FASHION NEWS: DESIGUAL’S GOAL TO RIVAL FRENCH LUXURY GROUP LVMH
According to Business of Fashion, Desigual says its missions are to put at least one item into every wardrobe in the world and expand further than its 400 stores. The Spanish fashion label is rapidly branching out throughout Europe, and has started to market new products like perfume and shoes.
Managing director, Manel Jadraque, says his master plan is to build a powerhouse brand to rival the likes of French luxury group LVMH. He states, “In the next three years we plan to grow about 20-25 percent a year. The big idea is to double the company every four years.”
Expanding outside of Europe over the last three years, the label is targeting sales of €1 billion (US$1.4 billion): an increase from roughly the $820 million recorded last year, and $440 million four years ago. It plans to add 100 stores per year for the next three years.
In order to remain competitive with 20 other companies (like Zara-owner Inditex, which has become the world’s biggest clothing retailer with more than 6,000 outlets), Desigual has moved into cosmetics, home-ware, athletic wear, and shoes over the last two years. The retailer is even making plans to open stores in airports, train stations and hotels.
“The market for fashion will double in the next 10 years,” Jadraque quoted in Business of Fashion. “It is an upgrade for the brand to be in more channels. For a brand, the most important factor is to have presence in the market.”
After executing the plan to open shop into 60 countries in three years, Jadraque will concentrate on locations where the brand is doing best. He plans to scout out potential new locations during his visit to Berlin, and still sees plenty of room for growth throughout Europe. He will be making a big push in Germany during 2014, where he plans to add 20 more stores to the 40 currently open.
News reference and text via Business of Fashion