International REPORT JUNE 2014
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In European markets, nuance is everything
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nternational retailing is big business for the UK’s English-speaking regions of North America or high street, and over the coming years we’re likely Australia, not to mention the numerous and significant to see significant changes as our home-grown differences in how to do business. More important, businesses shift their focus away from these shores to however, is the difference in consumer taste and overseas markets. The UK will remain important as expectations of how shoppers want to interact with fashion retailers and be served in other markets. the nexus for our fashion brands and retailers. But they are going, and will go, through huge organisational We’ve selected three key areas to investigate for changes as they target the foreign consumer. expansion. First, on page 2, we take a look at Many have already taken the plunge, but the first Germany, Europe’s strongest economy and a market JAMES KNOWLES FEATURES AND SPECIAL in which retailers such as Primark are flourishing. step for those that have not is choosing which REPORTS EDITOR On page 5, we focus on France, which has proved a market to target first. It is with this in mind that we bring you our first tough nut to crack for many retailers including International Report of 2014, following on from our Global Marks & Spencer. Beyond western Europe we examine how the Special in April last year. With just the English Channel sepa- former central and eastern bloc countries are providing retail rating us from our continental neighbours, Europe is often the opportunities on page 8, with fashion retailers such as Tesco’s first step in overseas expansion for UK retailers. For this reason, clothing arm F&F leading the British invasion there. And all of we have chosen to focus on the region in this report. this wouldn’t be possible without the right infrastructure in place The advantages of trading in Europe are clear. Its close prox- behind the scenes in terms of logistics, so find out how retailers imity means it can be one of the easiest regions to service and are making their European operations run smoothly on page 11. trade from logistically. Plus, with many countries being member With so much happening in regards to international retailing, states of the EU, we share a lot of the same regulatory framework. it’s an exciting time for UK plc. We hope you enjoy this report The challenges, however, are equally clear. There are the and, as ever, I’d be pleased to hear your thoughts. obvious language barriers that are absent when trading in the james.knowles@emap.com
Ecommerce is entering the globalisation era
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espite the UK’s 228,000 online retailers internet allows any site to be accessed from anywhere exporting more than the rest of Europe’s in the world. But despite this, there are a number of barriers to trade. etailers put together, according to the For those not yet trading overseas, we found the government’s UK Trade & Investment department, Sage Pay’s recent Payments Landscape report found main sticking point is overcoming laws and legislaalmost half (47%) of the nation’s businesses do not tions, as stated by 43% of respondents. operate overseas. Other factors include understanding and accomFor retailers that can crack the secret to intermodating payment methods and processing national growth, the reward is to become a domidifferent currencies. SIMON BLACK nant global player, as the likes of Zara, Asos and With local nuances and differing regulations, CHIEF EXECUTIVE, SAGE PAY Amazon have shown. it’s easy to be put off – but there is no question ecomHowever, to be successful they will first have merce is entering a major period of globalisation. to overcome a number of hurdles – so it’s no wonder many are There are huge opportunities for businesses, but each market’s hesitant to enter the unknown. playing field will be different and should only be approached In theory, it should be relatively easy for etailers to achieve after considerable thought and analysis. You need to make sure international expansion as, with no physical constraint, the of your strategy before taking the plunge.
CONTENTS 02 Europe’s Superpower Germany is an attractive prospect for UK retailers – but it’s a tough nut to crack 05 French Exchange France has proved a tricky market for UK retailers, but why? 08 Eastern Expansion With its emerging economies and increasing consumer
spend, central and eastern Europe is ripe with opportunity
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11 Fulfilling Orders Successful expansion hinges on a solid infrastructure 13 Continental Drift Brands discuss their overseas expansion strategy and share the lessons they’ve learned
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COUNTRY PROFILE GERMANY
EUROPE’S SUPERPOWER
The continent’s most buoyant market is an attractive one for UK retailers, but it’s a tough nut to crack Words by JAMES KNOWLES Illustration by JOHN HOLCROFT
COUNTRY PROFILE GERMANY
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ften referred to as the ‘glue that binds Europe’, Germany is Europe’s leading economy, and while the UK, France and every other major European economy faltered in the wake of the financial crisis in 2008, under chancellor Angela Merkel it has remained relatively stable. It may have seen modest growth of 0.4% in 2013, but this is from a stronger base than its European counterparts, and the economy is forecast to grow four times faster this year, having already risen 0.8% in the first quarter of 2014 – matching that of the UK. Germany’s unemployment rate also fell for the fifth consecutive month in April and, despite remaining static at 6.7% in May, is the second lowest after Austria in the EU28 region. This, of course, fuels discretionary spending, and market research firm Verdict forecasts that the German clothing market will grow by 2.2% in 2014. In comparison, the UK clothing market is expected to grow 2.9% this year. “Increasing wages in the country are boosting consumption levels and purchasing power, aiding spend in the clothing market. As it remains one of the most resilient economies in the EU, it has become ever more appealing as a country for expansion for retailers, such as Uniqlo [which arrived this year] and Primark [which has had a presence since 2009],” says Kate Ormrod, analyst for clothing and footwear at Verdict. Little surprise, then, that Europe’s growth engine sits high on the international expansion agenda of not only the UK’s fashion retailers and brands, but also their international rivals. Property firm CBRE’s How Global is the Business of Retail 2014 report, which analyses the operational networks of 334 leading international retailers across 61 countries, found Berlin to be the fifth top target market (behind Paris, Tokyo,
Peter Gold. “The sheer volume of interest suggests that won’t peter out any time soon. I think the German consumer is keen to see brands that are new to the market to rival H&M, Zara and Esprit, which really have a lot of retail space across the country.” UK entrants include Joules, New Look, Hobbs, Urban Outfitters, Reiss, Ben Sherman, Whistles, Reiss and Phase Eight. All have a physical presence there apart from Hobbs, which is onlineonly so far. Unlike eastern Europe, Turkey or the Middle East, western Europe is not a franchise-led region because the cost of occupation is higher and therefore leads to smaller returns for franchise operators. In Germany it is more common to enter via stores, concessions or online. “The German marketplace is characterised by a Peter Gold, managing director, cross-border retail (EMEA), CBRE focus on streets rather than shopping centres, unlike in the UK and France where you would consider both Hong Kong and Abu Dhabi), with Frankfurt at in equal measure. You won’t find to the same extent number 10, Munich number 14 and Cologne at that regional dominant mall,” says Gold. 17. The report also found Germany had the fifth Tenants also face fewer protections in that highest number of new entrants in 2013 at 44 – at the end of a lease a landlord can simply behind France (56), Japan (49), China (45) and bring in a new business, leading to a lot of churn. Hong Kong (43) – with launches including Inditex The upside of this is that there is much less key chain Pull & Bear. money to pay, compared with markets such as “We ask retailers which markets they wish to Italy, or France. acquire stores in, and for the past couple of years However, Gold adds, “because of the considerby some margin Germany has been the most able interest in the German market in recent years important country for new expansion by global on top streets in top cities it has pushed rents to retailers,” says CBRE managing director of crossborder retail (Europe, the Middle East and Africa) record levels in some locations”.
