Funky Buddha by ALTEX SA - Company's Presentation

Page 1


Table of

CONTENTS 01

About Us

07

Our Story

02

The Company & The Brand

08

Our Team

03

Milestones

09

The Shop Concept

04

Mission & Vision

10

Marketing

11

KPI’s

05

06

Social Responsibility

Portfolio


About Us To g e t h e r, E v e r y o n e Achieves More Fashion is one of the most influential forms of expression in our contemporary culture


Founded in Athens by Yannis K. Alexiou and sons

2003


The Company & The Brands Funky Buddha – being the flagship brand – is part of a portfolio of retail brands that are developed by our company ALTEX SA, based in Greece – Europe. ALTEX S.A. is a family-owned European fashion retailer that designs, produces and distributes fashion products with a distinctive character, standing clearly out from the crowd. Driven by passion, determination and intuition, the company creates clothes that are “canvasses of expression” and give consumers the ability to be themselves, feel good and stand out from the crowd. Garments of the highest quality, comfortable and highly affordable, that match each person, expressing his or her personality. The company’s portfolio consists of three brands: Funky Buddha, Garage Fifty Five & Second Skin offer dynamic, comfortable, uplifting and expressive lifestyle clothes for men and women, paying extreme attention to quality and details reflecting sheer enthusiasm, freedom of expression and a unique differentiation in style that all those who feel authentic, creative, daring and confident are looking for! Each fashion collection is an expression and a way of life for all of those who don’t just follow fashion but think of it as a mean of expression. This is one of the cornerstones of the company’s philosophy, inspiring both the company and the consumers alike. Each fashion collection is daring, influenced by music, arts & culture, intense feelings, travelling, love for the environment with a contemporary still classy look and feel, being part of a total “canvas” and a modern way of interaction and expression. Every season, the company designs clothes full of innovative ideas, by enriching the latest trends.


Milestones 2003 ALTEX S.A. is founded introducing FUNKY BUDDHA brand with a successful jacket collection

2005 The company acquires and moves into its new company-owned headquarters and invests in a new extended distribution center

2008 Two new brands, Fifty Five GARAGE Dry Goods & Supplies and SECOND SKIN are introduced to enrich the company's brand portfolio.

2013 FUNKY BUDDHA opens up to retailing in Greece.

2014

The basic cornerstones are set for ALTEX to become an international Retailer with new Retail locations and a proven international retail development strategy

2015-16 Retailing and international expansion is further enhanced through a dedicated reorganization of the company’s infrastructure. Shopping Experience is adopted as one of the new “beliefs” in ALTEX’ s Brand Philosophy

2017-18 The brand is launched in Germany choosing omnichannel retailing: The first Funky Buddha store opens in Centro Oberhausen. Funky Buddha German e-shop is online. The Wholesale network in Germany is rapidly developed. German and other European marketplaces are the next big thing, like Zalando, Otto, About You, etc.


Mission & Vision

creative

vision

01 02 03 04 05 We are proud of our family. It is both our link to the past and the foundation of our future. ✓ Mission: To be one of the leading European OMNICHANNEL RETAILERS in the markets we operate in and to become a GLOBAL FASHION RETAILER. ✓ Vision: To always develop and market our brands in accordance to European fashion trends and to create a distinct mix of collections, which will appeal to the trends-aware 16-45 age group. ✓ We always strive to meet each client’s unique set of needs and expectations by delivering a truly personalized experience on a professional basis. ✓ Our commitment to combining highly effective working practices with paradigm-busting creativity means the only thing we’ll always exceed are your expectations. ✓ We’re passionate about customers and consumers. Being proud of what we do, we act sensitively with the highest standards of integrity and social responsibility.

We base our cooperation on trust, partnership and honesty

passion


Social Responsibility

1

NATURAL ENVIRONMENT Showing respect to the natural environment in which we operate and trying actively to contribute to the development of the respective communities is a major goal in our Social Responsibility Policy.

2

ETHICAL FOUNDATION Our ethical foundation is based on corporate social responsibility. As a responsible business the company has adopted its role in the communities in which it operates.

3

ECOLOGY & QUALITY ALTEX commits to the principle of producing products harmless to the ecological environment. This includes, apart from a carefully selected choice of raw-material and fabrics, suppliers worldwide and the continuous control of crucial ecological parameters by independent and certified international laboratories and authority boards.

