Legend of Zara has quite a ring to it. I can just picture Zara, dressed from head to toe in elegant catwalk rip-offs, galloping all over the place astride her Spanish stallion. Through high streets and shopping centres she charges, dispensing affordable chic to the fashion-starved, while those dastardly luxury brands wring their hands and gnash their teeth in impotent rage.
If this all sounds a bit silly, perhaps some figures and decimal points will drive the point home. Zara has officially reached legendary status as the world's largest fashion retailer, following news that its first quarter sales rose nine per cent to $3.75 billion, just ahead of US giant Gap, which posted a 10 per cent fall in sales to $3.68 billion.
Founded by the reclusive Amancio Ortega in 1975, Zara grew from humble beginnings. Ortega, who joined the rag trade as a delivery boy for a shirt maker at the age of 13, is now Spain's richest man, with a fortune of $23.2 billion.
It makes for a great story. And in case there's anyone out there who doesn't know the details of said story, here's a potted version; Ortega and his colleagues developed a retail model that relied on parent company Inditex having total control of design, production, distribution, marketing and sales - in other words complete vertical integration. Zara clothes are transformed from drawing board sketches to retail sales in as little as 10 days.
As Aussies are by now well aware, Zara seems likely to remain little more than a legend on these shores. Despite its global growth - Zara operates a whopping 3900 stores across 70 counties - no date has been given for the launch of Zara Australia, to which businessman Solomon Lew - himself one of this country's richest men - has owned exclusive rights for almost a decade. Reports claim Inditex is delaying entry into the Australian market, due to concerns over logistics and the different seasonality of the southern hemisphere...
But if recent developments concerning another of Lew's interests are any indication, the answer could be more complex. Certainly Lew is a skilful story teller. As his predator vehicle Premier Investments moved in on the Just Group in recent months he almost managed to convince everyone that Just was flailing and would be lost without his heroics.
Now that he has the parent of Just Jeans, Jay Jays, Dotti, Peter Alexander, Jacqui E, Portmans and Smiggle in his clutches, the story has been altered to emphasise that Premier has "successfully positioned" Just to benefit from its cash heavy status.
Most commentators agree that Lew gained Just Group for a knockdown price. In other words he won't have to do anything very spectacular to ensure a reasonable performance from the retailer over the medium term.
A "strategic review" of Just's assets is now supposedly on the cards, but whether this means slashed jobs or new brands is anyone's guess. Lew's prowess seems to lie in timing a takeover to perfection, with investment returns in mind, while spinning the right yarn to justify the move. As to whether Just Group's renaissance will turn out to be as mythical as Zara Australia or Don Diego de la Vega, who can tell? "Lew's prowess seems to lie in timing a takeover to perfection, with investment returns in mind."
By Tracey Porter