‘The German consumer is keen to see brands that are new to the market to rival H&M, Zara and Esprit’
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Womenswear chain Karen Millen launched in Germany in 2001 and now has four standalone stores in Berlin, Düsseldorf, Hamburg and Nuremberg, and concessions in Karstadt Munich and Hamburg, and Galeries Lafayette in Berlin. It has just recruited a Germany country manager and next year chief executive Mike Shearwood says the country will be a key focus for 2015, but declined to reveal details. He adds while domestic retailer S Oliver and US brand Tommy Hilfiger are strong in the premium category, there are fewer brands at Karen Millen’s lower price point. Aurora-owned occasionwear chain Coast launched in Germany in 2009, and the country is its largest directly operated international market alongside Spain. Coast is now available in 54 different stores, with department stores AppelrathCüpper and Breuninger making up 50% of its business, which it sells from via a consignment model, meaning it still has control because it owns the stock. “We trade predominantly within their dresses area and despite Germany being a casualwear market there is a high demand for dresses and occasionwear – there is a strong prom market,” says Coast deputy managing director Jo McWilliams. “We’re really seeing a stronger fashion appetite and this is being reflected in some of the ranges sold there. We’ll always be a dress brand but with Coast’s current direction being towards separates, we have been trialling these there and products such as our jumpsuits are selling really well. So the future will be about how we capitalise on that, because there is a market for more than
COUNTRY PROFILE GERMANY
just dresses.” McWilliams says when Coast trialled jumpsuits in its 11 top performing stores, it saw a 50% sell-through in the last three weeks of May so there will be more of a focus on separates in the autumn range. Handbag and accessories brand Radley launched in Germany in September 2013 in three Karstadt stores, in Düsseldorf, Frankfurt and Nuremberg, as part of the department store’s then chief executive Andrew Jenning’s strategy to differentiate its offer with British brands. Radley chief executive Xavier Simonet says it “quickly saw strong traction” and by the end of this year it will have 11 concessions within the department store chain. “I think the German consumer was attracted to our Britishness, the premium nature of the brand and our balance between beautiful product and functionality. The German market is very focused on functionality,” he says. Gold agrees and says German consumers are very loyal to their existing retail offer and focused on perceived value, so to win them over as a new entrant, fashion brands and retailers need to work out a market-appropriate pricing structure: “That is not to say they necessarily want to buy discount. But they want something that represents value for money.” Germany is forecast to have the largest clothing market by value in the EU in 2014, accounting for just over a quarter of all spend on value clothing in the EU28 region, according to Verdict research. As a result, Primark has been a notable success there, and recorded its highest-ever firstday sales when it opened in Berlin in July 2012. Today, it operates 10 German stores, in
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payment is where German consumers often Hannover, Frankfurt North-West Zentrum, Frankfurt Zeil, Dortmund, Gelsenkirchen, Essen, abandon their basket, so they need to get this Berlin, Bremen, Cologne and Düsseldorf. right.” However, one of the challenges with the German Sattler adds Asos is a good example of a retailer market is that unlike London in the UK or Paris offering a suite of payment options, such as PayPal, in France, Germany doesn’t have one central city. MasterCard, American Express and German “It is far more federal,” says Gold. “Paris and invoice system Rechnung Klarna. London have catchments of maybe 10 million Crew Clothing launched in Germany via a whereas Berlin is sizable at 3 million, but then local-language website and catalogue last spring, the rest of the cities’ populations go pretty and Rebecca Leuw, the retailer’s direct marketing quickly down to about 1 million. So you have got manager, agrees relevant payment methods are to cover more ground to reach what is Europe’s crucial. “Germany’s mail order heritage is what largest population.” attracted us there. However, the really difficult McWilliams explains it is largely a department thing when it comes to Germany is payment store-led market. “We partner with two big ones options, and the challenge that everyone faces is but then to get the coverage across that huge that you get a very high level of returns. Culturally territory we have other partners,” she says. German shoppers buy two of everything Shearwood agrees getting the right coverage and return often. That can be challenging,” can be difficult. “If you have a concession-based business, the German market is quite disparate in that there is a prevalence of either local or regionally owned family department stores and lots of sole traders who are Stefanie Sattler, marketing manager, Sage Pay buying wholesale and distributing multibrand.” Leuw says. “Unless you offer local payments But it’s not all about bricks. Much like the UK, online is also increasingly important in Germany. I don’t think you will succeed in Germany. “The online channel holds significant opportuniThere are various payment options but only a ties, being one of the world’s largest online clothing quarter of the population has credit cards, so that markets fuelled by high internet usage and broadlimits your market. band subscription rates – as well as Germany’s “There are a lot of invoice terms and that is a history of catalogue retailing, ensuring shoppers much more difficult payment to manage. But if you only offer them credit cards you won’t get the do not have concerns about purchasing clothing conversion, so it is quite a delicate balance.” remotely,” says Ormrod. McWilliams agrees: “The internet Ormrod is confident the market will continue is starting to boom. We have And to see a high level of interest from UK fashion Other Brands [parent company retailers in the online space: “We expect to see Aurora’s multibrand website, which more international players launching dedicated also sells Oasis and Warehouse], and country-specific sites in Germany in the near we are also represented online with future, alongside John Lewis and New Look.” Engelhorn and Breuninger. The shop To date, Germany is the fifth most penetrated is German consumers’ first choice, market by international retailers, at 49.1%, but they are starting to see the interbehind the UK at 57.5%, the United Arab Emirnet’s benefits.” ates at 54.5%, China at 52.4% and the US at Stefanie Sattler, marketing 51.2%, reports CBRE. manager at payments processor Sage For H&M, for example, it is the Swedish retailPay, says online offers huge potener’s biggest market worldwide. This influx of tial. “There are 60 million Germans foreign competition is now putting pressure on currently online, which is the equivdomestic German retailers such as C&A, Esprit, alent of 80% of the population, and S Oliver and Tom Tailor. “Despite its dominance in the German market, the majority have broadband highC&A is coming under growing competition speed internet,” she adds. However, retailers need to be from rivals such as H&M and now Primark, aware of the differences in expected and it must focus on differentiating its offer in payment methods. “Cash is still terms of product quality or design to protect sales,” says Ormrod. king,” says Sattler. “If a British merchant enters the German market With such an influx of foreign investment you need to offer a selection of suitinto the market showing no signs of abating, it able payment types. Our own studies is clear that Germany will continue to be a market have shown that the point of to watch.
