Inditex partners with MIT to promote sustainability research
Spanish fast-fashion king Inditex has spent the last few years working towards two major goals. The first is sustainability, the second is ecommerce. These strategic shifts were necessary for the company, which expanded massively as an early-adopter (and unquestioned market-leader) in the fast fashion trend. Sustainability is important to Inditex not just because it’s important in the general sense, but because fast fashion business models can easily become wasteful. Adopting a more sustainable approach has helped the company to operate more efficiently and align itself with prevailing customer sentiment amongst its relatively young audience.
Inditex’s share price has appreciated by 17% so far year to date
Source: Yahoo Finance
Inditex has announced that it’s got a new partner on its journey to sustainability: the Massachusetts Institute of Technology (MIT). MIT is a world-leading university, and will be contributing the impressive levels of brain power it commands towards a joint research program on sustainability that will run for years.
Inditex has offered the Institute $4 million to fund this research, with $1 million being allocated to the Inditex Materials Science and Engineering Fund in MIT’s department of Materials Science and Engineering to “promote research into circular economy, logistics, and supply chain management.” A further $1 million dollars will be given to the MIT Sloan School of Management (The Inditex Operations Research and Management Fellowship Fund), $1.2 million will go to the Institute of Data, Systems and Society, and $450,000 will for the MIT-Spain Inditex Sustainability Seed Fund. The remainder will renew Inditex’s scholarship program for MIT students.
Inditex partners with a number of other universities in its native Spain – but there’s no doubt that its agreement with MIT could serve to be instrumental in the reinvention of the fast fashion business model.
Dominion holds Inditex in its Global Trends Luxury Fund.
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