The operators: specialists or generalists (1st July 2008)

|{{Operators}}|{{Number of centres}}|{{Selling area in sqm}}|
|McArthurGlen|17|367.100|
|Realm|12|167.550|
|Neinver|10|139.000|
|Value Retail|9|125.600|
|Freeport|3|113.200|
|Concepts & distribution|8|103.300|

On the 1st July 2008, these 6 operators shared :
-* 37% of the existing centres in Europe
-* 47,5% of the european sales area

{Factory stores capture 2.3 % of the French clothing and shoe market and represent a little more than 1% of the turnover achieved by the retail sector. This distribution channel therefore remains marginal, even if we can consider that it has found its customer base.}

{{Distribution among men, women and socioprofessional categories}}
_ Originally confined to seconds and ends of series, the array of products offered in factory stores has widened and the ranges have greatly increased, attracting a much wider palette of consumers. People with average purchasing power have been joined by those with high purchasing power who, up until recently, were, first and foremost, customers of town centre stores. In Troyes, the average purchase basket is 208 €.

{{The fashion effect}}
_ The desire to consume in these centres is maintained by fashion and the feeling that the concept is rare. Fashion awareness is more noticeable on the women’s market than on the men’s market. Today a woman of 60 years wishes to dress fashionably, In just two years some products can be considered to be out of fashion and, whatever the reduction, will not find a purchaser.

{{Greater volume}}
_ Consumers tend to purchase less expensive clothing. The opening of a new retail outlet generates a necessary reduction in sales by other retail outlets. Consumers demand clear rules guaranteeing in the brand centres the presence of products with real information.

{{Shops and leisure activities}}
_ For many, the future of factory stores is based on an alliance between stores and leisure activities. Consumers increasingly wish to enjoy themselves when they make their purchases one to three times a year. This is why brand centres are appearing near large leisure centres or offer, themselves, fun, sports or cultural activities.

{{The brand and the price}}
_ Consumers are seeking an attractive brand at a competitive price. Operators must offer a balanced selection of brands of world renown, brands linked to a fashion phenomenon and more or less prestigious brands that generate visits…

{{Risks and opportunities}}
_ The questions prompted by the installation of a factory store are linked to a number of issues: territorial planning, urbanism, consumers’ rights and the right to competition. Factory stores today pose the same problems as hypermarkets in the past: major growth over twenty years, negative impact on traditional retailers and town centres. The majority of the projects launched in France are also perceived as challenges in the area of local development and territorial stability: a factor in territorial planning, attractiveness, economic development, job creation and trade tax, or a danger for local traditional retailers.

{{Rare or commonplace}}
_ Should we tighten regulations on the installation and extension of brand centres to prevent them becoming commonplace, thus weakening the concept? The existence of too many factory stores could indeed generate their decline and that of brands. By having recourse to them to sell off excess stock, isn’t there the risk that industrialists will destabilise other forms of distribution?

{{Specificity or generalisation}}
_ Can articles other than clothing and household equipment be concerned by this type of distribution?
_ Must projects for such installations be limited to regions that can justify a strong industrial tradition (Roubaix, Troyes, Romans, Cholet, etc.), as certain local elected representatives demand? With, as a result, a ban on any installation in areas that do not have the right due to economic, geographic and historical reasons, although they have a high tourist potential, for instance southern and south-western France?

{{Town centre or outskirts}}
_ At present town centres are no longer as attractive as in the past. In France clothing consumption is marking a downward trend, which means that new factory stores could lead to a transfer of customers from the town centres to these new structures. The challenge consists in strengthening town centres’ power to attract in order to direct the flow of commercial tourists in their direction.
_ In Troyes, we were able to see the negative and positive effects.
_ In personal equipment, the impact on traditional retailers (in particular on retailers in Troyes town centre) has been spectacular. A real shock wave followed the creation of brand centres on the outskirts. This was expressed in a devitalisation of independent retailers, weakened at the same time (as in all French town centres) by the sudden upsurge in organised retailing (franchise outlets, branches, etc.).
The stores that closed down have been replaced by others and the greater number of service providers in the town centre’s did not prevent banners such as H&M from setting up there. Without factory stores, the town of Troyes would not have welcomed close to 2 million visitors in 15 years in its town centre. This commercial tourism has been joined by cultural tourism due to the town’s historical attractions.

{{History or geography}}
_ The reasons for the geographic localisation of a new centre go far beyond the existence of industrial roots and a textile past: motorway links, density of tourist flows (Marne-la-Vallée), population (Paris region), local purchasing power and the proximity of a foreign market are criteria to be taken into account. It goes without saying that territories are competing today as future locations for brand centres.

{{Stocks or relocations}}
_ The selling of excess stocks tops the list of distributors’ and brand managers’ concerns. These excess stocks represent 2 or 3% of the total volume of the market and between 0.7 and 10% of the volume of the products diffused according to the brands and banners.
_ Three possibilities are offered to a firm that wishes to get rid of its excess stock: destruction of the products, sale to discount stores or sale in factory stores. Factory stores offer the firm the advantage of controlling the distribution and, therefore, protecting the brand and the distribution network.

