i morning session internationalization · pdf fileinternationalization opportunities and...

I – MORNING SESSIONINTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES IN "THE PERFECT STORM”

II – AFTERNOON SESSIONSALES CHANNEL AND GO TO MARKET OPTIMIZATION

TODAY: SPANDET AND PARTNERS, BOARD POSITIONS, Inq,

Industry Expert CBS, Management Consultant Mars and neutral.com

MARS: Training of > 150 associates in US/CA/BE/POL at top management level in “productivity” and and effective meetings. Outstanding scores and testimonials

BOARD MEMBER: HTM GROUP, EVITA PERONI, STELLA NOVA, TICKET TO HEAVEN

AAGAARD/KRANZ ZIEGLER (CAPIDEA), ABC lys, INQ, WEAR/DANSK ERHVERV

Co-Owner Brand And Retail Consulting Asia (BARCA)

SPANDET AND PARTNERS: CEO, Co-owner. Successful specialized consultancy company with high customer satisfaction and 70 clients mainly internationally acting fashion and lifestyle brands. The core; business and brand development, company structure optimization, internationalization, sales channel optimization. Consultancy still active

STELLA NOVA: CEO, Co-owner. Internationalization and turnaround. Brand platform/merger with Baum und Pferdgarten (backwards integration, forward optimization)

DYRBERG/KERN: CEO. 5 doubling of revenues and profits in 5 years, winner of Ernst and Young´s Entrepreneur of the Year. From 8% to 88% export share. Conversion from wholesale to international retail and franchise. 27 shops China

HABURI.com: Retail Sales Director. Back in Copenhagen 15 years later. Significant improvement of conversion and operations

CARLI GRY: Regional Director. Posting to Düsseldorf. Continuous regional profitable growth in DE, AU, CH, NL, BE with Jackpot, Cottonfield, Peak Performance

ØK: Youngest Division Manager in Manila. Responsibility for > 50 staff

EAST ASIATIC COMPANY/ØK: Department/Senior Manager. Posting to Singapore. Organizational and revenue responsibility for Heidelberg printing machines.

[email protected], + 45 22660911, 1985 (23 YEARS) UNTIL MAY 2015 (53 YEARS)

27

31

40

23

38

45

48

49

53

YEARS

44-53

TICKET-TO-HEAVEN, 2009 - 2014Branded retail, Key Account Management, Go to Market - focus Germany, Change of Management

AAGAARD/KRANZ & ZIEGLER (Capidea), 2011-2014E-commerce, wholesale, retail, franchise, marketing mix, strategic market planning, business models and brand management

ABC lys, 2013Internationalization. Product to lifestyle brand. Professionalizing operations

Aluproff, 2015Product to brand. Professionalizing operations and focus on sales.

Inq (PR), 2013Product mix, new biz, structure, organizational development, business model revitalization

WEAR, Danish Chamber of Commerce, 2013Export, PR, industry expert, member acquisition

Copenhagen Business School, Industry Expert, 2012Expert Panel to internationalize Danish Fashion. Organizer of workshops with associate professor2015 temporary contract as industry expert. As of September 2015 external lecturer

EVITA PERONI 2007-2013Conversion from wholesale to Retail and Franchise. Risk management, investor searchTrade marketing and consumer marketing including online launch and social media

STELLA NOVA 2009-2010 Turn around, brand platform, forward optimization, backwards integration. Focus on execution of business strategies and efficient leadership

HTM GROUP, Whiite & Mini-a-Ture 2006-2007 Establishing board as Chairman, Planning, improving and executing global sales growth.

BOARD POSITIONS - HENRIK SPANDET-MØLLER

Birger Christensen, Barbara I Gongini, Capidea, Copenhagen Business School, Gudrun Gudrun, Noa Noa, Ticket To Heaven, ej sikke lej, Norlie, Gardenia, Shoe Biz, Venus de Milo, Spon Diogo, Development Centre UMT, Innovationsnetværket Bolig og Beklædning, Kolding School of Design, Joha, Closed, Maria Zabel, Stella Nova Copenhagen, Baum und Pferdgarten, Evita Peroni, Mismo, Mini-A-Ture, Inq, Dyrberg/Kern, Copenhagen International Fashion Fair (CIFF), Design Skolen Kolding, Neutral, Whiite, Scandinavian Shoe Center, Zylinc, Muuse.com, Newline, KEA, Texman, Lindbergh, Shine, Tøjeksperten, Wagner, PWT, New Generals, Lommé Bags, Holly's, New Balance, Dansk Erhverv, Wear, Riis Sko, Kaospiloterne, Hertz Jewelry, Aagaard Jewelry, Kranz & Ziegler, Fredericia Furniture, ABClys, Mars

