# At the home of Zara, fast and slow fashion collide
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Sustainable Fashion Clash in A Coruna: Inditex vs Boutique
Meta Description: Discover the clash between fast fashion giant Inditex and boutique sustainability in A Coruna, Spain, reshaping the clothing industry. Learn more now!
URL: https://financedigest.com/at-the-home-of-zara-fast-and-slow-fashion-collidehtml

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By Corina Pons and Virginia Furness

A CORUNA, Spain/LONDON (Reuters) – In Spain’s A Coruna, two contrasting fashion business models collide – pitching the growing demands for the clothing industry to become more sustainable against the constant need to drive sales.

This rainy, windswept, city on the rugged Atlantic coast is the unlikely headquarters of Zara-owner Inditex – the world’s biggest fast fashion retailer.

It also hosts small boutiques offering high quality, durable products that consider themselves an alternative to the fast and affordable fashion propelling Inditex’s annual sales of 28 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") ($30 billion).

Inditex’s massive output of garments was a [factor behind the European Union’s pledge last year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") to reverse the “overproduction and overconsumption of clothing. It wants all clothes sold in the bloc to be “long-lived and recyclable” by 2030.

The EU will [announce its most significant proposals for the industry](https://www.financedigest.com/gumgum-announces-industrys-first-100-brand-safe-ad-exchange.html "GumGum Announces Industry’s First 100% Brand Safe Ad Exchange") yet at the end of March, environment commissioner Virginijus Sinkevičius told Reuters on the sidelines of an event in Portugal last week.

The [European Commission wants to ensure companies only manufacture](https://www.financedigest.com/holcim-to-acquire-european-roofs-manufacturer-fdt-flachdach-technologie.html "Holcim to acquire European roofs manufacturer FDT Flachdach Technologie") the number of products they need. It will stop short of imposing restrictions, instead asking [firms to police themselves to be called](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES") sustainable, Sinkevičius said.

If you release tonnes and tonnes of clothes, textiles, [shoes into the market](https://www.financedigest.com/tectonic-innovation-to-drive-the-shoe-care-market.html "Tectonic Innovation To Drive The Shoe Care Market"), you will have to collect it,” he said.

Around 5.8 million tonnes of textile [products are discarded every year](https://www.financedigest.com/myfirmsapp-shortlisted-for-top-accountancy-practice-product-of-the-year.html "MyFirmsApp Shortlisted for Top Accountancy Practice Product of the Year") in the EU, equivalent to 11 kg (24 lb) per person. A truckload of textile products is landfilled or incinerated somewhere in the world every second, [according to EU figures](https://www.financedigest.com/record-ils-figures-highlight-abundance-of-alternative-capital-according-to-aon-ils-report.html "Record ILS figures highlight abundance of alternative capital, according to Aon ILS report").

Inditex had 565,027 tonnes of garments on the market in 2021, more than the 528,797 tonnes in 2018, [according to its annual report](https://www.financedigest.com/worst-flooding-since-1998-leaves-33bn-economic-toll-in-china-according-to-aon-catastrophe-report.html "Worst flooding since 1998 leaves bn economic toll in China, according to Aon catastrophe report"). The company may disclose a further [increase when its 2022 annual](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") report is published next month.

So far, Inditex shows no sign of slowing production. But it is changing some processes, aiming to [reduce its environmental impact](https://www.financedigest.com/how-to-reduce-your-business-carbon-emissions-without-impacting-profit-margins.html "How to reduce your business’ carbon emissions without impacting profit margins") while sticking to its strategy of regular new ranges.

[Central to that plan is using recycled materials and cutting water](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor"), energy and raw material usage, Inditex told Reuters in emailed responses to questions.

“We believe that it is not a question of how much (is manufactured), but of how,” the company said.

Half of Inditex’s garments were produced in a more sustainable [way in 2021 – by for example using organic cotton or fibres that do not pose a risk](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way") to endangered forests – compared with 9% in 2018, the company said in its annual report, without giving specific data on how these materials reduce its environmental impact.