‘There are 60 million Germans online, which is the equivalent of 80% of the population’
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One of Europe’s most mature markets has proved particularly tricky for UK retailers. Drapers finds out why Words by SARAH TOWNSEND Illustration by JOHN HOLCROFT
FRENCH EXCHANGE Drapers International Report / JUNE 2014
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COUNTRY PROFILE FRANCE
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rance is one of Europe’s biggest retail markets. Last year it achieved an annual turnover of €500bn (£406bn), according to Cushman & Wakefield’s Global Retail Guide 2013/14, and, despite the economic downturn, household consumption remained one of the country’s biggest growth drivers – retail sales grew in value by 1.6% in March 2013 compared with the same period in 2012. The luxury clothing market is booming. In December 2013, France was the world market leader, ahead of Italy, with its businesses taking a 29% share of the €212bn (£172bn) luxury global market. So it should come as no surprise that the birthplace of haute couture, prêt-à-porter and effortless chic is luring an increasing number of UK fashion retailers to its turf. Topshop opened a concession in Paris department store Galeries Lafayette last year and Primark made its French debut in Marseilles just before Christmas, heralding a brave entrance by a value retailer into a market traditionally dominated by mid- to high-end brands. Marks & Spencer – which quit French soil in 2001 amid a string of protests – returned in 2011 and tells Drapers France is “one of its priority international markets”. However, as M&S discovered 10 years ago, France is not an easy nut for clothing retailers to crack. Schuh and Hawes & Curtis are two UK brands that have attempted to sell in France in recent years but revised their strategy after disappointing sales. Figures published in May suggest the French economy is beginning to slow down, which is unlikely to make things easier for UK brands expanding across the Channel. According to the
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National Institute for Statistics and Economic sq ft of space in France by this September. Its debut Studies (INSEE) it stagnated during the first three was a 62,800 sq ft store in the Grand Littoral shopmonths of 2014 as consumer spending slumped. ping centre in Marseilles in December 2013, INSEE reported GDP was unchanged over the intended as its French flagship. Its second store quarter at €1.9trn (£1.5trn) and consumer opened at the Toison d’Or shopping centre in Dijon spending fell 0.5% to just under €4bn (£3.2bn), in February 2014, and the remaining three are in Paris, two of which opened in March. The third, a suggesting French households are struggling. Honor Westnedge, lead retail analyst at market 42,100 sq ft store in Créteil Soleil, opens this research company Verdict, warns: “Having missed month, completing its 233,000 sq ft total target. its first-quarter 2014 GDP target, France faces an even tougher challenge to achieve its 1% economic growth target for 2014, impacting consumer sentiment and ability to spend Antony Comyns, head of ecommerce, Hawes & Curtis on retail and discretionary purchases such as clothing. “Until its 10.2% unemployment rate starts to Topshop is another recent entrant to the fall and confidence in the economy improves, market, having opened its first permanent retailers will struggle to entice shoppers to spend, concession, in Paris’s Galeries Lafayette, last especially those in the mid and premium markets.” autumn. While more premium than Primark, its According to Verdict, the French clothing reasonably priced, British offer is predicted by market is forecast to grow by just 0.3% in 2014, analysts to fill a gap in the Parisian market, which compared with 0.4% in 2013 – the market largely caters to the wealthy. contracted in 2012. And value retailers such as However, Topshop has been cautious. It launched a dedicated French website first, in Primark are expected to drive this growth, says Westnedge. “Consumers’ knowledge of a slow 2012, before gauging the likely success of a recovery and weak wage growth over the next bricks-and mortar store with a pop-up in Galeries five years will suit value retailers’ low-price propLafayette last year. Only once it had satisfied itself ositions – leading to store openings from Primark, with a healthy reaction did it take a permanent Forever 21 and H&M, all of which must work lease last autumn on its 2,000 sq ft concession. hard to convey the message of value as disposable Topshop declined to respond to Drapers’ requests incomes are carefully spent.” for an interview. Other UK brands, including Laura Ashley and Primark declined to speak to Drapers but said last year it planned to take more than 233,000 footwear retailer Schuh, have trialled Frenchlanguage websites. As consumer habits change and online sales threaten high streets, ecommerce is the fastest-growing retail market in Europe. In France – the third biggest etail market after the UK and Germany – online sales totalled £22.65bn in 2013 and are forecast to grow by 16.5% in 2014, says the Centre for Retail Research. But this does not necessarily translate into success. Sean McKee, head of ecommerce at Schuh, which set up a French website in 2012 but subsequently took it offline in December 2013, explains: “The relationship between running costs and sales volume was not proportionate and we operated the site without generating profit.” He adds: “We took the view that the journey to profit was longer than we were prepared to sustain, and decided to service France from our EU and UK sites only. We maintain a watching brief on international ecommerce but no projects are being planned at the moment.” The retailer would not elaborate on possible reasons for its lack of success. However, Antony Comyns, head of ecommerce at Hawes & Curtis, which experienced similar problems with its European website, points out complexities with online deliveries. “We use the same carrier [a
‘A lot of residential buildings in France have keypad entry, which only the local postman would know’
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COUNTRY PROFILE FRANCE
mix of DPD and Royal Mail] as many European countries with a signature service. But they originally had issues because a lot of residential buildings in France have keypad entry, which only the local postman would know.” He says that while payment options offered for online sales are mostly the same across Europe, French-language websites must provide for the French-only debit card Carte Bleue. “With so many emerging markets and existing ones performing better than the French market it may be a while until we take a closer look here,” he adds. Helene Hanum, a director at Paris fashion consultancy Lambert & Associates, says the French are “less used” to shopping online than the British. Still, the UK is persevering. In April, Laura Ashley, which opened its first store in Paris in 1974 and now trades from six stores in France – Boissenart, Deauville, Mulhouse, Paris Domus, Paris Avenue Raymond Poincare and St Nazaire – launched a French website to boost international sales. Having reported a 2% rise in like-for-like sales in the first two months of the 2013/14 financial year, the company said it believed the new website would help maintain this progress. A spokeswoman for Laura Ashley says: “We have been operating in France for a long time and this is a strong part of our business.” The launch of a French website was a key component of Marks & Spencer’s strategy when it returned to the country in 2011. It was the retailer’s first international site, priced in euros and offering the full range of clothing, food and homeware products. At the same time, the company opened a 15,000 sq ft food and womenswear store on the Champs-Élysées in Paris.