-* Brand stores are raking it in!
-* Brand centres: What performance for what market?
-* Brand centres in France: How are they evolving?
-* Brand centres: « Risks and consequences of their development?» (…)

If you want more information in french [click here->http://www.magdus.fr/Marche-et-tendances-prix-marques]}}}

————

{{{If you want contact us:}}}[->accueil@magdus.com]

{{{FOC’ sector in Europe}}}

{{The operators: specialists or generalists (1st July 2008)}}

|{{Operators}}|{{Number of centres}}|{{Selling area in sqm}}|
|McArthurGlen|17|367.100|
|Realm|12|167.550|
|Neinver|10|139.000|
|Value Retail|9|125.600|
|Freeport|3|113.200|
|Concepts & distribution|8|103.300|

On the 1st July 2008, these 6 operators shared :
-* 37% of the existing centres in Europe
-* 47,5% of the european sales area

{{{More information about FOC’ sector in Europe}}}
_
[{{Economic surveys}}->http://www.magdus.fr/Fonctionnement-des-centres-de]
_ {Source : European Factory Outlet Centres Observatory}

-*[{{All the studies…}}->http://www.magdus.fr/All-the-studies,1495]

-*{{Study: Which factory outlet centre? The UK consumer’s selection criteria}}

{{Author}} : Georgina Whyatt, Business School, Oxford Brookes University.

{{ Abstract :}} Factory outlet centres are the fastest growing retail format in Europe. This is at a time when many ‘traditional’ shopping centres are suffering from consumer caution and have responded by differentiating their offer. Factory outlet centres are part of this response. There has, however, been little academic research that focuses on this new style of shopping centre. This paper examines what is important to the UK factory outlet centre shopper, and ranks a range of choice criteria to better understand why this consumer visits one such centre in preference to another. Implications for retailers and directions for future research are provided.
_
_ {(r 2007 Elsevier Ltd. All rights reserved.)}
_
-* Read the full version in PDF format

{{{Share of household consumption expenditure on clothing and footwear in 2003}}}

|{{Country}}|{{Share (%)}|
|{{ Greece }}|{{ 10,1}|
|{{ Italy }}|{{ 9,0}|
|{{ Latvia* }}|{{ 8,4}|
|{{ Portugal* }}|{{ 7,1}|
|{{ Cyprus }}|{{ 6,9}|
|{{ Austria }}|{{ 6,9}|
|{{ Slovenia }}|{{ 6,3}|
|{{ Estonia }}|{{ 6,1}|
|{{ Malta* }}|{{ 6,1}|
|{{ United Kingdom }}|{{ 6,0}|
|{{ Spain}}|{{ 5,9}}|
|{{ Lituania }}|{{5,9}}|
|{{ Germany }}|{{5,5}}|
|{{ Netherlands }}|{{5,5}}|
|{{ Belgium }}|{{5,4}}|
|{{ Irland }}|{{5,4}}|
|{{ Sweden }|{{5,2}}|
|{{ Czech Republic }}|{{5,1}}|
|{{ Denmark }}|{{5}}|
|{{ Finland }}|{{4,7}}|
|{{France}}|{{4,5}}|
|{{Luxembourg}}|{{4,5}}|
|{{ Poland }}|{{4,4}}|
|{{ Hungary }}|{{4,2}}|
|{{ Slovakia }}|{{3,7}}|

————

{{ Contact}} : [->accueil@magdus.com]

The  »Factory Outlet Centers » concept was imported from the United States where there are more than 340.
After a first wave of penetrations, concerning more particularly France during the 1980s, the concept spread to continental Europe from 1993 onwards.
Early in the 1990s, Clarks, the shoe manufacturer based in Great Britain, seeking both a use for buildings adjoining the factory and a solution to its excess stock problems, opened its first factory store and sold its excess merchandise at reduced prices. Seeing the success of this new store at the factory exit, he decided to increase the commercial offer by adding an entire “village” of stores of the same type.
Clarks then drew inspiration from the American concept, creating the first  »Factory Outlet Center »,  »Clarks Village » in Street (Somerset) in 1993.It was on that date that “ Marques Avenue”, France’s first new generation factory store centre, opened in Troyes.

{{More information about the sector:}}
-*Innovative centres and projects (2007)

{{{Evolution of the concept in Europe : from Factory Outlet Centres to outlet villages (2009)}}}

{{[Download the figure : Evolution of the concept in Europe}}->http://www.magdus.fr/pdf/concept_evolution_in_europe.pdf]

Factory Outlet Centres consisted only in selling unsold articles, but the commercial concept has evolved since the mid-1990s. The progressive orientation of the concept towards “fun shopping” has considerably strengthened the tourist dimension of Factory Outlet Centres. Four generations of centres can be distinguished (cf. figure). This typology, which brings to light the qualitative evolution of the concept, is based on four criteria: the marketing strategy of the centres, their architecture, their location as well as their customer base. All European countries did not experience these four generations of centres – for example, only France has actually experienced the first generation.

