INFO Magazine - Retail on rebound ? by French Chamber of Commerce in Great Britain

I N F O french chamber of commerce in great britain The magazine for anglo-french business

www.ccfgb.co.uk

oct / nov 2010

Retailing on the Rebound?

in this issue

5 minutes with

Maurice Gourdault-Montagne French Ambassador to the UK

Mourad Mazouz A Man of Taste

The Store of the Future

Tim Danaher

TAG Heuer

Interview Natalie Massenet

by Professor Joshua Bamfield

150th Anniversary party

Editor of Retail Week Keeping the customer satisfied

At AXA, we stick to the area we know best, managing your risk

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Improved customer satisfaction index 82% up 1 point

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Find 10 reasons to trust us on www.axa.com

Arnaud Vaissié

editorial

President, French Chamber of Commerce in Great Britain, and Chairman & CEO, International SOS

s the Chamber resumes after its summer break, INFO is very proud to welcome to its pages the French Ambassador to Great Britain, Maurice Gourdault-Montagne. He is our guest interviewee for our ‘5 Minutes With’ column. M. Gourdault-Montagne is a very regular contributor to the events of the Chamber and it is most fitting that we now have this opportunity to hear more directly his views on Anglo-French commercial and political relations. He is supremely well positioned to present his take on issues of relevance to French companies resident over here. Perhaps most interesting is his allusion to the forthcoming G20 presidency. France will hold this post for the next six months starting from November. The real challenge is for the G20 to unite in order to stabilise institutions, calm prices and empower development - “to shape the world of tomorrow”, as the Ambassador put it. The Chamber will have a number of important opportunities over the coming months to discuss the economic climate. We look forward eagerly to hearing the views of Helen Alexander, The President of the CBI, who will be addressing our Annual Financial Lunch on the economic outlook, as it is perceived by her many corporate members. The last two years have indeed been a testing period for large and small businesses alike. Those that have thrived may regard it as a test by fire. So we await with great interest to see which companies pass muster in the forthcoming Franco-British Business Awards. The names that carry off prizes will have had their mettle tested by today’s difficult economic climate. The Awards celebrate their tenth birthday this year, a cause for great celebration and something of which we are very proud. Past winners of these Awards have shown themselves among the strongest competitors as well as particularly inventive and efficient. These Awards have set a standard to which every company can aspire. This is as much the case in 2010 as it was in 2000, that year of celebration when we launched the FBBA. The retail sector has regularly featured in the Hall of Fame for FBBA Award winners. So it is fitting that this issue’s Focus looks at retail. The range of companies covers the spectrum from Cartier at the luxury end – and it is a pleasure to welcome once again Arnaud Bamberger to our pages – to Argos and Westfield at the mass-market end of the retail spectrum. The Focus shows the resourcefulness of Britain’s retailing sector, and the characteristic strength of its French participants in terms of style, marketing expertise and innovation. As we brace ourselves for what will undeniably be a difficult autumn and winter ahead, we should carry with us these messages and examples. They will power our businesses forward, whatever our sector or our size. I

info - october / november 2010 -

contents

issue 191 / October - November 2010

40 42

Pioneering retailer : Natalie Massenet

5 minutes with 10 Maurice Gourdault-Montagne French Ambassador to the UK

News in the City 13 Would-be bidders beware! 14 Société Générale looks East… 15 Profile: Jake Stratton - Holding a company’s hand in dangerous countries

News 16 Veolia celebrates 20 years in the UK

TAG Heuer 150th Anniversary Party

17 Royal Mail blazes a trail to the future with Capgemini 18 Have Air France and Flybe found the code for success? 19 GDF and International – a powerful combination 20 Edouard Braine, French Consul in London: how we can tap into new sources of workers 21 Alliance Française: From Spy Corner to French Corner 22 Hello/Goodbye Managing Director: Florence Gomez Editor-in-chief: Nicolas Kochan Assistant Editor: Lawrence Joffe Corporate Communications Exec: Hannah Meloul Graphic Designer: Prima Hevawitharane Advertising: David Lislet - Tel: (020) 7092 6651 Publications Assistant: Pierre-Olivier Lucereau Cover picture: © Bicester Village Printed by: Headley Brothers Ltd Subscription: INFO is published every 2 months.

The Store of the Future

TAG Heuer 15oth Anniversary Party

25 Social media in the MBA classroom 27 One step nearer a Welsh Stock Exchange?

Success Story 28 Mourad Mazouz: A Man of Taste

Retailing on the Rebound 30 Overview of retailing 30 Focus timeline: A brief history of Retail 33 UK still tops world retail listings 34 Keeping the customer satisfied 36 Online trading should know no borders… 37 London’s leading role 38 Franchising Advances 40 The Store of the Future Case studies 42 Pioneering retailer: How Natalie Massenet brought Fashion to the Net 44 From online auction to virtual global marketplace – the eBay story 46 Decathlon: A crisis of opportunities 48 Can Westfield surf to Olympic success in Stratford? 50 Clever retailing: The Argos way… 51 Cartier: The timeless appeal of Luxury Editorial Commitee : Richard Beverley, Julie Dousset, Steve Dykes, Leesa Fogarty, Lawrence Joffe, Shaherah Jordan, Vangelis Kassotakis, Nicolas Kochan, Thibault Lavergne, Pierre-Olivier Lucereau, Hannah Meloul, Sophie Philippon-Thomas, Emmanuelle Ries. Contributors : Ian Baker, Professor Joshua Bamfield, Paola Cuneo, Steve Dykes, Chrystel Hug, Thibault Lavergne, Maria Raimundo, Lynne Richards, Stephen Robertson, Andrew T. Stephen, Tony Treacy.

28 16

Mourad Mazouz: A Man of Taste

Veolia celebrates 20 years in the UK

52 Bicester: The village where luxuries do not cost a fortune 55 Deepening customer engagement

Culture 57 Gauguin : Maker of Myth 58 Agenda 60 Book Reviews 61 Ed Pressman: Producer of new Wall Street movie

Wine Press

@ the Chamber... 64 Chamber news and new members 67 Food for thought from Vincent de Rivaz 68 Action Against Hunger’s Corporate Challenge 10K 69 Cross cultural relations forum: Official Launch 70 How do you motivate your staff during a recession? 72 Forthcoming events

Questionnaire de Proust 78 with Richard Berry Distribution : CCFGB members, Franco-British decision makers, Business Class lounges of Eurostar, Eurotunnel & Air France in London, Paris and Manchester. Editorial and Publishing Offices : French Chamber of Commerce in Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600; Fax: (020) 7092 6601 www.ccfgb.co.uk

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Patron Members of the French Chamber of Commerce in Great Britain

- info - october / november 2010

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5 minutes with Maur i c e G ourd ault- Montag ne

The French Ambassador to the UK, Mr Maurice Gourdault-Montagne spoke to Nicolas Kochan about a wide range of subjects, including French Presidency of the G20, the prospects for Franco-British collaboration on defence and French opportunities to do business in the UK.

What is the French intention for its forthcoming Presidency of the G20?

We intend our presidency of the G20 to give an impulse to the global community. We believe we are at the end of an era created notably by the Bretton Woods Agreement1 at the end of the Second World War. We are now in the global economy where everything has changed. We want to try to shape the world of tomorrow. This world needs to take into account globalisation, international trade, circulation of capital and people. But the new structure needs proper frameworks for economic development to ensure stability. Since the financial crisis, the world has become very uncertain, very unstable. We need more stability to ensure greater prosperity. We will launch some ideas and proposals to deal with the key problems. Maurice Gourdault-Montagne â&#x20AC;˘ French Ambassador to the UK

Could you define those problems?

First of all, the international monetary system doesnâ&#x20AC;&#x2122;t work properly at the moment. We want to encourage debate about how we may achieve greater stability. We see three key areas of instability. First, in terms of currency fluctuation. We need a system for stabilising currency movements, taking into account relationships between the Euro and the Dollar, the Dollar and the Renminbi and the roles of the Pound and the Yen. The debate will take time and there will be a need for balanced argument. But we really wonder if the present system is dependable. The second problem is commodity prices, which have been irrational and volatile. These need to be more stable. Many countries will benefit from this. China for example would like more stable prices for such commodities as iron. Agricultural prices have likewise been irrational and some farmers in Europe have lost last year about half of

10 - info - october / november 2010

their income because the price of wheat has collapsed. It has now doubled within a few months. This volatility makes management impossible. We need to see if there is a way to stabilise prices. More stability means more prosperity, in particular for poorer countries hit by hunger riots. But we want to keep the borders open and not go down the road of protectionism, which means no fixed prices. Speculators likewise are detrimental to stability. Third, we want the G20 to examine development issues, involving the developing as well as developed countries. The G20 needs to take this in hand. The G20 also needs to push forward the Climate Change agenda. Some countries may have reservations about this, arguing that it is a matter only for the United Nations. But there is a role for the G20 to look at commitments arising from the Copenhagen Summit and financing poorer countries to adapt and also to

5 m i n u t e s w i t h Maurice Gourdault-Montagne

fight deforestation. This entire approach may be seen as very ambitious, but the key point is that the G20 should contribute above all to more stability. How is the French Presidency of the G20 preparing for its tenure?

We are having meetings with the Americans, Chinese, Indians and Russians. We are mobilising all the G20 stakeholders and also the ones who are not G20 members. We also acknowledge the support of the British government and there are regular discussions between President Sarkozy and Prime Minister Cameron. There will be a bilateral summit at the beginning of November to ensure we work together strongly. We want the two countries to contribute to take the lead to push for greater stability that we all consider so important. How do we make progress in the wake of the Bretton Woods agreement?

There needs to be a framework of rules on which we agree. A debate and proposals put forward by Britain and France together will be very helpful. President Sarkozy is very interested in advancing in-depth discussions and initiatives to rally all countries. The British may have a different approach about some aspects of economic policy, but the two countries are in agreement when it comes to a commitment to the stability of the world. Be assured, we are not talking about introducing taxes or other forms of interventions. We definitely need a framework for the economic development of the world. What are the greatest concerns, going forward, of the French government?

The world population is growing and it will grow for the foreseeable future. Moreover the divide between the rich and the poor is growing. The world is also increasingly precarious and unstable. We have to find out the balance. Britain and France, because of our past, have an approach to the world that is global and entitles us to keep a say. How do you gauge the rapport between the French and British leaders?

It is very close. But President Sarkozy has reminded us that the interests of the state go beyond the incumbent in the Elysée and Downing Street. How do you assess areas of collaboration between France and Britain?

Defence is a key area and this will be discussed at a bilateral summit in November. We want to discuss how we can mutualise some interests and resources, how we can avoid

duplication and of course The British may have how we can save money, a different approach without threatening about some aspects our sovereignty and our of economic policy, strategy. This is very but the two countries subtle, but the interests are in agreement of the two countries, when it comes to a both of which have commitment to the budgetary difficulties, are stability of the world. very similar. The funding crisis is an accelerator for cooperation between two countries that are different and also very alike. We are both very fierce in defending our sovereignty. We both devote the same level of budget to defence, about 2% of GDP, and we both have the same level of forces deployed around the world. Would France like the UK to join the Euro?

This is not an issue. Tony Blair set five criteria in 1997. This is a political issue. It is not a problem that Britain is not in the Euro, what we need is Britain strongly committed to European issues. How do you assess Britain’s position vis-a-vis the EU?

Britain is getting closer, especially on very practical issues. The British for example are prepared to work on the governance of Europe’s financial structures. They do not have doctrinaire views, they are pragmatic. Everyone knows that the economic recovery here is linked with the economic performance of the EU. How do you assess the position of London’s financial City, vis-a-vis some people’s aspirations for Paris to develop a financial centre of similar stature?

London has a comparative advantage. The European Commissioner, for example, is very committed to London being the financial marketplace for Europe. The City may need some adaptation to continue to be attractive, for example, like greater transparency. But few would dispute that its primacy for the foreseeable future looks secure. How should French companies adapt and thrive in Britain?

French companies are very successful in Britain, let us not forget that. They are reliable. We are also hard workers. We are faithful to the commitments we make. I would say, ‘Do even more. And trust the British! The stronger we are the better.’ I Interview by Nicolas Kochan

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world’s major industrial states in the mid 20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. 1

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news in the city

by Nicolas Kochan

Would-be bidders beware! Foreign bidders for British companies face new pressure from the UK’s Takeover Panel as it responds to demands to protect the independence of the largest domestic companies.

he Takeover Panel is set to be a more high profile organisation for City bankers as well as local and international companies. This organisation examines every bid made for a large British company and has the power to stop the bid in its tracks or to demand more details about the bidder’s intentions for the company it wants to acquire. The Takeover Panel has existed as a low-key City organisation for some forty years, but recent events put new pressures on it. The most notable stress arose in the wake of the (American) Kraft Foods takeover of Cadbury, the venerable British chocolate company. The bid was resisted by many British shareholders, by the employees and indeed by ministers in the Labour government at the time. Attention was focused on Kraft’s intentions towards one of the larger British factories which it was suspected it wanted to close down. But there was more to it than that. Few people (other than the mergers and acquisition bankers involved who had heavy fees at stake) were happy that a British trophy should fall to an American conglomerate. The Takeover Panel, under its new Chief, banker Robert Gillespie, has invited the public’s responses to a proposal to add to its remit some references to foreign takeovers of British companies. Mr Gillespie said that the public, by which one assumes he means primarily City lobbyists and banking associations, has responded in droves. He is now wading through their responses. It will take him some six months to reach a conclusion, but it seems likely that some extra conditions will be attached to the bid particulars required from foreign companies proposing to take over British companies.

Cadbury’s Somerdale factory • Keysham

Any new stance by the British Takeover Panel will not now be relevant to deals already in the pipeline. So GDF, for example, which has proposed buying a 70% stake in the British company International Power in August, should not be affected by a change in attitude to foreigndriven takeovers at the Takeover Panel. GDF would have the power (should the deal go ahead) to appoint the merged company’s chairman, while the British company will be able to select the deputy chairman. In fact, it seems that the French Minister of Finance Christine Lagarde (the French government owns 35% of GDF) has been more concerned about getting this particular deal right than the British politicians. Vince Cable, the financial secretary, waved it through. The Takeover Panel consultation exercise was triggered by a Labour Government, entering an election period and looking around to please every possible interest group. Moreover big companies have not been the flavour of the era, in the light of the credit crunch and subsequent recession. So perhaps the Conservativeled coalition will defuse the pressure for tighter control of foreign takeovers. That is not inevitable. Nationalist and protectionist forces are rising. Foreign bidders for British firms make an easy target. Would-be bidders beware! I N.K

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news in the cit y

||| France’s second-largest bank, Société Générale SA, hopes to more than double the amount it lends for real estate transactions in Asia. The bank only started offering property financing in Asia in 2007. Now, driven by rising demands for investments and impressive growth in Asia, it intends to increase its allocation to the region to 20 percent by 2012. Half of the increase will be in Japan where drastically reduced property prices – down by half since 2007 – have made real estate uniquely attractive. Overall the bank’s direct real estate investment in Asia is expected to leap by 30 percent in 2010. Europe will still make up 80 percent of Société Générale’s loan allocation for investment in property. And Société Générale, a big player in the City of London, has no plans to provide new property

Société Générale looks East…

Japanese property prices • down by half since 2007

financing in the Americas. Watch this space to see if other City institutions follow the eastward leanings of this particular Chamber member! I

Demand drives up City office rents ||| Increased demand from corporate occupiers has caused office rents in the City of London to soar by almost 12 percent over the past three months. This second consecutive quarterly rise of such magnitude, the strongest since records began in 1988, follows two and a half years of rental falls across the market. Yet the current average rental rate of £53 per square foot in the Square Mile is well below the peak of £69.50 in 2007. And while the increase testifies to renewed market confidence, say analysts, this is only half the picture. The other component to the equation is the dire shortage of new offices, following the credit crisis and resultant recession. Few new buildings are being developed. So the question remains: can construction firms meet the challenge of this remarkable surge in demand? I

Mystery buyer parts with £140m for world’s costliest flat – in London!

