smart thing is to presume to buy bargains
care brands to price sensitive consumers - The culture of 'outlet' extends and sophisticated - Instead of a way to liquidate stocks, these stores are already profitable market
own
Get CARMEN MORNING for 60 euros a pair of shoes costing seven months ago, 200 is a bargain. A bargain. A good deal for the buyer and, although the product is sold at 30% of its original value, also for the firm and the company selling its stock, or remnants of previous collections. That is, for the outlets, a business model ever expanding and highly profitable. In fact, accounts for 12% of turnover in the textile sector in Spain, where 10 years ago accounted for less than 1%, according to studies by the Business Association of Textile and Accessories Trade (ACOTEX). And while in 2009 the luxury sector revenues fell 8%, factory outlets increased 7%, as revealed by a report from the American consulting Bains & Company.
The user type is a professional urban woman between 20 and 35
The companies have adjusted their production and have less surplus
The difficulty is not to interfere with the launch of new collections
The Experts say that selling is counter-parts with defects
One expert: "If your brand of luxury just a rake, your image is diluted"
Stores 'outlet' improve its offer to compete with Internet
The economic crisis in this market had the opposite effect to the rest of the fashion industry and spur finished. It was no longer something residual, as Feli says Benitez, CEO of Privalia in Spain, a website selling discount, which in 2010 had revenues of 170 million euros and expected to reach 400 this year. The proliferation of online outlets finally settle this business as an almost indispensable link in the textile chain, and changed the rules of the game. No longer only serves to offer discounted products. The table with a pile of crumpled clothes in which scavenge and dive customers has become more sophisticated and professional.
Now, you have to dispose of the stocks in a qualitative way, spoiling the presentation, service, and, if possible, turning the act of buying into an experience in entertainment. "This is the brand recovered its image, regain some of the investment and free of a series of articles," says Fernando Maudo, general manager Vente Privée portal in Spain.
So that sounds simple, but the 970 million that his company turnover last year and forecast to grow 15% this suggest a more complex network and profitable.
But let's start where we can show the phenomenon. According to Benitez, in 2009 there were two factors that favored the expansion of outlets. First, the "consumers become more price sensitive." The crisis makes all scrutinize the labels, which have been affected by it and those who do not. As explained by Susan Campbell, director of the Advanced Course on Strategic direction and management of IE Luxury Universe, is no longer frowned upon (if it ever was) to pretend, to flaunt. "People are not going to hide or Lidl Day, because it states that it is making an effort. Presume to buy cheap products, that of 'look what I'm divine and that little has cost me." Smart shopping or purchase the smartphone is fashionable. " Adriana
Peta responsible for 20 stores in the chain of leather goods Salvador Bachiller, confirms: "Our outlets have been very good result and the crisis much more: in 2010 sales grew 15% over 2009. The customers look like they are carrying an incredible bargain. And get, For example, a high-quality bag is simply the last season for half price, it is. "
On the other hand, the crisis came as a surprise to firms that season. "They sold less than expected and generated many stocks. Then there was the boom, to give many companies came out outlets," said Benitez, whose company, working with over 500 signatures, has won five million subscribers since its founding in 2006.
Now the brand sales are up: the benefits of Hermès, for example, have increased by 46% in 2010, and LVMH, the largest conglomerate of luxury sector, 72.7%. But in addition, firms have less left over because they have adjusted their sales forecast.
might think that the outlets have lost strength in the textile chain, but with the recession, many firms found that this channel was not only an emergency exit to scrape some benefit to products that did not want to buy one, but also a element, a mattress, to consider input in making its production planning. "Companies know they have to assume a loss rate; they have to choose between producing and allow only 80 units equal to 20 potential buyers dissatisfied and lose those 20 sales. Or produce 120, 100 buyers to leave you satisfied and over 20 units. And we help that 20% is not a risk for them, "argues Elena Foguet, marketing director of the centers of the Rock and Las Rozas Village, two small towns outlet located on the outskirts of Barcelona and Madrid, respectively. Both company-owned Value Retail, which owns 11 other similar businesses in Europe and revenues of about EUR 1,000 million annually.
