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]
{{{ Projets de centres de magasins d’usine autorisés ou à l’étude en Europe (28 Septembre 2007)}}}
_ [Tous les centres de magasins d’usine en Europe existants, en projet ou à l’étude->http://www.magdus.fr/spip.php?page=centre&lang=fr]
_ Pour toutes informations complémentaires
_ Contact [->accueil@magdus.com]
{{{
_ New stakes, new strategies?
|{{Introduction}}|{{Speakers}}|
|{{wednesday 19th september 10h00/10h30}}
_ {{{European situation and evolution
_ in brand distribution:
_ figures and trends}}}
_ |{{Alessandro Bedeschi
_
_ Henrik C.Maris
_
_ Eric Daguin
_
_ Emmanuel de Labarre
_
_
_ Sven Lung
_
_
_ Pascal Roussarie
_
_
_ Olivier Dauvers
_
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
—–
|{{Plenary sessions}}|{{Speakers}}|
|{{wednesday 19th september 17h15/18h15}}
_ {{{New conquest for new customers}}}
_ Conquest Strategy
_ New Marketing
_ Customer Value
_ Brands and Differentiation
_ |{{Philippe Villemus
_
_ {{|
|{{thursday 20th september 10h15/11h15}}
_ {{{The new customer of XXIth century}}}
_ |{{Guillaume Erner
_
_ {{|
—–
|{{Workshops}}|{{Speakers}}|
|{{A1 – wednesday 19th september 10h45/11h45 }}
_ {{{Consumer developments in Europe:
_ how to adapt and anticipate}}}
_ Is there one or a variety of consumers?
_ What are the major behavioural trends
_ in buying apparel? How are they expected to develop?
_ How can brand retailers attract more consumers?
_ How can they be made loyal?
_ Can the same methods be applied to
_ everyone, everywhere?
_ Are brand centres in a class by themselves?
_ |{{
_ Valérie Voisembert
_ Pascal Roussarie
_
_
_ Laurent Locurcio
_
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A2 – wednesday 19th september 10h45/11h45}}
_ {{{Unsold textiles: Can they be kept under control?
_ How can value be derived from them? }}}
What is at stake with unsold textiles?
_ What part do they play on the apparel market?
_ Can unsold items be limited upstream?
_ What are the best options for deriving
_ value from unsold items (factory outlet centres,
_ Internet, b-stores, etc.)?
_ Should brands have to manage their own
_ unsold items, as they do their collection items?
_ What are the best responses when unsold
_ items are still not sold a second time?
_ |{{Alessandro Bedeschi
_
_ Jean-Loup Besquent
_
_
_ Dr.Sami Sboui
_
_
_ Bruno Rogowski
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A3 – wednesday 19th september 12h00/13h00}}
_ {{{Marketing for factory outlet centres:
_ what is the winning mix?}}}
_ How much pull can brands have for
_ consumers buying at factory outlet centres?
_ Is there such thing as an ideal brand portfolio?
_ How can the tourist-shopping dimension be
_ taken into consideration in the marketing mix?
_ Is communication the key to differentiation
_ from the competition?
_ What is the marketing position of factory
_ outlet centres today?
_ Can its “geo-strategy” be variable?
_ How should it be developed?
_ What is the development outlook is
_ on the horizon?
_ |{{Richard Broadhead
_
_
_ Frank Verschelle
_
_ Alain Salzman
_
_
_ Fabrice Schlosser
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A4 – wednesday 19th september 12h00/13h00}}
_ {{{Sunday openings: an issue
_ at the European level?}}}
_ What are the needs and expectations of
_ each set of players?
_ What is at stake economically with Sunday
_ openings? What are the labour stakes?
_ Are they shared in the same way
_ across Europe?
_ |{{Marion Kahn-Guerra
_
_ Emmanuel de Labarre
_
_ Olivier Dauvers
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A5 – wednesday 19th september 14h15/15h15}}
_ {{{Brand retail distribution strategy:
_ what role should the Internet play?}}}
_ Has the Internet changed the way
_ brands are consumed?
_ Do the major merchant sites that unload
_ brands create competition for factory
_ outlet centres?
_ Can they take up even more room
_ on this market?
_ Where brands are concerned,
_ is the Internet a complementary business tool,
_ or has it become a retail distribution
_ method in and of itself?
_ Does unloading a brand on the Internet help
_ attract new customers?