Location, Location, Location • Hyde Park

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||| Recession, what recession? Clearly someone out there has money to spare. So it would seem when news broke in August that a two-floor apartment in One Hyde Park, Knightsbridge, has sold for a cool £140m. That makes it the most expensive flat in the world, fetching just £10m less than the mega-developer Candy brothers, Nick and Christian, paid for the entire block six years ago. The buyer will soon enjoy dazzling penthouse views of Central London, a private wine-tasting facility, an underground passage to a Heston Blumenthal restaurant and Mandarin Oriental Hotel, Fort Knox-like security measures, floor-to-ceiling bullet-proof windows, a private car park and access to several spas and squash courts. I

news in the cit y

profile

Holding a company’s hand in dangerous countries Jake Stratton heads up the political risk area at Control Risks, a company that surveys the world’s most difficult regimes for corporate activity.

olitical risk needs to be high up on any company’s agenda of priorities. It determines where it conducts its business and who it does business with. Poor decisions can result in the loss of a business if it is expelled from a hostile country, the failure of a contract if local law about property rights changes, a disastrous hit to reputation if it makes friends with the wrong politician, among many other outcomes. The company that plans to expand into politically difficult parts of the world exposes itself to these risks unless it has a guide to warn it in advance of the pit holes on the road. This is where Jake Stratton comes in helpful. He is the General Manager of Global Risk Analysis at Control Risks, a company that recently joined the French Chamber of Commerce. This old China hand – he once spoke fluent Mandarin -- cut his teeth a decade ago in China advising companies how China might look in the wake of the death of Deng Xiaoping. He went on to run the risk analysis team, as head of research and then opened up Control Risks’ office in Mumbai, India. Now he oversees the entire corporate risk business. He says, ‘We help companies understand the markets that they are about to enter, or have already entered. There are many things that companies need to look at. One of these is long-term political stability. Most clients are investing heavily and want to be there a long time. They have to take the long view. ‘ Companies can be tempted by the opportunities of a deal in say, minerals, he warns, but they fail to see how the political outlook may shift very quickly and to their detriment. ‘You have to consider the risk of violent regime change. That has a very serious implication for security of tenure or contract. Jake Stratton

That needs to be considered before a company plunges in. Companies may have their financial models in place, and legally they have done what they can. But they need to be sensitive to the political environment.’ But traditional financial and legal planning are of limited use in many markets where the business environment is highly politicised, and where the political current can change very quickly. Understanding these political currents is therefore critical to succeeding in such countries. As well as looking at the bigger political picture, managers wanting to enter a new market need to pay attention to the people they do business with. An investigation of local political leaders may uncover the fact that they don’t have the clout they claim or they have undesirable friends which can make them a liability. ‘We need to verify the partnerships before they make them. We have to verify first if they have the connections they have claimed and second, if these connections could be a liability over the longterm. We want to talk to companies at an early stage of the planning process. It is much more awkward when clients have already made commitments that we believe render them vulnerable. Control Risks anticipates the problems by conducting what it calls aits Power Mapping exercise, says Stratton. Corporate measures to limit politicalriskneedtotakeaccountofthe risk to reputation, through breaches of a growing body of anti-corruption law. Dealing with environmental issues, both at grassroots and legislative level, poses a further risk for the global corporation. There is no risk that Stratton, and his team at Control Risks will be short of work for the long-term and foreseeable future. I N.K

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news Compiled by Hannah Meloul

Companies

Veolia celebrates 20 years in the UK ||| Veolia Environmental Services celebrated its twentieth anniversary in the UK with a special gala dinner at the Natural History Museum on Wednesday 8 September. Over two hundred guests enjoyed the atmospheric setting of the NHM, musical entertainment and a three course meal and heard speeches from among others: Jean Dominique Mallet, CEO, Veolia Environmental Services (UK), Denis Gasquet, Chief Operating Officer, Veolia Environnement and Chief Executive of Veolia Environmental Services and Vincent de Rivaz, Chief Executive Officer, EDF Energy UK. Speaking at the event, Denis Gasquet, said that in the last twenty years, “The UK has become a nation that Europe and the world can learn things from when it comes to recycling and best environmental practice. I am delighted that we have played our part with the necessary innovation and pioneering spirit that has helped change the perception of the industry in the UK from rubbish to resource management. As a group we have invested over a billion pounds in the UK’s

Jean-Dominique Mallet • CEO at VES UK

recycling and waste industry with flagship projects up and down the country. The UK market is still far from mature. It is characterised by huge possibilities not least as a result of the continuing infrastructure shortage, but also increasing competition and continuing demand from within both the public and private sectors for even better value.” I

TAG Heuer 150th Anniversary Party

The Tesla eco friendly supercar at the penultimate leg of its zero-emission journey around the world

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Since setting-off from Geneva in January, the TAG Heuer Tesla has travelled to Basel, Monaco, Milan, Budapest, Warsaw, Moscow, Delhi, Beijing, Shanghai, Tokyo, Los Angeles, Miami and New York - by far the longest journey ever made in an all-electric vehicle. Following London, the car will continue on to Paris for the closing event at the LVMH Atrium for a memorable night of celebration. I

||| Selfridges Car Park hosted the Odyssey of Pioneers TAG Heuer & Tesla World Tour, on 15th September 2010. The car arrived in London on the penultimate leg of its remarkable, zero-emission journey around the world. The electrically-powered supercar is almost at the end of the 37,000 mile, record-breaking trip which forms part of TAG Heuer’s 150th anniversary celebrations.

The Tag Heuer brand

news

||| Royal Mail Group Ltd (RMG) has signed a six-year IT contract with Capgemini UK plc in a move designed to transform its business and consumer online services. Both companies predict lower costs and diversification into new web-based business opportunities, thanks to ‘cloud computing’. This technology breakthrough enables IT-on-demand to be piped into an organisation on a pay-as-you-go basis. Said Stuart Curley, RMG’s Chief Technology Architect, ‘We will be paying for the IT we need as and when we need it’. Based on open systems standards, cloud technology should help RMG keep pace with the media being adopted by today’s consumers. Apart from drastically reducing costs, it also boosts opportunities for personal and small or medium business customers, and facilitates innovative high-quality parcel delivery services to meet the UK’s boom in online shopping. Capgemini’s solution will allow services to expand or contract according to demand, and integrate more seamlessly with third-party websites. In addition it helps personalise and update customer profiles, and allows smaller IT companies to link to the RMG system. All of this should give RMG ‘superior speed, cost-effectiveness, scalability and flexibility’, said Christine Hodgson, Senior Vice President at Capgemini. I

Royal Mail blazes a trail to the future with Capgemini

A Victorian hexagonal red post box

||| Hull–based Denman Instrumentation has won a major contract with French power engineering giant Alstom on a technically challenging €1bn project in southeast Holland. The plan is to integrate three new gas turbines into a former steam power plant near Maastricht that will generate 1,280 MW and cut CO2 emissions by 40%. Denman has often partnered with Alstom. In 2000, for instance, the two worked together on the Killingholme power station in Lincolnshire. Gary Griffiths, Alstom’s Head of Commissioning UK & Ireland, praised Denman for its “excellent knowledge of the power industry and of our requirements – they really stand out from the competition for us.”

Alstom recruits Hull firm for €1bn Dutch project

Maastricht

Meanwhile Paul Denman, who founded the northern English company in 1995, anticipates a boom for energy production in Hull following announcements of a new biomass station there. I Source: http://www.prweb.com/printer/4435294.htm

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news

||| Flybe and Air France tickets are now on sale following the announcement in July of an extensive commercial relationship between the two airlines. Their partnership takes the form of a code-share agreement, whereby different airlines sell space on the same flight. This strategic move should benefit millions of regional air travellers in the UK, France and beyond. Specifically, it gives Flybe passengers access to five additional routes between the UK and France, plus seven new domestic French routes and 11 international routes. From 31 October 2010 all Flybe services into Paris Charles de Gaulle airport will connect to the Air France hub, allowing for easy transfer to AF international services. And Air France code-share customers will gain access to 45 new routes from France to the UK, as well as on a further 17 UK domestic routes. Flybe Chairman Jim French called the deal “a further milestone in Flybe’s growth”. The British airline, which started operations in late 1979, now seeks to expand further into the European business city market by collaborating with Air France to extend its brand reach. “The code-share brings benefits for passengers and the two airlines alike”, explained French, who called it a winwin agreement. Bruno Matheu, Air France Chief Commercial Officer,

Have Air France and Flybe found the code for success?

New partner • Air France

added: “Over the past few years we have been impressed by Flybe’s performance in becoming a respected leader within the sector.” He saw co-operation with Flybe as an opportunity for Air France to strengthen its position in the UK. After October 2010, Flybe will market and add its BE code to Air France flights to and from Birmingham-Paris and Edinburgh-Paris, and several other destinations, including Geneva, Istanbul, Sofia and Prague. For its part Air France will add its AF code to Flybe flights, such as to and from Birmingham-Avignon, Inverness, EdinburghBergerac, Toulouse, Jersey, Manchester, Leeds, Belfast and Glasgow. I

“Brighton is the best choice for our new store” says Eric Charriaux from La Cave à Fromage ||| La Cave à Fromage has opened a new store in Hove

last July, modelled on the hugely successful original shop founded by Eric Charriaux and Amnon Paldi in 2007 in South Kensington, with Time Out heralding it as ‘the best cheese shop in London.’ “Brighton has been one of my favourite places for years and as one of the most vibrant, adventurous and forward-thinking areas in the UK we are thrilled to have the opportunity to expand La Cave here. Local residents know what they want and we are looking forward to introducing the La Cave ethos and becoming part of the local community in this top foodie hot spot” said Eric Charriaux. Passionate and committed, Eric and Amnon supply the top restaurants around the UK with cheese. La Cave à Fromage Brighton offers customers an unrivalled selection of farmhouse cheeses sourced from around Britain and Europe, with several cheeses made exclusively for them. The shop also supplies top class charcuterie and an exclusive selection of condiments such as truffle honey and pomegranate infused balsamic vinegar. Customers

A selection of La Cave à Fromage cheeses

are also able to purchase a range of artisan breads and selected wines at the store. The shop includes a tasting space, where customers can sample platters of cheese, meat and bread with matching wines. La Cave à Fromage Brighton also features its own high-tech cheese maturing room to make sure every cheese is served to perfection. I

La Cave à Fromage is a regular contributor to the Wine & Cheese section of INFO magazine and regularly contributes Wine and cheese to Chamber events.

18 - info - october / november 2010

news

GDF and International – a powerful combination ||| A likely merger between the French chairman, while Sir Neville will be his At present deputy. utility giant GDF Suez International and At present International Power, known the London-headquartered International International Power, Power would create the world’s largest known as National as National Power before 2000, operates 45 power stations worldwide. Only six independent energy producer, with sales Power before 2000, of these are in Britain, yet they generate of £114bn. Assuming, that is, both sets of operates 45 power shareholders approve the deal announced stations worldwide. a considerable 11GW of energy. GDF profits rose by 9 percent recently while on 10 August. Only six of these International saw a 5 percent drop. Overall According to the proposal GDF Suez are in Britain, yet GDF Suez earns some £70bn annually. The would get 70 percent of New International they generate a French state also owns 35% of GDF, which Power, the name of the combined group. considerable 11GW makes its commercial configuration a The old International Power’s 380,000 of energy. matter of national strategic importance. shareholders would retain the remaining The proposed merger – described by 30 percent, and receive in effect a £1.4bn some press as a ‘reverse takeover’ – was initially mooted sweetener in the form of a 92p-per-share special dividend. by GDF Suez head, Gérard Mestrallet. “As a result of this Projected annual savings for the constituent transaction”, he recently explained, “GDF Suez will achieve companies will be £58m for GDF and £165m for its strategic objective of 100GW in operation and strengthen International Power by 2016. Plus the new entity will its worldwide leadership in power generation”. be immediately listed on the London Stock Exchange, However the final agreement only emerged after a factor that particularly appealed to GDF, it is said. In ten months of challenging backroom negotiating. This strategic terms analysts are comparing the deal to the process involved French and British politicians, bankers £12.5bn sale of British Energy to France’s EDF in 2008. from Rothschild, Ondra Partners and Blackstone. It Sir Neville Simms, current International Power also included an intricate plan to “inject a large part chairman, promised that New International Power of GDF’s operations into the UK group in return for a would have a “robust capital structure” and would majority stake in Simms’s company”, according to The combine “two world-class businesses that have a highly complementary geographic footprint”. The merger Independent. Whatever the final outcome, this union undoubtedly ushers in another fascinating stage in will also result in Belgian-born Dirk Beeuwsaert, now cross-Channel energy partnership. I an executive vice-president at GDF Suez, becoming

Freeth Cartwright changes name to FCRetail ||| We understand shops and shopping, just as we know the demands of retailers. And this is why we created a dedicated team: FC Retail. FC Retail is a division of national law firm, Freeth Cartwright LLP, formed earlier this year to provide a focused service to retailers and retail professionals. FCRetail has offices in Nottingham, Leicester, Birmingham, Manchester and London’s West End. They provide a broad commercial service to their clients with a particular emphasis on and expertise in Real Estate (Property, Construction and Planning). They also have a service for their retail clients which cover the food, home and fashion sectors in particular. I

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info - october / november 2010 - 19

news

Bilateral

Edouard Braine : How we can tap into new sources of workers The French Consul in London says companies are missing out on two sources of French employees: the unemployed in Calais and ambitious young French expats in London.

unemployed people live in Calais and 15,000 in Boulogne. There is an economic crisis and no job opportunities in this area while on the other side of the Channel, there is a tremendous demand for jobs as the industry booms. These companies have great difficulty finding a workforce because it is some way from London and housing is expensive. Ashford is also much closer to home than Lille and Amiens. What is the problem right now?

There is a limitation in transportation. Eurostar is not sufficient for these workers. Not enough of these trains stop at Ashford. So we hope that a tube might be created to provide quick travel between the two areas. This will be discussed at the Calais conference on 1 October. Now tell us about the ‘forgotten ones’ of St Pancras, as you call them

Edouard Braine

douard Braine holds two projects dear to his heart. He is campaigning eagerly for greater facilities for a group of French young people whom he calls the ‘oublies’. These people arrive at St Pancras from Paris, and then make their way, often unnoticed. The other group are more likely to move from France to take up jobs in the UK, once more flexible communications are established.

Thousands of young French students come to the UK with a one-way ticket to discover an experience of life without the protection of the family, of the famous ‘Système français de protection sociale’. They are not subsidised by parents or the French taxpayer. They discover a hard life but an independent one. What happens to them here?

They work and often study at university. After two or three years in the UK, half go back to France, a quarter stay in the UK and the other quarter goes somewhere else to open a business or do something else. They use the UK to discover their abilities, before going off into the world. What is their view of France?

INFO : Could you describe the new sources of transfrontier employment?

There are two. First, the need to fill job vacancies in the south of England scope with unemployed people who live in northern France. Second, the large numbers of educated French in this country who aspire to bring their skills to global companies.

Their dynamism is not at ease with the conservative and protective system we have in France, where you always have to have a green light from the authorities to start an idea, and where every contract has to be signed for the longterm. In the UK you can sign a contract quickly whereas in France it is like signing for life. How do you assess the role of Centre Charles Peguy (CCP)?

Tell us about the scope for unemployed people to find jobs in the UK?

The UK is a border area for France. Around 17,000

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The CCP has the job of helping these young French people. It is very efficient and it has found jobs for a thousand French people. It also provides administration for these people. I

news

From Spy Corner to French Corner A building with a secret past, now the place to learn French in the heart of London

Dorset Square, at the corner of what was once a field on which Thomas Lord first laid out his famous cricket pitch, is no ordinary Georgian town house. Home to the Alliance Française de Londres since 1987, it was first a French corner in the heart of London during WWII, when it housed RF Section of the Special Operations Executive, a then secret organisation that trained agents and saboteurs for missions behind enemy lines. A plaque outside the building honours the brave people who left from 1 Dorset Square 1 Dorset Square on hazardous missions, some of whom did not come back. To work in RF Section, you not only had to speak French once inside 1 Dorset Square, you were advised on joining to think in French. The Alliance Française de Londres is teaching people to speak and eventually think in French through an expertly taught and fully structured syllabus from beginner to fluent. It began to do so in 1894 when it launched its first “commercial classes”, hoping that “this new venture would bring the opportunity of furthering contacts in the business world in this great country of commerce.” Indeed the Alliance had close links with the French Chamber of Commerce from early days, most notably involved together in the Franco-British Exhibition of 1908 at White City. Later, some members of the Chamber were at the helm of the Alliance itself, such as André Simon, the charismatic leader of the English wine trade and Jacques Cartier, the founder and director of Cartier jewellers in London. The Alliance’s early mission was also to “give a sort of cultural extension to the politics of the Entente Cordiale” (of 1904). And to this day it aims to share the French language in a spirit of dialogue and discovery of the other, culturally, politically and economically. Indeed “the French would learn to know the English” states an Alliance brochure of 1938. Cartier jewellers, in the person of Etienne Bellenger, and the Alliance were both staunch supporters of the Free French during WWII. The London Alliance was one of the first organisations to answer the Général de Gaulle’s

appeal and took over leading the global network when the Paris Alliance was closed down by the occupation. De Gaulle, in gratitude, became its honorary president in 1941. The then Secretary General of the Alliance wrote one of the first biographies of him in 1943, recently republished on discovery of the original typesecript for the book with annotations by de Gaulle himself. The book’s prefaces, by Jean-Louis Crémieux-Brilhac and the Alliance’s current director, provide more historical detail. Past and present came together again on 17th June 2010 when Mr Crémieux-Brilhac, a former agent now aged 93, over in London to attend the commemoration of de Gaulle’s historic broadcast on 18th June 1940, visited the Alliance and stood once again in the room he was briefed in and issued with a revolver. Among the first to answer de Gaulle’s appeal, after escaping from a prisoner-of-war camp, he went on to become a distinguished historian of the Free French. Although most agents handled by RF section were French, the section included one notable and bilingual Briton – Wing-Commander Yeo-Thomas – whose extraordinary deeds and sacrifices are described in Mark Seaman’s The Bravest of the Brave. Yeo-Thomas, who survived torture and escaped from concentration camp, had an office at 1 Dorset Square, now the library of the Alliance. The Alliance Française de Londres is proud to occupy such a historic building and, in a small way, its unrivalled expertise in teaching French carries on the tradition of speaking and thinking in French that once characterised people who worked there. Of course, when Alliance Française tutors leave the building, the missions are very different – they come to you only to teach French – but we are mindful that they can do this because of the sacrifices of a previous generation. For more on the Alliance and 1 Dorset Square go to www.alliancefrancaise.org.uk I Chrystel Hug, Managing Director

info - october / november 2010 - 21

news

hello, goodbye...

he French Chamber of Commerce would like to express its gratitude to some of its members who have made outstanding contributions to the Chamber, but who are now moving on to different work or to retirement. We would like to congratulate Nicolas Moreau, a board member of the Chamber and the chairman of our HR Forum, on his appointment as CEO of AXA France. Likewise, Antoine Pin, the chairman of our Luxury Club, has been promoted to the head of LVMH’s watch and jewellery operation in Japan and Korea. Finally, the Chamber would like to wish Nigel Brooksby, the non-executive chairman of sanofi-aventis, a very happy retirement. They will be greatly missed.