4

ENVIRONMENTAL PROTECTION Environmental protection and nature preservation as well as the responsible use of natural resources play an important role in all corporate decisions. As part of its environmental policy, ALTEX not only ensures that energy is used sparingly in all its divisions but also re-uses residual materials and fabrics at all its sites.


Portfolio Three Brands Endless Success “The only real elegance is in the Mind; If you’ve got that, the rest really comes from it”


Funky Buddha is Altex’s anchor brand, a symbol of our story, a point of difference in fashion marketplaces. Fashion is one of the most influential forms of expression in our contemporary culture. Serving as a mirror of our time, fashion is also regarded as a post-modern metaphor of what goes on in society.


Fifty Five GARAGE Dry Goods & Supplies is the signatureclothing brand for those who are fond of casualwear style. Rooted in the European culture and style, it embodies an innovative idea of menswear, enriched by a cosmopolitan attitude and looking at the fashion and life-style of the major international cities as a source of inspiration. Ever eager for fresh ideas, the brand’s contemporary design turns to a new generation of male consumers, who are aware of their own style and live casual fashion as a way to express themselves, their image and their vision of the World. The product design follows this “new man” through every moment of the day, giving him the chance to make his own stylistic choices, thanks to a true total look casual offer, a proper quality/price balance and an ever innovative suggestion.


Second Skin is an athletic brand with cotton based apparel for men and women distributed in Greece by VETO S.A. Great quality and design at an affordable price. Products: shorts, hoodies, t-shirts, polos, shirts, pants, jackets, accessories


Funky Buddha Story Funky Buddha brand was founded in 2003 through the passion and intuition of Alexiou family from Europe - Greece. What started off as a casual business trip for them, turned into an epic adventure through the highs and lows of the Far East. Seeking initially to research business opportunities, a delay at a local train station resulted in a major detour. They returned from it with crates and stories! The rising sun flag became the brand’s symbol and an inspiration for what has become a highly successful idea: to make great garments that suit every individual, reflect ones personality and make you feel cool at ease. The brand was launched during the summer of 2003 and its tees and cargo shorts became directly a hit, surpassing expectations and setting the standards for further expansion of the brand. In just a few years, with hard work and determination, and with the collection becoming richer and more complete the commercial success of the European fashion company took off. Funky Buddha has become - in a short period of time – an international fashion Retailer and the cult fashion brand for those who love to wear clothes inspired by values such as freedom, respect for the individual and respect for the environment.


A global OMNICHANNEL fashion Retailer

01 The Idea Experience led us to transform the existing network of Funky Buddha stores according to the latest trends of international Retailing and CROSS BORDER ecommerce.

The new concept had to be in-line with the philosophy of the brand but at the same time to give a maximum of shopping experience to all clients, both ON- and OFFLINE.

Planning

02

03 Sketch Concept Designers and Fashion Specialists worked hand in hand to deliver a new, fresh and sophisticated concept housing all collections of the brand under one roof.

To communicate our Brand Philosophy to the customer and to become one of the leading Retailers was not only a dream but a necessity in todays demanding fashion scene

Communicate

04

05 Ideas We incorporated all ideas from our fashion team and combined it with the experience of our managers to expand worldwide.

The concept was tested and retested and after a thorough pilot phase, Funky Buddha stores were ready to become a milestone on the fashion market.

Create

06

07 Develop We seek to expand worldwide, having already a sound presence in Europe, developing the international Funky Buddha Network, ON- and OFF LINE.


Our Team

Te a m w o r k m a k e s t h e D r e a m - Te a m

Work together for success Everyone that works here has a desire to create amazing user experiences. Being great at what you do is the cost of entry at ALTEX S.A., what tends to get people hired is fit. When talented people fit well together they produce some pretty impressive stuff. We always strive to put the right people with the right skills on the right projects. There are no pitch teams, no “B” teams. Everyone here works as part of the TEAM, directly with our clients and our business partners. It’s fun, as it should be. We spend so much of our life working that we’d best enjoy it.


The Funky Buddha Team The company employs more than 170 highly specialized, skilled & well trained staff and experienced managers, all of them dedicated to the continuous evolution of the men’s, women’s and kids’ fashion collections, the implementation of sophisticated marketing strategies and actions for promoting our brand, committed to total customers’ satisfaction.

