Tempe Inditex Group. Constantly evolving model

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2 /1 Tempe Inditex Group Constantly evolving model Tempe is the specialist footwear and accessories company of the Inditex Group. Its role is to design, market and distribute all of the collections for the Group s eight commercial formats (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque). Tempe is located in Elche (Alicante) which has one of the largest concentrations of footwear production in Spain. Here, Tempe manufacturing and distribution facilities occupy a surface area of 180,000m2 and annually distribute more than 90 million of units. At the current time Tempe has a staff of more than Tempe follows the Inditex business model which is based on innovation, flexibility, and its vision of fashion (design, creativity and quality together with rapid response to market demands) to continue the expansion of the Group which has more than shops in 96 countries. This philosophy relies on resourcefulness and effort in the search for excellence in the design and quality of its products and innovation in its (business and manufacturing) processes. The success of its footwear collections is the result of understanding the needs of each market and its capability of adapting to the requirements of its customers.

3 /2 The Tempe Business Model The importance of rapid turnaround Tempe has a flexible structure and a strong customer focus in all its areas of activity: design, production, commerce, logistics and distribution. The key to this business role, in which all the processes are carefully monitored, relies on the capacity to adapt the product to our customer s wishes rapidly. A high degree of vertical integration allows us great flexibility in shortening turnaround times and in stock control. In a dynamic, flexible and efficient way, Tempe adapts to the ever changing fashion world meeting the demands of customers all over the world.

4 Opening of the fourth Tempe For and From store Sambil Leganes ( Madrid). Opening of the new Tempe Asia offices ( Dongguan) Opening of the third Tempe For and From store The Style Outlets Culleredo ( A Coruña). New image of Tempe Headquarters 25th anniversary Opening of the new Hong Kong offices. New automated logistics center, m² Opening Tempe For&From Allariz & Elche /3 Timeline Opening of the new Tempe Asia offices. Uterqüe is born.tempe India opens. Opening of Tempe Asia and launching ot the first collection of accessories Creation of the Brazil subsidiary. Tempe arrives to Bershka Men, Zara Home, Stradivarius and Oysho. Creation of Tempe Mexico where footwear is distributed to all the shops of the Group in that country. Creation of new logistic center of square meters that offers service to all the chains incorporating the latest distribution and storage advances Tempe arrives to Bershka Woman and Pull&Bear Woman Tempe arrives to Massimo Dutti Man. Tempe joins Massimo Dutti Woman and Pull&Bear Man Tempe arrives to Zara Man Tempe launches its first footwear collection for Zara Woman. Tempe launches its first footwear collection for Zara Kids Set up of Tempe S.A. as society, with headquarters in Elche, the biggest concentrated footwear production in Spain. Directed by Vicente García.

5 /4 Tempe organisation performance Tempe s activities start and end with the Inditex stores. These play a key part in the development of our collections. Through them we obtain feedback with respect to the evolution of a collection which allows us to shape the product to the demands of our customers. The design teams get inspiration through visits to the major fashion centres and cities, at ground level from the streets, and from information collected from the retail stores. At the same time they work with the design teams responsible for clothes and accessories to develop a coordinated and complementary collection. The Purchasing and Fabrication departments have the job of visualizing and transforming the ideas of the designers into the footwear which will be worn by customers the world over. Advanced Information Technology systems and alliances established with a global network of suppliers are essential in realizing this work. Distribution and Logistics have the objective of meeting the demands of the retail stores whilst cutting delivery times to the minimum possible using the most efficient modes of transport. Tempe has a complex global distribution network with multiple origins and destinations for its products which means that logistics is a key strategic element in the growth and evolution of the company. The Commercial Department is organized by market and its responsibility centers on understanding the requirements of each of these markets whilst working with the retail stores and ensuring that they meet established financial objectives.