CLIENT RELATIONS - HENRIK SPANDET-MØLLER/SPANDET AND PARTNERS

ENTREPRENEUR OF THE YEAR 2004

“DYRBERG/KERN has won the Danish competition thanks to the complexityof the company. DYRBERG/KERN has not only created a unique designconcept, but they have also been able to strengthen and motivate theorganisation and increase the turnover by 30% annually since the companyfoundation in 1985”

Børsen, November 2004

DYRBERG/KERN A/S Copenhagen 2001-2007

From 2001-2006 Henrik Spandet-Møller contributed to DYRBERG/KERN´s growth –a 5 doubling of revenues and profits, a revenue mix from 8% to 88% export share and conversion from wholesale to international retail and franchise. 27 shops China

www.spandet.com - SPANDET AND PARTNERS - ESTABLISHED IN 2010

OUR PLATFORM; MORE THAN 100.000 HOURS OF EXPERIENCE AND 70

CLIENTS

SPANDET AND PARTNERS MAINLY DEAL WITH INTERNATIONALLY ACTING

FASHION AND LIFESTYLE BRANDS, AS A CLOSE AND OPERATIONAL SPARRING

PARTNER

THE CORE OF SPANDET AND PARTNERS; BUSINESS

DEVELOPMENT AND STRATEGY, LEADERSHIP, BRAND DEVELOPMENT,

COMPANY STRUCTURE OPTIMIZATION, SALES CHANNELS/ GO TO MARKET

RECRUITING/HEADHUNTING

SPECIALS: GERMAN + CHINESE MARKETS + GLOBAL FASHION TRENDS

+ OWN OFFICE IN CHINA

OUR MANTRA: “DON’T DECLARE, DELIVER“!

WORDS NEED ACTION AND WE MAKE BRANDS FIT FOR FIGHT!

http://www.spandet.com

WELCOME TO INQ, WHAT CAN I DO FOR YOU?

Inq activates brands through weaponized storytelling from scratch, by journalistically digging to the core.

You and your stakeholders will obtain increased awareness, knowledge, liking, preference, conviction and sales through on all communication platforms.

Inq is first mover within the international story telling trend (kill the press release-turn into a corporate newsroom).

8

_INQ references

KEY MESSAGES:

1. "THE PERFECT STORM” & ”WIPE OUT”2. ”NEW BUSINESS MODEL”3. ”PRODUCT IS (STILL) EVERYTHING”4. ”ONLINE CHANGES EVERYTHING”5. ”RETAIL (AND CONSUMER) IS KEY”

INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:

"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”

Consumer on all media

Knowseverything

WIFM – big data

Online sales nescessary but…

THE PERFECT STORM

Profit margins under pressure, increased costs for marketing, peopleand logistics

Difficult to earnmoney in online and retail

Important to be #(or #2), distance to #3+ increases

No borders

Lowest pricein EU withinseconds

Too many shops too muchmerchandise

Big players – structural competitives

New shop concepts

BRIK, Globalisationand competition

Wipeout is a game show series in which contestants compete in what is billed as the "world's largest obstacle course".

Distribution of the show is handled by Endemol USA. The show is taped at Sable Ranch in Canyon Country, Santa Clarita, California, about 40 miles north of Los Angeles.

The show holds a "TV-PG L" rating for mild language by participants and some crude humor.

YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER

BRANDS

0-5 Mio. 5-15 Mio. 15-50 Mio. > 50 Mio.

Finland or Scandinavia

ScandinaviaNL

Europe Globalambition

Agents Export Agents Agents/Distribut. Own

Wholesale Wholesale/ Consignment

Concession/ Wholesale

Retail,concessions

WIPE OUT – GROWTH STEPS –MORE WOW, MORE POW, MORE OW

1. BACKWARD (UPSTREAM) VERTICAL INTEGRATION

2. FORWARD (DOWNSTREAM) VERTICAL INTEGRATION

3. BALANCED (BOTH UPSTREAM AND DOWNSTREAM) VERTICAL INTEGRATION

INDUSTRY INTEGRATION

OFFLINE VERTICAL / FRANCHISE CHAINS

OFF-LINE VOLUNTEER CHAINS

OFF-LINE INDEPENDENT SHOPS

ONLINE FROM 10% TO ?%

BOOZT, ZALANDO ETC FROM 20-50%?