Paul Evans is appointed Chief Executive Officer of AXA UK and joins AXA’s Executive Committee ||| AXA announced that Paul Evans will become Chief Executive Officer of AXA UK and will join AXA’s Executive Committee, effective from October 1st 2010, replacing Nicolas Moreau who was appointed Chief Executive Officer of Axa France. Commenting on these appointments, Henri de Castries, Chairman and CEO of AXA said: “Over his 19 year experience at AXA, Nicolas Moreau has shown great leadership and strategic insight. I am convinced he will leverage his very deep knowledge of the Group and its values to successfully continue to develop AXA in France and to continuously improve the quality of the services we Paul Evans Nicolas Moreau provide to our 9 million clients.” Nicolas Moreau, a member of AXA’s Management Committee, has been CEO of AXA UK since 2006, in charge of AXA’s life & savings, property & casualty and health insurance activities in the UK and Ireland, for which he successfully led a strategic repositioning towards the most attractive market segments. Paul Evans, previously deputy CEO of AXA UK, is now the new CEO of AXA UK. He has been in charge of AXA UK’s life & savings operations between 2003 and 2010, and successfully managed the integration of Winterthur in the UK and developed the wealth management and multi-manager operations, which are key elements of AXA’s future development of the UK life & savings market. Paul Evans will join AXA’s Executive Committee following this appointment. I

LVMH Watch & Jewellery UK appoints Rob Diver as new General Manager

Rob Diver

Antoine Pin

||| After three years as Managing Director of LVMH Watch & Jewellery UK, Antoine Pin relocates to Tokyo to become General Manager of LVMH Watch & Jewellery in Japan and Korea. Consequently, Antoine Pin steps down as Chairman of the Luxury Club. His successor will be announced shortly. Antoine was replaced by Rob Diver as General Manager for the UK on 1 September. Rob previously worked within LVMH Watch & Jewellery as Brand Director of TAG Heuer UK since 2005. I

Au Revoir Nigel! ||| Nigel Brooksby, Non - Executive Chairman of sanofi aventis retired from the company at the end of August 2010. Nigel said he has had a tremendous 18 years as Chairman and MD of the UK Group of companies and as a member of sanofi aventis’ European Management Committee. He has enjoyed the last 12 months handing over the reins to the new UK MD , Steve Oldfield. “The company is in great shape with a very clear strategy for the future”. “Working with the French Chamber has been a great experience over the years and I’ve enjoyed being part of their fantastic journey in the UK. I wish everyone at the Chamber Nigel Booksby and the board all continued success for the future. Au Revoir.” Steve Oldfield took over as Managing Director of sanofi aventis UK from Nigel in June 2009 and will continue to support the French Chamber after Nigel’s retirement. Steve very much looks forward to building on the excellent relationship sanofi aventis UK already has with the Chamber I

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news

hello, goodbye... Philipe Huet is appointed new Chief Officer People, Organisation and Brand Performance of EDF energy ||| Eva Eisenschimmel has left EDF Energy to take the role of Managing Director Group Marketing and Direct Channels with Lloyds Banking Group. Philippe Huet, whose previous role in EDF Group was Senior Executive Vice President Strategy and Co-ordination based in Paris, has succeeded Eva in the role of Chief Officer People, Organisation and Brand Performance. Philippe is responsible for leading all the company’s people activities, including human resources, employee relations, organisation and development, internal and external communications and Philipe Huet brand performance. He has been with EDF since the end of 2001, and previously enjoyed a 19 year career with Shell, during which he spent 9 years in the UK and 2 years in the Caribbean. I

Patrick Gougeon, new UK Director for ESCP Europe Business School ||| After five years as UK Director at ESCP Europe Business School, Professor Davide Sola is stepping down from the position. He will continue as Associate Professor of Business at the London campus, as well as maintaining his board-member role at La Banca del Mezzogiorno, a bank established by the Italian government to accelerate the development of Southern Italy. Replacing him at ESCP Europe will be Professor Patrick Patrick Gougeon Davide Sola Gougeon, former Dean of the School’s Executive MBA and Executive Master in Energy Management programmes. I

Laurent Burin des Roziers, new Cultural Councillor at the French Embassy ||| After four years as Director of the Institut français and Cultural Counsellor at the French Embassy, Laurence Auer returned to Paris on 31st August. Speaking about her experiences, Laurence Auer said ‘I would like to highlight the exceptional support of the French companies which have helped modernise our educational and cultural activities. These include the renovation of Ciné lumière, an outstanding window onto French cinema, the creation of Laurent Burin Laurence Auer Culturethèque, the Institut’s digital platform, and the purchase of a des Roziers new school in Kentish Town which will open in September 2011. Taking up the position is Laurent Burin des Roziers on 1st September, who formerly worked for the Department of Culture at the Ministry of Foreign Affairs. I

Hervé Ochsenbein appointed new MD of the French Trade Commission UBIFRANCE in London

Hervé Ochsenbein

Henri Baïssas

||| Hervé Ochsenbein has been appointed as the new Managing Director of Mission Economique UBIFRANCE in London, the French Trade Commission in the UK. Hervé was the MD of the French Trade Commission in New York (USA), and in charge of all the French Trade Commissions across the United States. He just started in his new position in early September. For his part, Henri Baïssas has been appointed Chief Operating Officer (COO) of UBIFRANCE, the French export-support government agency. I

info - october / november 2010 - 23

Anglo-French specialists news

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Miller Rosenfalck is the trading name of Miller Rosenfalck LLP, a limited liability partnership registered in England under No. OC301257 and regulated by The Solicitors Regulation Authority.

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news

Schools

Social media in the MBA classroom Humans are a very social bunch. We always have been and we always will be. Therefore it should not come as much of a surprise that social media is such a big deal and has taken off

||| Broadly defined social media means the set of interactive media channels, mostly online but not necessarily, that allow individuals to interact with each other as well as companies and organisations. For companies, this presents a huge opportunity—a new way to reach and engage customers. On the other hand, it also comes with a set of challenges and problems because social media is a relatively new phenomenon. Social media shifts the focus of marketing to conversations between consumers (consumer-toconsumer interactions) and away from the traditional model of merely broadcasting messages to consumers through, for example, television commercials. In this new world of social media, the big question is no longer whether this is all just a fad (it isn’t!) but rather, how to successfully compete in the marketplace by leveraging social media and tapping into consumers’ interactions with each other. Nor has the challenge passed us by INSEAD, the global business school with campuses in France, Singapore, and Abu Dhabi. About a year ago the school pondered this question and decided to develop a new MBA elective called “Advertising and Social Media Strategy.” The goal ofDelahaye_Ad_82_62 the course, which debuted JanuaryPage this 1year, was 19/1/09 in17:13

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in such a huge way over the last few years.

to equip MBA students with ways to use social media as well as traditional media for marketing and business success. Much of the course focuses on thinking about how consumers interact socially and how marketers can leverage those interactions to help them, for example, spread word-of-mouth. It is a very hands-on course, and students work on projects with real clients (from big brands such as BMW and Hermès to small startups). They also solve real-world problems such as how to use social media in launching a new brand or building an existing loyal customer-base. Tackling such a fast-changing topic in the MBA classroom has already reaped rewards. Students come from a wide range of interests, from marketing and finance to entrepreneurship and engineering. And the course has risen in popularity: when first offered in January, there were 27 students; and it has grown to just under 100 the last time I taught it, in May. No doubt its appeal stems from the topic’s timeliness and its relevance to students’ future careers. Companies want to employ social media-savvy people, not just in marketing but in all functions. Just the other day a former student—now a product manager for Philips Healthcare—emailed to say that everything she’s doing at the moment relates to social media. The growing importance of social media in business means that it simply cannot be ignored. Which is why, at INSEAD, this is now part of the MBA curriculum. I Andrew T. Stephen, assistant professor of marketing, INSEAD

info - october / november 2010 - 25

With free ofďŹ ce space and consultancy support, technology businesses canâ&#x20AC;&#x2122;t wait to move to Wales.

To apply for Access Wales T. +44 (0)1443 845 500 ibwales.com/accesswales 26 - info - october / november 2010

news

uk regional review

One step nearer a Welsh Stock Exchange?

Londonderry’s City of Culture title raises hopes

||| Outgoing CBI director-general, Richard Lambert, has given a cautious thumbs-up to plans for a Welsh Stock Exchange. Local capital should get to local business, especially new start-ups, said Lambert on his last official visit to Wales. “And if a Stock Exchange is a way of doing that I would be strongly in favour of it.” However, he cautioned, a separate exchange would only make sense if it could offer participants clear savings compared to using the LSE. The coalition government has itself considered reviving regional bourses. Wales used to have two, one in Swansea and one in Cardiff. To make a Welsh exchange costeffective, suggested Lambert, it should initially “piggy-back” on the electronically advanced Irish exchange. His remarks also followed the chancellor’s advocacy in May of a ‘growth capital fund’ for SMEs. Speaking of the delicate nature of the recovery, Lambert cited stronger high street purchases as one positive factor. In fact more than half of Welsh retailers interviewed in a recent CBI survey reported rising sales. Lambert also stressed the need to improve infrastructure, including electrification of rail links to London, and exploit new business avenues. Echoing this theme, the Wales Assembly hosted its largest ever skills and careers conference in mid-September under the title, ‘Finding Opportunities in Tough Times’. I

||| Local firms have cheered the surprise announcement of 15 July that Londonderry will be the UK’s first ever City of Culture. The title comes into effect in 2013, and while it draws no direct government funding it has already boosted economic morale.

consultation survey towards reviving Londonderry is well underway. Moreover in January Ilex helped win £13.3m in funding from the EU Peace III Programme for a Peace Bridge across the River Foyle. In August the first of nine sections arrived from Wales. The footbridge, to be built by a local firm, Graham Construction, and three other English and Welsh companies, should help revitalise the city centre and may well “put Londonderry back on the radar screen”, said Montgomery. I

The famous Hands Across the Divide Sculpture • Londonderry Edward Montgomery of the Honourable Irish Society, cosponsor of Derry’s successful bid, commented that “the city has been on the periphery of Europe and the UK since the demise of its oncefamous shirt-making industry. Joblessness has worsened after the recent collapse of the construction boom in Londonderry’s southern Irish hinterland. Yet the euphoria that followed the City of Culture announcement has bred a new tide of optimism that will lift all boats, including the chance for inward investment.” Montgomery cited the impressive initiatives of Ilex, the province’s first urban regeneration agency, whose exhaustive

||| The Aim-listed conveyor belt and air filter maker, Clyde Process Solutions, has announced an 18 percent rise in orders in the six months to 30 July. Clyde’s six-month order book now stands at £24.2m thanks to increased demand from food, metals and chemicals industries around the world. New contracts include the firm’s first order in the Chinese cement market, its largest filtration order in Europe, a major US petrochemicals order and a £1.4m order with mining company Anglo American in Brazil. Clyde is hiring new staff in these nations as economic conditions improve. I

Clyde success goes global

China • a new market for Clyde

info - october / november 2010 - 27

success s t or y

Mourad Mazouz: A Man of Taste The owner of Sketch and Momo has built a position as one of London’s most inventive restaurateurs. His recipe boils down to two ingredients: hard work and inventiveness. He talks to INFO magazine.

‘T

he restaurant is like a theatre, at seven o’clock, the curtain opens, the guests are welcomed inside. We put on a show when the guests come in.’ This is the philosophy of Mourad Mazouz, one of London’s most inventive and successful restaurateurs. He is the owner of Momo and Sketch in London, and of 404, Derriere and Andy Whaloo in Paris. ‘My greatest pleasure is to hear a guest say, I’ve been away for two hours, I forgot I was in London.’ He said that he heard one guest at 404 say, ‘I come back to your restaurant because I never get bored.’ Mourad says that that is the greatest compliment possible from a guest. He is in short restaurateur as entertainer as well as designer! The source of his brilliance is not training in the more sophisticated cooking schools of Geneva, Paris or London. Mourad is self-made and self-taught, from the streets of a small town, some fifty kilometres from the sea in Algeria. His father did odd jobs all his life, few connected with food or catering. He still lives in Algeria. Mourad was born in 1962, stayed at school until he was 14, but couldn’t wait to see the world. He went to France for his later teens, and then was entranced by what he had heard of America. He had a picture of Easy Rider on his walls and he dreamt of its possibilities. He was a traveller, he went to the East Coast, to the West

28 - info - october / november 2010

Coast, to Hawaii, then back to France, then on to Bali. New images filled his mind that would later feed into his restaurants. But not quite yet. He was no more than 26 when he returned to France and opened his first restaurant, in 1988, and two years later, his second. The ‘404’ was named after the Peugeot 404 used by people from North Africa when they came to France, Mourad calls it the ‘second invasion of the Arabs.’ He continues to own this restaurant and it serves North African cuisine. ‘I serve what I know,’ he says. In the mid-1990s, he sold the first Paris restaurant for £150,000 and used the money to set up Momo in Heddon Street in 1997. He worked painstakingly over the design, putting enormous effort into the selection of furniture, design and atmosphere. It has paid off, as anyone who visits this extraordinary recreation of a dark Middle Eastern or north African salon, will know. It was a success from day one, with early visits from Madonna and Stella McCartney. The press also picked it up, lavishing praise. Today this restaurant turns over some £5m. Momo success led Mourad to his next and most challenging venture, Sketch restaurant on Conduit Street in the West End. The effort Mourad put into refurbishing this listed building between 1998 and 2002 continues to send shivers down his spine. He

©Kalpesh Lathigra

success story

Mourad Mazouz • restaurateur • entertainer • designer found a building where the roof was leaking and the structure was in a poor state of repair. Refurbishment that was supposed to take two years took four and a half. The cost was enormous and he continues to pay back the bank debt. Nevertheless the restaurant turns over £8.5 million a year, making it one of London’s larger establishments. His dream was to create fine dining, matching the quality of a top French restaurant. He combined this with a number of other forms of dining, including a brasserie and tea house. But when it opened, the press blasted him and called him pretentious. It took him three years to understand what the critics were saying. Today, Sketch has proved Mourad’s point and survived, but at a high cost, both personally and financially. ‘Most people would have stopped Sketch a long time ago, because there is no revenue to be made out of it. But that is not my goal. I am proud of it. We make a thousand recipes a year. We decided to create something and we are continuing to do it. I know that in ten years time they will say, it was good. That is my reward.’ Mourad says is not interested in making money or acquiring objects. ‘Money is not an issue for me. It is not something I want to have. I like to wake up, do a day’s work. Do my job and go to sleep.’ This entrepreneur does not allow himself to think

over-long about the problems in his business. He has instead gone on to set up a highly successful restaurant in Dubai with a business partner. He is also setting up a restaurant in Beirut. He works with his motherin-law, an architect, who lives in the city. The two are buying in antique furniture and making some new furniture, for what promises to be a remarkable setting in a new souk. He visits Beirut some five times a year so his children can be with their grandparents. With the restaurant project, Mourad will be able to combine work with his family life. So what keeps this dynamo of the restaurant business of London’s West End going through tough times as well as easy ones. The answer is hard work, and overcoming challenges. He says, ‘You need to find solutions to do things differently. I like that, I like the idea of killing the routine. When I create a restaurant, I need to find a way to run it without me getting so involved, so I need to learn to share the work with other people. That means to do my work differently and that I like. I like to be efficient by doing less. I have no choice, but to share my work.’ Mourad’s establishments are judged by their creativity. In that sense Mourad, a man so courteous yet driven, is as much impresario as he is restaurateur. A remarkable man with a remarkable story! I N.K.

info - october / november 2010 - 29

f o c us

Introduction

Focus timeline A brief history of retail

Retailing on the rebound

30 - info - october / november 2010

Tea merchant Charles Henry Harrod opens a small Knightsbridge shop, now better known as Harrods

ritain is a nation of shopkeepers! Not the words of a CBI or an IOD spokesman but of Adam Smith, the economist. He may have spoken more sagely than he knew. For over the last 200 years since Smith lived, the country has built world-leading retail names. Brands like Marks and Spencer, Harrods, Argos and Sainsbury have proved models for the world. These are indeed among Britain’s leading contributors to business. What is the basis for this British triumph? The answers sound clichéd but also sensible. Shopkeepers need to understand their customers’ needs, keep a careful watch on the way their customers perform, and finally respond quickly to changes in the market. Here is the crux of the theme for this issue’s Focus. Retail branding and marketing has had to respond to the wider economic downturn. Owners of shopping chains are battling to understand the new customer behaviour in terms of what they are prepared to spend, and what they do and don’t want to buy. The shops that make this leap from a philosophy and retail approach geared to times of plenty, to one that mirrors the new more cost-conscious consumer, will ride the recession. The impact of recession goes wider than merely pitching the package to changing consumer tastes. Property values are also feeling the pinch, presenting opportunities for quick-footed retailers. So we see in the Focus that landlords and property owners are prepared to reduce rents to ensure their retail properties on the high street are filled, rather than left vacant when tenants fall by the wayside, victims of recession. Retailers who may have been kept out of prime spots by high rentals, now see their way to prime positions. Over time, the look of the British and French high streets will change. The new occupants will not merely be the new rash of Pound Shops, selling goods at bargain basements. The implications of a less buoyant economy are felt at every level of the retail market. The purchaser of luxury