Outlets thus become a tool that facilitates the management of firms. In fact, many of these companies, as Vente Privée, define your business as B2B (business to business). That is, your client are not buyers but the firms themselves and their objective, generating services and benefits for them. "I do not think first to the consumer but in Camper. But I know that if I make a good project with Camper will interest the consumer," explains Maudo.
And those customers who want to seduce? According to all experts and entrepreneurs consulted, are mostly women between 20 and 35, professional, urban, middle class or upper middle-buying for the whole family, not just for them. "It is the opinion leader and the trendsetter
[someone who sets the trend]. Do not look the part to come out three months ago. It is a client who knows known brands and a shirt, for example, Ermenegildo Zegna has the same values \u200b\u200bof quality and classic even if last season, "says Foguet.
" The attitude in the industry is changing, manufacturers do not consider the outlets only as a way to get rid of the good problems, but another line of business as the Internet. The outlets allow companies to be more disciplined with the goods at full price, "declared a WomansWearDaily Marvin Traub, director of the department store chain U.S. Bloomingdale's, which is attached to the current open outlet following other large department stores like Neiman Marcus, Saks Fifth Avenue and firms like Ralph Lauren, Calvin Klein, Adidas, Lacoste, Tommy Hilfiger ... Reaffirms
Outlets and a channel become increasingly important in the textile chain. Many firms have a person responsible for them, whether own or external. "For a lot of brands are a very important source of income, not something peripheral," said Campuzano.
But how is this possible? Most of the outlets offer discounts ranging from 50% to 70% of the initial price. The physical outlets are facing investment in rent, personnel, maintenance, and online, logistics, photo shoots, advertising campaigns ... And yet there is profit margin for the outlet and signature. So when many have in hand these shoes costing 60 euros before 200 two thoughts often rob. The first, How much should cost to manufacture them to sell 30% of its value companies still make money? The second, high-sounding expressions of words such as truffled scam or premium, when holding the shoe he paid 200 euros for seven months.
outlets Those responsible for ensuring that the margins are small, but, in the words of Foquet, "states the volume of sales and profits given time." The goal, says Maud, not so much to obtain a high return but to recover the cost. "Before the leftovers of a campaign selling textile for four euros. Recovering a little, and now a little more. Say what you buy at 100, is priced at cost to the mark of 20 or 25, if you put 50, which takes from 40 to 25. In the margins are very tight fabric but allow everyone to live. "
But it is not just to avoid at all costs that traces count as losses in its financial reports. Choose an inappropriate way to clear these stocks can damage let the image of the brand, the intangible value that brings them very material benefits. "Yes outlets to help dispose of her remains in a quick and discreet. But it also allows them to control where they went to stop, knowing that no have reached a market that interests them. It's a branding issue, if your product ends up in a luxury Moroccan street rake, your message, your image is diluted, "says Benitez.
can even help raise brand awareness to a wider audience, as has happened in for Salvador Bachiller. "We face a signature image and this is one way to reach people who had never been as close and make them customers," said Adriana Peta.
have to pamper the stocks, assess the extent in which the customer wants value. I said, the mountains of tangled clothes, stocks are history. And of course, is confirmed to be put in circulation is counter-parts with defects. A presentation careful not only preserves the brand image but also improves the sales figures.
In Vente Privée, which are clear: "We sometimes get that article that cuts no one wants and what we do is create an event that is qualitative it on the market. We grouped and presented it well and cheaply. We give a life dignified with us again and again becomes attractive, "he says proudly Maudo. And to get these sites so attractive campaigns and have a team of 200 people, including photographers, models, stylists ... have its own studies. "And all our campaigns have their own music," concludes the CEO.
wonderful addition to photographs of the pieces and organize the materials products, colors or trends, to make more comfortable buying, online outlets offer extras: consulting and styling services, delivery fast growing, facilities-back ...
The market changes, and as Foguet insists, is not enough to offer discounted shoes, with a focus on price. It is necessary to give customers something more. Because "the person seeking affordable products need not go to an outlet, there are very good at reasonable prices out of it." Campbell agrees: we need to make more value. And he cites the case of Factory, which has four big outlets in Spain, which in 2009 received 12 million visitors, up 16% over the previous year.