FASHION INDUSTRY INTEGRATION

THE WORLD HAVE DOUBLED, TRIPLED……A LOT OF NEW MARKETS DEVELOP AT HIGH SPEEDASIA, AFRICA, SOUTH AMERICA – THE POTENTIAL FOR BUSINESS ON THE RISE – AND SO IS COMPETITION FIERCELY!!!

TODAY - LOOKING LIKE A MILLION IS

NOT THE ONLY ANSWER

THE LONG TERM TRENDS ARE

ABOUT UTILITY AND CREATIVITY

FROM LUXURY TO UTILITYIT USED TO BE ALL ABOUT HIGH PRICED AND HIGH PROFILED LUXURY

NOW IT IS ALSO ABOUT GENUINE FUNCTION

…WITH STYLE!AND CREATIVITY

+

ACT SMALL

ALSO A TREND

BEING SMALL MEANS YOUR ARE MORE:PERSONALHONESTLESS CORPORATEMORE CREDIBLEMORE AUTHENTIC

ACT SMALL ALSO MEANSSMALL SCALE ACTIONS:

TREND: SUSTAINABILITY

NEUTRAL.COMWINNER OF SUSTANIA AWARD 2013 IN NEW YORK

YOU NEED TO LEARN FROM THE STRONG BRANDS, HOW TO SHOW WHO YOU ARE

WHAT IS YOUR VALUE PROPOSITION?

HOW ARE YOU DIFFERENT FROM YOUR COMPETITORS……(AND FORGET ABOUT THE PRICE TAG)

WHAT IS YOUR UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS?

RETAIL IS KEY AND DRIVES THE MARKET

MORE THAN EVER

THE STRONG FASHION AND LIFESTYLE RETAILERS TELL STORIES….AND CURATE

TO INSPIRE AND MOTIVATE

A SHOP:

IS NOT JUST A ROOM, IT’S A LOT OF DIFFERENT OPPORTUNITIES TO CONVINCE THE CONSUMER THEY ARE ON THE RIGHT TRACK AS THEY MOVE ALONG THE SHOP, ALL THE WAY TO THE CASH REGISTRE.

INSIDE THE SHOP YOU ARE TOLD THE STORIES

CUSTOMERS/CONSUMERS AREPEOPLE OF FLESH AND BLOOD -WITH DREAMS AND HOPES OF GOODLIVES.

AND THEY GOT A VOTE!

THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL

WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE

THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL

CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL

RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.

RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL

PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED

MORE WOW, MORE POW, MORE OW

THE MESSAGE

1. ACT LIKE A STRONG BRAND AND RETAILER2. LEARN FROM THE CONSUMER/SELL OUT3. NEW DISTRIBUTION CHANNELS 4. ONLINE (SALES AND MARKETING)5. UNDERSTAND YOUR FIGURES 6. BE IN CONTROL OF YOUR SHIT7. GLOBAL THINKING (NOT MARKETS)

BRANDED RETAIL

WHOLESALE

RETAIL WHOLESALEOR BOTH?

CHANNEL CONFLICTS – HOW TO HANDLE

FRANCHISE OR OWN RETAIL?

OWN ONLINE OR PARTNERSHIP ONLINE OR BOTH?

WILL THE MULTIBRAND RETAILER BE IN MY MARKET IN 5 YEARS?

CAN AN AGENT HANDLE BRANDED RETAIL

DIFFERENT COLLECTIONS FOR DIFFERENT MARKETS

WIPE OUT - HOW TO JUMP AND WHEN TO JUMP?

CAN MY BUSINESS MODEL AFFORD MULTIBRAND RETAILERS OR AGENTS`

IS AN AGENT THE RIGHT PARTNER TO HANDLE BRANDED SALES?

HOW TO FINANCE GROWTH WITH INCREASED NEED FOR CASH / FINANCING

MULTICHANNEL (O-T-O) – HOW?