click-and-collect desks at larger stores and have introduced 4,300 collection points [via Point Relais distribution chains, including newsagents, florists and launderettes] across France to make it easier for customers to shop our website wherever they live.” Smeyers says M&S has a “strong brand awareness and place in French customers’ hearts. Since we returned, our customers have responded well with more than 1 million people shopping with us during December alone. There is a great growth opportunity here.” The retailer has edited its range to suit French tastes. For example, sales of the Autograph and cashmere lines are strong in Paris stores, so are given more prominence. “Our British heritage also resonates well, so we recently introduced our Best of British clothing collection to Paris stores. We’ve also seen our hero categories, such as women’s coats and dresses and men’s suits, do very well in Paris. Customers appreciate exceptional quality, style and value,” adds Smeyers. Quintessentially British brands such as Laura Ashley and M&S appeal to French shoppers because they offer high-quality tailoring with detail and patterning that is not available in the local market, says Lambert & Associates’ Hanum. “The French consumer may buy less often but pays more attention to quality. The French also have a very individual style. They mix brands and styles with discreet colours and plain looks. “It’s all about offering a differentiation compared with the local market. And the product cannot be too mainstream or ‘bling’.” Catering to a discerning taste is not the only challenge – retailers must select their location carefully. According to property firm Cushman & Wakefield, French retail property stock comprises around 200,000 shops across 700 million sq ft. Yet while high streets account for the highest number of stores, opportunities are scarce due to stringent planning laws and a shortage of real estate – particularly in the provinces, where the retail market is dominated by a relatively small clutch of regional schemes such as La Part-Dieu in Lyon or Cap 3000 near Nice. Paris remains the safest bet for many, says Hanum, with the Boulevard Haussmann, Saint Honoré, La Marais and Montaigne districts the most popular destinations. Smeyers agrees that M&S’s strategy is to focus on Paris. He says: “With more than half a million visitors every day, the Champs-Élysées is the
‘Our British heritage resonates well, so we introduced our Best of British clothing collection to Paris stores’ Francois Smeyers, regional director of Europe, M&S
This came a decade after M&S closed its 18 stores in France in 2001, and 25 years after opening its first store there in 1975. The then chief executive Sir Stuart Rose admitted the pullout had been “tragic”, but M&S has since invested in its comeback. It has opened four other clothing stores in Paris – including at the new Beaugrenelle shopping mall in October 2013 – and plans to open 10 across France by 2018 and 20 more by 2021. M&S regional director of Europe Francois Smeyers says: “France is one of our priority international markets. Since we returned in 2011 with our ‘bricks and clicks’ strategy we’ve grown our market presence and this will continue, by raising brand awareness and ensuring we cater for how our customers shop today. For example, we offer
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most iconic shopping destination in France, so our flagship acts as a window to our brand and brings a bit of Oxford Street to Parisian shoppers.” Verdict’s Westnedge notes secondary high streets and retail units are suffering from retailers holding off on store expansions and openings. Hawes & Curtis’s Comyns says: “We are more likely to tackle the bigger markets where we don’t have the issue of language and lack of local knowledge.” In any case, he adds, the rise of online trading means the brand does not necessarily require stores in the country itself. “Retail space, gaining market knowledge, language and product development is expensive.” Costs aside, the French retail property market is considered one of the most transparent in Europe, says Cushman & Wakefield, with most features – 10-year average leases, quarterly rents and landlord liability for property taxes – similar to the UK. However, confusion surrounds the complex legal framework governing opening hours – which lead to delays – and restricted Sunday trading. Sunday shopping is not allowed, but there are exceptions in 500 cities declared as tourist towns in 2009, and the rules are gradually being relaxed. Smeyers says M&S can trade on Sundays in some Paris stores “but in others closing on Sunday is the nature of doing business in France and we plan for this accordingly”. In May, UK mall owner Hammerson opened its £400m Les Terrasses du Port shopping centre in Marseilles to 150,000 people over a single weekend. UK brands at the shopping centre include Ted Baker, Aldo and G-Star. So France’s appeal to UK clothing retailers seems unlikely to decline, but retailers and brands must adapt their offer and work within the customs and regulations of a very traditional business culture.
REGIONAL PROFILE EASTERN & CENTRAL EUROPE
EASTERN EXPANSION
With its emerging economies and increasing consumer spend, central and eastern Europe is ripe with opportunity
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Words by NICOLA SMITH Illustration by JOHN HOLCROFT
rom the vast Russian audience with its high disposable income to the Baltic States that provide a perfect testing ground for brands looking to expand into the region, central and eastern Europe (CEE) offers both opportunities and challenges to UK retailers. According to Mantas Kaluina, senior research analyst at market research firm Euromonitor International, Russia is expected to show the most dynamic immediate growth in value terms among CEE countries. “Russian expenditure on apparel and footwear, already highest in the CEE region in per capita terms, is expected to grow another 18% over the next five years,” he says. Russia’s middle class is increasing in number. According to research by information and media company Nielsen last year, they earn 48% of the country’s total income, putting them on a level with the upper class, who account for 47%. However, the middle class has remained an
untapped opportunity by many international retailers and brands. The UK fashion industry is arguably ahead of the game. High street names such as Marks & Spencer and Topshop have operated stores in Russia since 2005 and 2006 respectively, although the expectation that this vast country’s middle class will represent 86% of the population by 2020 has prompted an increasing number of fashion retailers to make their move. Asos and Debenhams have entered the market in the past two years. High levels of disposable income also mean premium and luxury brands are popular, in part due to their ‘signalling power’. Thomas Peschken, programme director of the MSc in International Fashion Marketing at Glasgow Caledonian University’s postgraduate campus in London, describes this as: “The ability to indicate the presence of money and wealth and to distinguish from those that cannot afford it.”