Inditex adjusts production to match customer [demand and only 2% of stock](https://www.financedigest.com/stocks-with-greater-socially-responsible-investor-demand-saw-weaker-losses-during-the-covid-19-crash.html "Stocks with greater socially responsible investor demand saw weaker losses during the COVID-19 crash") needs to be recycled or donated, it said in its emailed responses to questions.

The [company is targeting](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies") net zero emissions by 2040, and its strategy has been approved by the Science Based Targets Initiative (SBTi), a body which scrutinises companies’ sustainability policies.

LEAVING LITTLE TRACE

Some of A Coruna’s [smaller boutiques are run by former Inditex designers or sales staff who left to set](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") up their own operations, emulating Inditex founder Amancio Ortega who established his first Zara store in A Coruna in 1975.

Among them are Jorge Toba, 37, and Antia Montero, 31, who [worked at Inditex in purchasing and design](https://www.financedigest.com/savile-row-designer-on-working-from-home-winter-attire.html "Savile Row Designer on Working From Home Winter Attire"). They [launched children’s clothing brand](https://www.financedigest.com/mobile-phone-insurance-brand-loveitcoverit-launches-in-ireland.html "Mobile phone insurance brand, loveitcoverit, launches in Ireland") The Campamento in 2018, producing just two, made-to-order collections a year, mostly with organic fibres.

They don’t add new products mid-season and they charge [online shoppers for returns to encourage conscientious shopping](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! ").

This is a very polluting industry, so we try to leave as little trace as possible,” Montero said at a warehouse in the heart of the city from which the [business is run](https://www.financedigest.com/4-signs-you-have-what-it-takes-to-run-a-business.html "4 Signs You Have What It Takes to Run a Business").

‘A DROP IN THE OCEAN’

Inditex, itself, is working with more than 100 startups specialising in recycling fibres.

Circ, a U.S. company focusing on textile-to-textile recycling in which Inditex [invested last year](https://www.financedigest.com/liverpools-new-chinatown-perfectly-positioned-for-property-investment-this-chinese-new-year.html "Liverpool’s New Chinatown perfectly positioned for property investment this Chinese New Year"), is developing new technologies to separate cotton and polyester blended in most clothes, the first step to produce clothing from used or waste textile materials, its president Peter Majeranowski said.

But Circ and its competitors are only capable of producing 1% of the textiles needed to make the 109 [million tonnes of clothes per year that the global](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") fashion industry churns out.

“It’s really a drop in the ocean,” Majeranowski said. The goal is to [recycle 10% of annual production](https://www.financedigest.com/tire-recycling-downstream-products-market-to-witness-an-outstanding-growth-by-2021-2031.html "Tire Recycling Downstream Products Market to Witness an Outstanding Growth by 2021-2031") by 2030, he said.

Marian Fernandez, 56, spent 25 years at Inditex, rising to become one of the [top managers of its luxury brand](https://www.financedigest.com/top-luxury-car-brands-in-the-world.html "Top luxury car brands in the world") Uterque before setting up her own fashion shop, Maazi, in downtown A Coruna. She posts weekly videos on [social media teaching customers how to build a “responsible”](https://www.financedigest.com/corporate-social-responsibility-within-the-festival-industry.html "Corporate Social Responsibility Within The Festival Industry") wardrobe with dresses that can be used for multiple occasions and seasons.

Boutique labels in A Coruna could show the way to others.

It’s in new and smaller companies where innovation starts,” said Achim Berg, a senior partner at [global firm](https://www.financedigest.com/sp-global-acquires-firm-to-bolster-capability-to-track-commodity-shipments.html "S&P Global acquires firm to bolster capability to track commodity shipments") McKinsey & Co.

($1 = 0.9320 euros)

(Reporting by Corina Pons in A Coruna, Spain and Virginia Furness in London; Additional reporting by Catarina Demony in Lisbon; Editing by Charlie Devereux, Matt Scuffham and Mark Potter)


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