"It is unbelievable in terms of improved supply and presentation marks. It has nothing to do with a few years ago. Before it was an outlet more and realize they have to offer added value." Especially
to compete with websites that let you shop without leaving home, no traffic jams, can compare prices. Therefore, physical outlets as The Rock and Las Rozas Villages seek to create, explains its director, "a shopping experience linked to the concept of enjoyment", to spend the afternoon with family and friends, have a coffee. Among other things, because these big outlets are located on the outskirts of cities and, generally, in the middle of nowhere. "We away, because we will not interfere with our customer, the business is doing with his first collection in the street, "explains Forquet. What forces the client to go on purpose.
" If you look only efficiency will increasingly Internet . But for me the trend is the tendency to enjoy the consumer. Us with our business model to build a client willing to do that makes spending need. "More specifically, a customer who spends 120 euros on average per day, if English and 400 euros, if abroad. So their strategy and communication campaigns are aimed at positioning itself as "shopping destination", ie, as a stop on the tourist itinerary consumer after the Sagrada Familia and El Museo del Prado.
The phenomenon of 'stocks' in figures
- This segment of the outlets, representing 12% of the turnover of the textile sector in Spain. 10 years ago was less than 1%.
- The market has grown 12% since 2007, according to a report by the American consulting Bains & Company.
- As in 2009, during the crisis, the luxury sector revenues fell 8%, factory outlets increased 7%.
- That same year, the four Factory outlets in Spain there were 12 million visits, 16% more than in 2008.
- Most of the outlets offer discounts ranging from 50% to 70% of the initial price.
- Vente Privee, a pioneer in online trading portal discounted subscription, sold 2,500 watches from a prestigious firm in 48 seconds. His record is of 470,000 stock items in a single sale.
- The online trade in Spain grew by 27% in 2010 after billing 7317.6 million euros, as revealed in the latest report issued by the Telecommunications Market Commission. According to Susan Campbell, director of the Advanced Course on Strategic direction and management of IE Universe of Luxury, "the discount sale sites are responsible for much of this growth."
- International Customers spend an average of 400 euros per day in physical outlets, while the English spend 120, according to estimates by the Rock and Las Rozas Village, two outlet centers located in Barcelona and Madrid, respectively.
care brands to price sensitive consumers - The culture of 'outlet' extends and sophisticated - Instead of a way to liquidate stocks, these stores are already profitable market
own
Get CARMEN MORNING for 60 euros a pair of shoes costing seven months ago, 200 is a bargain. A bargain. A good deal for the buyer and, although the product is sold at 30% of its original value, also for the firm and the company selling its stock, or remnants of previous collections. That is, for the outlets, a business model ever expanding and highly profitable. In fact, accounts for 12% of turnover in the textile sector in Spain, where 10 years ago accounted for less than 1%, according to studies by the Business Association of Textile and Accessories Trade (ACOTEX). And while in 2009 the luxury sector revenues fell 8%, factory outlets increased 7%, as revealed by a report from the American consulting Bains & Company.
The user type is a professional urban woman between 20 and 35
The companies have adjusted their production and have less surplus
The difficulty is not to interfere with the launch of new collections
The Experts say that selling is counter-parts with defects
One expert: "If your brand of luxury just a rake, your image is diluted"
Stores 'outlet' improve its offer to compete with Internet
The economic crisis in this market had the opposite effect to the rest of the fashion industry and spur finished. It was no longer something residual, as Feli says Benitez, CEO of Privalia in Spain, a website selling discount, which in 2010 had revenues of 170 million euros and expected to reach 400 this year. The proliferation of online outlets finally settle this business as an almost indispensable link in the textile chain, and changed the rules of the game. No longer only serves to offer discounted products. The table with a pile of crumpled clothes in which scavenge and dive customers has become more sophisticated and professional.
Now, you have to dispose of the stocks in a qualitative way, spoiling the presentation, service, and, if possible, turning the act of buying into an experience in entertainment. "This is the brand recovered its image, regain some of the investment and free of a series of articles," says Fernando Maudo, general manager Vente Privée portal in Spain.
So that sounds simple, but the 970 million that his company turnover last year and forecast to grow 15% this suggest a more complex network and profitable.