1957

1973

First Carrefour store opens in suburban Annecy, France; now Carrefour is the largest hypermarket chain in the world in terms of size and the second in terms of revenue

First purpose-built Argos store starts trading in Sturry Road, Canterbury

1986 © wikipedia/Mick Garratt

1849

Metro in Gateshead, North East England, built in 1986, is the largest shopping centre in the UK and the EU

goods will not cease to buy the quality products sold by Cartier but he may buy the middle range rather than the highest price goods, as Arnaud Bamberger tells us. There are some other interesting obligations about the impact of recession on luxury customers. It seems that during the good times, people who would not normally consider themselves a customer of a luxury product visit the luxury shops and like to open themselves up to temptation. They may or may not buy, but they like to look. But during the hard times, those people

1707

1776

Mason and William Fortnum found Fortnum & Masons grocery at 181 Piccadilly

The Scottish economist Adam Smith coins the expression “a nation of shopkeepers” in his seminal work, The Wealth of Nations;

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1929

John James Sainsbury and his wife Mary Ann found the first Sainsbury ’s in London

First Marks & Spencer opens in Manchester with the logo “Don’t ask the price, it’s a penny”

Jack Cohen opens first Tesco store in Burnt Oak, Edgware, having begun selling surplus groceries in Hackney, east London, ten years earlier

1982

1987

1992

Tim Waterstone establishes first Waterstone’s bookshop at Old Brompton Road, London

Ikea, founded in Sweden in 1943, opens its first British store six years after its French launch

British Retail Consortium founded from the merger of the British Retailers’ Association and the Retail Consortium

1884

1869

1997

2009

AuctionWeb, founded in 1995 in San Jose, California, adopts the name eBay, and soon becomes the world’s predominant online auction and internet shopping website

Woolworths Group ceases trading and is liquidated

Focus contents Overview of Retailing

33 UK still tops world retail listings

prefer to stay away. The result is that fewer people visit luxury stores but those who do are determined buyers who know what they want and are likely to buy. Retail managers in the luxury field should respond to this customer behaviour. In short, customers behave differently at different times in the economic cycle. Retailers need to understand its implications and adapt. Whether the economy is up or down, the best of them will find and maximise opportunities. I

34 Keeping the customer satisfied 36 Online trading should know no borders… 37 London’s leading role 38 Franchising Advances 40 The Store of the Future Case studies

42 Pioneering retailer: How Natalie Massenet brought Fashion to the Net

44 From online auction to virtual global marketplace – the eBay story 46 Decathlon: A crisis of opportunities 48 Can Westfield surf to Olympic success in Stratford? 50 Clever retailing: The Argos way… 51 Cartier: The timeless appeal of Luxury 52 Bicester: The village where luxuries do not cost a fortune 55 Deepening customer engagement

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Part one : Overview of Retailing

UK still tops world retail listings but the United Arab Emirates is hot on its heels, writes Maria Raimundo of CB Richard Ellis (CBRE). She assesses the latest shifts in global retail market hierarchy.

he United Kingdom has maintained its position as the world’s most international retail market, according to the new edition of the report from titled ‘How Global is the Business of Retail?’ Attracting 58% of all international retail brands surveyed, the UK is now closely followed by the United Arab Emirates where 54% of international retailers are present. This is the first time that the UAE economy has taken second position. The CBRE’s annual survey – now in its third year – maps the global footprint of 294 of the world’s top retailers across 69 countries. It explores the globalisation of the retail industry at national and city levels and highlights differences between sectors and regions, thereby identifying changing trends in the patterns of global retail expansion. Despite a bumpy year for retail markets across the world, the UK maintained the number one position for the third year running. Europe continued to dominate with all five of the largest European economies featuring in the top 10 international retail destinations: UK (1st), France (4th), Spain (6th), Germany (7th) and Italy (8th). However, the top 20 list has become considerably more global as retailers target key emerging markets in addition to more established destinations. For example, China has moved up the global ranking by two places in the past year to enter the top five for the first time, with 47% of retailers now present there. Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis, commented: “The UK market continues to maintain its impressive array of international brands [yet] emerging markets play a critical role in the global expansion strategies of international retailers. The Middle East is fast becoming a prime spot on the global retail map.” After praising the inherent medium-term growth potential of many emerging markets, Gold noted that the opening of new retail space and shopping centres are key triggers for international retailers considering a move into new locations. However, he noted, “The current decrease in the development pipeline is likely to restrict the opportunities for retailers to expand further over the coming years.”

Almost half of all retailers in the survey had some presence in each of the three main global regions, but their footprint varied widely. The most expansive retailers are located in over 60 countries and 170 cities. Other global retailers focus on only five to 10 key countries and 10 to 15 major cities. Luxury retailers continued to expand in Asia, while Middle Eastern markets saw strong growth from the fashion sectors, with most new entrants coming from luxury and business retailers. By contrast, the majority of new openings in Central and Eastern Europe were led by value and mid-range retailers. I Maria Raimundo, CBRE 2010 Global R ankings Top 20 Countries Rank 2010

% of Retailer Country

Rank 2009

58%

UAE

54%

United States

51%

France

50%

China

47%

Spain

46%

Germany

45%

Italy

45%

Saudi Arabia

43%

Hong Kong

42%

Kuwait

41%

12=

Russia

41%

Japan

39%

12=

Singapore

38%

Belgium

37%

17=

Netherlands

37%

17=

Austria

37%

15=

17=

Switzerland

37%

17=

Taiwan

37%

15=

Czech Republic

36%

Country

Source: CB Richard Ellis

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Keeping the customer satisfied After five years at the helm of Retail Week, editor Tim Danaher outlines how the British shopping sector has largely survived the recession by listening to consumers and returning to core values

here have been many changes in the British economy since 2005, when Tim Danaher first took over as editor in chief of the prestigious UK magazine, Retail Week. Yet despite the tumultuous ups and downs over those years, he remains optimistic. And he insists that the single most important quality that determines success remains the same as ever : understanding the customer.

Listening to the customer

Britain, he says, is “one of the most mature and compact retailing markets in the world. It is very competitive out there, especially for new businesses. So retailers must get into the mind of the customer and appreciate what she is looking for”. And that includes changing tack to cope with to harder times. “Value enterprises have seen a sturdy growth recently”, he says, “because they respond to distinct requests from consumers. Consider the boom in low-cost clothing retailers, such as Primark.” Why, then, did Woolworths, a home-grown value outfit, collapse just when consumers were looking for cheaper products? The reason, he explains, is that the firm did not respond to challenges and criticisms. Now other value retailers are rushing to take its place. Going green and going online

Retail Week Editor • Tim Danaher

Another case in point is green retailing. Danaher insists this is no passing fad. “Consumers really do care about the environment; they have high expectations which retailers are sensibly meeting.” Plus no major retailer can thrive without using multi-channel methods – in other words, not only selling through the conventional shop. Danaher cites Argos, pioneer of catalogue retailing. “Argos is very good at reducing costs to shopping; it delivers where and when customers need goods, whether in the shop, by phone, or online. Now other supermarkets are catching up with their model”. Nor can a savvy retailer afford to ignore new technology,

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notes Danaher. “The best firms are those who are also strong online. Mobile-using consumers now constitute a very big group and established firms are now exploiting the potential of computer apps. Generally retailing is getting better at this.” Can the small firm survive?

Of course a multi-channel approach requires a high level of integration – shops, catalogues, online access, co-ordinated stock rooms, and so on. Faced with the expenditure needed for such sophisticated organisation, can the small firm survive? Here, too, Danaher feels that quality will win out. “Ultimately it is down to the consumer and his or her desires. There is still loyalty to a good local bakery, say. Indies may charge higher prices than a neighbouring supermarket, but Innovative • The Liverpool One shopping plaza the Retail Week website. “The further you are from the if they can offer something special, a fantastic service that larger chains cannot hope to match, a point of difference or metropolis the poorer the retailing sector does. While a unique product line, they still have a future.” London has more private sector employment, the north is suffering worse from public sector job cuts, which is “It is absolutely true that small businesses lack the infrastructure in place to embrace all the internet affecting consumers there”, he told INFO. technology at once”, admits Danaher. “Yet by the same Future challenges token the web gives them amazing opportunities. Suddenly they can reach people in different places, not Reducing public services is unavoidable if we are ever to just the next town or city, but anywhere in the world.” counter the recession, argues Danaher. The combined effect of government cuts and the VAT rise next January Flexibility and the in-store concession will doubtless dent consumer spending. Ultimately, he Another real growth area, observes Danaher, is the in-store concludes, “political issues go beyond just retailing; on balance I’d say the new government is off to a good start.”” concession. Ironically the trend grew out of a negative factor: the UK’s very restrictive leasing system for property. “Britain Apart from the luxury sector, the UK market “is so is a small country with a limited supply of available land”, crowded that there is little room for French entrants”. While Germany’s Lidl and America’s Primark have explains Danaher, who worked as a commercial property journalist for six years before taking the helm at Retail Week. broken into the ‘peculiar’ local scene, France’s Carrefour, So smaller brand retailers favour building concessions the largest hypermarket firm in the world by size, has within existing retailing areas, which have more power shunned this island in favour of expansion in the Far to sign a property deal. The host store benefits too as they East. By the same token, “when Argos tried to export their can offer the customer more variety and quality. In short, uniquely British model to India, they failed.” Evidently Danaher explains, in-store concessions allow for more national characteristics can still trump ‘globalisation’! flexible retailing. Hopeful signs Still place for luxury…

Many concessions, of course, feature luxury brands. How have these done when ‘value’ seems to be the order of the day? Evidently there is still room for them. “The fashion and luxury sectors are completely different” notes Danaher. “Iconic French firms and brands do especially well in London, not least because the capital attracts wealthy visitors from Russia, the Gulf states and the Far East.” Yet what is true for London is not necessarily so for the rest of Britain, Danaher noted in a recent blog on

Even in the generally gloomier North, Danaher sees sparks of hope. One example is Grosvenor’s Liverpool One shopping plaza, which in a recent blog he calls “absolutely humming and one of the very best retail developments in the UK”. With its blend of chains and independents, inviting layout, friendly staff and sheer variety, such mega-centres seen to epitomise what Danaher has called “the retail industry’s remarkable ability to reinvent, innovate and go to greater lengths to meet the needs of their customers” I L.R.J

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Online trading should know no borders… Stephen Robertson, Director General of British Retail Consortium, argues for lowering barriers in order to unleash the full potential of online retailing

Stephen Robertson

“T

his is a huge growth opportunity. It’s so much simpler to trade remotely into Europe than open a chain of stores ... With the weak pound, there’s an active market out there that would rather buy from the UK than locally ... but there are some big regulatory and distribution hurdles.” That was Shop Direct’s Group Chief Executive Mark Newton - Jones speaking at the BRC’s Multi Channel Retailing Conference. Certainly the European Commission wants more cross border internet trade, saying it makes the single market more real for citizens and allows them to access the best deals from all over the EU. Indeed the Commission is running a consultation between now and October on proposed changes to the Electronic Commerce Directive. In doing that it’s acknowledging that, in the EU as a whole, internet retailing hasn’t grown to anything

36 - info - october / november 2010

like the extent expected ten years ago. In fact only two per cent of the EU’s retail spending happens online. UK consumers are Europe’s biggest online shoppers, the figure here is six per cent, but most other EU states are way behind. So there’s a lot of future business out there and many retailers keen to tap into it. But it’s often not that easy. Some of the practical barriers are largely unavoidable – delivering a wardrobe to Greece is never likely to make sense. Then there are variations in tastes, languages, electrical voltages - but other difficulties can and should be reduced. Take VAT. If your total online sales to a member state exceed a threshold (the figure varies from state to state) you have to levy VAT at the destination country’s rate. So small-scale traders are unaffected but multiple tax rates are hell for a big or expanding business. Sell electricals and you have obligations under the Waste Electricals Directive but the requirements are different in different countries. You can hardly run a take-back scheme in Spain from a UK website! The usual conclusion is this category just isn’t worth the trouble. On these, surely a UK retailer should only have to meet UK rules. Then there are consumer rights. If you’re deemed to be ‘targeting’ customers in other member states you have

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to understand and comply with the local law in each of those states. That could be 27 different regulatory regimes across the EU. One direct retailer who’s targeting just three other EU states says the extra cost will be fifteen per cent of the first year’s turnover. They’re actually setting up offices in each of those countries to house the local lawyers they’ll need. The BRC has long campaigned for the EU to establish one consumer rights regime. The UK Government agrees and, if the Consumer Rights Directive is passed in the

form proposed, that’s what we’ll get. But some states are against. They say their consumers would end up with less protection than now. And, I suspect, there’s a bit of protectionism going on there too. Fear of the impact of familiar UK brands on their markets. The wrangling’s putting a huge brake on the development of cross border business. I say get on with it. Even harmonising some rights is better than doing nothing. I Stephen Robertson, British Retail Consortium Director General

London’s leading role The UK and France have very different retail regimes. French firms that prospect the UK are advised to do their homework, says ThinkLondon’s Paola Cuneo.

he low value of the pound and falling high street rentals are making the UK an increasingly attractive location for international retail companies. With 2.6 million shoppers a week and £6bn a year spent, Oxford Street is Europe’s busiest High Street and the story is much the same for London and the rest of the UK. In the last financial year French businesses accounted for 5.5% of total investment in London, with French companies both online, such as Ventee-Privee. com, and more conventional retailers like l’Atelier des Chefs and Pierre Hermé. However, it is important to realise that the retail market in the UK is very different to France, with pricing structures, consumer expectations, legal requirements and the labour market all making the process of internationalisation complex and costly for foreign investors. Yet the challenges are worth it, argues Paola Cuneo, Head of EMEA at Think London. French investors in the UK have to bear in mind that British laws on employment differ from those in the rest of Europe, so they should understand the basic requirements ahead of time. And it pays to consider the diverse ways firms recruit staff and the sort of remuneration packages they offer. That way French firms can build up a local skills pool. Pre-planning a business case or model is no bad idea either, and helps when setting up a retailing environment as competitive as the UK’s. It is also wise to work with a team on the ground in the UK who can offer practical advice, such as how to open a bank account, register a company,

With 2.6 million shoppers a week and £6bn a year spent, Oxford Street is Europe’s busiest High Street

negotiate with a landlord or meet local accounting requirements. Attracting customers becomes easier once one considers their spending habits. While some aspects are universal, others are quite peculiar to the country in question. One factor that distinguishes the UK from France is the greater use of online retailing 54% of UK consumers are buying online and according to Forrester, UK online retail sales will raise to almost £40bn by 2014, with an average spend of each online buyer of £717 in 2010, which should grow to £ 899 in 2014. I Paola Cuneo, Head of EMEA at Think London

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Franchising Advances The number of retail chains that use franchising to spread their name, and their risk, is growing on both sides of the Channel. Those that pursue this route have a number of options... By Ian Baker, Miller Rosenfalck.

rowth in franchising continues in both countries Franchising as a means of business expansion has grown very significantly in popularity in both France and the United Kingdom in recent years. The FFF (Fédération Française de la Franchise) statistics for 2009, indicate that despite the recession the number of franchised outlets in France had increased by 5.1% over the previous year to 51,619 and the number of networks by 11% to 1,369. Over ten years the growth in franchised outlets has totalled approximately 68%. In the UK, the NatWest/British Franchise Association Survey for 2009 gave an equivalent figure for the UK of 34,600 franchised units (excluding the historically numerous milk delivery franchises) and the number of active networks was 838 (up 3.6% on the previous year). Most people are aware that many fast food brands are operated wholly or partly on a franchised basis. However, they may be much less aware of the extent to which franchising as a business method is increasingly used in very many other sectors, ranging from home and property maintenance services to estate agencies, home care and nursing services, hairdressing and hotels. When is franchising potentially a good choice of distribution method for businesses? Firstly, it tends to be more appropriate when the owner of the business wishes to replicate a whole “business format”, rather than merely distribute single products. A manufacturer of a single range of finished, transportable products has the simpler option of appointing agents of distributors to sell products for him across the world. The owner of a business format on the other hand, needs to ensure that the whole method of delivery of the business is consistent around the world, as otherwise the brand image and what it stands for risks being damaged or diluted. Secondly, franchising tends to work well where there is a competitive advantage in having highly motivated local delivery of the business format. A franchisee is an independent business entity operating under licence from the franchisor and therefore, after payment of the contractual royalties to the franchisor and other costs, the eventual profit belongs to the franchisee. This is

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a huge incentive to go the extra mile (or kilometre) to provide good customer service, which a salaried manager, at the end of a long international chain of command, might be less motivated to do. The third factor in the equation is that the franchisor must provide a proven and profitable system which gives the franchisees at the local level business advantages which they would not otherwise be able to achieve as independent entrepreneurs. This involves such areas as strong brand recognition to attract customers, efficient bulk purchasing to reduce the average cost of products, information technology to manage the business and training programmes to ensure a competent workforce.

