They Have a Common Cause

THEY HAVE A COMMON CAUSE! THE NEW WE, PROFESSIONALLY TRANSLATED, EMBODIES THE RETURN TO AN INSTINCT THAT OUR MODERN CIVILISATION HAS FORGOTTEN TO A CERTAIN EXTENT. ALLIANCES ARE NOT A MERE ANACHRONISTIC LEGACY OF THE 1960S AND 1970S, BUT EVEN SECURED THE SURVIVAL OF PREHISTORIC SOCIETY. HOWEVER, THEY ARE ONLY SUCCESSFUL WHEN THEY ARE IMPLEMENTED WITH A HIGH DEGREE OF FINESSE, TRUST, AND INTELLECT.

THE LOBBY

for collaborations is small: as small as virtually any lobby in the fashion industry. However, the status quo is even more regrettable in this particular case. The harder times are, the more Darwin’s evolution theory “The Survival of the Fittest” is interpreted as individual action. MK Group’s Markus Dielmann, Masculin Modekreis’ Lars Braun, Adventure Fashion Agency’s Marc Kofler, and How to Market’s Gabriele Frantzen explain why alliances were - and are - a sensible idea. Their concepts indicate how much potential there is to be tapped and what it takes to collaborate on equal terms. How to Market only recently celebrated its inaugural event, while Masculin Modekreis will celebrate its 45th anniversary next year. All concepts prove that alliances need a clearly defined basis in order to be sensible and durable. Every alliance is, after all, a compromise of sorts. The partners are aware of the strengths and weaknesses of each other and are not afraid to exchange opinions. The common goal is success.

THE MK-GROUP

THE NEW

GENERATION

When Markus Dielmann, the head of the eponymous family-owned shoe retailer from Darmstadt, talks about MK Group’s concept, it sounds like he is talking about an ideal world. “We are, however, not a blessed island. Some developments affect us just as brutally as all other market participants.” Nonetheless, the principle is truly ingenious. Nobody merely benefits from the success of the other, but everybody actively contributes with individual success. The MK Group cooperates through internal knowledge transfer, but also offers its members the chance to create business opportunities amongst each other. They were pioneers with their loose and friendly network of owner-operated shoe retailers in Germany and Switzerland. Today, the MK Group consists of ten renowned companies that operate more than 180 stores in more than 100 locations. They collectively benefit from synergy effects and join forces, but the primary focus is always on the exchange of personal experiences. To this end, the group organises informal meetings in regular intervals. It also stages an individual in-house exhibition eight times per year and organises joint order dates. The collective was founded in the mid-1960s and was born out of necessity. Many German shoe retailers were struggling with problems regarding the procurement of Italian shoes. The MK Group was eager to access new markets and collections, and wanted to negotiate with the suppliers on equal terms. Initially the collective was made up of three members, but the number has since risen to ten. “Our network was established by the parental generation of most active owners”, Markus Dielmann explains. This highlights one of the group’s greatest challenges. The main issues are generational change and the fact that fewer owners are actually also professional buyers. “While the MK Group was previously concerned with gaining access to certain shoe ranges, today’s main aspect is to exchange views regarding changing markets, procurement, and the sales situation in general to ensure that each company remains competitive individually.”

JOINT BRANDS

The most important synergy effect is the coordination and ordering process of ten private labels managed by four companies. “We have common brands within the group; these brands need to be developed. On the one hand, this is a marketing task that is assumed by the member that owns the brands. However, when it comes to further development of the collection and the selection of specific products, the group is involved from the moment when everyone has the opportunity to participate in the order.” The private brands Sommerkind, Helén Billkrantz, Van der Laan, and Carrera Panamericana have been particularly successful and now stand for approximately 80% of the sales generated by the private labels. “Due to the growth that we have achieved in recent years, the coordination effort among the members has become quite substantial. To this end, we have introduced a new online order tool, mainly because it automates the information policy within the group.” The side effect is that every member can see when a shoe model performs particularly well in a colleague’s company or when a colleague follows up a top seller. Everything circulates and every member can join a repeat order. “As a result, we expect acceleration within product ranges and the utilisation of high