But let's start where we can show the phenomenon. According to Benitez, in 2009 there were two factors that favored the expansion of outlets. First, the "consumers become more price sensitive." The crisis makes all scrutinize the labels, which have been affected by it and those who do not. As explained by Susan Campbell, director of the Advanced Course on Strategic direction and management of IE Luxury Universe, is no longer frowned upon (if it ever was) to pretend, to flaunt. "People are not going to hide or Lidl Day, because it states that it is making an effort. Presume to buy cheap products, that of 'look what I'm divine and that little has cost me." Smart shopping or purchase the smartphone is fashionable. " Adriana
Peta responsible for 20 stores in the chain of leather goods Salvador Bachiller, confirms: "Our outlets have been very good result and the crisis much more: in 2010 sales grew 15% over 2009. The customers look like they are carrying an incredible bargain. And get, For example, a high-quality bag is simply the last season for half price, it is. "
On the other hand, the crisis came as a surprise to firms that season. "They sold less than expected and generated many stocks. Then there was the boom, to give many companies came out outlets," said Benitez, whose company, working with over 500 signatures, has won five million subscribers since its founding in 2006.
Now the brand sales are up: the benefits of Hermès, for example, have increased by 46% in 2010, and LVMH, the largest conglomerate of luxury sector, 72.7%. But in addition, firms have less left over because they have adjusted their sales forecast.
might think that the outlets have lost strength in the textile chain, but with the recession, many firms found that this channel was not only an emergency exit to scrape some benefit to products that did not want to buy one, but also a element, a mattress, to consider input in making its production planning. "Companies know they have to assume a loss rate; they have to choose between producing and allow only 80 units equal to 20 potential buyers dissatisfied and lose those 20 sales. Or produce 120, 100 buyers to leave you satisfied and over 20 units. And we help that 20% is not a risk for them, "argues Elena Foguet, marketing director of the centers of the Rock and Las Rozas Village, two small towns outlet located on the outskirts of Barcelona and Madrid, respectively. Both company-owned Value Retail, which owns 11 other similar businesses in Europe and revenues of about EUR 1,000 million annually.
Outlets thus become a tool that facilitates the management of firms. In fact, many of these companies, as Vente Privée, define your business as B2B (business to business). That is, your client are not buyers but the firms themselves and their objective, generating services and benefits for them. "I do not think first to the consumer but in Camper. But I know that if I make a good project with Camper will interest the consumer," explains Maudo.
And those customers who want to seduce? According to all experts and entrepreneurs consulted, are mostly women between 20 and 35, professional, urban, middle class or upper middle-buying for the whole family, not just for them. "It is the opinion leader and the trendsetter
[someone who sets the trend]. Do not look the part to come out three months ago. It is a client who knows known brands and a shirt, for example, Ermenegildo Zegna has the same values \u200b\u200bof quality and classic even if last season, "says Foguet.
" The attitude in the industry is changing, manufacturers do not consider the outlets only as a way to get rid of the good problems, but another line of business as the Internet. The outlets allow companies to be more disciplined with the goods at full price, "declared a WomansWearDaily Marvin Traub, director of the department store chain U.S. Bloomingdale's, which is attached to the current open outlet following other large department stores like Neiman Marcus, Saks Fifth Avenue and firms like Ralph Lauren, Calvin Klein, Adidas, Lacoste, Tommy Hilfiger ... Reaffirms
Outlets and a channel become increasingly important in the textile chain. Many firms have a person responsible for them, whether own or external. "For a lot of brands are a very important source of income, not something peripheral," said Campuzano.
But how is this possible? Most of the outlets offer discounts ranging from 50% to 70% of the initial price. The physical outlets are facing investment in rent, personnel, maintenance, and online, logistics, photo shoots, advertising campaigns ... And yet there is profit margin for the outlet and signature. So when many have in hand these shoes costing 60 euros before 200 two thoughts often rob. The first, How much should cost to manufacture them to sell 30% of its value companies still make money? The second, high-sounding expressions of words such as truffled scam or premium, when holding the shoe he paid 200 euros for seven months.