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British girlswear and accessories brand David Charles – which counts Princesses Eugenie and Beatrice among its customers – is one luxury brand that has found success in Russia for 10 years. This came after it was approached by a Moscow boutique while exhibiting at the European trade show Pitti Bimbo. After supplying numerous boutiques in Moscow, St Petersburg and Sochi, David Charles was approached by a long-standing client, local kidswear retailer Montpelier, to open a franchise store in St Petersburg last year. “I went over and met them to discuss their proposal, and they wanted exclusivity, so we drew up a contract. We had to lose some of the other accounts there as a result,” says David Graff, who co-founded the business with his wife Susan. “They have now opened two stores in St Petersburg for us.” Competition comes from major international brands rather than local companies. “We have to fight for recognition with brands like Gucci –
REGIONAL PROFILE EASTERN & CENTRAL EUROPE
everyone knows who they are but not everyone knows who David Charles is,” says Graff. “Burberry is also a competitor.” While Russia offers many opportunities for fashion brands, it also presents a number of challenges to those looking to enter the market, not least because of the vast geographical spread, as well as the language barrier and legal differences. Graff says the boutiques supplied by David Charles handle the complex importation process – complex, in part, because Russia is not part of the EU and duty charges differ – and adds that working with a local partner on an exclusive basis in St Petersburg has worked well. Other bigger brands have forged franchise partnerships. New Look has 19 stores in Russia, and is looking to buy out its franchise operator so it can sign a new joint venture partner to open 30 to 50 stores over the next year. Debenhams also worked with a local franchise partner to open its first store in Moscow last year, and aims to open eight more in the country over the next five years, but has declined to reveal where these will be. Having local knowledge through partnerships in Russia is essential, particularly as security can be an issue. “There is anecdotal evidence from freight/shipping providers that parcels disappear from time to time, so security in the wider sense is something to consider when choosing shipment options,” says Peschken. Graff agrees: “It is a volatile market. Any retailer looking to enter the Russian market has to get deposits before they ship. We have always done this.” Graff also advises others to make sure they do their homework. “Go and have a look and see exactly who you are dealing with and at the areas you will be selling in. You can’t sell to everyone, so check out the different stores and earmark where you want to be. It’s important to see where your
low customer purchasing power” as concerns. As a result, a number of international retailers – including Next and River Island – left the market even before the conflict with Russia. Since the Crimea occupation, Inditex, owner of Zara, has pulled out of the region. Milasevic adds brands poised to enter the country have also cancelled or postponed their plans, including George by Asda and Primark. Graff says David Charles was supplying boutiques in Ukraine but this stopped late last year due to the political instability. “We did have very good accounts in Kiev but that has gone now. I think the boutiques closed. They couldn’t go to the exhibitions because they couldn’t forward buy. When things are uncertain people don’t spend money.” Unlike Russia and Ukraine, countries such as Poland, the Czech Republic and the Baltic States are relatively stable and populated with consumers that have an increasing buying power. “Opportunities are also presented by the stream of Polish and Czech nationals leaving the UK for their native countries, taking with them brand knowledge,” says Peschken. The UK also has many native speakers from these countries resident here and working for fashion retailers, who will be key in facilitating entrance into these markets. Market research firm Mintel forecasts Poland, Hungary and the Czech Republic to be the fastest-growing major CEE markets for clothing specialists between 2013 and 2018, predicting a compound annual growth rate of 6.1% in Poland, 3.6% in Hungary and 2.8% in the Czech Republic. But Mintel retail analyst John Mercer warns this is from a small base. “These countries currently see the lowest annual per capita spending levels for clothing [in major European countries].” He says in 2012 annual per capita spending on clothing in the Czech Republic was €155 [£126] compared with €930 [£755] in the UK. “Although these will be relatively fastgrowing markets, this includes a large element of catching up with more developed clothing markets elsewhere in Europe,” he says. The Czech Republic is one of the most developed markets in the CEE region and, as such, doesn’t present the same bureaucratic, legislative or logistical difficulties as some of the other local
‘It is a volatile market. Any retailer looking to enter the Russian market has to get deposits before they ship’ David Graff, co-founder, David Charles
customers are based and what the competition is.” Neighbouring Ukraine was also seeing doubledigit market growth until the recent political crisis. This was driven by rising consumer income and an increasing number of chain stores and shopping malls, but as Marija Milasevic, research analyst at Euromonitor International says, a lack of competition pushed up the prices of branded goods and numerous obstacles barred the way for international entrants. She notes “high bureaucracy, corruption, unstable legislative environment, difficult logistics, competition from local companies operating semi-legally and
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markets, making it easier for new entrants. As Euromonitor International’s Kaluina says, competition here is quite strong among major international brands, including Inditex, H&M, C&A, Deichmann, F&F and Takko. “Stable market growth here is coming mostly from growing consumer expenditure on apparel and footwear. Czech and Hungary also have the highest share of apparel which is sold through grocery retailers, mostly hypermarkets. This comes from the strong positioning of Tesco and its F&F brand in these countries,” he says. Tesco opened its first stores in Hungary in 1995 and then in Slovakia, Poland and the Czech Republic in 1996, so it already had an established presence in the region. “With an extensive network of stores in those countries we felt the time was right to introduce the F&F brand, especially as it had proved to be popular with our UK customers,” says F&F chief operating officer Richard Collins. In 2010 the retailer opened its first F&F standalone store in Prague, followed by one in the Czech Republic’s second largest city, Brno, in 2011, and another in Warsaw, Poland, in 2012. “The standalone stores in city centre locations represented a good opportunity to showcase the F&F brand but also ‘prototype’ a new shopping environment with a more boutique, high street look and feel,” says Collins. “Many of the ingredients of our standalone stores have influenced the store template for our franchise operations and shaped our successful Next Generation [new fashion concept rolled out last year] in our UK stores.” Collins says as an affordable fashion brand, F&F’s competition is varied. “International retailers are present in the markets we operate
REGIONAL PROFILE EASTERN & CENTRAL EUROPE