“IF I TALK TO A COLLEAGUE WITH A COMPLETELY DIFFERENT PHILOSOPHY AND I KNOW THAT HE IS A LOT MORE SUCCESSFUL THAN I AM, THEN THAT GIVES ME VALUABLE FOOD FOR THOUGHT.” MARKUS DIELMANN, MK-GROUP

demand dynamics. Our brands are implemented with suppliers who deliver swiftly. For me, the future challenges are swift product introduction, reliable deliveries, and less complex logistic concepts”, Markus Dielmann explains.

“SOME PEOPLE SAY THAT SUCH A PURCHASING ALLIANCE IS AN ANACHRONISM. IN MY OPINION IT ISN’T; IT IS A VERY MODERN FORM OF INDIVIDUAL COOPERATION.” LARS BRAUN, MASKULIN MODEKREIS

MASCULIN

MODEKREIS

A WONDER

FUL VEHICLE

To put it modestly, this organisation’s member list reads like the “who-is-who” of luxury retailers in Germany, Austria, and Switzerland. The Masculin Modekreis was founded in 1971 and now has 15 members with 18 locations. The members include renowned companies such as Braun, Lodenfrey, Sagmeister, and Graenicher. In addition to its private label, Simon Gray, the group produces three Masculin print journals every season. The latter was actually the reason why the alliance was founded. “Back then, the members simply weren’t comfortable with the way designer menswear and the related claims were depicted. So they founded an advertising community, called it Masculin, and were of the opinion that the ‘C’ was something special. It has now developed into a business community that has reinvented itself numerous times over the years”, Lars Braun explains. He was literally born into the group. His grandfather lived to witness how the company, then under the management of his father Jean Braun, joined Masculin Modekreis in 1980. He subsequently took over the management of the company and currently takes care of all aspects of the Mainz-based company. “I believe in Masculin. It is a wonderful vehicle for facing the challenges that every retailer has to face today.” A highly transparent exchange of sales figures and information - for instance, who has sold how many units of a certain product or which products have performed particularly well (or badly) - are the main aspects of the concept. Other aspects include individual trial-and-error experiences regarding taxes, discounts, and events. To this end, Masculin organises four closed meetings per year.

MAJOR INTERSECTION

The most important interface within the group is the Masculin Journal. It allows the members to present the highlights of their respective product ranges and affords customers a preview of upcoming topics and trends. Five members select the product range for the journal pro bono; from this range, every member can then, in turn, put together an individual selection. Naturally, it is in the best interest of all members to have a large overlap. Simon Gray, the private label, is an essential part of the product range. “We still have a lot of room for improvement and are currently in a very intense discussion about the directions we could go”, Lars Braun says. He describes the structural changes within the retail industry and the online business as the biggest challenges for the future. “The online business is very important to us, which means that our online presence is correspondingly large - and similar. Furthermore, our supposedly homogenous circle is defined by a high degree of heterogeneity in terms of luxury price ranges, positioning, and locations in large and small cities.” One could also describe the reactions of the industry to the purchasing alliance as heterogeneous. The reactions range from applause to question marks. “The Italians have absolutely no time for it and struggle to understand. Some brands moan when they don’t get the desired volumes on the table, but everyone cheers when we list their products.”

ADVENTURE

FASHION

AGENCY GMBH

THE AGENCY

CONGLOMERATE

The only thing fashion agencies usually share is a vague deadline. Marc Kofler, the owner of Adventure Fashion Agency GmbH, presented a completely new idea during the last order round. Even though it may look like a miniature trade show in an exclusive setting at first glance, it takes the cooperation concept a lot further in the background. He invited three befriended agencies to come together for a joint event in Düsseldorf’s Villa Rheinperle. “The idea was actually born when I was looking for a menswear specialist. Seeing that I have known Patrick Stalherm quite a while, I approached him and asked whether he would like to sell menswear for us and, in return, bring his own customers along with him”, Marc Kofler explains. At Adventure Fashion Agency GmbH, Patrick Stalherm supports the brands Corneliani, Mitchumm, and Invicta. Fol-

“I STILL SEE INDIVIDUAL BATTLES IN THE RETAIL SECTOR. A BATTLE FOR LABELS AND MARKET SHARES IS RAGING IN THE BACKGROUND.” MARC KOFLER, ADVENTURE FASHION AGENCY GMBH

lowing the same principle, Gilda Mak and Rüdiger Matton joined the agency. They brought their brands with them and took over collections in exchange.