_ |{{Christine Baudchon
_
_ Geoffrey Nidd
_
_
_ Marina Martorana
_
_ Jean-Paul Leroy
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A6 – wednesday 19th september 14h15/15h15}}
_ {{{The factory outlet customers:
_ are they brand-focused or price-focused?}}}
_ Who are the consumers at factory outlet centres?
_ What are they looking for when they come?
_ Do consumers still feel there exists a
_ “reference” price?
_ At factory outlet centres, are prices and brands
_ always enough to make the difference?
_ What are consumers’ actual expectations?
_ What would the ideal factory outlet be?
_ |{{Olivier Le Floch
_
_ Sven Lung
_
_ Patrick Robin
_
_ Olivier Costil
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A7 – wednesday 19th september 15h45/16h45}}
_ {{{Commercial real estate in Europe:
_ textile brand retail still a winning sector?}}}
_ In the world of branded clothing retail,
_ what are the trends in commercial real
_ estate in Europe?
_ Why are more and more investors interested
_ in the concept of factory outlet centres?
_ What are the criteria they use to make
_ investment decisions?
_ Are there still development prospects
_ in Western Europe?
_ Are the Eastern countries still a
_ new Eldorado?
_ What are the conditions for establishing
_ and developing there?
_ |{{Chris Pope
_
Richard Broadhead
_
_
_ Gaël Thomas
_
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A8 – wednesday 19th september 15h45/16h45}}
_ {{{Factory outlet centres:
_ a development opportunity for brands?}}}
_ From the brand standpoint,
_ how can a multi-channel distribution strategy
_ generate development?
_ How should it be handled?
_ How can the development of such
_ centres in Europe serve brand development?
_ |{{Juan-Marcos Gabas
_
_ Alain Salzman
_
_
_ Ulrich Nordhorn
_
_
_ Olivier Dauvers
_
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
—–
|{{Round table}}|{{Speakers}}|
|{{Thursday 20th september 11h45/12h15}}
_ {{{In what way, and how
_ will brand centres meet
_ the expectations of brands,
_ consumers and investors,
_ five years from now? }}}
_ |{{Henrik C.Maris
_
_ Eric Decouvelaere
_
_ François Moss
_
_ Iestyn Roberts
_
_ Alexandre Séjourné
_
_
_ Olivier Dauvers
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
—–
|{{« Country » workshops}}|{{Speakers}}|
|{{A9 – wednesday 19th september 10h45/11h45}}
_ {{{Belgium-Holland}}}
_
_
_ |{{workshop cancelled
_
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A10 – wednesday 19th september 14h15/15h15}}
_ {{{Brand Centres in Europe: Facts and Figures}}}
_
_
_ |{{Caroline Lamy
_
_ Bruno Rogowski
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A11 – wednesday 19th september 12h00/13h00}}
_ {{{Germany}}}
_
_
_ |{{Ulrich Nordhorn
_
_
_ Jörg Nowicki
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A12 – wednesday 19th september 12h00/13h00}}
_ {{{England-Ireland}}}
_
_
_ |{{François Moss
_
_ Graham Parker
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A13 – wednesday 19th september 14h15/15h15}}
_ {{{Eastern Countries}}}
_
_
_
_ |{{Eric Daguin
_
_ Jana Kurkova
_
_
_ Tomasz Leskiewicz
_
_ Fabrice Schlosser
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A14 – wednesday 19th september 15h45/16h45}}
_ {{{Spain-Portugal}}}
_
_
_ |{{Manuel Saavedra
_
_ Philippe Schilde
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A15 – wednesday 19th september 10h45/11h45}}
_ {{{Italy}}}
_
_
_ |{{
_
_ Roberto Pacifico
_
_
_ Marina Martorana
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
|{{A16 – wednesday 19th september 15h45/16h45}}
_ {{{France}}}
_
_
_ |{{Raymond Feyssaguet
_
_
_ Didier Moret
_
_ Alexandre Séjourné
_
_ Laurent Locurcio
_
_ {{
_ of the conference->http://www.magdus.fr/All-the-speakers]}
—–
_ {This program will be updated very regularly. …}
—–
_ {Do You wish to intervene? You have remarks or suggestions? Contact us}
_ [->accueil@magdus.com]
_ Tel : 33 (0)3.25.43.70.20
——
{{{More information about the third european conference on factory outlet centres}}}
-* [Presentation