{{More information only in french:}}
-*Evolution du concept en Europe (2004)
-*Centres de marques : les nouvelles approches du concept en Europe (2004)

Whilst the concept offers variants in its general aspect (mixed distribution/culture/leisure centres, distribution centres open to several sectors of activity, centres specifically reserved for personal equipment, etc.), there is a common denominator among these different formulas: the brands. But for a centre to function it is not a question of attracting just any brand type. There is, in fact, a real brand typology that must be taken into account in reasoning when planning a centre (from the international brand to the young brand of the moment). The brands fulfil different “functions”: some strengthen a centre’s renown, others tend more to generate visits or make the centre part of a hot trend.

In France, whilst a few industrialists still refuse to see their brands distributed in these specialised centres, there are many who sell their brands through them. This sales method is therefore becoming a real link in the distribution chain.
The quality of the commercial offer makes the concept particularly attractive in the eyes of consumers. The latter do not hesitate to travel considerable distances to purchase in these stores, their motivation stemming from the possibility of purchasing brand products at prices announced as 30 to 50% lower than in traditional distribution channels.
The offer mainly concerns articles of clothing (ready-to-wear, underclothes, lingerie, shoes, accessories) as well as household articles (decoration, household linen, tableware).

{{More information only in french,}} [click here->http://www.magdus.fr/Une-forme-de-distribution-atypique]
-* Main chronological milestones;
-* History of factory stores;
-* Parallel between the development of Aube groups and national centres;
-* In Troyes: «From hosiery to factory stores» (…)

————

_ Contact : [->accueil@magdus.com]

{{{Evolution de la distribution des marques en Europe:
_ nouveaux enjeux, nouvelles stratégies?}}}
{{{Developments in brand distribution in Europe:
_ New stakes, new strategies?
_ FOR ENGLIH VERSION, [CLICK HERE ->http://www.magdus.fr/Developments-in-brand-distribution]}}}

|{{Avis d’experts}}|{{Intervenants}}|
|{{mercredi 19 septembre 10h00/10h30
_ {{{Etat des lieux européen
_ sur l’évolution de la distribution
_ des marques en Europe:
_ situation et perspectives}}}
_ |{{Alessandro Bedeschi
_

_ Henrik C.Maris
_

_ Eric Daguin
_

_ Emmanuel de Labarre
_
_
_ Sven Lung
_
_
_ Pascal Roussarie
_
_
_ Olivier Dauvers
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|

—–

|{{Conférences}}|{{Intervenants}}|
|{{mercredi 19 septembre 17h15/18h15}}
_ {{{Nouvelle conquête
_ pour nouveaux consommateurs}}}
_ Stratégie de conquête
_ Nouveau marketing
_ Valeur du client
_ Marques et Différenciation
_ |{{Philippe Villemus
_
_
_ {{|
|{{jeudi 20 septembre 10h15/11h15}}
_ {{{Le nouveau consommateur
_ du XXI e siècle:
_ portrait d’un individu contradictoire}}}
_ |{{Guillaume Erner
_
_
_ {{|

—–

|{{Ateliers thématiques}}|{{Intervenants}}|
|{{A1 – mercredi 19 septembre 10h45/11h45 }}
_ {{{Evolution du consommateur en Europe:
_ comment s’adapter et anticiper?}}}
_ Y-a-t-il un ou des consommateurs?
_ Quelles sont les grandes tendances des
_ comportements d’achat de produits d’habillement?
_ Comment vont-elles évoluer?
_ Comment les distributeurs de marques
_ peuvent-ils attirer plus de consommateurs?
_ Comment les fidéliser? Les mêmes méthodes
_ peuvent-elles s’appliquer à tous et partout?
_ les centres de marques occupent-ils une place à part ?
_ |{{
_
_ Valérie Voisembert
_

_ Pascal Roussarie
_
_
_ Laurent Locurcio
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A2 – mercredi 19 septembre 10h45/11h45}}
_ {{{Invendus textiles: peut-on les maîtriser?
_ Comment les valoriser?}}}
_ Quels sont les enjeux des invendus textiles?
_ Quelle est leur place sur le marché de l’habillement?
_ Peut-on limiter les invendus en amont ?
_ Quelles sont les meilleures solutions pour la
_ valorisation des invendus (centres de magasins
_ d’usine, internet, enseigne-bis…)?
_ Les marques doivent-elles gérer leurs
_ invendus comme leurs produits de collection?
_ Quelles solutions pour les invendus d’invendus?
_ |{{Alessandro Bedeschi
_