ONE HAND WASHES THE OTHER

“By giving the agency owners additional responsibility for their own brands, the collaboration makes even more sense; we also gain professional support for our own portfolio.” Other advantages are obvious. The customers can benefit from the fact that they can view a pooled, extensive product range presented like in a department store, which increases the efficiency of the order process as a whole. Furthermore, it is an excellent platform for new contacts. “We are all human beings, meaning that we all have different ways of making contacts and selling. One individual has a better connection with a certain customer, while another has a better understanding with a different customer. Everybody benefits from the professionalism, contacts, and experiences of the other.” Marc Kofler is also eager to strengthen Düsseldorf as a fashion location with his event. He is not a big fan of trade shows that require a lot of expense on the part of smaller agencies for the utilisation of a logistical platform before having to gather around the retailers like at a bazaar. “In our case, the retailers don’t really realise that they are being served by different profit centres. We take great care to ensure that all brands complement each other perfectly. It goes without saying that the success in Düsseldorf was repeated in Munich.

HOW TO MARKET THE MOBILE POP-UP STORE

Do retail alliances ultimately fail due to vanity, territorial issues, or a general lack of good ideas? Wouldn’t it be good to bring in a competent partner with a coherent concept? Wouldn’t it be great if that partner implements all the things for which you simply can’t find the time? Those who know Gabriele Frantzen, the Munich-based jewellery designer who owns the Best of 19 agency, are aware that she is not deterred by borders. This summer, she teamed up with Sabine Spieler, a journalist, to implement an idea that came to her in New York. “I went to many trunk shows. The concept convinced me; I was inspired by the flexibility and the unexpected. Trunk shows are always situational and unexpected. Our aim is to offer this unexpected element to retailers that simply don’t have the time to think about expanding their product ranges alongside taking care of day-to-day business. We turn retail space into happening space.” The result is her consulting package for a mobile pop-up store. The concept convinced reputable retailers right from the start. In September, the first event took place at Odeeh during Vogue’s Fashion Night Out. More events are scheduled at Sagmeister and Engelhorn in November.

FREQUENCY VIA COMPETENCE

Gabriele Frantzen knows both sides of the business and is quite aware of how much effort goes into the selection and maintenance of a special, small-scale product range. Therefore, she offers a complete package including all products, a professional sales team, and the core

“CURATED OFFERS, EMOTIONAL APPEAL, AND HANDPICKED PRODUCT RANGES WITH STRONG INDIVIDUAL ITEMS ARE MORE IMPORTANT THAN EVER.” SABINE SPIELER AND GABRIELE FRANZTEN, HOW TO MARKET

competence of the two initiators in terms of purchasing, sales, and communication. “Today, the retailer per se hardly ever has the time to take care of small-scale issues. This is where How to Market comes into play. When a retailer purchases our concept, we install a temporary pop-up store on location”, Gabriele Frantzen explains. How to Market’s product portfolio presents highlights from the beauty, food, lifestyle, decoration, fashion, and accessory categories. “Our slogan is ‘Frequency via Competence’. By bringing new products to the stores, we lower the entry barrier of passing trade, add individuality, and

offer a new form of generating sales. We organise the party for retailers, so to speak! This entails the development of the product range, the design and layout of the invitations, social media marketing, and public relations. It is our aim to curate the retailers’ product ranges, which is why we offer specific measures such as the daily Look of the Day, which is compiled from the entire range.” The retailers benefit from an increase of frequency and new customers. Furthermore, the participating brands are afforded an opportunity to present themselves in reference stores.