6 /5 Tempe and the retail brands of the Inditex Group A diverse offering Tempe distributes footwear to all the retail outlets belonging to the commercial brands of the Inditex Group. Image, ambience in the stores and the products (including footwear) are adapted to the style and characteristics of each brand. Zara ( was the first retail chain to bring footwear to its collections. It was introduced into to the kid s and women s sections in 1990 and 1991 respectively and reaching, in 1992, the men s section. The first retail chain of the Inditex Group is a great example of the close link which exists between the design of footwear and the public. The constant feedback of information from the stores served as inspiration to Tempe design teams. Zara has independent work teams: design, manufacturing, purchasing and product. These teams work in close collaboration and share the same objective: a final product that fulfils the requirements of an accessible and affordable design. More than retail stores strategically located in 88 countries are the showcases for the Zara footwear collections. Footwear which, adapted to the distinct lines and sections, has become an additional element in the fashion offerings of Zara. Pull and Bear ( ) was set up by the Inditex Group in It has a fashion concept which knows how to adapt to the needs of young people with an age range of between 14 and 28. Tempe, since 1993, has drawn on trends from urban sports, alternative culture movements and the avant-garde to give shape to the collections of this brand. Pull and Bear has more than 860 stores in 64 countries located in the best sites within major shopping districts and which are the showcase for footwear which is always at the cutting edge and which seeks to capture new urban trends.

7 Massimo Dutti ( was acquired by Inditex in Tempe s first collection for the male customer arrived in the stores of this brand in Today, its lines for women, men and children can be found in more than 673 stores located in important commercial areas in more than 65 countries. All Massimo Dutti footwear collections, from sophisticated high-end fashion to easy-going casual wear share the same impeccable levels of quality, materials and comfort. Bershka ( was born in April 1998 as a new fashion concept targeting the young female market. Since its conception, Tempe has developed the collections for this brand, which, since 2002, has also offered men s fashion. The chain has more than 965 stores. The hallmark of Bershka footwear is in detailed observation and adaptation of avantgarde trends and designs. Its collections are the answer to the fresh and more daring demands of the new generation. Stradivarius ( was acquired by Inditex in It has more than 866 stores in 58 countries. Tempe collections for this brand define a dynamic, young profile for its female public. New ideas in design and materials are integrated to create a laid back and informal style characterised by its footwear.

8 Oysho ( brings the philosophy of the Inditex Group to the women s lingerie and underwear sector in more than 549 shops in 40 countries. Oysho s footwear captivates feminine lines that cleverly combine warmth and modernity without abandoning comfort. Tempe s ideas for this brand retain the originality of a casual style that has been defined since Zara Home ( is the seventh chain in the Inditex Group and it has more than 402 stores. It specialises in home furnishings, focussing on textiles for bed, table and bathroom lines and these are complemented by tableware, cutlery, glassware and other decorative items. Tempe has joined this chain offering confortable footwear to inspire a warm fashion style at home. The collections are maufactured with quality materials that are elegant and which combine with the spaces of latest trends. Uterqüe is a sophisticated fashion accessory brand which boasts excellent quality at attractive prices. Its collections also include clothing and leather garments and are all designed exclusively by Uterqüe s creative team. Uterqüe was launched in 2008 and has gained strong customer loyalty in the markets in which it has an established presence. Its 66 stores across 12 markets are elegant and refined in appearance.

9 /6 Corporate Social Responsibility The Inditex Group defines itself as a responsible and socially committed company. Its legitimate aims of both profitability and dialogue with its stakeholders (customers, suppliers, shareholders, and society in general) are brought together under a concept which is orientated towards a comprehensive and sustainable approach. Tempe has adopted the criteria of Social Corporate Responsibility of the Inditex Group which are good faith in relationships with stakeholders and society at large, an on-going dialogue with the aforementioned stakeholders and social organisations and transparency in our business activities generally and, specifically, in the development of our sustainability strategy. The three areas of activity of the company: economic, social and environmental are influenced by new policies and management systems adopted in the last few years. Since 2002 Tempe has participated since in the Group s Sustainability Report which complys with the standards set out in the Global Reporting Initiative (GRI). This action is a clear example of Inditex s commitment to transparency in its business activities and relationship with society. All these activities are audited by external agents in order to provide greater objectivity and transparency in assuming a more responsible role in society.

10 Turnover ( ) No. employees Units distributed Turnover ( ) No. employees / Relevant data Constantly evolving model Units distributed

11 Elche Parque Empresarial, C/ Severo Ochoa Elche, Alicante (España) Tel:

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