_ Jean-Loup Besquent
_
_
_ Dr.Sami Sboui
_
_
_ Bruno Rogowski
_
_
_ {{
{Tous les intervenants
_ du colloque}}}|
|{{A3 – mercredi 19 septembre 12h00/13h00}}
_ {{{Marketing des centres de magasins d’usine:
_ quel est le mix-gagnant?}}}
_ Quel est le pouvoir d’attractivité d’une marque
_ pour le consommateur de centres de magasins
_ d’usine? Existe-t-il un portefeuille de marques idéal?
_ Comment prendre en compte la dimension
_ shopping-tourisme dans le mix-marketing?
_ La communication est-elle la clé
_ de la différenciation avec les concurrents?
_ Quel est aujourd’hui le positionnement
_ marketing des centres de magasins d’usine?
_ Peut-il être à « géo-stratégie » variable ?
_ Comment doit-il évoluer? Pour quelles
_ perspectives de développement?
_ |{{Richard Broadhead
_
_
_ Frank Verschelle
_
_
_ Alain Salzman
_
_
_ Fabrice Schlosser
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A4 – mercredi 19 septembre 12h00/13h00}}
_ {{{Ouverture du dimanche: un enjeu européen ?}}}
_ Quels sont les besoins et attentes
_ des différents acteurs?
_ Quels sont les enjeux économiques de
_ l’ouverture du dimanche?
_ Quels en sont les enjeux sociaux?
_ Sont-ils partagés de la même façon en Europe?
_ |{{Emmanuel de Labarre
_
_
_ Marion Kahn-Guerra
_
_
_ Olivier Dauvers
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A5 – mercredi 19 septembre 14h15/15h15}}
_ {{{Stratégie de distribution des marques:
_ quelle est la place d’internet?}}}
_ Internet a-t-il changé la façon de consommer
_ les marques? Les grands sites marchands
_ qui déstockent des marques concurrencent-ils
_ les centres de magasins d’usine?
_ Peuvent-ils prendre une place encore plus grande
_ sur ce marché?
_ Pour les marques, internet est-il un outil commercial
_ complémentaire ou est-il devenu un mode
_ de distribution à part entière?
_ Déstocker sa marque sur internet permet-il d’attirer
_ une nouvelle clientèle?
_ |{{Olivier Le Floch
_

_ Sven Lung
_
_
_ Patrick Robin
_
_
_ Olivier Costil
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A6 – mercredi 19 septembre 14h15/15h15}}
_ {{{Le client de centre de magasin d’usine:
_ consommateur de marques
_ ou consommateur de prix?}}}
_ Qui sont les consommateurs de centres
_ de magasins d’usine? Que viennent-ils y chercher?
_ Existe-il encore pour le consommateur
_ un prix de «référence»?
_ Pour les centres de magasins d’usine, les prix et
_ les marques sont-ils toujours des arguments
_ suffisants pour se démarquer?
_ Quelles sont les véritables attentes des
_ consommateurs? Quel serait alors le centre
_ de magasins d’usine idéal?
_ |{{Christine Baudchon
_

_ Geoffrey Nidd
_
_
_ Marina Martorana
_
_
_ Jean-Paul Leroy
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A7 – mercredi 19 septembre 15h45/16h45}}
_ {{{Immobilier commercial en Europe:
_ la distribution des marques textile est-elle
_ toujours un secteur gagnant?}}}
_ Dans l’univers de la distribution des marques
_ de l’habillement, quelles sont les tendances
_ de l’immobilier commercial en Europe?
_ Pourquoi de plus en plus d’investisseurs
_ s’intéressent-ils au concept des centres
_ de magasins d’usine? Sur quels critères choisissent-ils
_ d’investir? Y a t il encore des perspectives
_ de développement en Europe de l’ouest?
_ Les pays de l’est sont-ils un nouvel Eldorado?
_ A quelles conditions peut-on encore
_ s’y implanter et s’y développer?
_ |{{Chris Pope
_
_

_
_ Richard Broadhead
_
_

_
_ Gaël Thomas
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A8 – mercredi 19 septembre 15h45/16h45}}
_ {{{Centres de magasins d’usine:
_ une opportunité de développement
_ pour les marques ?}}}
_ Pour les marques, en quoi une stratégie de
_ distribution multi canal peut-elle être génératrice
_ de développement? Comment la gérer?
_ Comment tirer profit des centres de magasins
_ d’usine? Pourquoi le développement
_ européen de ces centres sert-il le développement
_ des marques
_ |{{Juan-Marcos Gabas
_
_
_ Alain Salzman
_
_
_ Ulrich Nordhorn
_
_
_ Olivier Dauvers
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|

—–

|{{Table ronde}}|{{Intervenants}}|
|{{jeudi 20 septembre 11h45/12h30}}
_ {{{En quoi, et comment, dans 5 ans,
_ les centres de marques
_ répondront-ils aux attentes des marques,
_ des consommateurs et des investisseurs ?}}}
_ |{{Henrik C.Maris
_

_ Eric Decouvelaere
_
_
_ François Moss
_
_
_ Iestyn Roberts
_

_ Alexandre Séjourné
_

_
_ Olivier Dauvers
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|

—–

|{{Tribunes Libres}}|{{Intervenants}}|
|{{jeudi 20 septembre 9h35/10h15}}
_ |{{Alain Salzman, Marques Avenue
_
_
_ Eric Decouvelaere, McArthurGlen
_
_
_ Iestyn Roberts, Freeport
_