The International dimension Franchising can work well internationally. Examples such as the American global fast food brands, or of Accor in hotels, illustrate how successful franchise businesses can be internationally. Some of these systems enter into direct franchising arrangements, but internationally it is also common for franchisors to enter into ‘master franchise’ arrangements for a country or region. Here the master franchisee is responsible for recruiting and helping to support the local franchisees. In this way, the master franchisee takes responsibility for ensuring effective communications with staff and customers of the franchisees, taking into account the local cultural context. Whichever approach is adopted, getting the balance right between the essentials of the business format and the local marketing of the service is essential. As a light hearted illustration of this, there has recently been a huge amount of media interest in an advertising campaign for McDonalds in France using the iconic Astérix characters. It seems that McDonalds may have come up with the overall “Come As You Are” marketing campaign idea, but this was interpreted in a local way in France, where the studio of Albert Uderzo, the co-founder of the Astérix legacy, was engaged to provide the artwork. The advertising campaign has inevitably been somewhat controversial, probably deliberately so, but has undoubtedly generated enormous publicity value. I

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Distributorship or Agency? There are different ways to expand your business into a new market or territory. Two common methods are distributorship and agency. It is important to be aware of the key differences between the two when considering how best to market, sell, or distribute your products.

Appointing a distributor • In a distributorship arrangement, your business sells your products to a distributor, who then sells the products on to their customer, adding a margin to cover its own costs and profit. • By selling to a distributor who contracts with and resells to customers, your business may be able to pass on a large degree of the risk associated with the products. The assumption of risk by the distributor is reflected in the margins on resale of the products, which will generally be greater than the commission payable to an agent (who assumes far less risk than a distributor). • Your business will have far less control over the activities of a distributor than over the activities of an agent. Different types of products (such as bespoke products which require contact with the end customer, or products which require highly specialised after sales care by your business) may therefore require different arrangements. • Competition rules may impact on the appointment of a distributor. However, they generally do not apply to genuine agency arrangements. • A distributor takes on more financial cost and risk than an agent. To compensate for that burden he needs to make sure that his potential profit margins are greater than what an agent might receive. • Because the distributor buys the products outright from the manufacturer, he must pay for a stock of those goods himself, usually before he knows when he can sell them on to the end user. Often he will not have received payment from his customers before he has to pay the manufacturer, meaning

that he must finance this negative cash-flow. • Furthermore, he must take the pain of any bad debts customers who fail to honour their payment promises. • In addition, because he has a direct contractual link with the customer, he is in the front line regarding product breakdown or poor quality. His own contract with the manufacturer should ultimately allow him to be reimbursed by the manufacturer, but it still leaves the distributor with the burden of handling these issues with the customer.

Appointing an agent • In an agency arrangement, your business appoints an agent to negotiate and possibly conclude contracts with customers on your behalf. The agent is paid commission on the sales he makes, usually on a percentage basis. • As the agent is only an intermediary, generally he is not a party to the contract between you and the customer. Your business will retain a far greater degree of risk than in a distributorship arrangement. • Your business will have greater control in an agency arrangement, which may be an important issue for certain types of products (for example, those for which brand image is crucial). However, as principal, your business would generally be liable for the acts of the agent. • Competition rules generally do not apply to a genuine agency relationship, that is, if the agent bears no significant financial or commercial risk in relation to its agency activities. • There are specific laws in the UK and in the European Union which apply to commercial agents, but which do not apply to distributorship arrangements. • An agent merely facilitates a direct contract between manufacturer and ultimate customer. He does not acquire the goods himself, and any returns or product quality issues are simply passed back to the manufacturer. The agent simply takes a commission on sales.

Whether it’s a distributorship or an agency, the parties should be clear from the start about the length of the agreement, the notice periods necessary to terminate it, and grounds for early termination (e.g. based on missing performance objectives), as this a common area of dispute if the relationship fails. It is wise to take legal advice from the outset because there are complicated legal principles surrounding compensation or damages for terminating these agreements, which can differ substantially between countries. I

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The Store of the Future The trends are established. But the players have all to fight for. Professor Joshua Bamfield examines tomorrow’s retailing battlefield.

he retail industry in Britain and the whole of Europe is going through its most profound change since the self-service revolution. Recent years have seen large numbers of void premises (as high as 13% in September 2010 [LDC, 20101]), the growth in hard discount formats, customers fixated on price, aggressive promotions-led competition, and the growth of I nternet. Exit from recession conditions has not led to the upsurge in consumer demand for which many hoped. Moreover retailers are under increasing pressure to ensure the merchandise they sell is honestly-sourced and fairly traded, and retailers are required to take steps to reduce waste, become increasingly environmentally aware, and reduce their carbon footprint. Yet these issues have simply thrown underlying retail problems into sharp relief. They are not new problems. How will retailers respond to these threats and what impact might they have on the retail ‘store of the future’?

The New Approach The ‘store of the future’ will be multi-channel, connected, experience-oriented, aimed at building customer loyalty and delivering the merchandise they need. It will also be greener and have a smaller carbon footprint. The Future Will Look Much Like the Present Most of the technological, environmental, and supplyside changes required in the ‘store of the future’ are already occurring, so it will not be dramatically different. In addition, because every country has a massive heritage of existing stores, city centre investment, retail parks and shopping malls, which cannot simply be torn down and rebuilt, the ‘look’ of retail stores after a ten-year period is unlikely to change very much. However there are probably too many existing stores and we might expect around 8% to switch to other uses, including housing, along with poorly-performing parks and malls.

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Multi-channel The ‘store of the future’ will be based on the idea that people shop in stores and also buy online. Online retailers in the UK now account for more than 10% of retail sales and this share will continue to grow rapidly over the next few years to reach around 25% by 2015 (Bamfield, 20092). Many retailers will need to use online to support the stores and the retail stores to help drive online business, for example by emphasising the experience and ways to use and enjoy their products (e.g. games, entertainment, and IT). They may provide additional loyalty points and retail offers, but this tends to undermine any claim to be multi-channel. Stores may hold limited inventory but promise nextday delivery to the store or the customer’s home. Stores may accept online deliveries on behalf of loyal customers from pure-play e-retailers. Customers will be able to place online orders in-store using the company’s PCs and much consumer advice and information may be provided via colleague-assisted screens. Promotions and Loyalty Customer loyalty schemes may support customer-specific promotions as they shop the store or if they are near to the store. Messages and promotional coupons can be sent directly to mobile phones, goods can be ordered by mobile phones, and retailers like Metro have apps that allow customers to scan merchandise using their smartphones. Customers may feel more secure using their own mobiles than a retailer-provided computer tablet.

Customer Scanning and Payment Systems Customer self-scanning combined with automatic payment/checkout is likely to become increasingly typical in modern convenience stores, supermarkets, and other mass merchandisers in order to avoid queues, although experience so far has not been ecstatic. Automatic payment systems may become more common now that debit card use is likely to exceed payments by cash in

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The future will look like the present

2010-11 and contactless cards or mobile phone scanning may become increasingly important for smaller sums, although the costs of these systems are particularly high.

renewed emphasis upon local produce and many retailers now use labelling to help consumers make informed choices – e.g. about reducing their own carbon footprint.

Connected

The ‘store of the future’ will mean different things to different retailers Customer buying decisions are very affected by the quality of information found online and the objective recommendations and comments of other customers. The ‘store of the future’ needs to see this process not as a threat to the retailer’s role as intermediary but as a way of showing customers the transparency of how they behave in the marketplace. The ‘store of the future’ can also retain shopping lists, wants, birthday and wedding lists for customers and hold them on PC screens or kiosks in the store. These can be amended by customers in-store or downloaded from home, and printed off in-store to be used when making their selection. The Centre for Retail Research is a research group studying retail innovation in Europe. Its website can be found at www.retailresearch.org I

Customers are making extensive use of social networks like Facebook and Twitter and the ‘store of the future’ will create and link with affinity groups, bringing together those interested in new products, pushing out information to them about the factories or farmers that make the goods, retail standards, ‘Meet the Manager’, or link together customers that want to improve their local environment. Social networking is not suitable for every retailer and many will get it wrong. But it provides an opportunity for retailers to communicate regularly with their customers and to keep them informed.

Green Stores Most retailers are committed to reducing their carbon footprint. There has been considerable emphasis upon reducing heating costs, recycling, reduced packaging, and making distribution more effective. Although there have been concerns about ‘greenwash’ the industry has done a pretty good job in responding to consumer and government concerns. Particularly in food there has been

Professor Joshua Bamfield, Director, Centre for Retail Research LDC (2010) Mid Year Report 2010: A Gathering Storm? London: Local Data Company.

Bamfield, J. (2009) Online Trends 2010, Research Report, Nottingham: Centre for Retail Research. 2

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Part two : Case studies

Pioneering retailer: How Natalie Massenet brought Fashion to the Net Net-a-Porter has shown that you can sell quality brands on the internet. Here, the company’s founder explains to INFO her recipe for enduring and highly profitable success.

INFO : Did the Net-a-Porter concept come to you in a flash of inspiration, or was it something that developed over time? How did you arrive at the name?

Natalie Massenet : The vision I had before starting the business in 1999 is the same one that I have today: to create THE destination for fashion content and commerce. I was working as a fashion editor at the time and felt there was too great a disconnect between seeing something in a magazine and actually being able to buy it. I realised the internet could change all that it was the perfect platform to create a magazine that women could shop the best luxury fashion from everywhere instantly. As for the name ‘net-a-porter.com’, it came to me while I was thumbing through a fashion dictionary and thought of the play on words of prêt-a-porter online. I couldn’t believe that it wasn’t already registered and so we snapped it up immediately. Has internet retailing eliminated the pleasure, intimacy and personal nature of buying in a shop? Or would you say that online multi-channel platforms - including apps, iPads, iPhones and Blackberries - are the wave of the future?

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The internet has made shopping even more personal, even more intimate and even more pleasurable. A woman can shop when she has time, have product delivered to her home and try on clothes together with pieces from her own wardrobe. Our service is something we really pride ourselves on so together with all of the online multi-channel platforms that make shopping so easy - we always ensure good solid traditional customer service. Most of our brands all of their own magnificent flagship retails outlets - and these brand homes have a very important place in on the main shopping streets of the cities and help really define the brand. What was the initial response from the leading brands whose goods you promote? Did some argue that their own websites were sufficient? Do retailers now approach you?

We have worked together with many of the leading brands in the world and have created exclusive events together with them - whether it was with Yves Saint Laurent, Alexander McQueen, Halston or Roland Mouret. We have incredibly exciting approaches all of the time about partnering opportunities with our key brands. We wholeheartedly support our brands having their own websites - it is a vital part of the retailing

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Natalie Massenet world and there is room in this world for all of us. Is there a ‘typical’ Net-a-Porter user or does your site attract all ages and income brackets?

Our customer isn’t bracketed by age or income; rather she is time-poor with a great fashion taste and is constantly searching for newness but with an edited view point. She looks to NET-A-PORTER as her go-to destination to provide her with everything she needs - from the latest fashion news, to inspirational video and the very best in designer products delivered to her with world-class service.

How successful has it been, especially in harder times?

We have been planning theOutnet for some time - it just so happened that we launched at the time of the economic crisis. Obviously the site enables a fashion savvy customer to enjoy great current trend pieces but not at full season prices - as we try to focus editorial content around creating today’s trends from older season’s merchandise. I

What inspired you to launch theOutnet?

We saw an opportunity to change the perception about discount shopping and make it a chic experience by providing the best selection of merchandised products coupled with fabulous service. TheOutnet started as a destination for sale product from Net-aporter but now the majority of product on theOutnet is bought specifically for the site. We have very little crossover in terms of customers between Net-a-porter and TheOutnet - and are thrilled to have introduced a whole new customer base to on-line shopping.

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From online auction to virtual global marketplace – the eBay story A laptop is sold every 30 seconds and a motorbike every 18 minutes. That was eBay’s boast in 2003. And despite some subsequent setbacks, the iconic firm has adopted new techniques to recover its online retailing supremacy...

f one website can be credited with redefining online commerce and creating an entire cultural shift, the chances are that site is eBay. Created in 1995 as just one of many smaller online auction operations, eBay quickly grew to encompass electronic commerce and spawn an online retailing phenomenon. The statistics speak for themselves. In 2009 eBay’s revenue stood at $8.72bn, its net income was calibrated at $2.38bn, it claimed 168 million registered users worldwide, equivalent to six times the population of Australia – and it lists 16 million items for sale at any one time.

A compellingly simple formula Yet what explains its extraordinary success? Why did eBay survive the dot.com bubble of the late 1990s when so many others went under? The simple answer is that eBay “empowered the ordinary person to compete in a universal market in ways that they could not before”, wrote Elen Lewis in her 2008 book, “The eBay Story”. Their hands-off business model is both simple and effective. eBay are the only facilitator between buyers and sellers; unlike vendors such as Amazon, they hold no stock themselves which means they can cut costs and pass on the benefits to buyer and seller alike. Profits come from low commissions: ebay.co.uk, for instance, claims from 15p to a maximum £3 per £100 for an ordinary listing, and between 0.75% to 10% of the final price. Essentially the eBay phenomenon taps into the thrill of bidding and the age-old dream of scoring a bargain. One user calls it the ultimate recycling agency, albeit one driven by internet technology. Purchases range from £3.5m for a

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Gulfstream jet to £2.50 for a set of saxophone reeds. Some of the more bizarre items on offer have included a human skeleton, a bucket of seawater, a famous author’s toilet or four pawnshops in the US Midwest.

Mainstream firms enter the fray Yet eBay has also morphed from a locus for solo amateur bidders into an address for mainstream firms to hawk their wares. Around 2000 eBay teamed up with the computer giant Sun Microsystems, and launched its own eBay Motors and Business Exchange services. Five years later it began selling industrial surplus and partnered with smaller software firms to improve marketing facilities for users. eBay also presents tremendous opportunities for the canny sole bidder. This August, The Sun newspaper wrote about a City lawyer, Anthony Ponsford, who “quit the rat race to flog goods on eBay”. He is now set to earn more than £1m by December. French connections Another aspect of the brand’s success is its embrace of globalisation. While many assume eBay is all-American concern, it is in fact present in 33 countries and has specially tailored national outlets operating in 25. Ponsford’s Piranha Trading firm is a case in point. Run initially from his London bedroom, it imports furniture and bric-a-brac from China to auction anywhere his customers may be. And far from damaging business as he feared it would, Ponsford says “the recession actually helped, because people were now more after a bargain”. eBay’s founder and chairman, Pierre Omidyar, was

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Ebay Headquarters, San José California himself born in Paris in 1967 to Iranian parents, though he moved to Washington DC when he was six. In 1995 the computer whiz, then 28, needed to sell off an ailing laser printer. So over one weekend he devised the protoeBay auctioning software and trialled it on an existing website on the ebola virus.

Trust and transparency Soon Auctionweb itself went ‘viral’. Having acquired its first third party licensing deal, selling airline tickets, the site saw its online auctions leap in number from 250,000 in 1996 to 2m in January 2007 alone. Later that year it relaunched as eBay and co-founders Omidyar and Michael Skoll became billionaires. From the outset eBay realised buyers demand complete trustworthiness. There have only been a few cases of fraud and eBay bars dishonest users. This July a man in Coventry was convicted of shill bidding on eBay and fined £3,000. As Peter Mascarenhas, an eBay enthusiast from London, explains: “Ultimately the principle of ‘buyer beware’ applies. But there is a lot of information available, so the hallmark is transparency. Direct communication “You can communicate directly with the seller”, adds Mascarenhas, “and check a feedback section which covers accuracy of description, speed of dispatch and other

factors. Sellers are rated according to their honesty and helpfulness. Any rating less than 98% should be avoided. “The buyer can pay upfront, on collection, or by PayPal. Similarly the seller can sell by auction or at an agreed fixed price”, says this trader. “Nor are there nasty surprises on post and packaging. It is easy to get an account but hard to build up a reputation. And the eBay organisers are on the customers’ side. If I complain I can cancel the sale.”

From auctions to fixed price Ponsford’s example notwithstanding, eBay was hit by recent global economic setbacks. Visits to the site dropped some 31% and in 2008 the company’s value fell by 60%. Yet eBay has since recovered impressively. It earned $2.75bn when it sold off Skype and this July it announced a 26% jump in quarterly profits, to £272m, thanks largely to use of its PayPal service, which the firm bought for £1bn in 2002. One recent key change is eBay’s switch in emphasis from online auctioning to fixed price ‘buy it now’ offers. In addition eBay has encouraged innovative offshoots, such as online classified adverts, event ticket trading (via StubHub), money transfers (via PayPal), community discussion boards, and eBay Pulse for information about trends – an attractive variety that augurs well for the future. I L.R.J

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Decathlon: A crisis of opportunities Last year was a time to be defensive. This year, retailers in the UK can be more optimistic, says Decathlon’s Steven Dykes

t the moment, many retail chief executives across the country are sorting through pages of data to try and pick out any ‘wiseguy’ decisions that can help them plan better the next few years’ growth and to avoid being wrong. Put another way, many businesses are facing the same questions that George Osborne, the Chancellor of the Exchequer, faces at the moment: Spend now to boost growth, or continue to cut much more to ease the pain quickly. The stakes are high with lots to gain and lose – and unfortunately, not everyone can be right. When the crisis hit the retail sector in 2008/2009 it came quickly and severely. The unique nature of this recession was that very nearly every retail business model in the UK was affected to some degree. Through a mixture of consumption slowing down, margins being squeezed through exchange rate swings and credit lines being quickly cut for both business and customers, many owners and shareholders became quickly tetchy about the scale of their investments and subsequent budgets and forecasts became much scarier for all involved. The companies that did nothing at all in 2009 often collapsed quickly, whilst some others drifted along for a while until the cash simply ran out. Some others like JJB or Blacks had to downsize quickly and consider CVA agreements1 to survive. On the other hand, opportunities appeared everywhere else. One man’s loss is another man’s gain as the old saying goes, especially as the inflated market redressed itself with property and retail businesses offloading many assets. But who would be brave enough to take these opportunities? Who had the money to do so, or who could convince decision makers to fund the investment needed? The window to shoot for growth can often be quite brief. You can be six months early and get it badly wrong, or six months late and miss the boat.