Altex Team

/ Knowledge/Experience

Couture C

Retail Orientation facebook.com/funkybuddha twitter.com/@funkybuddha2 Instagram/funkybuddha_

E-Commerce Expertise Wholesale Orientation Marketing Orientation


Infrastructure During the last years the company invested in the modernization of its IT system (ERP – CRM – B2B – BI- software & hardware) both in Greece and abroad. This gave ALTEX a substantial comparative advantage, raising the technological bar to the highest international standards. The IT Department of ALTEX is entirely responsible for the smooth and orderly operation of the EDP systems. The daily goal of the IT department is the optimum data management, provision of support and information to all its users worldwide, suppressing lead times, providing invaluable management information, minimizing effort and avoiding delays at all levels. IT supports tightly-knit collaboration among designers, store managers, market resources specialists, inventory control, production managers and technology production planners. A sophisticated Purchasing Technology is implemented to support all primary activities. All production, regardless of its origin, is received at the central logistics centres, from where it is distributed to all the stores or clients worldwide on a highly frequent and constant basis, achieving minimum delivery and lead times.


Awards • Funky Buddha is proud to be awarded the European Business Award 2014/15 as a National Champion. • Funky Buddha was awarded the Franchise Award 16 in recognition of its CONCEPT REDESIGN. • The company was awarded the Franchise Award 17 in two categories, as BE SPOKEN FRANCHISOR and as the company with the BEST INTERNATIONAL EXPANSION. • The company got an honor Award in RETAIL FRANCHIOR OF THE YEAR 2016


Funky Buddha Product Philosophy Every season Funky Buddha creates wardrobes brimming with ideas, intune with the latest trends and inspired by its core values. Its products are of high quality, rich in detail, uplifting in attitude but also highly affordable. Conceded for the “Young�, dynamic individual, it targets men and woman who care about details and quality at competitive prices, who love the vintage style and always want to look and feel good while remaining themselves.


4

Collections Per Year

More than

500

SKU’S per Year

55% Men’s Fashion

45%

Women’s Fashion


High Price

Perceptual Map

Scotch & Soda Pepe Jeans Zara

A&F Topshop

Hollister

Tommy Hilfiger DENIM SuperDry

American Eagle

Tom Tailor Jack & Jones

Low Quality

Aeropostale

H&M

Low Price

Pull&Bear

High Quality


Inspiring Retail Space


Stylish For more than a decade our talented team has brought our brands and our consumers together through innovative and inspiring retail store presentations. Because at its heart, great concepts are delivered by great people.


Interior Design Building A Better Concept


Shop in Shops ‌ Corners ‌ Department Stores Supporting different Distribution Channels was always part of our development strategy. Starting from the needs and demands of each market, we design a dedicated concept to meet these needs. We internationally develop in parallel the Retail, Wholesale, S-i-S and e-commerce channels, being a true global OMNICHANNEL Retailer!


Marketing


The Ideas travelling Healthy life

mood places

culture

style

art

trends

ideas concept

colors fashion

creative


⚥

Marketing

The communication strategy of the company is one of the key drivers of success leading to the high recognition of the brand. Through an elaborated off line & online marketing, PR and communication plan, Funky Buddha is currently recognized as one of the leading fashion companies in Greece and a rising star on the European Market, holding always a privileged position in the media. TV, cinema, press, outdoor advertising, digital advertising, sponsorships and various public relations programs are selected with criteria associated with the target group, the position and the sustainable development of the company. Furthermore, various below the line activities are held, aiming to increase the traffic, the sales and the customers’ loyalty. All media are selected according to criteria that are entirely consistent with the profile and the philosophy of Funky Buddha, so as to always ensure the successful and accurate communication of the message that characterizes each campaign of the company.


Marketing / Visual Communication

The choice of partners is a key issue for the company, and for this reason we cooperate with the most distinguished marketing specialists and fashion media in the field. Famous fashion photographers are always behind the camera to capture the fashion trends presented by top models. The final touch in the impeccable image of all the our marketing campaign is completed by notable partners who are responsible for the art direction, styling, make up and hair style and who embrace the philosophy of the company. Implementation: Lookbooks – Fashion catalogues – Press Web presence – Digital Marketing – Social Media & Online campaigns Promotional Tools – Visuals


⚥

Marketing/Sponsorships, PR events


âš¡

Marketing/Booths


⚥

Marketing Tools

Packaging Packaging effectively communicates the brand identity and solidarity. The brand symbols are clearly depicted on all packing prints and accessories. The illustrations aim at making the packaging units desirable by the consumer to be kept for other uses and not be thrown away.