SUPPLIER’S RISK; IN-SEASON REPLENISHMENT/IN-STORE TRAINING/VM/EDI

HOW TO FIND AN UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS

DISCUSSION&

THANK YOU

[email protected]

+45 22660911

I – MORNING SESSIONINTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES IN "THE PERFECT STORM”

II – AFTERNOON SESSIONSALES CHANNEL AND GO TO MARKET OPTIMIZATION

WHICH MARKETS, WHICH CHANNELS?

BRANDED RETAIL

WHOLESALE

RETAIL WHOLESALEOR BOTH?

CHANNEL CONFLICTS – HOW TO HANDLE

FRANCHISE OR OWN RETAIL?

OWN ONLINE OR PARTNERSHIP ONLINE OR BOTH?

WILL THE MULTIBRAND RETAILER BE IN MY MARKET IN 5 YEARS?

CAN AN AGENT HANDLE BRANDED RETAIL

DIFFERENT COLLECTIONS FOR DIFFERENT MARKETS

WIPE OUT - HOW TO JUMP AND WHEN TO JUMP?

CAN MY BUSINESS MODEL AFFORD MULTIBRAND RETAILERS OR AGENTS`

IS AN AGENT THE RIGHT PARTNER TO HANDLE BRANDED SALES?

HOW TO FINANCE GROWTH WITH INCREASED NEED FOR CASH / FINANCING

MULTICHANNEL (O-T-O) – HOW?

SUPPLIER’S RISK; IN-SEASON REPLENISHMENT/IN-STORE TRAINING/VM/EDI

HOW TO FIND AN UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS

KEY MESSAGES FROM MORNING SESSION:

1. "THE PERFECT STORM” & ”WIPE OUT”2. ”NEW BUSINESS MODEL”3. ”PRODUCT IS (STILL) EVERYTHING”4. ”ONLINE CHANGES EVERYTHING”5. ”RETAIL (AND CONSUMER) IS KEY”

THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL

WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE

THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL

CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL

RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.

RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL

PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED

MORE WOW, MORE POW, MORE OW

THE MORNING MESSAGE

1. ACT LIKE A STRONG BRAND AND RETAILER2. LEARN FROM THE CONSUMER/SELL OUT3. NEW DISTRIBUTION CHANNELS 4. ONLINE (SALES AND MARKETING)5. UNDERSTAND YOUR FIGURES 6. BE IN CONTROL OF YOUR SHIT7. GLOBAL THINKING (NOT MARKETS)

BRANDS

0-5 Mio. 5-15 Mio. 15-50 Mio. > 50 Mio.

Finland or Scandinavia

ScandinaviaNL

Europe Globalambition

Agents Export Agents Agents/Distribut. Own

Wholesale Wholesale/ Consignment

Concession/ Wholesale

Retail,concessions

WIPE OUT – GROWTH STEPS –MORE WOW, MORE POW, MORE OW

POWER HOUSES IN FRONT

• SIGNIFICANT GROWTH FOR (MOST OF) THE POWER HOUSES

• CONSOLIDATION OR WIPE OUT IN NUMBER OF BRANDS

• DO WE HAVE / WILL WE HAVE A FASHION INDUSTRY OR A NUMBER OF BIG PLAYERS (IN 5 YEARS)?

FASHION INDUSTRY BUSINESS MODEL-- THE FUTURE FOR THE MULTI BRAND RETAILER?

EICKHOFF DUSSELDORF KÖFOUNDED 1961 CLOSED 2013

The main reason is the changed market situation and the distribution policy of the big [luxury] brands,” “Big brands are now either sold in mono-label stores or large shop-in-shop concepts. The current form of multibrand stores have only a limited future,”, listing other recent German closures such as Maendler in Munich, Fischer in Stuttgart, Möller + Schaar in Frankfurt and Heinsius + Sander in Kassel. Eickhoff launched many international designer brands in Germany during its 52-year run. Claiming to have better sell-throughs than the mono brands, the store generated 27.8 million euros in sales in 2012, “and we're super positioned this year,” “But we have seen how the acquisition of brands has gradually become more and more difficult, and there are too few brands on our level to find adequate replacements. We've tried, but they burn out too fast. They don't have the strength and longevity,”

CONTRARY TO HORIZONTAL INTEGRATION (CONSOLIDATION OF MANY FIRMS THAT HANDLE THE SAME PART OF THE PRODUCTION PROCESS)….

