The Spanish word ‘desigual’ translates as ‘uneven’ or ‘asymmetrical’ in English. There is, however, nothing unbalanced about the namesake fashion house’s progress and performance in recent years.
Desigual has generated steady growth over the past decade. Currently it is working to review and prepare the company’s next phase of growth to fully deploy the potential of the brand.
And then there’s travel retail. The brand only turned its attention to the channel four years ago, but is now present in 180 locations worldwide – with more in the pipeline. Going forward, travel retail – which currently accounts for around 5% of total turnover – has been earmarked to play a bigger role within the company, as Desigual examines its next phase of development, and formulates its future growth strategy.
‘Welcome to the Future’ was a key theme at the company’s wholesalers’ convention in Barcelona in June, to which The Moodie Report was granted exclusive access. The event included a fashion show at the Olympic Stadium; an extensive viewing of Desigual’s S/S2016 ‘Learn’ ready-to-wear collection.
At the event, the company said that this is a “very special year. We haven’t always been so big – and it is good to remember the past – but now we are thinking about how best to make the future happen.
“The last 15 years have been founded on growth, but now we need to know where we want to go from here “We need to think big – and to continue to innovate.”
Desigual underlined the importance of creativity, adding value and doing things differently, all key elements which have underpinned Desigual’s success to date.
The ‘Desigualisation’ aspiration
Doing things differently has certainly been a hallmark of the company to date. It manifests itself in the clothes it creates – all collections have an unmistakeable Desigual identity. It is evident in the innovative way it approaches travel retail (as demonstrated, for example, by the ‘HappyBox’ concept). It even permeates Desigual’s eco-friendly, open-plan headquarters in Barcelona, where every desk has a view of the beach; there are no assigned physical work spaces; and the employees (through designated ‘change ambassadors’) effectively make the rules.
“Fun and profit” is the motto at HQ, where the building and its design aims to facilitate communication and harness the creative energy of the team.
Energy, synergy and creativity are recurring themes throughout The Moodie Report’s two-day visit – and they will continue to be important, as the company assesses its landmark €1billion watershed, and sets out its strategy for the next phase of growth.
“Our mission is to put one Desigual garment in every wardrobe of the world,” explains Wholesale Travel Retail Manager Marco Gadola. “We just want people to try Desigual once – and then hopefully they are hooked. We don’t target a specific race, age, or class of people; we target a personality, which is the most transversal ideal you can find – so our target market is very wide.”
That said, Gadola is keen to further define Desigual’s target personality. “We are still working on it,” he acknowledges.
In geographic terms, Desigual is strong in Europe, and within that region Spain, Italy, France and Germany are key territories. The Middle East is another region that holds much potential, with strong sales already in the key Saudi Arabian market.
“We are now working on expanding in Asia, South America and the USA,” comments Gadola. “And we plan to invest both domestically and in travel retail, which is often how we enter somewhere new.”
“Our product is perfect for travel retail, because it targets the happy consumer,” Gadola observes. “And who is the happiest? The person going on vacation. We offer something fun and different for this consumer, an opportunity to experiment with colours and styles that are different from their everyday corporate uniform.”
He adds: “The Desigual brand is a perfect fit for travel retail. Positive emotion is universal – everybody wants to be happy. We are a brand that inspires happiness, so we will never go out of fashion.
“Desigual is also a very colourful brand that drives footfall and impulse purchases. This is perfect for the channel, and has allowed us to enter new countries where the brand is not present domestically.
“We have entered Argentina, India and Australia via travel retail, and so far it has always been a success, not only because we achieve great sell-out, but because of the retailer consolidation that is happening. Once you prove you can work in one location, this opens up opportunities elsewhere.”
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Wholesale partners were treated to an extensive viewing of the entire Desigual S/S16 collection | |
Despite such complications, and the cost of doing business in travel retail, Desigual’s commitment to the channel remains resolute.
“Now the market is changing,” notes Gadola. “Before fashion was like luxury, which was reflected in the brands on offer. Around 20% of passengers could afford to buy a luxury watch or bag, and airports and retailers only cared about that 20%, even though the other 80% would love to shop too.”
He continues: “Brands like us are the answer for a huge proportion of passengers who have money to spend but cannot afford high-end products”¦ we are the next generation of fashion retailing in travel retail.”
High-priced luxury has its place, but mid-market and fast fashion can deliver incremental business for airports, especially as passenger profiles change.
“The leading players in travel retail need to read the big picture,” notes Gadola. “Low-cost carriers are delivering many new passengers with different spending power, and airport shopping needs to reflect that. Look at locations such as Bond Street, Fifth Avenue and the Champs-Elysées: before there were only luxury brands, and now you find more affordable brands. Airports need to adapt too.”
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Desigual’s colourful ‘Learn’ S/S16 collection hits the catwalk |
Targeting a wide variety of nationalities – as well as wallets – also alleviates the pain when specific consumer groups stop travelling, or cut back on spending. “Everyone who fixated on the Chinese and Russians is panicking,” notes Gadola.
In a similar vein, airport expansion is not the only objective for Desigual within travel retail. Cruise ships and ferries remain important, as do railway stations. “By the end of the year we will have our first floating Desigual shop, with Tallink,” Gadola reveals.
“Flexibility is very important to us, and a key part of our corporate culture. We have many different concepts that can be adapted to virtually any size or space.
“Around 50% of our retail business is done at train stations, so it’s a strong channel for us,” adds Gadola. “It’s very different from airports – there is much more traffic, and it’s all about volume. We usually have more space, more dwell time and a larger catchment area, so it’s a growing business – and very interesting for the future.”
New product potential
The full Desigual product portfolio is extensive, and includes not just men’s, women’s and children’s fashion, but bed & bath, homeware, footwear and accessories. In travel retail, t-shirts and dresses are the main drivers within ready-to-wear, followed by handbags.
“Last year we developed our first accessories-only shop, in Barcelona – and it’s working very well – but we don’t want to fall into the trap of becoming or being regarded as just an accessories brand in travel retail,” Gadola underlines.
Domestically, the brand is focusing on four key new categories: sport, living, shoes and beauty. Beauty has also been earmarked for a bigger role within the travel retail channel.
“Beauty is very important,” confirms Gadola. “We launched our first fragrances [Sex, Fun and Love] two years ago. That collection has been expanded this year with two more fragrances, including our first men’s scent, Dark Fresh”¦the ultimate objective is to build a full line – to establish a company within a company – but that is a long-term project.
“We will introduce two more fragrances, one men’s and one women’s, in time for the Christmas period. We know that fragrance is a must in travel retail and we are on our way to becoming a relevant player.”
Homewear too could deliver incremental growth in travel retail, Desigual believes, as the category incorporates many items that are small, portable and ideal for gifting. Shoes – a complicated category due to stock management and sizing – nonetheless offers good growth potential with segments such as flip-flops and Birkenstock-style models, which are already generating strong sales in travel retail. The company is also keen to exploit opportunities within children’s fashion – an under-developed category thus far but in theory the perfect gifting product.
“If just one retailer is brave enough to experiment and invest, ultimately that is all you need,” Gadola concludes. “One pioneer is all it takes to change things and show it can work – and then everybody else will follow.”
Desigual is determined to be that trail-blazer, and to convince both travellers and domestic consumers that under its direction, “La Vida es Chula”.
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