_
_ Franck Verschelle, Pantheon
_
_
|

—–

|{{Ateliers pays}}|{{Intervenants}}|
|{{A9 – mercredi 19 septembre 10h45/11h45}}
_ {{{Belgique-Hollande }}}
_
_
_
_ |{{atelier annulé
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A10 – mercredi 19 septembre 14h15/15h15}}
_ {{{Les Centres de Marques en Europe
_ faits et chiffres}}}
_
_

_ |{{Caroline Lamy
_
_
_ Bruno Rogowski
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A11 – mercredi 19 septembre 12h00/13h00}}
_ {{{Allemagne}}}
_
_

_ |{{Ulrich Nordhorn
_
_
_ Jörg Nowicki
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A12 – mercredi 19 septembre 12h00/13h00}}
_ {{{Angleterre-Irlande}}}
_
_

_ |{{François Moss
_
_
_ Graham Parker
_

_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A13 – mercredi 19 septembre 14h15/15h15}}
_ {{{Pays de l’Est}}}
_
_

_

_ |{{Eric Daguin
_
_
_ Jana Kurkova
_
_
_ Tomasz Leskiewicz
_

_
_ Fabrice Schlosser
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A14 – mercredi 19 septembre 15h45/16h45}}
_ {{{Espagne-Portugal}}}
_
_

_ |{{Manuel Saavedra
_

_
_ Philippe Schilde
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A15 – mercredi 19 septembre 10h45/11h45}}
_ {{{Italie}}}
_
_
_
_ |{{
_
_ Roberto Pacifico
_
_
_ Marina Martorana
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|
|{{A16 – mercredi 19 septembre 15h45/16h45}}
_ {{{France}}}
_
_

_ |{{Raymond Feyssaguet
_
_
_ Didier Moret
_
_
_ Alexandre Séjourné
_
_
_ Laurent Locurcio
_
_
_ {{
{[Tous les intervenants
_ du colloque->http://www.magdus.fr/Liste-des-intervenants]}}}|

—–

_ Ce programme est actualisé très régulièrement.
_ {This program will be updated very regularly. }

—–

_ Vous avez des remarques ou suggestions? Contactez nous
_ { You have remarks or suggestions? Contact us}
_ [->accueil@magdus.com]
_ Tel : 33 (0)3.25.43.70.20

—–

_ Plus d’infos sur 3ème colloque européen sur les centres de marques et magasins d’usine:
_ {More information on the 3rd European conference on factory outlet centres:}

-* [Présentation / {Presentation}->http://www.magdus.fr/Edito]

-* [Nos partenaires / {Partners}->http://www.magdus.fr/Vous-souhaitez-devenir-partenaire]

-* [Nos partenaires presse / {Partners in the press}->http://www.magdus.fr/Partenariats-presse]

-* [Les Trophées Magdus / {Magdus Awards}->http://www.magdus.fr/Les-trophees-2007]

-* [S’inscrire / {Registration }->http://www.magdus.fr/Droits-d-inscriptions]

-* [Hébergement / {Hotel accommodation }->http://www.magdus.fr/Hebergement]

-* [Informations générales / {General information}->http://www.magdus.fr/Informations-generales-General]

—–

Contact : [->accueil@magdus.com]

—–

{{Docteur Sami SBOUI}}
_ A distinction is made between excess stock – during the selling season – and unsold stock that remains at the end of the season. According to our studies, unsold stock varies between 33 and 50 %, and the average figure is generally high for top-of-the-range products. The retail brands have difficulty in managing this unsold stock and they endeavour to optimise the de-stocking process. It is less a problem of quantity than of uniformity of stock, because during the sales period, a varied range of products has to be offered.



{{Jean-Loup BESQUENT}}
_ We do not own the brands, and so we pay royalties on unsold goods. In a certain way, these unsold goods are a « necessary evil », a result of production quotas – it costs the brand just as much to produce 1500 tee-shirts in Asia as 2000. This is why the amount of unsold stock is tending to increase.



{{Alessandro BEDESCHI}}
_ Unsold goods is a major problem for the fashion retail sector and varies from country to country. Distinction should be made on how specialised retail chains and independent retailers deal with the issue of sold goods. Key factors for success chains are their perfect integration in their supply chain and their good logistics system. They also can move their stocks through distribution systems and know their consumer profile. For independent multi brand retailers, the only solution to limit stocks is to cooperate with their suppliers by enhancing the communication and sharing information on the sell out of the collections; from ordering to the final sell out. In some countries (Scandinavian countries, the Netherlands), there are good practices of cooperation between retailers and suppliers whilst in some other countries there is still a long way to go.
It is a matter of mentality, product, individual companies, and size of the companies.
Consumers tend to buy more during the sales promotions which is one of the reasons retailers have stocks.



{{Jean-Loup BESQUENT}}
_ It is important for brands to ensure upstream control of their goods sales channels in order to maintain their image. 95 % of our goods are sold in factory outlets, which is an ideal channel to provide control and profitability. The rest is sold on Internet and via discount stores. We do not take back unsold stock from retailers after the sales, apart from in exceptional cases.