VERTICAL INTEGRATION IS TYPIFIED BY ONE FIRM ENGAGED IN DIFFERENT PARTS OF PRODUCTION (E.G. RAW MATERIALS MANUFACTURING, TRANSPORTING, MARKETING, AND/OR RETAILING). VERTICAL PLAYERS IN 1A LOCATIONS.


1. BACKWARD (UPSTREAM) VERTICAL INTEGRATION

2. FORWARD (DOWNSTREAM) VERTICAL INTEGRATION

3. BALANCED (BOTH UPSTREAM AND DOWNSTREAM) VERTICAL INTEGRATION


10 4020 10080

Production Price

Landed brand cost

MultibrandRetailer

Retail Excl. vat

Retail price incl. vat

10 to factory = 50%

20 to brand= 50%

40 to retailer = 50%

(2,5 Mark-upto the retailerbefore reductions)

VALUE CREATION

10 3320 10080

Production Price

Landed brand cost

Retail Excl. vat


EX METROPOL –“backward (upstream) integration”

Multi brand Retailer

40 to multi brand reduced to 33= 23 by brand= 70%

47 to retailer = 60%

3,0 Mark-upto the retailerbefore reductions vs. 2,5 Mark-up

10 4020 10080

Production Price

Landed brand cost

Retail excl vat


EX PANDORA – “balanced vertical integration” (both upstream and downstream)

70 to brand or shared with franchise partner= 88% before reductions

1. THE MULTIBRAND RETAILERS NEED TO OPERATE WITH A HIGHER GROSS MARGIN OF 50% (MARK-UP 2,5) DUE TO HEAVY DISCOUNTS AND VERTICAL CHAINS PRESSURIZING RENTALS. THEY NEED PARTNERSHIP AND RISK SHARING

2. THE BRAND NEEDS A GROSS MARGIN OF MORE THAN 50% TO PARTICIPATE IN CONSIGNMENT / THE GROSS MARGIN / VARIABLE AGENT COSTS OF 10-15%. OTHERWISE THE ALTERNATIVE IS PASSING THE MULTIBRAND RETAILERS THROUGH OWN (ON-LINE + OFF-LINE+STOCK SALE) RETAIL

CONFLICT OF INTERESTS OR MUTUAL INTERESTS?

REVENUES

GROSS MARGIN

DEPRECIATIONS

NET MARGIN

COSTS

PROFIT

100

50

(15)

35

(30)

5 OR LESS

MULTIBRAND RETAILER

BRAND OWNER

100

50

(15)

35

(30)

5 OR LESS

100

80

(15)

65

(45)

20

INTEGRATED PLAYER

GETTING RETAIL AND DETAIL RIGHTNO EASY FIX…

OFF-LINE AND ONLINE HAVE MORE OR LESS THE SAME STRUCTURE AND SAME

CHANNELS. IT IS MORE OR LESS THE SAME GAME BALL GAME.

DIFFERENT COUNTRIES/DIFFERENT STRUCTURES. DE/UK A LARGER DEGREE OF

VERTICAL INTEGRATION AND DEPARTMENT STORES (80% OF THE BUSINESS

FROM 20% OF THE SALES CHANNELS). CHINA DIFFERENT BALL GAME

MOST BRANDS START WITH SPORADIC WHOLESALE, THEN THEY SEGMENT

THEIR WHOLESALERS, THEN THEY DEVELOP RETAIL THINKING. NEW: FAST(ER)

RETAIL ENTRY IN DIFFERENT RETAIL FORMATS. NEW STRUCTURES REQUIRED

1. UNDERSTANDING OF THE CHAIN OF VALUE CREATION2. SPRAY AND PRAY, CHOSE OR BE CHOSEN3. AGENT, DISTRIBUTOR OR YOURSELF?4. WHOLESALE IN SEGMENTS AND PRIORITY5. FACTS OR FASHION. BIZ OR BUZ?6. COUNTRY OR RETAILER/CHAIN THINKING7. ONLINE AS SALES CHANNEL?8. ONLINE AS (DIGITAL) MARKETING?9. SELL IN vs. SELL OUT10. HOW TO FINANCE THE GROWTH?

(SOME OF THE) QUESTIONS TO ANSWER

DISCUSSION&

THANK YOU

[email protected]

+45 22660911

i morning session internationalization · pdf fileinternationalization opportunities and...

Documents