outlets Those responsible for ensuring that the margins are small, but, in the words of Foquet, "states the volume of sales and profits given time." The goal, says Maud, not so much to obtain a high return but to recover the cost. "Before the leftovers of a campaign selling textile for four euros. Recovering a little, and now a little more. Say what you buy at 100, is priced at cost to the mark of 20 or 25, if you put 50, which takes from 40 to 25. In the margins are very tight fabric but allow everyone to live. "
But it is not just to avoid at all costs that traces count as losses in its financial reports. Choose an inappropriate way to clear these stocks can damage let the image of the brand, the intangible value that brings them very material benefits. "Yes outlets to help dispose of her remains in a quick and discreet. But it also allows them to control where they went to stop, knowing that no have reached a market that interests them. It's a branding issue, if your product ends up in a luxury Moroccan street rake, your message, your image is diluted, "says Benitez.
can even help raise brand awareness to a wider audience, as has happened in for Salvador Bachiller. "We face a signature image and this is one way to reach people who had never been as close and make them customers," said Adriana Peta.
have to pamper the stocks, assess the extent in which the customer wants value. I said, the mountains of tangled clothes, stocks are history. And of course, is confirmed to be put in circulation is counter-parts with defects. A presentation careful not only preserves the brand image but also improves the sales figures.
In Vente Privée, which are clear: "We sometimes get that article that cuts no one wants and what we do is create an event that is qualitative it on the market. We grouped and presented it well and cheaply. We give a life dignified with us again and again becomes attractive, "he says proudly Maudo. And to get these sites so attractive campaigns and have a team of 200 people, including photographers, models, stylists ... have its own studies. "And all our campaigns have their own music," concludes the CEO.
wonderful addition to photographs of the pieces and organize the materials products, colors or trends, to make more comfortable buying, online outlets offer extras: consulting and styling services, delivery fast growing, facilities-back ...
The market changes, and as Foguet insists, is not enough to offer discounted shoes, with a focus on price. It is necessary to give customers something more. Because "the person seeking affordable products need not go to an outlet, there are very good at reasonable prices out of it." Campbell agrees: we need to make more value. And he cites the case of Factory, which has four big outlets in Spain, which in 2009 received 12 million visitors, up 16% over the previous year.
"It is unbelievable in terms of improved supply and presentation marks. It has nothing to do with a few years ago. Before it was an outlet more and realize they have to offer added value." Especially
to compete with websites that let you shop without leaving home, no traffic jams, can compare prices. Therefore, physical outlets as The Rock and Las Rozas Villages seek to create, explains its director, "a shopping experience linked to the concept of enjoyment", to spend the afternoon with family and friends, have a coffee. Among other things, because these big outlets are located on the outskirts of cities and, generally, in the middle of nowhere. "We away, because we will not interfere with our customer, the business is doing with his first collection in the street, "explains Forquet. What forces the client to go on purpose.
" If you look only efficiency will increasingly Internet . But for me the trend is the tendency to enjoy the consumer. Us with our business model to build a client willing to do that makes spending need. "More specifically, a customer who spends 120 euros on average per day, if English and 400 euros, if abroad. So their strategy and communication campaigns are aimed at positioning itself as "shopping destination", ie, as a stop on the tourist itinerary consumer after the Sagrada Familia and El Museo del Prado.
The phenomenon of 'stocks' in figures
- This segment of the outlets, representing 12% of the turnover of the textile sector in Spain. 10 years ago was less than 1%.
- The market has grown 12% since 2007, according to a report by the American consulting Bains & Company.
- As in 2009, during the crisis, the luxury sector revenues fell 8%, factory outlets increased 7%.
- That same year, the four Factory outlets in Spain there were 12 million visits, 16% more than in 2008.
- Most of the outlets offer discounts ranging from 50% to 70% of the initial price.
- Vente Privee, a pioneer in online trading portal discounted subscription, sold 2,500 watches from a prestigious firm in 48 seconds. His record is of 470,000 stock items in a single sale.
- The online trade in Spain grew by 27% in 2010 after billing 7317.6 million euros, as revealed in the latest report issued by the Telecommunications Market Commission. According to Susan Campbell, director of the Advanced Course on Strategic direction and management of IE Universe of Luxury, "the discount sale sites are responsible for much of this growth."
- International Customers spend an average of 400 euros per day in physical outlets, while the English spend 120, according to estimates by the Rock and Las Rozas Village, two outlet centers located in Barcelona and Madrid, respectively.
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