BIOGRAPHY:
Amancio was born on March 28, 1936 in the Spanish town of Bussengo de Arbas. There was no sign that the boy would become the ruler of fashion retail: his father, Antonio Ortega Rodriguez, worked on the railroad, and his mother, Josephine Gaoma Hernandez, was an ordinary housewife. In addition to the future billionaire, they raised three more children: brother Antonio, sisters Josepha (Pepita) and Pilar. Despite the fact that the family was poor, the entrepreneur does not remember a single bad memory from childhood. For this he will always thank his mother – “She was exceptional!” During his school years the move took place: in 1944 the family moved to the resort town, the port of La Coruña. But hopes for a better life are not justified: in the new place, the father is given the same meager salary of 300 pesetas (about 100 euros).
As the businessman admits, he grew up as an impressionable and emotional boy, reacting sharply to criticism and ridicule. “When I was 9-11 years old, I felt everything very keenly… I was very proud.” As a 13-year-old boy, he and his mother once went to a local store: “Mom didn’t have money to buy me bread and milk, and she began to beg the owner to lend her food on credit. But he, bursting into curses, drove us out of the threshold. I swear, I have never felt such anger and resentment in my life. And I swore to myself that I would earn a lot of money so that my family would never be in need again.” The boy drops out of school to keep his promise.
First experience: working in the Gala studio:
In the future, Ortega will never regret his childish act: “My profession is my university.” The only thing he lamented was that he did not have enough time to study English. The boy gets a job as an assistant in the Gala atelier, where he works from dawn to dusk – there is no talk of any school!
At first, Amancio acted as a courier, a messenger, delivering ready-made clothes to clients. Then the talented boy is entrusted with sewing shirts – by hand, because sewing machines were in short supply. The billionaire considers his first employment contract with Gala a treasure and still cherishes it: “There is something deeper that has driven me to work since I was a child. And it’s not money.”
Next step: La Maja haberdashery:
A year later, Amancio moves up the career ladder – he gets a job in a boutique for wealthy clients La Maja, where brother Antonio and sister Pepita already worked. Serving the rich, the guy will see more than once how prejudiced they are towards ordinary employees. But the proud Ortega still worked at La Maja for 10 years and met his first wife, Rosalia Meru, at work. Already in the haberdashery business, the textile worker realized how small the audience of luxury clothing buyers is, and how difficult it is to create a profitable store in this area. What if you start selling fashionable, quality items at prices affordable to ordinary people?
Own knitting factory Confecciones Goa:
With such ambitious plans, Amancio opened his textile production Confecciones GOA in 1963. At first, all the action took place in the living room of his own house. The business was a family one: the founder himself was the manager and creator of the projects, brother Antonio was responsible for the commercial part, sister Josepha was an accountant, and Rosalia, Ortega’s wife, helped him in tailoring.
Ordinary workers were local seamstresses – women worked in their own homes. While their husbands went to sea, the poor women were happy to earn an extra penny for their large family. But, we must give them their due, the local needlewomen were truly skilled in sewing. At first, even teenagers were hired to work at Confecciones GOA. Thus, one of the seamstresses notes that she began working at the factory at the age of 14, but clarifies that she only has warm memories: “There were really good working conditions at the factory.”
Already in those days, the businessman followed one of his main principles: “We work without intermediaries!” He was aware of the markup that warehouses and suppliers make and how this affects the final retail cost. The textile manufacturer purchased material from a manufacturer in Barcelona, Confecciones GOA sewed everything from underwear to dressing gowns, from children’s clothes to nightgowns. “We work for real people, not for dreams” – this was the motto of the young enterprise.
How and why the first Zara store opened:
Amancio did not plan to open a retail chain, but His Majesty Chance intervened. In 1975, a respectable customer from Germany appeared who ordered a large batch of underwear from Ortega. The entrepreneur invested all his free money in tailoring, but the client canceled the order at the last moment. In order not to go broke, it was decided to open my own store to sell the finished collection. So, on May 15, 1975, the Zara store appeared in the very center of La Coruña on Torreiro Street. By the way, it is still open – when planning a trip to Spain, you can visit the first Zara.
Ortega is building his own Inditex sinter:
Then events develop rapidly: in 1976 Ortega renames his company Goasam, in 1977 he opens headquarters in Arteixo, and in 1985 he registers his own holding company Industria de Diseño Textil SA – Inditex. Later, overseas expansion will begin, and the agglomerate will begin to open (and acquire) new brands one after another – Bershka, Pool and Beer, Stradivarius, Massimo Dutti, Oisho, Zara Home… Amancio Ortega occupies a well-deserved place at the helm:
She works to adapt the world of high fashion to everyday life, making stylish things truly accessible.