{{Docteur Sami SBOUI}}
_ Of all our de-stock possibilities (factory outlets, excess stock outlets, export and de-selection), export is the preferred method, because it obviates the need for cut-price selling.



{{Bruno ROGOWSKI}}
_ That being said, there are two limits for export – if the brand does not have a strong image in the country in question, it will never be able to sell the products; and if, however, the brand has a strong image, it must defend this it in that country.



{{Docteur Sami SBOUI}}
_ Lesser known brands end up in the used clothing stores in Africa. Well-known brands, such as Zara are also very well known abroad.



{{Alessandro BEDESCHI}}
_ I don’t know Zara well enough to speak about the company. Each brand has its specific market strategy, which needs to penetrate the market whilst keeping a strong brand image. How they penetrate markets depends on several factors: on the distribution strategy, on the expansion plans, on consumer behaviour, and on how strong or well known the brand is. Stock is sold during sales promotions, unsold stock is sent to wholesalers or is destroyed.



{{Bruno ROGOWSKI}}
_ How do other sectors of industry manage unsold stock?



{{Docteur Sami SBOUI}}
_ Unsold stock is a fact of life in all economic sectors (Bordeaux wine, newspapers, etc.). Walt Disney, for example, destroys lots of CD-ROMs. Airbus, on the other hand, has no problem of unsold stock, but has to cope with electronic component obsolescence. It is important to bet on the « right unsold stock ».



{{Bruno ROGOWSKI}}
_ How is the price of unsold stock set?



{{Jean-Loup BESQUENT}}
_ Consumers are in the know and understand the factory outlet mechanism and the prices of unsold stock.



{{Docteur Sami SBOUI}}
_ We want to set up a dynamic price system for transport.



{{Alessandro BEDESCHI}}
_ Consumers are more and more complicated and have an incredible choice so they can look at quality price ratio. From a brand perspective, price is a marketing tool. Concerning the recycling of textiles and greater awareness of the environment, there is more attention given to greener products and, hopefully, in the near future, consumers will be more keen on paying for these products. A good price, from a company perspective, is when the consumer pays.

{{ {Discussions with the floor} }}

{{Pierre DESRUES}} (CCI – Chamber of Commerce, Essonne)
_ Retailers’ difficulty in selling their excess stock is increasing with the development of specific excess stock distribution channels; it even raises the issue of their survival.



{{Alessandro BEDESCHI}}
_ For small independent retailers, overstock is a matter of survival; therefore the cooperation between small retailers and suppliers is important. Small retailers’ main partners are the European industries, if the suppliers could agree to take back the unsold goods, retailers could lower their margins. Thus retailers would survive, be more competitive and suppliers would still have clients.



{{Alain SALZMAN}} (Président de Marques Avenue)
_ Manufacturers should allow retailers to take advantage of the brand centres to sell their excess stock. This would enable retailers to take more risk, which would, in the long run, be to the advantage of the manufacturer.



{{Pierre DESRUES}} (CCI Essonne)
_ This is incompatible with the manufacturers’ approach – they have over-stocking problems and their attitude is that attack is the best form of defence.



{{Jean-Loup BESQUENT}}
_ It is not profitable to allow retailers to get rid of their stock in a factory outlet, because costs are too high for small stocks.



{{Docteur Sami SBOUI}}
_ Retailers have an interest in working with discounters, because, with the massive increase in collections, they have to release space and disburse money. De-stock management is just as important as procurement management.



{{Alessandro BEDESCHI}}
_ To be clear about the relation between factory outlets and retailers, it is understandable if a producer takes back the unsold goods of a retailer and sells those in a real factory outlet centre. The question is what is a real factory outlet centre and what have they become. Many producers create ad hoc productions for factory outlet centres, which is a distinct situation.



{{Yves MARY}} (Owner of a factory outlet centre at Cholet)
_ Do factory outlets satisfy the customer?



{{Docteur Sami SBOUI}}
_ A new consumer is emerging today, the « special offer-aholic », that is someone who is looking for a good deal. 70% of women only buy during the sales periods. Distributors should take into account this behaviour in their strategy. The discount race must not be developed to such an extent as to engender « cannibalism ».



{{Michel de SOUZA}} (President of a towns association near to Geneva)
_ We must find a modus vivendi that enables retailers as well as the major brands and distributors to be successful, without putting them into opposition.