Basic KPI’s “I think there is beauty in everything. What ‘normal’ people would perceive as ugly, I can usually see something of beauty in it.” Coco Channel


The Turnover Funky Buddha 2003

Start-up with a significant success

Rapid development of the Brand

2005

Yearly Turnover 25

23,7

20 18

2010

Preparation of new brands and systematic wholesale development

15

15 Development of different shop concepts – SIS - Corners

2014

National Development & Retail Experience in ALL CHANNELS

Becoming a Global omnichannel Retailer – Launch of ecommerce

2016

2013 2015

7

2017-18

5

5 3 1

Focus on Global Expansion

Greece, Cyprus, Germany, Romania, Serbia …. International e-Market Places

10

10

0 2003

2005

2010

2014

2015 mil €

2016

2017

2018


Yearly Analysis

TYPICAL MONTHLY SALES DISTRIBUTION

4.982€

18 16

AVG Net Sales per m2

IN THOUSAND €

14

Year 2016 Typical Sales Distribution of FUNKY BUDDHA over a fiscal year. Average Data used from all Funky Buddha POS across the Global Retail Network.

12 10 8 6 4 2 0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


⚥

Historical Data Analysis


âš¡

Retail network Analysis

The Network Network Ownership

Network Development - POS

14 13 31

12

29

11

27

9

26 23

5

14 3 9 2015

13

14

2016

2017

18

22

25

28

1

22

33

28

37

41

45

11 2018

Company Operated

2019 Franchised

2020

2021

2015

2016

2017 GREECE

2018

2019

INTERNATIONAL

2020

2021


âš¡

The Network

2017: 5.697m2 267; 5%

In Malls: 9 Stores 1300m2

Shop Area Allocation

548; 10% 1751; 31%

CORNER OUTLETS COS FRANCHISED INTERNATIONAL

1266; 22%

1815; 32%


The prices that have been set for our collection reflect the excellent quality, the innovative design and the extensive treatment of the items.

Price Positioning

Although the pricing of the Funky Buddha products may vary from one country to another, due to transport, customs and other local expenditures, the following list represents an average retail price (in €) for every item group for a given European country. LADIES MENS MENS RRP (EURO) RRP (EURO) RRP (EURO) SS 18 the target pricing is to remain within the medium toFW17/18 In general, lower level of any market’s pricing of similar5,95-39,95 products with a gradual shift to become even more 12,95-49,95 ACCESSORIES ACCESSORIES 9,9-45,9 attractive than the “value for money” positioning with extremely competitive entry 15,95-32,95 BEACHWEAR BEACHWEAR 35,95-39,95 level pricing. 49,95-75,95 DENIM PANTS DENIM PANTS 55,95-69,95 65,9-85,9 DENIM SHORTS DENIM SHORTS 45,95-55,95 35,95-45,95 DRESS DRESS 19,95-69,95 12,95-65,95 FOOTWEAR FOOTWEAR 15,95-69,95 45,9-125,9 JACKETS JACKETS 59,95-85,95 59,95-85,95 54,9-175,9 JUMPSUITS JUMPSUITS 39,95-55,95 39,95 KNITWEAR KNITWEAR 29,95-45,95 29,9-95,9 29,95-39,95 POLO SHIRTS POLO SHIRTS 42,95-69,95 SHIRTS SHIRTS 25,95-55,95 39,9-59,9 SKIRTS SKIRTS 35,95-55,95 35,95 45,9 SWEATPANTS SWEATPANTS 35,95-49,95 SWEATSHIRTS SWEATSHIRTS 35,95-55,95 37,9-59,9 25,95 SWEATSHORTS SWEATSHORTS 29,95-35,95 25,95 19,9-29,9 T-SHIRT L/S T-SHIRT L/S 25,95-35,95 9,95-29,95 12,95-25,95 12,9-29,9 T-SHIRT S/S T-SHIRT S/S 49,95-65,95 WOVEN PANTS WOVEN PANTS 39,95-55,95 45,95-69,95 WOVEN SHORTS WOVEN SHORTS 45,95-55,95 29,95-45,95 22,95-39,95 WOVEN TOPS WOVEN TOPS

LADIES RRP (EURO)

5,95-49,95 29,9-69,9 39,9 25,9-69,9 39,9-99,9 49,9-149,95 59,9-69,9 19,9-65,95

25,9-45,95 39,9-55,95 29,95-39,95 29,9-59,95 22,9 19,95-29,95 9,9-39,95 29,9-69,9 29,9-39,95