Introduces the principle of Fast-fashion (fast fashion) – a complete change of assortment in stores not with the onset of a new season, but every week. From the development of a model to its arrival on boutique shelves, only 3 weeks pass, and not 3 months, like competitors.
Release of new models in small batches. If an item was not in demand, it did not bring big losses.
The introduction of a new logistics system, thanks to which goods were delivered even to the most remote store in no more than 14 days.
In 2001, he made his corporation public – shares began to be traded on the Madrid Stock Exchange. This event made Ortega himself a billionaire.
All this together allowed Inditex not only to survive the global Economic crisis of 2008, but even to increase sales by 14%! While competitors in 2009-2014 were just recovering from hard times, Amancio’s capital grew by $45 billion. However, in 2011, the tycoon decides to retire. The 75-year-old founder transfers the post of CEO to Vice President Pablo Isla. Ortega is still the ideological inspirer and the largest shareholder of the agglomerate – he owns 60% of the shares.
The main principles of doing business from an outstanding entrepreneur:
Despite the fact that Ortega is a star in the fashion retail universe, the main tenets of his empire will be useful to owners of all areas of business:
- “Give customers what they want.” It is important to offer not what you consider important and correct, but what solves the problems of your target audience.
- “Be faster than the rest.” Ortega built an entire fashion empire on the fact that he was always ahead of the competition.
- “Be curious.” Study what others are doing, borrow the best and learn from mistakes.
- “Be a team player.” It is important for the “captain” of the company to be not only an official, but also an informal leader, to be able to set tasks for the team and delegate tasks to subordinates.“Be disciplined, responsible and persistent.” Who, if not the leader, sets an example for the team?
- “Always keep your business under control.” Entrepreneurship is not something that can be left to chance. If you don’t develop it every day, the business will die.
- “Be a little nonconformist.” A talented businessman is distinguished by a vivid imagination, unconventional thinking and the desire to be different from everyone else.
- The entrepreneur is convinced that the client should always be at the forefront: “The consumer determines the market! If you want to succeed, you must know the consumer, observe his behavior, take care of him and pamper him.”
Ortega’s strengths to envy:
What personality traits can a Spanish tycoon rightfully be proud of? There are actually quite a few of them:
Knows how to keep everything under control. He personally selected a team of designers, monitored the stages of tailoring, and controlled deliveries to stores.
Always ready to help. Workers said that he could transfer money to any worker if he learned that he was in dire need of financial assistance. Today, being retired, he constantly donates large sums to charities.
Capable of being a modest, proud and worthy person. Having become a wealthy businessman, he continued to communicate on equal terms with ordinary workers.
Finds joy and solace in work. The long-awaited son was born in 1971 with congenital cerebral palsy. Friend and biographer Xavier Blanco would later write about this terrible ordeal for a parent: “The birth of Marcos changed Amancio Ortega’s life forever. The incurable illness of his son and heir became a fatal blow for him, from which he has not recovered even today, finding all his solace in work.” Knows how to be grateful and generous. After divorcing his first wife, he paid her a record alimony for Spain – $600 million (in shares of his own company).
A fair person in all matters. Martha Perez, the youngest daughter of a multi-billionaire and heir to his business, began her journey in 2001, like all other employees, from a modest position – a saleswoman at Bershka. The girl worked in the store for a year without any protection, became the head of a retailer in London, then she was transferred to Shanghai and New York. Only then did the father make his daughter a member of the board of directors of Inditex. And only in November 2021, Marta Ortega became the full-fledged leader of her father’s company.
And what else distinguishes Amancio Ortega is that the multibillionaire not only made money from fashion, but truly adored it. He says to himself: “I am the worker who is truly lucky! I have devoted my whole life to a business that I sincerely love.”
Entrepreneur Character Traits: 5 Important Points:
- Ortega is a truly mysterious person. However, based on rare interviews and memoirs of the billionaire, it is possible to paint his portrait:
- Emotional and sensitive. Amancio admitted that since childhood he had the gift of “subtle feeling.”
- Proud. He dropped out of school so that his mother would not humiliate herself by asking to borrow food.
- Fair. He believed that every person, no matter how many coins he has in his pocket, deserves respect.
- Passionate. The tycoon has said more than once that he devoted himself entirely to his work – and taught the same to his team.
- Persistent. A hungry childhood strengthened his character and endowed him with enviable perseverance. He knew: in order to escape from poverty, you need to work tirelessly.
However, a difficult life did not deprive this strong man of his childish spontaneity. One day, after opening another bright boutique in Manhattan, he returned to his room and burst into tears. “I thought about mom and dad. How proud they would be of their Cioligno if you knew that he, starting as a salesman in a small Spanish town, conquered America!
The multi-billionaire is such a secretive person that when he was included in the Forbes ratings, newspaper headlines appeared: “Is Amancio Ortega a fake or a real person?” Even the most reputable publications did not carry his interviews, and the paparazzi had to make do with pictures taken “on the run.” And today the entrepreneur is in no hurry to communicate with the public – it is impossible to meet him on the streets; the tycoon likes to spend his free time alone on his own yacht, Valoria.
What do his friends and contemporaries say about Amancio Ortega?
There are many statements about the Spanish billionaire in the media:
José Louis Nueno, professor of marketing at Barcelona Business School: “I don’t think Mr. Ortega will just play golf. He is interested in a company that has seen store openings reach a rate of one store every 36 hours. He will not leave this job until the end of his days” (about retirement).
Wall Street Analysts: “Ortega’s fast fashion model is resisting the seemingly limitless force of globalization. As industrialists continue to seek the cheapest labor in countries like Cambodia or Sri Lanka or else be overtaken by competitors, Ortega emerges to demonstrate that flexibility in the market and the absence of large inventories can be more important than cheap labor. By bringing production closer to distribution, he was years ahead of his competitors.”
Domenico de Sol, Gucci designer: “I have always been amazed by the highest level of artistry with which Inditex designers design their stores, windows and stands. The elegance and originality are emphasized by the unique lighting.”
Italian fashion designers: “We spend a fortune to develop a new style, and then Zara comes and takes it for free.”
Covadonga O’Shea, former editor of Telva magazine: “Amancio Ortega is a man whose personal qualities are inseparable from his entrepreneurial spirit. He doesn’t have a degree, but he has super intelligence. If he sets a goal, he will achieve it.”
European and American fashionistas: “Thanks to him, we will soon all look a little more Spanish.”
They often say about Amancio: his life philosophy is “absolute normality.” He encourages his followers: “Don’t be afraid to be ‘simple guys’.” He was once asked: “What personal quality do you consider most valuable?” The billionaire replied: “The best thing about me is kindness. I’m sure I got it from Antonio’s mother and grandfather.”
What kind of team leader was this person?
Let’s remember what distinguished Amancio Ortega as the head of his own corporation:
He believed that each of the workers deserves respect, even the “simple hard worker.” “All people are equal, so no one has the right to consider himself the best and unsurpassed.” Once upon a time, his girlfriend’s mother showed him real contempt when she learned that the guy was not the owner of the store owner, but just his employee. He will remember this humiliating moment for the rest of his life and, having become a wealthy man, will never allow himself to be like that woman.
I believed that it was necessary to make each employee feel independent and independent in decisions. Otherwise, how will he be responsible for them? At this time, the leader should always be there as a reliable support and advisor in decision making.
I tried to be on an equal footing with my employees. Until he retired, he did not allow himself such a “Luxury” as his own office or business card.
He listened to everyone and considered it his duty to help the employee and improve his quality of life. Tailors were free to approach the boss and discuss with him the length of the trousers or the number of buttons.
I drew inspiration from working in a team. Ortega himself admitted that his favorite place was the design department: “I always enjoyed being around creative people, mostly young, and listening to their suggestions. These are people who travel a lot around the world and notice all the trends related not only to clothing, but also to lifestyle.”
He believed that every business owner owes his achievements to his own team. “The success of a leader is the merit of thousands of people who sincerely give themselves to their work.”
As one of the richest men in the world, this extraordinary man repeats: “If there is one thing I am proud of, it is the people who work next to me.”
Personal capital: what he own and how much he earn:
As of 2021, the 85-year-old billionaire is retired, which does not prevent him from occupying 11th place in the ranking of the richest people in the world according to Forbes magazine. His fortune is estimated at $77 billion, which is $21.9 billion more than in 2020. Amancio Ortega owns 60% of Inditex shares. The average income from dividends alone is about $400 million per year. In addition, the tycoon from La Coruña owns:
Racecourse center Casas Novas. A passionate fan of equestrian sports, he bought a farm near his hometown for 9 million euros and turned it into a modern show jumping field.
67-meter mega-yacht Drizzle. The cost of the vessel is 30 million euros.
47-meter yacht Valoria.
The king of fashion retail also owns his own plane, a personal Hotel on the sunny coast of Miami and luxury apartments in the most wonderful parts of the planet.
Investments: what is Ortega investing in?
As the owner of a huge fortune, the “king of fashion retail” is also an active investor. Amancio invests primarily in real estate:
Premium office and retail buildings around the world from Barcelona, Madrid to London, New York and Chicago.
Skyscraper “Picasso Tower” (Madrid) – purchased for $536 million in 2012.
Cepsa Tower (Madrid) – purchased for $551 million in 2016.
In addition, the tycoon invests in the development of the gas industry, banking organizations, and tourism destinations. He also owns a stake in the football league. He is the owner of a racetrack and a private Falcon 900 jet.
Personal and family life, favorite hobbies:
Amancio Ortega was married twice during his life: he has a son and daughter from his first wife and a daughter from his second. The businessman’s first marriage lasted 20 years (1966-1986). His chosen one was the late Rosalia Mera (1944-2013). They met at the La Maja haberdashery, where they both worked as salesmen at the time. The young people quickly got along, because they had so much in common: Rosalía Mera Goyenechea left school as an 11-year-old girl to get a job as a seamstress and somehow support herself. Amancio first tied the knot at the age of 30 – his chosen one was 22 years old. In 1968, daughter Sandra was born, and in 1971, son Marcos. The boy has a congenital form of cerebral palsy.
The couple and business partners divorced in 1986, allegedly due to Amancio’s feelings for another woman, who would later become his second wife. However, what happened did not affect the joint activities in any way – Rosalia remained in the corporation. The IPO of Inditex (2001) made her the richest woman in the world ($600 million). When she left the Board of Directors in 2004, with a 5% stake in Inditex, Forbes estimated the businesswoman’s wealth at $6.7 billion. Rosalía Mera was awarded the title of “Richest Business -Lady of Spain”, “The richest woman who started a business from scratch.” At 69, she died of a stroke.
The tycoon’s second chosen one was Flora Marcote, his secretary. The couple was not embarrassed by the age difference – Flora Pérez Marcote is 17 years younger than Ortega. In 1984, their daughter Martha was born. Amancio became engaged to his new passion only in 2001, when he was 65 years old. As the invited guests say, he wore a tie to the wedding for the first time in his life.
The businessman’s youngest daughter, Marta Ortega Pérez, is the rightful heir to the company and her father’s “right hand”. The girl has been working at Inditex since she was 23 years old, and in November 2021 it became known that she became the CEO of the family holding. It’s not for nothing that Amancio singles out his youngest daughter – they are really very close and have similar interests. Marta Perez loves the racetrack and is a professional jockey herself. Her husband, Sergio Alvarez Moya, is a Spanish equestrian star. The girl named her son in honor of her grandfather – Amancio Ortega Alvarez.
Things are no worse for the older half-sister: the woman, managing the inheritance of her late mother, ranks second among the richest people in Spain, second in wealth only to her own father. Sandra’s capital is estimated at $7.1 billion.
Today the billionaire lives with his second wife in “the city where it all began.” His house is located in the historical center of La Coruña. The life of a wealthy man is simple – he likes to walk along the embankment with his wife, play with his dog, visit the cafeteria at the Royal Yacht Club, where he meets with old friends. Sometimes the billionaire visits the Atlantic Financial Club business center, where he is attracted by the restaurant, gym and squash courts. And on weekends, Ortega goes to his country villa – to his beloved goats and chickens, which he raises himself. Amancio is also attracted to walking routes around his native Galicia.
What books can you read about Amancio Ortega?
The biographical work “The ZARA Phenomenon” by memoirist Covadonga O’Shea about the Spanish tycoon became a bestseller. The book was translated into Russian in 2017. The publication is valuable not only for the detailed success story of a man who built himself. The writer tried to transfer her hero’s life philosophy onto the pages: “There is no road to a successful life – we build it ourselves along the way.” And she succeeded superbly – not only was it a practical guide for businessmen, but also an inspiring story for fans of the billionaire’s brands. Another work about a businessman is “Amancio Ortega: from “zero” to “Zara” by Xaber Blanco. The book has not yet been translated into Russian, but it can be read in the original Spanish.