_ L’architecture des centres de marques en Europe fait l’objet d’interrogations, voire de controverses. Le style « village » en vogue ces dernières années subit de vives critiques. Ce parti pris architectural a pris une place majeure dans le secteur et les acteurs sont nombreux à se demander si celui-ci domine actuellement le marché. Si l’architecture des centres de marques constitue un élément essentiel de leur politique d’image, elle paraît marginale, voire absente des études consacrées aux centres de marques en Europe. Pourtant les tendances architecturales reflètent l’évolution du concept. L’architecture figure parmi les facteurs clés permettant de distinguer les quatre générations de centres de marques qui se sont succédé en Europe depuis le milieu des années 1980. Cette étude, intégralement dédiée à l’architecture des centres de marques en Europe, met en lumière la place qu’occupent les différents styles architecturaux au sein du secteur des centres de marques.
_
-* Lire l’étude complète (format PDF)

—-
{{{Réagissez à cet article :}}}
_
{* champs obligatoires}
_
—-

The Magdus’ Observatory led in the middle of may a survey with the managers of Factory Outlet Centres in France to collect their pre-balance sheet for the first half-year 2009 as well as their perspectives of activity to the second one. In spite of an unfavourable cyclical context, it seems that the majority of the centres resists well to the crisis and foresees the second half-year positively.

{{Read the full study:}}

{{{Profil du client des Factory Outlets aux Etats-Unis, décembre 2006}}}
_ Les Factory Outlets occupent une niche spéciale dans le secteur des centres commerciaux. En 2004, ils ont généré approximativement 15 milliards de dollars de ventes, ce qui équivaut environ à 13,6 milliards d’euros. Au cours des deux dernières décennies, les Factory Outlets ont connu une croissance régulière de leur plancher commercial. De même, leur offre commerciale s’est étoffée. Mieux encore, ils sont parvenus à infléchir la perception générale selon laquelle leurs marchandises sont composées de surstocks de qualité inférieure et / ou d’objets provenant de liquidations, de solderies grâce à un repositionnement intelligent opéré par les développeurs de ces centres. Mais, au-delà de ces informations, que savons-nous réellement au sujet des clients des Factory Outlets ?

_ Etude : Profil du client des Factory Outlets aux Etats-Unis, décembre 2006

_ {Source : ICSC RESEARCH REVIEW, V.12, NO.1, 2005.

Traduction: Observatoire européen des magasins d’usine et centres de marques, décembre 2006}

{{{« Le marché du prêt à porter en Inde »}}}
_ Une croissance annuelle à deux chiffres (aux alentours de 10% en 2005) associé au boom de la distribution organisée : le marché indien de l’habillement est convoité aussi bien par les entreprises locales qu’internationales. Il est aujourd’hui à un moment critique de son évolution. En effet, la période de transition vers un secteur structuré a été amorcée dans les années 80. Des étapes majeures ont été franchies : le passage du sur-mesure au prêt-à-porter, la transition vers un style d’habillement occidental, une sensibilité accrue aux marques avec l’apparition des premières enseignes à l’échelle nationale, l’introduction d’entreprises internationales et récemment, la création des premières chaînes de grands magasins et des marques de distributeur.

_ Etude : « Le marché du prêt à porter en Inde »
_ {Source : Fiche synthèse faite par l’ambassade de France en Inde, Mission économique, 20 mai 2006}

————

_ Contact : [->accueil@magdus.com]

{{Alain SALZMAN}}
_ The « Concepts & Distribution » group, formed in 1993, includes the Marques Avenue and Quai des Marques chains, or 100000 square metres of commercial premises in France, it has a 300 million euro turnover and 10 million consumers per year. We are considered to be the leaders in France, notably in terms of our commercial surface area.



{{Richard BROADHEAD}}
_ After spending many years in retail, I have been with Freeport for 18 months. We have 3 sites operating in Europe, one in Sweden, one on the Austrian-Czech border and one in Portugal. Freeport’s objective is to accelerate our developments.



{{Fabrice SCHLOSSER}}
_ What strategy would you adopt to attract customers to a brand centre? Are some designer brands absolutely necessary? Does the ideal brand portfolio exist?



{{Richard BROADHEAD}}
_ Brands are essential to the business of outlet centres. Even if less known local brands can be brought, customers will only visit outlets which offer good brands.



{{Franck VERSCHELLE}}
_ You must not confuse sales marketing, which consists in brand-listing, and marketing to target the customer. Marketing depends on where the brand centre is located. For example, Troyes has a very small trading area, 240000 inhabitants less than one hour away. Marketing for a brand centre situated at Troyes therefore is linked with road travel.



{{Alain SALZMAN}}
_ You have to put yourself in the shoes of the consumer and give him what he wants. Similarly, you have to attract the brands that are looking for a strategic location and who want to have a presence close to other, quite specific brands. Brands and prices are the two keys to success. Some brands, such as Adidas, Nike and Puma are mainstays in the sports brand sphere. But they change – ten years ago, Puma was unknown.



{{Franck VERSCHELLE}}
_ It is important to be the first to market a brand and to make a distinction between the brands selected as a function of the location.



{{Richard BROADHEAD}}
_ Adding on, in terms of the consumer, some outlet centre locations are easier to operate than others. A slightly more complicated example is the outlet centre on the Austrian-Czech border. With different countries, languages, currencies, and economies, it is important to know the consumer’s profile but it is easy in general.



{{Fabrice SCHLOSSER}}
_ Is it positive for a brand centre to bring in other sectors of business?