in, as well as a range of local retailers,” he says. The F&F division of Tesco has proved successful, with UK sales of more than £1bn and like-for-like sales growth of 9% in last year’s annual results. This success is underpinned by local teams that help with the delivery of local policies and procedures, as well as offering Tesco the necessary insight into each market. For value menswear retailer Blue Inc, gathering local insight is an ongoing process, and the Baltic countries of Latvia and Estonia have provided a good test bed for further regional expansion. “It’s a good place to learn about the area with very limited investment due to its compact nature,” says Blue Inc head of international franchising Richard Aquilina. The retailer worked with franchise partner Baltika Group to open two stores in Latvia and one in Estonia last year. It hopes to eventually extend its reach into Scandinavia. Aquilina says retail took a “fairly major hit” in the Baltic States immediately after the global crash but is beginning to bounce back. “There are lots of opportunities for new brands that offer something different.” Key to Blue Inc’s expansion strategy is building regional franchise partnerships by territory. “It makes it easier for us to operate but it also means we have one partner to deal with across two or three countries, and they have the expertise and infrastructure in each of the markets we are looking at,” says Aquilina. He believes the franchise model works well in the CEE region. “From an investment point of view it is the most effective in terms of allowing us to get up and running quickly and also work with an existing local infrastructure.” It is too early to gauge Blue Inc’s success in Estonia and Latvia, but Aquilina says initial results
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are promising. Local competition comes from According to research from business consultancy international retailers such as House and New Gemius, the most popular purchases in the Polish Yorker, but the company’s British heritage has ecommerce sector are clothing and accessories. strong appeal. “We have been achieving the density Tesco recognised the importance of operating results we expected and now it is all about devela multichannel proposition relatively early, making its UK website available to the Czech oping brand awareness,” he says. It is also about getting the maths right. Republic and Polish markets in 2010, and it has Peschken warns: “Although the buying power is plans to capitalise on the increasing demand for increasing [in the Baltic States], it is nowhere near ecommerce in the CEE region. “We will be levels seen in the UK, Germany or the US, so making improvements to our online offer in mainstream fashion retailers will need to watch all of these markets in the year ahead,” says their margins closely.” Aquilina echoes this note of caution. “One of the biggest challenges is getting the model to work. Sales densities are much lower in those markets and Richard Aquilina, head of international franchising, Blue Inc yet rental levels may not necessarily be lower,” he says. “There is a lot of work that goes into Collins. However, he refuses to go into details. agreeing a pricing structure that enables both you It is a trend that pure-play fashion retailer and your partner to be profitable.” Zalando is capitalising on. The company was There are other challenges too, from the founded in Germany in 2008, expanded into the UK in 2011, before moving into Poland in 2012, climate differences to the contrast between and it sells more than 1,500 international brands, eastern European and western European consumers. “Their winter season tends to be including River Island and Warehouse. According colder and slightly longer than our autumn/ to Gemius, Zalando.pl was the most visited online shop in the country in 2013. winter season, so we have to get particular “The Polish ecommerce market is one of the product categories into our partners slightly earlier than we launch in the UK,” says Aquilina. fastest growing in Europe,” says Robert Schütze, “We are also finding that with the typical Baltic country manager for the UK at Zalando. “If you guy, shoe sizes are much larger yet waist sizes combine this information with the fact that Polish tend to be smaller. It is a constant learning curve.” customers are generally fashion-conscious and However, it is not all about bricks – ecommerce eclectic in their styles, it’s easy to see why Poland is gaining ground in the central and eastern offers a great opportunity for us.” European region. But there is still some work to be done if the In early 2014, 59% of the potential is to be realised. “Polish customers have less affinity to buying online,” says Schütze, Russian adult population (69 million people) had access to the adding consumers need educating about the internet, according to domestic advantages and convenience it offers. Trust is research agency Public Opinion also an obstacle. “Not all Polish shoppers are yet Foundation, and in 2013, convinced by the reliability of ecommerce. It’s therefore important to provide users with transaccording to Russian online storefront creator InSales, one parent and comprehensive information regarding of the largest product categories our service, as well as training our customer in Russian ecommerce was service agents so that they know how to properly clothes and shoes. So it is hardly manage calls from potential customers who are surprising that Blue Inc is plansceptical,” he says. ning to launch a Russian ecomWhile Zalando is proving popular in Poland, merce site later in 2014, after Schütze says its strategy is to introduce more local attracting strong sales from brands to boost its appeal to Polish consumers. It recently announced the inclusion of its first Russian-speaking countries Polish brand, Gino Rossi, and plans to continue via its UK site. M&S has also to localise its offering. Understanding the needs announced plans to open an online Russian store this year. of each market is, after all, vital for success. There is a similar trend in So with their growing economies and a demand for fashion among the local population, Poland. It is estimated that around 65% of the 38.3 million the central and eastern European countries people living in Poland have provide a huge opportunity and are high on the agenda for UK businesses, but any expansion internet access, with around 30% of Poles shopping online. must be carefully planned.
‘We are finding that with the typical Baltic guy, shoe sizes are much larger yet waists tend to be smaller’
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LOGISTICS EUROPEAN FULFILMENT AND RETURNS
FULFILLING ORDERS
Successful European expansion hinges on having a solid logistical infrastructure
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Words by SIMON BROOKE Illustration by JOHN HOLCROFT
or businesses looking to develop internationally beyond the highly mature and very competitive UK market, Europe is an obvious first step. Despite its recent economic troubles, the EU will see respectable growth of 2% next year with Latvia and Lithuania growing at 3.7% and 4.1% respectively, according to the European Commission. Ecommerce is often the driving factor in fashion retail as in other sectors. According to The Global Retail e-mpire, a report published earlier this year by OC&C Strategy Consultants in partnership with Google, across the retail sector nearly half of all searches are international as people look to purchase products from beyond their country’s borders.
It states the UK has the largest international trade surplus on ecommerce – led by fashion sales overseas, which account for $1.2bn (£714m). Without fashion, UK ecommerce would be over $200m (£119m) in deficit. Clearly the opportunity is there – but the challenge is to ensure European consumers’ needs are met with proper distribution and, where necessary, returns, while retailers get the best return on their investment. Certainly European distribution hubs are growing. Asos recently announced it will “significantly increase” investment in logistics, spending some £55m over the next two years. Around half of this will go on expanding its Barnsley logistics hub, which handles all its UK fulfilment, by a quarter as well as replicating the
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hub in Germany. Last November, footwear retailer Schuh acquired 245,000 sq ft of warehouse space at the J4M8 complex in Bathgate, West Lothian, which will become its new European distribution centre. Last August, Clarks merged with its Turkish distributor Efa Ticaret ve Pazarlama A Ş ahead of plans to open 25 stores around the country over the next four years. SuperGroup has also substantially enlarged its distribution centre at Burton-on-Trent, increasing capacity from 9 million units to 22 million, to accommodate European expansion, alongside its existing continental hub in Belgium. Meanwhile, clothing has been one of the most successful areas for Amazon UK and now, with a 1,615,000 sq ft site in Barcelona, it hopes to repeat this in Spain.
