{{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.