Product Mix MEN’S Collection Product – Sales Distribution SS 17 / Men’s Collection BEACHWEAR 4,10%

KNITWEAR 2,30% PANTS 12,60%

T-SHIRT 29,40%

SHIRTS 10,50% SWEATSHIRT 1,80% T-SHIRT L/S 0,60% JACKET 3,80%

SHORTS 28,90%

SHOES 5,50%

ACCESSORIES 0,50%


Product Mix MEN’S Collection Product – Sales Distribution FW 16-17 / Men’s Collection SHOES 4,40% SWEATSHIRT 15,60%

T-SHIRT 5,20%

T-SHIRT L/S 1,70% ACCESSORIES 4,80%

JACKET 21,80%

SHIRTS 8,20%

KNITWEAR 16,50%

PANTS 21,80%


Product Mix WOMAN’S Collection Product – Sales Distribution SS 17 / Woman’s Collection T-SHIRT L/S 1,18%

SHOES 9,22%

ACCESSORIES 7,95% DRESS 9,13% JACKET 1,67%

PANTS 17,08%

JUMPSUITS 1,77% KNITWEAR 2,26% LINGERIE-UNDERWEAR 0,79%

SWEATSHIRT 1,67%

SHIRTS 5,40%

BEACHWEAR 1,77% SKIRTS 1,86%

SHORTS 13,64%

T-SHIRT 24,63%


Product Mix WOMAN’S Collection Product – Sales Distribution FW 16-17 / Woman’s Collection T-SHIRT L/S 4,82%

T-SHIRT 6,74%

ACCESSORIES 6,95%

DRESS 3,78% JACKET 15,62%

SWEATSHIRT 9,16% SHORTS 0,18%

JUMPSUITS 1,02%

SKIRTS 0,15% SHOES 4,44%

SHIRTS 6,87%

PANTS 19,19%

KNITWEAR 21,08%


The Numbers: RETAIL

18.8%

Overall Conversion Rate

91% Customer Satisfaction


The Numbers: e-commerce Number of Sessions / User: 1.45 Pages / Session: 4.75 Avg Session Duration: 3:49 Lifetime Value (LTV): 0,40€ Avg. Order Value: 43.47€ Avg. Price / Item: 30.00€ Avg. Items / Order: 1,45 Avg. Conversion Rate: 0.68% Mobile Users: 50.16% Tablet Users: 6.49% Desktop Users: 43.45%


Demographics: e-commerce


Demographics: e-commerce


CUSTOMER DEMOGRAPHICS - RETAIL

They like to travel, to meet new cultures and people. They follow the fashion trends but always adapt them to their unique style. They like to try new things and feel comfortable about themselves. They know how to dress according to each occasion – place - season. They seek and enjoy quality in their clothing and don’t compromise…

1,72 Avg UPT

Being loyal customers, they know that they will find the right products at the right price. As their budget gets smaller, they take great care on what to spend they money. They do not like to buy clothes, that are more expensive than the quality and style offered. Funky Buddha is a lifestyle they can afford.

41% Men

38,95€

59% Women

Avg Basket (VPT)

Men Women

2,92 Buying Frequency p. season

Men Women


STORE NETWORK 2018 Points of Sale Worldwide Points of Sales across all Sales Channels (OMNI channel development)

European Origin with an international flair

Greece: 39 Germany: 1

All Sales Channels under one roof Multi-brand Portfolio Orientation leads to flexible store configurations allowing for maximum profitability and adaptation to local market conditions.

2 1 Romania: Serbia: 1 Cyprus: 4

Around The World Information Funky Buddha is aiming to expand worldwide with a network of concept stores as well as enhancing the network of local Agents & Distributers. The company leverages on the power of Franchising granting country licenses (Master Franchise Rights) as well as Area Development Rights.


E-commerce in 2018

E-MARKET PLACES

Funky-buddha.gr Funkybuddha.de

2

Funky-buddha.sr

Funky-buddha.com.cy


Wholesale in 2018 More than 300 POS all over Europe

2


Contact Whether you have specific needs or just want to say hello, feel free to send us a message or give us a call.

ADDRESS 40 Grigoriou Lampraki Str., 14342, Nea Filadelfia, Athens, Greece

OFFICE +30 210 6615803-4

Send your inquires, advices and suggestion to: commercial@altex.gr

Facebook.com/funkybuddha Twitter.com/@funkybuddha2 Instagram/funkybuddha_


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