LOGISTICS EUROPEAN FULFILMENT AND RETURNS
“Roughly half of UK firms outsource their warehousing and distribution to a third-party provider as it suits their particular business model or strategy,” says Claire Muir, head of development at logistics firm Amethyst Group, whose clients include Brand Alley, Aquascutum, Winser London and Agent Provocateur. “We’d recommend starting by shipping direct with one fulfilment centre and keeping all stock in one place. This saves on dual stock costs, although distribution might cost more because goods have to travel farther. Once volumes are big enough, you can look at local injection into existing carrier hubs. When you see where the demand is or where you want to target your marketing spend, you can invest in more space nearer to it.” Hackett uses a third-party distribution centre near Barcelona. “It provides flexibility for growth and allows us to focus on other areas of the business,” says finance director Mark Reed. “It’s located near our group logistics department, which is based in Barcelona, as well as being close to transport links and cost-effective infrastructure.” However, Hackett has had to invest time and money to ensure its electronic resource planning systems connect with the systems of its third-party distribution centre. Whether distribution is handled in-house or through a third party, dispatch comes with its own set of considerations. “Very often the challenge comes with the last-mile solution,” says OC&C
they’ve bought,” she says. A one-size-fits-all policy won’t work and businesses need to accept that different distributors will do things in different ways depending on local infrastructure and traditions. “Leading global etailers are starting to offer a sophisticated range of solutions such as same-day delivery and delivery lockers to car-drops,” says Fairley. “Some are even starting to own the last mile themselves. Take, for example, Net-aPorter’s Premier service with its fleet of delivery drivers in London, Hong Kong and New York.” A move to shipping direct from source rather than via a warehouse can be a significant cost saving, believes OC&C. This is most effective for businesses that have a small number of manufacturing sites. Luxury and premium retailers are more likely to take a longer-term view and be willing to postpone a return on investment while they get the distribution process exactly right and develop a service that maintains their brand image, whereas manufacturers with tighter margins will want to ensure their distribution is profitable more quickly. “We distribute across most of Europe selling either through exclusive distributors or directly into key major department stores such as Galeries Lafayette or smaller independents,” says Daniel Morris, managing director of fashion and accessories brand Paul’s Boutique. “We have a simple business model and enjoy a greater level of control by having everything close to home.’ Returns are an issue companies sometimes overlook when considering their European expan-
‘Different distributors will do things in different ways depending on local infrastructure and traditions’ Claire Muir, head of development, Amethyst Group
associate partner Rambaut Fairley. He advises companies to think about the reliability and variety of domestic distributors. According to OC&C, for instance, Germany has nine domestic and six cross-border operators, plus Deutsche Post, while France has 23 domestic and five cross-border. A lack of choice and competition can also be a problem. Sweden has just three domestic and three international, while Norway only has one of each. Exporters must take cultural differences into account, says Muir. “In France, for example, people are very used to going to the post office to collect things, whereas in Poland they’re more likely to visit locker boxes to pick up what
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sion and choosing a fulfilment centre. “German consumers, for example, are much more likely to return goods than the British are,” says Muir. “They think of the home as a changing room. Until recently, returns were almost always free there. It was a legal requirement to offer free returns and it is still the expectation.” With the implementation of the EU Consumer Rights Directive in June this year, retailers can now charge for returns provided they advertise this fact, but according to a survey by security seal vendor Trusted Shops GmbH, 60% of online retailers will not do so. Ensuring a returns policy is in keeping with local expectations and traditions is essential. According to a 2013 survey by US internet technology company ComScore, an uncomplicated returns policy prompted 61% of European customers to raise their average order value, while 59% said that they would recommend the retailer to a friend. Logistics and supply chain specialist Hermes says a local return address is important to online shoppers, including those buying fashion, because it suggests the refund process will be faster. Logistics company Clipper group, whose clients include Asos and John Lewis, launched a pan-European returns service in May last year called Boomerang, which aims to simplify and standardise the process of handling returns. For brands that are still at an earlier stage of development, choosing the right time to sign up a European distributor is key. James MacDonald, who has worked as a consultant to a number of retailers including Next and Marks & Spencer on their European distribution, advises caution. “Before you even sign up with a third-party distribution centre, let alone consider establishing your own, you need to identify where your traffic is coming from and where it’s growing,” he says. “It’s better to encounter extra cost in the first instance by supplying your European markets from home before you invest in a European hub.” Tony Mannix, chief executive of Clipper, which acquired German distributor Bestaendig in 2008 and Geist 2013, says: “You need to find a distributor whose core business is fashion distribution rather than, say, one that handles petrol and frozen foods. You also need someone who understands the local culture as well as your business.” The lesson for those considering European expansion is clear – do your research among distribution and fulfilment centres to find one that suits your needs and knows the local culture – and don’t rush into making a long-term commitment.
OVERSEAS EXPANSION ROUNDTABLE
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In-depth discussions (clockwise from top left): attendees get stuck in to the detail of international expansion strategies; Alex Barbier; Eric Musgrave; Maureen O’Brien chats with Kat Spybey; Max Karie and Douglas Hood
CONTINENTAL DRIFT As retailers and brands seek new international heights, those exploring the options explain what overseas expansion is really like Words by KAT SPYBEY Photography by PHIL WEEDON
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fashion business’s first steps into a foreign market can be daunting, with numerous potential hazards to dodge. Is it best to wholesale, launch a local website or jump straight into bricks-and-mortar retailing? How do you overcome ever-changing exchange rates? And how can you sensitively navigate different countries’ cultures and preferences? These are just some of the questions that dominate the minds of retailers and brands seeking to capitalise on international markets. At a roundtable breakfast on June 3, sponsored by Sage Pay, Drapers brought together fashion businesses large and small – including House of Fraser, shirtmaker Hawes & Curtis, fashion and lifestyle retailer Joy and footwear independent Tower London – to discuss their experiences, successes and trepidations regarding expansion. Each means of entry into international territories
has its own benefits, but for many British retailers the first move is made online. Alex Barbier, digital director at men’s footwear brand Oliver Sweeney, explained: “The reason is the cost if you want to test the market. Why do you decide to go to France? Because you see potential there as you are already selling there, but you don’t want to risk opening a store because it’s too costly. If it doesn’t work you can pull the plug and it’s cost you next to nothing.” But Tower London head of ecommerce Rink Bindra said the retailer – which is keen to launch local-language transactional websites – is also “toying with the idea of going into Europe with a pop-up store concept” because “bricks and mortar is really important for the ecommerce side of things – it’s like the complete circle”. People drop out of website sales at the checkout due to delivery options, he said, while some want