{{Alain SALZMAN}}
_ Yes, because consumers like new things, in fact that is what draws them in. But we have to remain faithful to the brand centre concept, that is marketing unsold branded stock. Not many sectors are affected by the issue of unsold stock. We refuse to sell computer equipment, because high-tech products become obsolete very quickly.



{{Franck VERSCHELLE}}
_ Textiles are the most profitable sector (90 % of our sales) but we have diversified (Seb, Black & Decker, etc.) to complement our market offering.



{{Richard BROADHEAD}}
_ The brands are the core of the business (fashion and sports). Most outlets have diversified their offer and there is room for home wear. With more people owning their own homes, it will become a new trend. Internet is important but it is a much more difficult environment to successfully operate order business because of the consistency of stock and sizing.



{{Franck VERSCHELLE}}
_ An application to open a centre is more easily accepted by the Commission départementale d’équipement commercial (CDEC) if it includes 80% textiles and 20% complementary products.



{{Alain SALZMAN}}
_ I’m not so sure! Other sectors than ready-to-wear and home ware are promising.
New concepts to attract customers.



{{Fabrice SCHLOSSER}}
_ Today, the concept of a shopping-cum-tourism package is very in vogue in the brand centres.



{{Franck VERSCHELLE}}
_ We try to build our centres according to this rationale, because it corresponds to customer expectations. Moreover, as a result of this change, the impact on traditional shopkeepers in neighbouring towns, measured for the CDEC file, is becoming positive. For example, at Troyes, there are five million visitors per year. However, 3.8 million of these do not come from the trading area. Of this last category, 26% spend money (excluding hotels and restaurants) in the Troyes area.



{{Fabrice SCHLOSSER}}
_ How do you stimulate people to travel to the centres?



{{Alain SALZMAN}}
_ Brand centres must develop in synergy with their environment, and in particular with the high-street shops, in order to encourage development of commercial tourism. If we remain faithful to our concept, that is to say marketing excess branded stock from previous seasons, it is perfectly possible to co-habit with the high-street shops.



{{Fabrice SCHLOSSER}}
_ How do you encourage commercial tourism?



{{Richard BROADHEAD}}
_ The commercial tourism is the best opportunity to develop partnerships with local people and city centres. The operator needs to plan ahead, and to hire the right people to run the centre. There are ways to promote commercial tourism. Just to name a few, operators need to build relationships with local tourism offices and make sure the outlet is present in the literature.



{{Franck VERSCHELLE}}
_ We have to work with tourism specialists to animate the shopping-cum-tourism package (tour operators, low-cost airlines, etc.).



{{Fabrice SCHLOSSER}}
_ Do you now want to build brand centres only in tourist spots?



{{Alain SALZMAN}}
_ No. Our location choices take into account the trading areas, major roads and motorway traffic capacity.



{{Fabrice SCHLOSSER}}
_ There is a lot said about brand centre architecture and the intention to make theme centres, to make them localised. Can this idea be extended to most brand centres?



{{Franck VERSCHELLE}}
_ Yes, it is a method of attracting customers to new brand centres.



{{Alain SALZMAN}}
_ At the same time, this strategy can be a trap. In Italy, an architect was inspired by imperial Rome for his brand centre design. This concept goes too far; the role of brand centres is not to reinvent the town!

{{ {Discussions with the floor} }}

{{Eric DECOUVELAERE}} (McArturGlen)
_ I agree with you. An ugly centre that offers advantageous prices and good brands works! So we must continue to build less aesthetic brand centres! Rome attracts five million tourists a year. In the McArthurGlen brand centre in Rome you referred to, we try to offer a little more than a mere commercial offering. Let us not get the importance of this experiment out of proportion.



{{Fabrice SCHLOSSER}}
_ Franck Verschelle, your activity is similar to a theme park.



{{Franck VERSCHELLE}}
_ Our activity is close to that of a theme park, because when you come to us, it is a real experience! Many people travel great distances to come.



{{Patrick de JAMBLINNE}} (EIC Group)
_ Could Manchester United be a marketing argument?



{{Richard BROADHEAD}}
_ While operating a city centre in the South of the United Kingdom, we were in relation with the retailer from Southampton. People want to enjoy destinations, therefore architecture and design can add to the value of an outlet.



{{Eric DONNET}} (Ixis Aew Europe)
_ Can you cope with Internet competition?



{{Alain SALZMAN}}
_ Twenty years ago, brand centres emerged, because the brands wanted to protect their image. In fact, the discount sellers were not offering sufficient profitability or guarantee in terms of image. The risk for the brand image is huge on Internet. In addition, the profit-earning potential for the brands is greater in brand centres than on Internet, and retail outlets share this risk. That is why, either they do not use this marketing channel at all, or they use it rarely (two or three times a year). So we are not worried. All forms of trading must be able to exist together.



{{Franck VERSCHELLE}}
_ The customer buys everywhere, via various distribution channels. Traditional trading (of labelled designer items) has been going on for a long time, Internet has not caused shopping centres or shops selling the same products to close.



{{Richard BROADHEAD}}
_ A good outlet in a good location run by a good team is a destination. The outlet centre has a strong and long future.