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In a micro-economic sense for any business in this climate, the speed of execution (in the sense of quickly executing orders not people!) is the key response to the dilemmas mentioned above. Cutting costs is fine if done quickly to create a platform and business model to spend in a counter cycle investment way. Cutting for the sake of it never works and cutting things too visibly close to the retail customer can be disastrous. In a macro-economic sense, it is similar, in my mind, for George Osborne. The fear is that his level of cutting could be boringly uniform, highly political or much too slow, without any subsequent quick counter-cycle investment that could stagnate markets. Optimistically, however, the pragmatism of the Anglo Saxon approach compared to some of our European neighbours may well result in early cuts that fuel durable growth. Let us hope for our country that George Osborne chooses his window to shoot for growth wisely along with his strong rhetoric on cuts at the moment. Decision–making has changed considerably since the crisis hit. 2009 was a very short-term and defensive year with many quick cuts all over the sector. In many ways, it was needed and with the right people focusing on the problems it sparked a creativity to survive and then quickly find new opportunities. The 2010 project for the team is much more optimistic and attacking and more durable for the next 10 years. I call it project 10, starting in 2010. Unfortunately, I am no mafia wiseguy who is always right. But I believe in the principles of the arguments above, and the fact that while half of all decisions involve data analysis, the other half stem from gut instinct about when to shoot at that window. At the moment, it is working with four stores opening in the UK for us within a 12 month period to get to 10, the first base camp on our climb to the

Manager, Decathlon UK CVA agreement : An agreement between a company and its creditors to pay a proportion of the debt over a defined timescale 1

Try before you buy • Table Tennis

The Automobile alternative • Cycling

summit of the 10 year project. The recent store in Belfast broke all previous turnover records for opening in the UK. In perspective, we only had 6 stores in the previous 10 years so it is a real swift change for everyone. ‘Optimistic/realistic’ is what I call it with the teams, and I can now start to see a better dynamic and energy compared to before. Speed has been everything, as well as the resilience of the mindset of some key leaders. We attempted to cut off the fat that had built up in previous years and stop the poor investment. And with a few strong heads we attempted to create a sort of chaos management, one that could sniff out potential for growth into the mid-term whilst cutting like crazy in other areas. The crisis really pushed the creativity button and new solutions and opportunities sprang up everywhere. Talking again to planners, councils and pressure groups has helped using the following arguments: we provided the best prices for over 70 sports that are accessible to the poorest in society, and often we encouraged sports previously labelled as exclusive, like skiing. Overweight people were asked to try sports adapted to them, that are neither too technical nor too expensive. People were encouraged to leave their car at home and not pollute and to cycle or walk instead. Plus potential customers were offered free try-outs before buying sports goods, such as last year and free table tennis. Finally joint ventures, like the one with Warrington council were launched to produce sporting villages next year that balance public and private investment. In the coming London Olympic era, a sporting legacy and partnership after the games can easily be formed with the right conditions and with motivated decision makers. Finally, opportunities can be created in simpler ways. By staying true to your commercial policy is one example. This often takes guts in a depressed climate. Dropping prices all through the year (not just for twoweek periods) whilst the exchange rate and margin is plummeting, is a huge risk but can distinguish you from your competitors and can gain you market share. This we have done, and while we have by no means succeeded and lots of pitfalls remain, if you are confident in your business model and customer offer then you can succeed. Keep it ‘real’ and push toward a vision rather than live in the short term. That way, you can find durable possibilities for counter-cycle investment and growth. For me, therefore, the last year in the retail sector has been a crisis of opportunities. I Steven Dykes, Country

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Indoor skiing and snow boarding at The Snow Centre, Hemel Hempstead, Hertfordshire, UK

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Can Westfield surf to Olympic success in Stratford? Having outdone all expectations with their White City mega-mall, Westfield hopes to cash in on the 2012 Olympics boom with another vast retailing project in east London, due for launch next year…

he sceptics had a field day when Westfield opened its White City shopping centre on 30 October 2008. Why inaugurate London’s largest inner city mall, they asked, precisely when the waves of recession were crashing all around. And how could luxury sell at a time of pending austerity?

Bucking the trend As it happened Westfield had the last laugh. Nearly 13m people visited its £1.6bn White City flagship site in the initial seven months of trading. Sales between January

Westfield Shopping Centre • Main atrium

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and June 2010 rose by 23.7 percent and are expected to top £800m by the year’s end. Actually Westfield’s growth rate of 16.5 percent for 2009 far exceeds the overall London retail sector’s rise of 7.7 percent, and sluggish national figures of 1.1 percent. Evidently Westfield is bucking the general UK trend. Which raises two questions: What accounts for Westfield’s success? And can the Australian company reap similar rewards at its Stratford City mall, due to open in September 2011 within sight of the Olympic stadiums?

Tapping tourist potential and ambiance According to Westfield UK’s managing director, Michael Gutman, White City proves the value of careful long-term planning. The project was ten years in conception and took five years to build. Westfield also realised that tourists boost London’s retailing sector immensely. Attracted by the cheaper pound and enthused by Westfield’s confident marketing, wealthy Middle Easterners, Russians and Chinese have flocked to White City’s 280 quality stores in their droves. Another positive factor has been Westfield’s holistic approach. In 2003 Gutman settled near London’s Marylebone High Street, a “laboratory to study retail”. Why not emulate at White City “the combination of food and

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The Westfield Shopping Centre • White City

dining and the whole ambiance of the street”, he thought? Thus White City also boasts about 50 restaurants, live entertainment, and a 14-screen Vue multiplex cinema, which outperformed all 68 other Vue UK venues this year.

the first standalone Dior Homme in the UK, and the world’s first DKNY standalone menswear store. And the setting is appropriately inspiring, with chandeliers, walkways, 13,361 panels in its glass roof and 96 escalators.

Scale, accessibility and the lure of luxury Moreover, Westfield London is the third largest mall in the UK with nearly two miles of shop-front and a retail floor area of 150,000 square metres, equivalent to 30 football pitches. Transport links come as another bonus. The complex adjoins Shepherds Bush train and underground station; and has parking space for 4,500 cars, accessible by a run-off road from the A40. Plus Westfield London invited luxury brand retailers to locate to a mall for the first time. Its ‘Village’ area hosts such names like Gucci, Louis Vuitton, De Beers, Burberry, Miu Miu, Mulberry and Tiffany & Co. These now include

Beyond shopping… Naturally the £1.5bn Westfield Stratford City hopes to equal if not better White City. When completed it will be Europe’s largest urban shopping centre. Already 70 percent of store space has been sold, to such names as John Lewis, Marks & Spencer, Waitrose, Primark and Topshop. Yet its ethos is not limited to shopping. It will also offer office and hotel space. Plus its Studio East initiative, guided by a panel including Tracey Emin, will commission artwork and arrange bursaries for young talents. Mary Portas, who chairs the cultural committee, predicts “a fusion of sustainable art, design, culture and fashion which will create a new benchmark for the future of retail”. Westfield runs some 100 shopping centres worldwide, worth £33.8bn in total. The recession has taken a toll: Westfield UK’s eight malls recently recorded a 4.1 percent overall fall in income. “The equation is challenging”, admits Gutman. Nonetheless, Olympic aficionados and east Londoners will both benefit if Stratford can repeat the White City formula. I L.R.J

The £1.5bn Westfield Stratford City will be Europe’s largest urban shopping centre. Already 70 percent of store space has been sold to such names as John Lewis, Marks & Spencer, Waitrose, Primark and Topshop

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Clever retailing: The Argos way… The Argos catalogue has spawned numerous imitators on the high street. Now the company is using hand-held internet devices and speedy couriers in a bid to keep a step ahead of the competition…

enowned for their tongue-in-cheek television advertisements, Argos is equally famed for pioneering a business model that other British retailers are now enthusiastically emulating. Its approach is simplicity itself. Argos allows customers to page through thick, user-friendly catalogues, subdivided into colour-coded sectors, instead of stocking everything in their no-frills shops. Once a customer has chosen an item, it can be quickly ordered and picked up either from an in-store collection desk or delivered to her home. The advantages are clear: precious shop-floor space is freed up and costs saved on overheads help reduce prices.

Pioneering the multi-channel ethos Since it launched its first single store in Canterbury, in 1973, Argos has become the UK’s largest general goods retailer. It employs some 51,000 people, boasted sales of £4.282bn in 2009, and each year welcomes 130m visitors to its 750 or so high street outlets in Britain and Ireland. Part of the giant Home Retail Group, together with Homebase, Argos also pioneered own-brand goods, including Elizabeth Duke jewellery and more recently Chad Valley toys. Most crucially, it inaugurated ‘multichannel retailing’, or selling through a variety of delivery systems and locations. Some catalogues run to 1500 pages and their latest, released on 28 July, will probably be read in some 17m households. The Argos model has been described as ‘uniquely British’. Certainly nothing quite like it exists in France; nor did it work properly in India when applied there. Yet in Britain several supermarket chains are beginning to imitate their methods. Mastering the supply chain Naturally such a sophisticated system requires carefully coordinated logistics. Hence their supply chain transformation project, RACO, introduced in 2001.

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Thanks to collaboration with Oracle and Accenture, RACO now includes daily stock management, due day deliveries and a single merchandising system. When Argos won the coveted Retail Week award in 2008, their system was praised for being “unrivalled in scale of ambition and management of risk”; and for “preempting the need to revolutionise its infrastructure”.

From in-store purchases to buying online Argos also uses the power of new media on the customer side. Every year the company records 300 million website visits. In 2009 this remarkable level of interest generated sales of £1.4bn, making the firm the largest internet retailer in the UK after Amazon. This year the internet represented 32% of Argos’ sales, up from 10% in 2006. At this rate, soon more than half its customers may be buying online and not in conventional stores. One particularly fruitful venture is their online Check & Reserve for store collection. Over two-thirds of Argos customers use this shopping channel to quite simply ‘click and collect’ any one of 14,000 goods. And since August, Argos has begun a pilot project in London with the innovative web start-up, Shutl. A fee of under £5 per customer will facilitate same-day internet-matched courier deliveries (maybe in as little as 90 minutes) compared to the current two-three day service. Joining the app age Quick to exploit the apps revolution, Argos reported half a million hits in the three weeks since 28 May, when they launched a free app on the Apple iPhone. Essentially this ‘detector’ device allows customers to check prices and stock levels in real time on 25,000 products from their computer or mobile phone. The app also helps you locate the nearest store; gives you directions by Google Maps; and allows you to read some 600,000 customer reviews on argos.co.uk.I L.R.J

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Cartier: The timeless appeal of Luxury Arnaud Bamberger came to London in 1992 with a mission to expand his business. He remains here today, as executive chairman of Cartier UK. He has an unparalleled view of the luxury sector, as he tells INFO.

What has been happening to luxury over recent years? Luxury is still there. It is obvious there has been a slowdown in purchasing of some items. But it is more linked to the fashion world than the luxury world. It is more what is not really necessary. Rich people may not buy as many things as they used to, but they are still buying, they still feel they get good value. Companies like ours are less affected by the recession than some fashionable brands. People prefer to buy timeless and understated brands than fashionable brands. There are always two sides to the market. We have been working Arnaud Bamberger in China for ten years and today we have close to 30 stores there. Plus the Chinese are starting to travel. In fact they seem to be taking over from the Americans and Japanese of the past. What do Chinese people like to buy? They like to buy things they know. They know before they enter a store what they want to buy. They have seen advertising in their homeland. Over the last two years, they have accounted for 15 to 20% of the total sales. There is still a lot of wealth in Russia, and London remains a destination for Middle Eastern people too. Is it true that people are buying less showy products? It is not about showing off, it is about quality. People like watches with complications, but there is an added value. They can cost you a fortune. You may buy a watch that looks like steel, but is actually made of platinum. There is definitely a more understated type. We sell less big pieces, but we try and sell to more people. Less value, but to more people. Design and craftsmanship are important. We are designers. We are trendsetters not followers.

How do you manage your product lines? We have to create new products, more than we used to in the past. It is a competitive world. We need to launch more products because the cycle life of a product is shorter. You need to reinvent products. We are very famous for our style, not necessarily what’s inside. But we have worked very hard on creating haute horologie, to produce lovely movements. What is your price range? It goes from £1000 to £1m, but we have a lot of offers between £3000 and £6000. Have watches done better than jewellery in recent times? It is easier to sell watches than jewellery in recession. You have to know the time. People buy fewer watches now than they did. But a watch is something a man will wear and a man will have several watches. This has happened over the last twenty years. Jewellery is not so needed so you have to work more at it. But people will still have special occasions, with a lover, with a wife, with a mistress and they will want to bring her a nice gift. That is what we bank on. When do you see the end of recession? I want to be cautious, but I don’t like to be pessimistic. I don’t want to take the recession which does exist as a cause for lack of dynamism or people not meeting their budgets and targets. I always try and broaden my clientele, to be more proactive. Yes, it is more difficult, but that is no reason why we shouldn’t do business. The rich are still rich and they will still buy. This year may be tougher than last year. The economy is not that well. I will not overspend for the moment. But I don’t want to be paralysed and this may be a good time to gain some market share. I N.K

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The village where luxuries do not cost a fortune Pioneered in Bicester, Oxfordshire, and now spreading throughout Europe, the Chic Outlet Shopping Village sells surplus stock to consumers who want the best brand names for less.

ust ten minutes away stand the dreaming spires of Oxford. Yet Bicester Village’s chief attractions are not 30 university colleges, but 130 elegant outlet boutiques showcasing the world’s most iconic brands. Here the studious mind applies itself to finding spectacular bargains, with discounts of up to 60% off the recommended retail price.

The best of British Established in April 1995, the village features quintessential British fashion brands: Alexander McQueen, Burberry, Vivienne Westwood, Church’s, Gieves & Hawkes, Smythson, Anya Hindmarch, Mulberry, Ted Baker, Jack Wills, Paul Smith, Temperley London and Matthew Williamson, to name but a few. Gift-hunters are well served by the likes of Wedgwood porcelain, and in addition Bicester offers international brands like Anne Fontaine, Armani, Dolce & Gabbana, Dior, Diane von Furstenberg, Gérard Darel, Gucci, Petit Bateau, Timberland, Polo Ralph Lauren and Yves Saint Laurent. A Europe-wide phenomenon Bicester Village is now one of nine Chic Outlet Shopping Villages dotted throughout Europe. Others include sites near Madrid, Munich, Dublin, Milan, Barcelona, Franfurt, Brussels and, south of Paris, the 10-

Best of British • Bicester Village

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year-old La Vallée complex. Collectively these centres attract 23m visitors each year and feature over 885 luxury boutiques. All sell authentic surplus stock from the world’s leading fashion and luxury brands. In fact, 52 brands have chosen the Villages as their sole arena for their outlets worldwide. The Villages’ business model encompasses what Value Retail, the parent company, calls “a human scale environment that reflects the cultural heritage of the respective region, and recognises that value is measured by consumers’ experience, not just by price”. Each Village operates independently, yet they complement the brands’ city flagship stores. Total tax refunded sales grew by 52% from 2008 to 2009, and indicators suggest that 2010 figures could be even better.

Flexibility is key The Chic Outlet Shopping Villages constantly seek to reinvigorate the shopping experience. Hence their introduction of innovative temporary ‘Pop Up’ boutiques that allow brands to attract new customers. Such boutiques have included Elizabeth Hurley Beach, Tateossian, Bulgari, Phaidon and Marie-Chantal. And this year, Bicester Village and the British Fashion Council jointly launched a special pop up boutique to showcase upcoming British designers. Two out of five customers learn about the Villages through word of mouth recommendations; and some 30 percent of visitors come from overseas, with Brazilian, Chinese, Russian, Middle Eastern and South East Asian shoppers proving the biggest fans. Chic Outlet Shopping communications reach 720m target customers through global marketing, including social media, and their websites come in 11 languages. This year they launched a Shopping Express shuttle service in all locations; and promotions include pre-charged gift cards and online purchases of shuttle tickets. Evidently “the inspired art of smart shopping” has come to stay, for Cutlet Shopping has both defied the recession and tapped a rich vein in the global retailing market. I n.k

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JM Weston is one of the world’s premier makers and retailers of luxury men’s shoes. It has headquarters in Paris, and many shops in Europe, including one in London’s Burlington Gardens. Recession, says Mrs Marion Laffargue, the manager of the London premises, has not hurt its sales. Indeed, last year, the weakness of the pound was good for the brand, as she says ‘people came from Europe to the UK to take advantage of the weak pound. We had a very good year.’ European customers of JM Weston shoes, on the other hand, bought fewer shoes last year and patronised the shop’s repair service to make existing shoes last longer. The strengthening of the pound (vis-à-vis the Euro) this year has set back this part of their trade, but customers include Russian and Arab clientele who are prepared to pay prices that start at £250 and reach as much as £5000 for a pair of exotic crocodile boots. There are many prices in between. Mrs Laffargue says that JM Weston is putting increased emphasis on service. Its repair service for shoes, irrespective of their makers, marks it out from competitors. The shop also offers a complimentary Wednesday afternoon polishing service for customers and potential customers.