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to touch and feel products before purchasing online, or to return items in stores. Wholesaling offers brands the chance to quickly gain momentum abroad. With international equating to about 80% of Joy’s wholesaling business and its products sold in more than 200 stores in Belgium alone, creative director Maureen O’Brien revealed she is now in talks with potential franchise partners to expand into countries such as Norway and the UAE. “They come to us from [trade] shows or because we have a big presence with wholesale, so if we are in the right shops people automatically start contacting us.” Despite having differing reasons for wanting to expand abroad – including boosting revenues, brand building and showrooming – and different means of doing this, the consensus was that to succeed, retailers and brands must tailor their
OVERSEAS EXPANSION ROUNDTABLE
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The importance of tailoring your offering to the local market was a key discussion topic (clockwise from bottom left): Tianni Hingston; Maureen O’Brien and Charlotte Berry; James Knowles; and Douglas Hood
offering to the local market. “It’s about thinking globally but acting locally,” said Bindra. For most, this starts with stock selection. O’Brien explained this meant being conscious of local lifestyles, such as not trying to sell too many maxi dresses in Holland, where people often ride bicycles. Antony Comyns, head of ecommerce at Hawes & Curtis, which has one overseas store in Cologne and a dedicated German website, said it is modifying the style and fit of its shirts to accommodate taller, slimmer German men. Having a local website and enabling shoppers to use their own currency can also boost a retailer’s chances abroad. Bindra suggested local websites could mean “revenues will be higher” for the independent retailer but the “translation of websites has to be dead on”. For this reason he is still holding off creating a German-language site until he can ensure it’s perfect. Sage Pay direct sales manager Dusty Miller agreed and warned: “You can spend a lot of money on driving customers to your site, but if they have a bad experience it can be a waste of the investment you’ve made, so it’s really important not to just Google Translate things, and to get your payment systems lined up as well so the experience can be really tailored to your customer.” But Comyns cautioned that in Hawes & Curtis’s experience, launching local websites does change perceptions of the brand in those
countries. “You don’t necessarily see a massive choice from them because their IP address pushes them onto the euro or dollar site. uplift but you see a change, because the psyche “I think before they thought it was their special is completely different,” he said. “If I’m sitting in Germany and I’m buying off a British site in little thing that they knew about and now they are English and in pounds I probably have a different probably starting to think ‘well hang on a minute, view on my buying pattern and think I’m getting now they are becoming more widely available and something pretty special that’s not open to the you can pay in euros’ when actually they don’t want German market necessarily. to, they want to put it on their British credit card.” Pricing is another tricky area for fashion compa“The moment you actually translate then you nies to get right. Spink said the potential for are local and then everything has to change. You have to make sure that you’re acting as though you exchange rates to fluctuate needed to be built into are sitting right in that country, so you have to back it up with German speakers, you have to sell in their currency and abide by the ways they would normally want to purchase. Also you have all those people that you had as existing customers who Antony Comyns, head of ecommerce, Hawes & Curtis felt pretty special buying in pounds, and now they aren’t.” Womenswear retailer East had a similar expepricing structures. “You have to set [exchange rates] rience when it changed the currency options for in advance for your business to operate but how do overseas shoppers. Chief executive Suzi Spink you work it out? Currently we set an exchange rate explained: “Last year we started taking euros and for the season and build in a bit of a buffer.” dollars and we were expecting to see more of an The Cambridge Satchel Company head of trade and brand development Max Karie added: “You’ve uplift because people can now pay in their local currency, but actually I think it’s quite compligot to have your margin and your international cated because there are people out there who had architecture and it takes time to get it right. Look pound accounts that they wanted to pay with, for at your true cost price and the margin you are whatever reason, and we have removed that prepared to take on it, apply from your
‘The moment you actually translate then you are local and then everything has to change’
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OVERSEAS EXPANSION ROUNDTABLE
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Finding the right price point was also a hot topic (clockwise from bottom left): Antony Comyns; Rink Bindra; Maureen O’Brien; Dusty Miller
customers’ perspective what it will cost them to buy it from another country and it takes a lot of jiggling around.” Comyns posed the question of whether businesses can charge more for items in overseas markets, and if so how much by, when people now “have so much exposure to what’s going on”. Spink responded that East’s majority stakeholder Fabindia has an overseas website that converts prices into dollars, which also makes the items more expensive. “Where international
Discounting can also be a problem. Douglas Hood, owner of brand management consultancy Outside Looking In, noted that the UK does not have a defined Sales period so they can come at different times to those on the continent, which can upset stockists if Selfridges, for example, is offering the same products at half the price. Another hurdle can be the cost of delivery and returns, especially in Germany where shoppers tend to buy in bulk but have a higher return rate. Comyns said Hawes & Curtis sends returned goods back to its Cologne store, but if shoppers in Austria have used the German website, the cost of bringing products back “is extortionate”. Tower London, however, has adopted a consolidated returns system so all returned items are sent to a centralised holding location and shipped back to the UK twice a week. Despite such complications, British brands remain highly sought after abroad and many are poised to capitalise on this demand. The Cambridge Satchel Company’s Karie said Asian and US markets still “look to Europe for cachet”, so if a brand has a prominent British store and a strong Italian presence, international expansion will be easier. “Your profile is everything,”
‘When the euro was really strong, people would be better off ordering in the UK and getting it shipped’ Dusty Miller, direct sales manager, Sage Pay
customers cannot easily go direct to the retailer they are often prepared to pay more to buy a desirable product,” she said. But Sage Pay’s Miller warned offering different prices could mean “you can cannibalise your own sales”. “When the euro was really strong you found people would be better off ordering in the UK and getting it shipped than they were on a dedicated German site,” he said.
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Attendees Those attending were: Alex Barbier, digital director, Oliver Sweeney; Charlotte Berry, international marketing manager, House of Fraser; Rink Bindra, head of ecommerce, Tower London; Antony Comyns, head of ecommerce, Hawes & Curtis; Tianni Hingston, Sage Pay; Douglas Hood, owner, Outside Looking In; Max Karie, head of trade and brand development, The Cambridge Satchel Company; James Knowles, features and special reports editor, Drapers; Dusty Miller, Sage Pay; Eric Musgrave, editor, Drapers; Maureen O’Brien, creative director, Joy; Suzi Spink, chief executive, East; and Kat Spybey, associate editor, Drapers
he added. Hood tempered this, however, and warned that European markets remain protective of their own retailers and there can be a “great resistance” to UK brands that are not well known across Europe. But he said if brands are stocked in UK retail powerhouses such as Selfridges, Harrods and Harvey Nichols they are quickly understood to be international. “If you’re in the right store invariably it lifts you up.” Karie added: “Fashion has become so overclogged, what are we doing, what are we selling? If we’ve got something special we should sell it.”