World's biggest clothing retailer expands online

Do you know which company is the world's biggest clothing retailer?

Hint: The company is based in Spain and has 6,700 stores in 54 nations. It designs, manufactures, distributes and retails its own products using the 'fast fashion' business model.

Not only can this company make the most of emerging fashion trends, it can minimise markdowns and increase profitability because of its extraordinary ability to capture and analyse purchase data and because it controls the supply chain.

The firm's retail brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Uterqüe, Oysho, Zara and Zara Home.

Yes, the company is Inditex, which has just reported excellent profits. Zara is its best-known brand in most countries. Knowing its customers' digital preferences, Zara is very social, with 3 million Instagram followers, 24 million Facebook likes, 735,000 Twitter followers and 125,000 Pinterest followers.

However, online-only fashion retailers are a threat to the parent company's retail sales momentum. That's why Inditex is expanding its online operations and also moving toward larger stores rather than smaller ones--to make a retail statement, offer more styles in more sizes and colours, and reinforce a strong competitive image in top metropolitan markets where fashion stores are almost everywhere.

Nothing is left to chance. Inditex has pilot stores where it tests marketing elements such as window displays and merchandise layout. Elements that test well are put into action quickly, and the company is always testing something new.