JM Weston: shoes keep their shine!

Savile Row is home of high-class tailoring

The current year’s sales are unlikely to reach last year’s peak, but Mrs Laffargue says the UK operation is meeting its budget. With its long established reputation for blue chip quality, JM Weston partners with tailors, master craftsmen and fashion brands by organising special workshops. These replicate the time-honoured traditions of the founder, Eugène Blanchard, and thus “add lustre to the brand”, says Marion Laffargue. I

Roset: providing affordable lu xur y “The latest word in sleek elegance” is how way it pre-empted EU green legislation. Already the Atlanta Journal once described the Roset succeeds by by the 1970s, Ligne Roset was pioneering items furniture of Ligne Roset. Renowned for its clever franchising, derived from sustainable sources, reducing modern ethos, the company has over 200 special promotions, pollution and toxicity, and reaffirming “our stores and 1,000 retailers worldwide. It interest-free credit, duties as eco-citizens”, says company president, draws on the talents of 50 designers, and and by keeping Pierre Roset. Another asset is continual recently reintroduced the classic Pumpkin ahead of trends. innovation, both technical and aesthetic, with Chair which France’s “furniture king of Take the way it pre- lines like Pop, Yang, Lover, Facett, Downtown, curves”, Pierre Paulin, devised in 1970 for empted EU green Moël, and in 2009 designer Philippe Nigro’s the Elysée Palace’s presidential suite. audacious puzzle-like Confluences range. “The legislation. Moreover Ligne Roset has branched idea precedes and the technique follows” is out into lights, textiles, accessories, office one company motto. fittings, interlocking fabric tile installations and home Committed to ‘affordable luxury’ and attentive to entertainment suites. Its showrooms stretch from Dubai new markets, Roset has opened flagship stores for the to Ligne Roset West End, a centrepiece of London Design emerging middle classes of Moscow and Almaty, and Week. Roset is literally represented on every continent. the traditionally conservative tastes of Edinburgh. Yet its origins go back 150 years to Antoine Roset’s humble Dynamic Roset websites tailored to both individuals business making walking sticks in Montagnieu, in the suband businesses are invariably linked to individual Alpine wineland of eastern France. stores and help spread the word. Recession might have Roset succeeds by clever franchising, special promotions, taken its toll on some US outlets. But in Britain, with interest-free credit, and by keeping ahead of trends. Take the dozens of stores, the future seems rosy. I

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Smartbox: making a name for itself The leading French gift-box retailer, Smartbox, has certainly had an ‘interesting journey’ this side of the Channel, admits the company’s UK marketing director Shaherah Jordan. The company offers 70 themed boxes priced from €29.90 to €399.90. Five years after their 2003 launch, Smartbox was selling 2.6m gift-boxes across 19 countries and generating turnover of €242m. In 2009 Smartbox had 6,500 partners and 5,000 retail outlets in France alone; and they bought Buy-A-Gift, which helped establish them as a global group. “Everyone knows about Smartbox in Europe, but not here – at least not at first”, says Jordan. Smartbox began selling to the UK in 2005 and set up local offices in 2007. With hindsight the timing was not ideal. The 2008 recession hit hard because two companies they had pumped money into collapsed by early 2009 – the vast entertainment retailer, Zavvi, AGS_FW_UK_ad_A5_en1_ctp.pdf 2010/06/09 12:55:16 PM

CMY

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and the books giant, Borders. “There were worries when Zaavi went under”, admits Shaherah, “but we weathered that storm and revisited our research”. One challenge was to choose which formula suited which retailer – popular lower end products, or higher end one-night escapes? Smartbox UK has since liaised with established enterprises like John Lewis and Thomas Cook. They have also cleverly targeted different sectors: expanding online sales in the UK, where it is more popular than in France; while nurturing the expat community who need less ‘education’. “We have adapted and learned new ways of speaking to our UK customers”, says Shaherah. “People like our promotions, our red letter days, the fact that we never use call centres.” Ultimately Smartbox UK benefits from ‘first entrance’ status, she says. “Customers trust us more than later players with whom they had bad experiences. It is a question of reassurance”. I

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Deepening customer engagement The strongest retailers actively engage with their customers, says Tony Treacy, managing director of More From Marketing. That way, they get above the noise, and capture sales.

here is no hocus-pocus when it comes to retailing. The task is clear and the same as it has always been. Get a product, brand or service in front of the prospect more often than your competitors, and at the right time when they customer is ready to buy - and bingo! The process a customer goes through when he decides to buy has not really changed much over the years, but the retail landscape he inhabits has been transformed by digital technology. The numbers of outlets to buy from have increased. To the high-street shop, mail order, and the telephone add the Internet, the TV, social media and your mobile phone. But it isn’t just that there are more places, it is also that the relationship between the brand and the consumer is radically different; and it continues to evolve in sophistication at a rapid pace. Success can always be measured in the number of customers or the rate of sale, but these are crude and superficial metrics. What has changed at the foundation of retail marketing strategy is the recognition that building deeper relationships with people is the number one priority; because it is people who become customers and the deeper the relationship, the more likely this transformation to customer is going to happen. So from broadcasting brand or product values and promotions, Marketing’s number one focus in retail has shifted to building customer relationships driven not only by purchasing history, but also by a deeper understanding of behaviour, preference, likes and dislikes, loyalties and needs; driven by data and happening in real-time. What stands between the brand and the potential customer; between the physical or virtual store and the decision to purchase, is a landscape crammed with marketing messages. The challenge of getting heard above the ‘noise’ is the most important question retail marketers have to answer. There is no magic wand to wave, but there are new approaches that help retailers create more meaningful engagement. Marketing communication used to be only measured by reach, or hits or recall; which

The retail landscape has been transformed by technology in turn defined the approach. Creativity channelled towards advertising that was memorable. This ‘passive’ approach has been replaced by ‘active engagement’, where the main goal is to create a moment of ‘interaction’; facilitated by new digital platforms. When Dell developed its much vaunted Twitter strategy it was driven by two thoughts: the first that the Twitter platform would be a great place to promote offers; the second that if people could be encouraged to ‘follow’ them then Dell could hear directly what customers thought about them; what they wanted; and what they liked and disliked. And as result they could tailor offers, promotions and their messaging directly to the individual’s need. Another example is the Guinness pub finder mobile application. This was a simple idea that exploited GPS. Provide an app on a phone to locate the nearest pub selling Guinness to wherever you are located. And there are many other examples where technology facilities engagement: geolocation applications such as Foursquare, 2D barcoding that initiate requests for information; interactive posters; bluecasting promotions at event venues through bluetooth and so on. The focus of retail marketing is creating moments where people and retailers engage with each other as equals, and that requires brands, from a communication perspective, to be active in the world inhabited by their customers. I Tony Treacy, Managing Director of More From Marketing

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f o c us

Need a meeting room? The French Chamber of Commerce in Great Britain is offering meeting rooms for hire at its offices in central London, only two stops away from St Pancras International. Our meeting rooms benefit from natural light, plenty of space and are equipped with the latest audiovisual equipment. We are here to respond to your specific requirements and are able to assist you organise meetings ranging from conferences to interviews. Please call 0207 092 6600 or visit www.ccfgb.co.uk.

ex hibit ions

Gauguin : Maker of Myth 30 September 2010 - 16 January 2011 | Tate Modern ||| Gauguin is one of the worldâ&#x20AC;&#x2122;s most famous and best-loved artists from the early 20th century. For the first time in the UK in over 50 years, Tate Modern presents an exhibition dedicated to this master French Post-Impressionist, featuring paintings and drawings from around the world. His sumptuous, colourful images of women in Tahiti and beautiful landscape images of Brittany in France are some of the most popular images in Modern art. This exhibition explores the role of the myths around the man - Gauguin as storyteller, painting himself as a Christ-like figure or even a demon in his own paintings, religious and mythical symbols in his work, and the manipulation of his own artistic identity. I

info - october / november 2010 - 57

a ge n da

What’s on? HENDRIX IN BRITAIN: HOUSE MUSEUM LONDON CELEBRATES THE MUSICIAN’S LIFE 40 YEARS AFTER HIS DEMISE ||| Jimi Hendrix was a musical legend from the 1960s who lived in London next door to Handel House Museum where George Friedrich Handel lived 200 years earlier. Jimi Hendrix at London’s Handel House Museum is a fantastic chance for fans to see rare memorabilia from the artist’s life and take a guided tour around his former home. Focusing on Jimi Hendrix’s life before and after his rise to fame, Jimi Hendrix at Handel House Museum in London looks at Hendrix when he was the most prolific. I Handel House Museum, London, 25 August 2010 – 7 November 2010

RUGBY EXPO 2010 : RUGBY EXHIBITION AND CONFERENCE ||| The only global rugby exhibition and conference that brings together the professional and grass roots game returns on 9th and 10th November at the RHS Lawrence Hall, Westminster. Rugby Expo 2010 combines the highest quality conference programme alongside the industry’s only live exhibition producing the ideal environment for making new contacts and finding new business while debating the key issues affecting the game both today and in the future. It is a chance to learn from the experts on rugby’s most relevant, topical issues and commercial developments. Most of all, it is a unique and unrivalled opportunity to meet and interact with senior executives from the world of rugby with expertise covering all aspects of the game and experiences covering all the major rugby territories. I RHS Lawrence Hall, Westminster, 9 and 10 November 2010

FRIEZE ART FAIR LONDON : THE LONDON ARTWORLD’S BIGGEST CONTEMPORY ART EVENT ||| Including 150 plus international galleries this four-day event also features two off-site music nights, talks and workshops, new artist film commissions from Linder, Elizabeth Price, Jess Flood-Paddock and Stephen Sutcliffe and a programme of special artist projects. Highlights this year include Spartacus Chetwynd’s performance event based on a live game show which mixes mime and dance routines with Japanese anime and seal music, and a panel discussion organised by Jeffrey Vallance in which psychic mediums will attempt to channel the spirits of famous artists such as Leonardo da Vinci and Jackson Pollock. For a more contemplative experience Ei Arakawa and Karl Holmqvist are collaborating to create an outdoor poetry park. Also back for a second year is Frame, a section within the fair for galleries under six years old showing solo artist presentations. I Regents Park, London, 14 October 2010 – 17 October 2010

THE FREEZE FESTIVAL : TOTALLY UNIQUE LONDON FESTIVAL EXPERIENCE ||| Freeze has welcomed the world’s very best skiers and snowboarders to compete on the specially erected 32m high, 100m long real snow ramp. They throw themselves off the huge kicker performing their best tricks for the LG snowboard FIS World Cup ranking points, their share of the prize purse, and your viewing pleasure. I Battersea Power Station, London, 29 October 2010 – 31 October 2010

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“ONCE UPON A THAMES” THE STORY OF THE LONDON WHALE 15th - 17th October 2010 7.30pm Fri - Sun / 3pm Sat & Sun / £20-£25 Box office 0844 847 2475 www.leicestersquaretheatre.com For more information www.lunidea.com

A wonderful Franco-British production inspired by the moving story of the whale stranded in the Thames in 2006 that united so many Londoners. “Once Upon a Thames” promises audiences an unforgettable theatrical experience, on the edge between laughter and tears, using innovative ideas and performance concepts to tap into an emotional thread as old as time itself. “This beautiful story of a young whale who as if by magic has broken through the Thames barrier, has inspired the creation of this parable - a metaphor for the human condition. It explores the universal struggle, the dreams and disillusions, love and fear, hopes and dilemmas we all face, the risks we take in or our decisions to play safe… and sometimes the traps we fall into – just as the whale that found herself trapped in the Thames.” – says Cassimo, Lunidea’s Artistic Director. This powerfully emotional production has brought together top artists in a unique array of art forms. From the French side has come the original idea of the show, the enchanting music, a touching mime, one of the best students of Marcel Marceau and a stunning live sand animation artist. From the British side there is a wonderful young dancer, an angel voice singer signed Warner Chappell and a well-known journalist starring as the Journalist. I

THEATRE The Railway Children Until 2 January 2011 | Theatre West End

|| The new adaptation of Edith Nesbit’s much-loved novel has played to good audience and critical acclaim since it opened earlier this month. A special 1,000 seat auditorium has been created at Waterloo station, with the audience seated either side of the railway tracks. The show uses the old Gentleman’s saloon carriage from the original classic film, and also features a real steam train from the National Railway Museum in York. I

EXHIBITIONS Science, religion and politics 11 September – 5 December 2010 | The Royal society | free

New display at the National Portrait Gallery to mark the 350th anniversary of the foundation of the Royal Society will celebrate a critical moment in the development

of modern science. The display of 20 works, drawing from the Collection of the National Portrait Gallery and including two loans from the Royal Society, will show the key figures in the early history of the Royal Society such as Sir Christopher Wren, Robert Boyle, Samuel Pepys and Sir Isaac Newton. I

OTHER Turner Prize 2010 5 October | Tate Britain, Millbank, London SW1P 4RG

Set up in 1984, the Tate’s Turner Prize has been courting controversy ever since. The most notorious prize in the world of contemporary art, it carries a large cash prize and instant fame for the winner who must be a British artist under fifty and for a work completed within the year. Recent winners have included Damien Hirst, Gillian Wearing, Grayson Perry and, last year, Richard Wright joined the illustrious list. I

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bo ok r e v i e w s

France, je t’aime je te quitte by Christian Roudeau ||| Meeting with Journalist Christian Roudeau (France Inter) based in London, he has published “France, je t’aime, je te quitte” which deals with opinion of expatriates on France: a “virtual country” made of 2.5 million people and still growing. There are 2 parts in the book: who are the French expatriates and what do they say about France. Profiles have evolved a lot and we are no longer talking (only) about the rich business man voting conservative. All categories are represented and while, before 2007, the vast majority of French expats voted for the candidate of the French conservative party, the last election showed the same trend as the global result. I

School blues by Daniel Pennac, translated by Sarah Ardizzone ||| Daniel Pennac has never forgotten what it was like to be a very unsatisfactory student, nor the day one of his teachers saved his life by assigning him the task of writing a novel. This was the moment Pennac realised that noone has to be a failure forever. In “School Blues”, Pennac explores the many facets of schooling: how fear makes children reject education; how children can be captivated by inventive thinking; how consumerism has altered attitudes to learning. Haunted by memories of his own turbulent time in the classroom, Pennac enacts dialogues with his teachers, his parents and his own students, and serves up much more than a bald analysis of how young people are consistently failed by a faltering system. “School Blues” is not

only universally applicable, but it is unquestionably a work of literature in its own right, driven by subtlety, sensitivity and a passion for pedagogy, while embracing the realities of contemporary culture. I

The Silence of Muhammad by Salim Bachi, translated by Sue Rose ||| Before becoming the prophet of Islam, Muhammad was a simple man of flesh and blood who started life as a poor orphan in the Arabian city of Mecca. Through his union with Khadija, he became a prosperous merchant and caravaneer. He was visited by God at the age of forty to become a prophet and visionary statesman. “The Silence of Muhammad” is the story of “this exceptional man” (Bachi). Based on historical fact and legends, the novel presents a fictionalised account of the life of Muhammad told by four key characters : his first wife, Khadija; his closest friend, Caliph Abu Bakr; the fiery warrior, General Khalid; and his last love Aisha, who became his wife at the age of nine. I

A Russian Novel by Emmanuel Carrère, translated by Linda Coverdale ||| Set in Paris and Kotelnich, a small post-Soviet town, “A Russian Novel” traces Carrère’s pursuit of two obsessions: the disappearance of his Russian grandfather and his fascination with a woman he loves but cannot keep from destroying. Elegant and passionate, “A Russian Novel” weaves the strands of Carrère’s story into a travelogue of a journey inward. Road trip, confession, emotional tour de force, this fearless reckoning illuminates the schemes we devise to evade ourselves and the inevitable payment they exact. I

These books, written in french and recently translated into english, were selected by the bureau du livre de Londres, translators and publishers

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Ed Pressman: Producer of new Wall Street movie The distinguished American producer’s latest epic is very topical. But he tells INFO that he was strongly influenced by the French new wave.

ould you assess your experience of the French cinema?

I grew up and was greatly influenced in my formative years by the French ‘New Wave’ film makers. The first film I produced was a homage to a Truffaut film of the early period. It was a coming of age story. I had the pleasure of spending some time with Jean-Luc Godard, on a project that he decided not to do. It was based on a book called The Lost. I have also worked with Bertrand Tavernier. I see my role as establishing the context for the filmmaker to establish his or her vision. This falls within the auteur theory of the New Wave. Most of the films I have done have been with writer-directors, who have been as diverse as Oliver Stone and Sam Raimi … they are all very distinct film makers, but each has a very unique voice and the films express that. The first film I did was inspired by Truffaut and was the work of a young writer director called Paul Williams. I have also worked with Terrence Malick and David Mamet. They all have been unique cinematic movies.

