Jörg Weber (62), head and founder of the fashion chain chicory, defying the malaise in the Swiss apparel trade. The Fashion discount stores increased last year, its sales by four per cent to 151 million Swiss francs, as a VIEW. This Wailing and gnashing of teeth prevails in the fashion industry since a few years ago. Nine per cent broke the clothing and Shoe business in 2018 in Switzerland. As the main cause of the German online retailer Zalando, which expanded in Switzerland with its cheap prices massively and its turnover in the space of seven years, from 0 to 800 million Swiss francs catapulted.
In this environment, where international corporations such as H&M are losing ground, says Weber: “We don’t feel the pressure from Zalando.” He of Zalando in Germany, expanded its market share, but not at the expense of chicory. It is clear that Something has to make Weber better than the competition. The core of his strategy is to focus only on stationary trade, contrary to the Trend of flourishing trade Online.
chicory will never find packets to send
“The online trade is not a panacea”, Weber. He did not see the online business as competition, and don’t want yourself getting in this business. “I don’t know anyone in Switzerland who earns, with women’s fashion in the online sale of money,” he said. Maybe it’ll even give an offer, where you can order chicory products on the Internet, and then in the store could pick up. But with the Parcel in the future, no chicory would be shipped-products – that would not be profitable. Anyway, the customers appreciated the real-world shopping experience.
The dress company grew last year by 8 to 157 locations. The new stores had been taken over by the country’s bankrupt Italian fashion group, OVS, explains Weber. After the Expansion of the last few years, Switzerland was covered well with chicory-branches. There were about three, four request locations.
of Course chicory have poached customers from competitors, even those that had since disappeared, he admits. His recipe for success Weber, however, sees in the first line in the while focusing on the hard discount prices and the Expansion of the larger dress sizes.
“discounts are the lubricants”
For him, duration of actions, these include throughout the year. “Discounts are the lubricant for the sales engine,” says Weber. While a number of detail warn trade experts, such as Martin Hotz of Fuhrer & Hotz, before the longer-term discounts and you as poison, see, says Weber: “discounts are a blessing for us.” Everyone look at the price, discount is part of trading and should not be demonized. In the case of chicory, there are all kinds of discounts: a 50-percent discount days, daily actions, and also the new VIP loyalty program with customer card or via the App discounts.
However, chicory deserves with this discount symbolism at all? “With high volume, it comes automatically to good results,” says Weber. Chicory earn over the amount to sell per year, over 10 million parts. With the low price alone would bring chicory to the customers in the stores, Weber. The established 34 years ago, family-owned company with 750 employees must be in the fashion trends with H&M, Zara and co. eye-to-eye. Since there is no long production paths in it.
away from China and Bangladesh
more and more chicory-fashion is Weber, therefore, not only in cheap countries such as China and Bangladesh to produce. Meanwhile, around 30 to 35 per cent of the chicory are produced-apparel in Italy, France or Greece. The costs of production are, according to Weber, in Europe slightly higher, but in the case of fashionable products the customers are willing to pay a little more.
The German Online giant Zalando undermines the established fashion chains in Switzerland since some years the water. And other international competitors want to earn the 8 billion Swiss francs for the clothing market. The Japanese fashion group Uniqlo is a clothes already, Roger Federer.
Almost Retail, the parent company of the Uniqlo belongs, is already the third-largest fashion group in the world. By 2020, he wants to replace the market leader Inditex that owns Zara, and the number 2, H&M from Sweden, at the top. The Expansion to Europe is well advanced.
Already in the neighbouring countries of Germany and Austria, the US chain TK PHP image. The Americans are in direct competition with Primark, a Irish-British textile trade discount stores for customers under the age of 35.