Profitability and differentiation are key in multi-brand. They are two fundamental factors for the survival and advancement of a channel that has been the springboard for fashion brands in Spain. In the children’s sector, both brands and stores must focus on grandparents who have a higher purchasing power and greater brand loyalty. The shopping experience must be based on qualified, valued, and well-paid staff.
Profitability and differentiation in multi-brand were the focus of the round table on retail held at the 10th Meeting “The future of the children’s products sector” of ASEPRI. This channel accounted for 9.5% of fashion sales in 2023 and is particularly fighting against the offer from “low-cost” establishments. However, it represents an opportunity for many brands that must work alongside stores to revalue the quality of the offer and the role of this channel. The round table featured Luis Lara from Retalent, Eduardo Zamácola from ACOTEX, Mónica Algás from Boboli, Ana Salort from Pisamonas, and Oscar Vivas from Saro.
For children’s fashion and childcare, the multi-brand channel remains essential for sales both in Spain and Europe. Despite the difficulties, multi-brand still has much to say, as long as it takes advantage of its special strategic position. Especially in a country like Spain, where the climate and culture invite people to go out and touch the products.
-
Profitability versus turnover
For Eduardo Zamácola, “stores need to obsess over being profitable rather than focusing solely on turnover. It’s necessary to sell less, but better, because you cannot be profitable based on sales volume.” It is essential to be very clear about who your type of customer is, to care for the workers, and not to fall into the trap of lowering prices. “The value of multi-brand lies in offering spectacular service. To achieve this, it is crucial to retain talent in the establishments and value their role as prescribers”.
In this regard, participants insisted on dignifying the work of employees, both inside and outside the store. “Above all, they must enjoy what they do. We must be able to offer a unique experience that attracts and retains the consumer.”
-
Opportunity in multi-brand
For Pisamonas, multi-brand currently represents a business opportunity. The company began its journey in the online channel ten years ago, “when no one was selling in that channel.” Subsequently, it opened its own stores; and now, “it is the time to enter multi-brand stores.”
According to Ana Salort, director of stores and B2B at Pisamonas, “those who do not see multi-brand as a strategic partner will find it very difficult. It is a fundamental binomial for success. It must be understood as part of your business.”
For the CEO of Boboli, “multi-brand makes special sense in small towns where the big players do not reach. Moreover, here the perception of price is different.” Boboli has an incentive programme for stores based on purchases. They support commerce with online training, visual merchandising, promotions, and gifts, as well as trials for the collection of items purchased online.
-
Target customer “grandparents”
Changes in consumers imply more informed customers who, at times, know more about the product than the seller themselves. Additionally, there are changes in mentality and consumption among new generations. All these factors require constant adaptation from commerce, which must also bet on selling products with added value.
As Oscar Vivas, commercial director of Saro, commented, “the difficult part is selling high-priced products. Stores need to make investments that not everyone can afford, which is why margins are crucial. Shops need to make money if we want them to survive.”
In this regard, all participants agreed on the need to work on all the attributes that a brand has for the store to want to market it. They also suggest expanding the product range because it is good to step outside pure sectors.
Grandparents should be the target customer in multi-brand children’s fashion and childcare stores. They are the ones who buy higher-value products for their grandchildren. They are more committed to quality and can afford it. Additionally, they are characterised by their loyalty to brands.
-
Multi-brand in five years
The main conclusion about the future of multi-brand is to “define the commitments and agreements between stores and brands”. Furthermore, for Luis Lara, “multi-brand shops must help each other. In fact, in the Premium segment, a certain association is beginning to form for joint purchasing.”
In short, multi-brand does make sense and has a future if it specialises, focuses on offering a unique shopping experience, and centres on profitability.