Is the computer a threat to the modern movie?

Film is very much alive. People are going to the cinemas more than they have in recent years. The current craze for 3D is a way to get away from the computer. The cinema presents a chance to get away from the computer and to have a communal experience. There was an idea that the attention of the average teenager was so short that the feature film would become an anomaly, out of date. The immersive of a feature film like Inception provides a great new experience. The challenge is for the smaller films, the so-called art films, to compete with the big studios. How has the market changed?

When I started out, the challenge was to get a film financed. Now it is easier to get a film made because there are more choices of finance than there used to be. Now you have to market it and get it out there against the competition that can spend $40 to $50 million in a promotional budget. But the other side of the coin is to get the film another life through new ways of distribution, like the Ipad. Horror films have a harder time in the theatres but they can be seen on new media.

You’re on the board of the Cinémoi Channel?

Cinémoi is a vehicle for people round the world to see French cinema. It is great to see people enjoying the great French films that I grew up on. Cinémoi allows many people to see those films. The way Cinémoi packages French films is a project with which I am proud to be identified. I am sure it will be a great success when it launches in the United States. I

Ed Pressman

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w i n e p r ess

Ups and downs in the UK retail wine market The UK is regarded as the hub of the international wine trade. Consumers are opting for wine over every other beer, but Champagne has a special place in the British heart, says Thibault Lavergne.

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he UK may be one of the smallest wine producers in the EU (with around 1,000 hectares in production) yet it is the largest importer by value in the world. In fact many regard Britain as the hub of the international wine trade. Both sides of the market, the off-trade (supermarket and independent retailers) and the on-trade (bars and restaurants), have encountered tremendous change over the last twenty years. Here is a quick survey of the sector and the particular position of French wines within the broader story. More than a quarter (28%) of all UK spending on alcohol now goes on wine as consumer tastes shift from beer and spirits towards a more cosmopolitan model of drinking. The UK wine market grew steadily by 13.4 percent in value, from £10.28bn in 2005 to an estimated £11.65bn in 2009. However, overall alcohol consumption in the UK fell by its sharpest rate for 60 years in 2009, the British Beer & Pub Association recently reported. After the golden decade of the 1990s, the wine market slowed down. There are plenty of reasons for this trend: the recession, increasing taxes (in 2008, duty increased by 17 percent), hardbargaining supermarkets, health concerns, and the decline of sterling against the euro over the past three years. Statistics released by the Wine and Spirit Trade Association for May 2010 showed an increase of 4.5 percent in volume for still wine but a fall of 6.9 percent for sparkling wine compared to May 2009. We know that Champagne remains the main component of the sparkling wine sector, and sales of Italian Prosecco exploded over the same period. So we can only conclude that consumers drink far less expensive bubbles these days! The Champagne industry, it seems, has become the first victim of British consumer cost-cutting. Put simply, Champagne is pricey whereas the average price of a 75cl bottle of wine currently stands at £4.36 (source: AC Nielsen). At the same time Wine Intelligence data suggests that British wine consumers are trading up: today 15 percent say they regularly spend over £6 on a bottle for

Rosé • the UK wine drinkers preferred choice

an informal meal at home, up from 10 percent in 2007. Yet the dominant factor in choice seems to be whether or not a product is on promotion. In the UK most wine is sold through the off-trade retail channel, with supermarkets accounting for approximately 80 percent of the market. This has made wine accessible to more consumers, and promotion-driven trading has seen price falls. Tesco is the leading supermarket supplier, followed by Asda, Sainsbury’s, Morrisons, Co-op, Aldi, Waitrose and Marks & Spencer. The retail sector has experienced considerable consolidation in recent years, as both supermarkets and liquor store chains merge, resulting in fewer key buyers. Internet sales and mail order has grown as well, with the likes of Laithwaites, The Wine Society and Tesco.com driving online wine sales. In terms of style preference, the UK wine drinker continues his love affair with rosé, whose share grew to 12.4 percent (an 8 percent increase on last year). White wine sales dominate with a 45.7 percent market share with red wine close behind on 41.7 percent. Varietal preference is still for Chardonnay, Sauvignon Blanc and Pinot Grigio, while Shiraz and Cabernet Sauvignon are the favoured red varietals. Clear branding

w i n e p r e ss

and the use of varietal grape names (like Merlot or Pinot Grigio) has bolstered New World wines, whereas Old World supplies are still fragmented by traditional names based on region, producer or estate. French wine, for centuries the most popular with British drinkers, has fallen spectacularly out of favour and slipped to fifth place behind wine from Australia, USA, Italy and South Africa. The New World provides low priced, big brand wines that are easy to drink and easy to sell. The French have yet to master this formula. One big problem is that ancient regional denomination laws (AOC) make it difficult for French producers to market their wine by the type of grape used. In the off-

trade market there is no French wine in the top 10 brands and only one in the top twenty, JP Chenet. But in the “connoisseur” luxury wine market (wine sold above £30) France remains by far the leader, and the top choice in Michelin-starred restaurants. Both distribution sectors have improved their wine offers as drinkers become more knowledgeable. Good value, clearly branded wine remains popular with people aged 25 to over 65. As long as the government does not increase the duty too much, wine producers seem assured of a bright future, with double digit growth in ten years time a strong possibility. I Thibault Lavergne is the managing director of Wine Story Ltd

The London wine show 12 -14 November | Olympia, Hammersmith Road, London W14 8UX

The London Wine Show is billed as “London’s premier wine experience”. It aims to offer visitors the opportunity to taste, try, and buy wines from all around the world in a fun and interactive environment. Some of the UK’s leading wine experts will be there including Oz Clarke, Tim Atkin, and Robert Joseph. I

cheese of the month - La Cave à Fromage ||| Most non-cheese lovers loathe this gem of a cheese, but if only they knew the truth! Imagine a ripe epoisses, trying to run outside its box, developing strong, pungent smells... Epoisses is a picturesque village located in Burgundy country (Bourgogne, France) where Catholic priests settled back in the 16th century. Here in this beautiful Gallic landscape they created this mighty cow milk cheese and by 1900 some 300 farms were producing it. World War I decimated the male population, and by 1918 only women were running life in the region. Production stopped altogether until it was revived in 1956. These days Marc de Bourgogne washes these cheeses, creating a powerful flavor, a sediment rich in sugar and alcohol and a distinctively shiny, wrinkled thin rind. Generous by nature, epoisses deserves to be remembered for a long time. I Epoisses • rich in sugar and alcohol

||| Graced with abundant mustard and blackcurrant liqueur around Dijon, and well preserved historical towns and fantastic wines around Beaune: Burgundy epitomises magnificent eternal France. The pungent epoisses is similarly evocative. For this magnificent little cheese illustrates centuries of culture, tradition, “terroirs” and expertise, all blended together to transport us back to the medieval cellars of the Hospice de Beaune. What could better match your epoisses than a full-bodied young Corton Charlemagne in red, or a rich and nutty Meursault in white, both from the Cotes de Beaune area? An aromatic, fruity Pinot Gris from Alsace would provide a delightfully fresh counterpoint to the cheese’s strong flavours. I

Wines to accompany Epoisses

Corton Charlemagne • full bodied and young

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t h e ch a m be r . . .

chamber news : introduction

he Chamber is particularly pleased to welcome to its board of directors two distinguished new members: Lord Jay, the former British Ambassador to France and Head of the Diplomatic Service, and Ian Fisher, the group country head of Société Générale. The Chamber is looking forward to its busiest and most productive part of the year. If the summer was understandably quieter, the autumn and winter will feature some leading speakers, important topics and particularly enjoyable events. TheseasonofmeetingsopenedwiththelaunchoftheCrossCultural Relations Forum on 23 September. Peter Alfandary, Chairman of the Forum and deputy president of the Chamber, introduced not only the Forum itself, but also a commentary that Forum members have compiled outlining its assessment of perceptions that French and English businessmen have of each other. This document will assist people doing business in a most friendly yet effective manner. The twin highlights of the Chamber’s autumn season must surely be the Dîner de la Rentrée, on Monday 8 November, and the Annual Financial Lunch, on Friday 12 November. The dinner, sponsored by Alstom, features as its guest speaker Patrick Kron, Chairman and CEO of Alstom. The main speaker at the lunch four days later is Helen Alexander, President of the Confederation of

British Industry and a distinguished commentator on our economy and enterprise. This prestigious and entertaining event will take place at the Sofitel St James and is sponsored by Société Générale & Investment Banking as it has been for the last 14 years. On Tuesday 9 November, the Chamber is extremely pleased to welcome Senator Alan Maclean, Jersey’s Minister for Economic Development. The business club cocktail, sponsored by Jersey Enterprise, is an opportunity for the Chamber to thank the senator’s and Jersey’s hospitality, which hosted a Chamber’s patron trip in May (see INFO July/August 2010). Senator Maclean will be joined on stage by Clive Boothman of Jersey Finance London. On Wednesday 17 November, there follows the fun of an international “Wine and Chat” event at the Argentine Ambassador’s residence, co-organised with the Spanish, Italian, Australian and Argentinean Chambers of Commerce.A busy November ends festively with the Franco-British Awards Dinner, which will take place on 23 November at the May Fair hotel. Our guest speaker is Raphaël Ibañez, ambassador of the FCCGB, and also recently appointed head of the French government’s special mission for sports. The event is placed under the high patronage of the French Ambassador to the UK and the British ambassador to France. I

New Chamber website to be launched soon!

||| The French Chamber is pleased to announce the release next month of its totally revamped website. Not only will it boast a range of new features and tools, it will be far more interactive, allowing visitors to register for events (members only), to buy our publications or be fully informed about our many services and membership advantages. Apart from featuring much more content and an attractive layout, the new site has been devised with intuitive navigation in mind. Above all, we have focused on making it easier for you to find and use whatever information you may need. In

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addition, our new website has kept well abreast of the latest in social networking, with active links to Twitter and Linked-In. Our advertising section show how to promote your own company, and other links help you contact whoever you may need in our office. In short, our new website aims to be a virtual online community at the hub of our organisation, and a onestop shop for members. You might call it ‘integration with ease’ or ‘have fun networking’. Ultimately it is one site in cyberspace that we feel will unleash our potential – and yours… I

@ t he ch a mber...

27 companies have joined the Chamber in the last two months,

An absolute record breaking achievement! new Patron members:

spie represented by Renaud Digoin Danzin, Director www.spiematthewhall.com

As the European leader in electrical and mechanical engineering and HVAC services, energy and communication systems, SPIE enhances the quality of life by helping local and regional authorities and companies design, build, operate and maintain facilities that are more energyefficient and environmentally friendly. As a partner of long-term confidence, SPIE is determined to be a source of progress for all its stakeholders, especially its customers, employees and shareholders. SPIE’s more than 29,000 employees work from nearly 400 locations in 30 countries and last year SPIE posted sales of €3.75 billion and operating income from ordinary activities of €172.9 million. SPIE is a leading UK contractor through its subsidiaries MATTHEW HALL and WHS.

ULN Bongrain represented by René Briquetti, General Manager www.bongrain.com

Bongrain is focused on cheese and dairy specialties and is one of the world’s foremost processors of milk. The Group is active on all continents and offers high added value products adapted to both the taste and habits of local consumers and the specifics of its markets. Bongrain is the second largest group in France and world number six. Bongrain is the worldwide market leader for technical butters and highly specific diary proteins for the food, dietetic and health industries.

St Pancras Renaissance London Hotel www.stpancraslondonrenaissance.co.uk

represented by

Kevin Kelly, General Manager

St Pancras London Renaissance Hotel is a Victorian masterpiece, lovingly restored in every detail, from the Gothic revival façade to the grand stairwell, gold leaf ceilings and other eccentric touches. This Grade 1 listed building was designed by Sir George Gilbert Scott, the exterior radiates red brick magnificence; the interior remains a treasure-trove of historic touches and contemporary grandeur. Opening in Spring 2011 and boasting 244 luxurious bedrooms, a handful of meeting and event rooms with a maximum capacity of up to 550 people, a celebrity chef restaurant and stunning public space including The Booking Office Bar which offers direct St Pancras Station platform access, this hotel is a ‘rare gem’. New Corporate members:

Boucheron www.boucheron.com For over 150 years, Boucheron creates sumptuous, elegant and audacious jewels, timepieces and fragrances. Place Vendome’s master jeweller combines precious stones from among the world’s rarest and most desirable. With free spirited and audacious designs, Boucheron constantly reinvents the uniqueness of timeless elegance. Represented by Alyne Hansen-Damm, UK Manager

Châteauform’ www.chateauform.co.uk Châteauform’ – hosts for European business events, in brief : 30+ venues in countryside settings, close to major European cities and international airports, exclusively dedicated to hosting business events. Their ‘human scale’ (40-110 bedrooms) reinforces team spirit and promotes good communication. Fully inclusive delegate packages eliminate any shocks and surprises and you can count on us too, for help with all the event logistics. We adapt to your rhythm, and not the other way round. A warm welcome from the resident Host Couple awaits - relax and feel truly ‘at home’! Represented by Natacha Lehmann-Sampeur, Clients Relations UK

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@ t he ch a mber...

new Corporate members:

Europ Assistance

www.europ-assistance.co.uk Europ Assistance UK was established in 1973 and is part of the worldwide Europ Assistance Group. Europ Assistance developed the concept of travel assistance back in the 1960’s and now operates in over 208 countries and employs over 6,800 staff. The company is a leading provider of Travel, Motor and Home Emergency assistance and insurance services, in addition to healthcare assistance solutions. Our end-to end propositions include telephony and web sales, policy fulfilment, premium collection and accounting, underwriting capacity, claims handling and assistance. Represented by Patrick Leroy, Managing Director

ESSEC www.essec.edu Founded in 1907, ESSEC is a leading Business School in Europe. With Campuses in Paris and Singapore,

ESSEC trains 4200 students and 6000 executives of 90 nationalities. 45% of its 135 professors are international. Its 35000 alumni hold positions in companies across the world. Represented by Véronique Lecompte, UK Alumni - Careers & Corporate Affairs

Figtree www.figtreenetwork.com

Figtree is the UK’s leading independent brand consultancy with offices in Paris and Hong Kong, Figtree specializes in helping ambitious organisations and services develop stronger brand personalities. Represented by Simon Myers, CEO

Majencia Ltd www.majencia.com Majencia Ltd is the UK subsidiary of Majencia SA, a leading French manufacturer in the workplace design and office furniture market. Majencia, a responsible company dedicated to sustainable development with a turnover of €94,4M in 2009, 742

employees, 3 manufacturing sites, 13 regional branches and 1 international subsidiary, provides a one-stop shop for projects to improve quality of life, well-being and efficiency in office spaces. Majencia offers consulting, project management, space-planning, furniture design and production, delivery and installation. Represented by Jeremy Thorpe, General Manager

Ukeenon.com www.ukeenon.com The Development and Exploitation of an Internet platform of social network and e-commerce associated with Professional services in Business to Business, Business to Consumer & Consumer to Consumer like Art Lifestyle, Job, Press Releases, Events & Travel management, e-reputation organisation. Represented by Louison Ratanga, Marketing Director and Public Relations

new Active members: Analog Way

Devoucoux Ltd

Designer and manufacturer of innovative image converters www.analog.com

Equestrian market www.devoucoux.com

Represented by Jessica Deambrogi

FIRST Magazine Ltd

AP Consulting Partnership

Publishing www.firstmagazine.com

Executive Coaching, Leadership & Talent Development www.apconsulting.co.uk

Represented by Amanda Phillips, Director

Coaching4U

Personal & Professional Coaching www.coaching4u.org.uk

Represented by Dr Guy Annoni, Director

Conex SA

Software for the management of customs procedures www.conex.fr

Represented by Kaye Cheri, International Development Team

Control Risks

Professional Services www.control-risks.com

Represented by Julien Artero, Senior Business Development Manager

Represented by Didier Brailly, Director

Represented by Cristina Moore, Vice President, European Affairs

Little Ones UK Ltd & The Maestros Recruitment Premium Bilingual Nannies and Domestic Staff www.littleoneslondon.co.uk

Represented by Marine Lienard, Director French & Arabic Languages

Maison Blanc

Retail Bakery www.maisonblanc.co.uk

Represented by Samantha Brown, Marketing Manager

Maped UK Ltd

School Accessories www.maped.com

Represented by Jacques Michaux, Managing Director

Pavilion Investment House Investments solutions www.pavilionih.com

Represented by Brigitte Reech, Partner

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Safir Consulting

Marketing www.safir-consulting.com

Represented by Isabel Girard, Managing Director

Smith Lam Architects Ltd Architecture / Interior Design / Planning www.smithlam.com

Represented by Daniel Smith, Managing Director

SNH Tax (www.snhtax.com) Tax Consulting

Represented by Hynde Hamdani, Business Development Manager - FrenchMarket

TBS Internet

IT www.tbs-certificates.co.uk

Represented by Jean-Philippe Donnio, President

Voyage Privé Ltd

Travel Agency www.voyage-prive.co.uk

Represented by John Bevan, Managing Director UK

Wisaforce (www.wisaforce.com) Software editor

Represented by Fanny Dolo, Key Account Manager

@ t he ch a mber...

Past Events

10th September: