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1 © inditex 2008 THE IMPORTANCE OF TRADEMARK REGISTRATION IN THE EXPANSION AND INTERNATIONALIZATION OF COMPANIES
2 © inditex 2008 DETAILS, CONTEXT AND HISTORICAL VIEW EXPERIENCE OF TWO DIFFERENT MARKS IN TWO DIFFERENT MOMENTS: creation and protection of the trademark VS creation and protection of the trademark
3 © inditex 2008 INDITEX NOW 3.384 stores 69 countries 72.377 employees 62 % International Sales 8.196 M TURNOVER 2004 Manufacturing and distribution of fashion clothing, footwear and accessories
4 COMMERCIAL FORMATS (brands) © inditex 2008
5 ZARA HOME COMMERCIAL FORMATS (brands) © inditex 2008
6 1963 First ZARA workshop
7 © inditex 2008 ZARA is born (Confecciones GOA) in Coruña in 1964 Manufacturing of womens clothing Distribution through sales agents Sales Volume of approx. 2,000 MM 300 employees STARTING POINT: YEARS 60 / 70
8 © inditex 2008 1975 – 1 st ZARA store in A Coruña
9 © inditex 2008 Years 1975 – 1980 Creation of the retail company GOASAM, S.L. and the ZARA brand. Opening of own stores Expansion limited to Galicia with openings in the main Galician cities Continuation of manufacturing and distribution through agents Limited sale of own products (15% of total sales only)
10 © inditex 2008 EXPANSION IN SPAIN + CONSOLIDATION OF BASIC BUSINESS PRINCIPLES Increase of own manufacturing Flexibility of production lines: Manufacturing in light of consumers' demand Productive System of vertical integration Reinvestment of almost all the profits Strengthening of design and window dressing Departments Reduced periods of product rotation END 1988: 71 stores; 2,330 employees; turnover 21,000 m ptas 1 st INTERNACIONAL TRADEMARK application: 1984 Years 1980 – 1988
11 © inditex 2008 - 1 st INTERNATIONAL OPENING: OPORTO 12/12/1988 - 1 st OPENING OUTSIDE SPAIN AND PORTUGAL: PARIS 2/10/1989 -1 st OPENING OUTSIDE EUROPE: NEW YORK 21/09/1989 own stores franchises joint ventures 90s INTERNATIONAL EXPANSION
12 © inditex 2008 90s DIVERSIFICATION / BRANDS ZARA HOME 2003 1991 Creation 1985 – Purchase 1991 1993 1998 Creation 1993 – Purchase 1999 2001
13 © inditex 2008 CHARACTERISTICS :Vertical Integration MANUFACTURING STORE DISTRIBUTION DESIGN quick answer to market demands!!!!
14 © inditex 2008 CHARACTERISTICS : attractive points of sale
15 CHARACTERISTICS: model of store management Customer Service Easy payment Easy Product refund Excitement for clients Price Quality Attention to details © inditex 2008
16 IP (trademarks) MANAGEMENT MODELS EXPERIENCE OF TWO DIFFERENT MARKS IN TWO DIFFERENT MOMENTS: creation and protection of the trademark VS creation and protection of the trademark © inditex 2008
17 © inditex 2008 IP (trademarks) MANAGEMENT MODELS:CREATION Internal creative process in accordance with commercial project Legal viability verifications Vocation to stay Inalterability Random choice without a clear vocation Unknown legal viability Acceptance of possible changes Starting point Beginning 90s
18 © inditex 2008 IP(trademarks) MANAGEMENT: LEGAL PROTECTION Professional management only afterwards First application only 3 years after use (1975/1978) Fist international application (WIPO)1984 Professional management from the start Planned protection prior to use Optimization of international mechanisms of protection
19 IP (trademarks) MANAGEMENT: LEGAL PROTECTION Protection in stages with various legal obstacles (decisions in light of circumstances; pressure; need of litigation and negotiation) Uniform, quick and peaceful protection (almost no incidences, if any solved in advance or without strain) © inditex 2008
20 © inditex 2008 IP (trademarks) MANAGEMENT:CONSEQUENCES Legal Expansion in accordance with and prior to the commercial one: rhythm and advantages Commercial Expansion discordant with legal expansion and protection: rhythm and risks
21 © inditex 2008 The value of: Being conscious of trademarks importance Knowledge/Learning Planning International mechanisms IP (trademarks) MANAGEMENT: FINAL THOUGHTS
22 THANK YOU VERY MUCH © inditex 2008
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