yesterday's post Agatha Ruiz de la Prada: 30 years in fashion , talked about the three decades of the English designer at the foot of the canyon. And since we're talking about fashion, I would also like another firm today to speak English reference in the international arena: TOUS . Also a few years ago I was in Manresa (Barcelona) Salvador Tous chatting about the interesting business model: past, present and future. Here you only part of the conversation and later I leave the link to read full. ALCAIDE FRANCISCO: Tous has become a reference brand well known English international level with presence in over 30 countries. What are the factors that explain this success?
SALVADOR TOUS: First, we are a company that has bet very heavily on the design, but by design "useful and rational." We try to do things with a pretty design but are comfortable and pleasant to carry, and with features that allow to use a long time.
Second, we have always been very customer oriented. Our home is a small shop where we always knew very well what our customer wanted. We tried that in all our stores to apply this philosophy in response to the client as it deserves. This is a common discourse in all companies, but another thing to prove. There are organizations that preach the "customer care" and not really worry or care or the client. When you paid you forget. We translate implemented. Any customer who buys a product Tous may return at any store and is paid the exact price. In addition, we can bring to repair, renovate or repolish our pieces many times as desired. This is easily said and much more difficult to prove. Every year approximately 200,000 repairs performed. Of this amount only charge 18% and 82% are free. When you start with two stores this is not a big problem. Today, with over 250 stores in 30 countries, the situation is more complex. We have over 30 full-time people working on repairs that pose a high cost. Nevertheless, our philosophy is to serve the customer and consider as a cost.
Third, we stress that we have been very lucky: we were in the right place at the right time. The fourth factor is that we have never been successfully raised the head. Every day, ourselves, the founders, at the foot of the canyon are wondering what we do wrong, where we can improve or what to change. Is a constant exercise and tired of continuous improvement. The important thing about business is not standing still. Complacency is dangerous.
FA: What are the major strategic challenges facing Tous over the coming years?
ST: There are two major challenges: one professional and one personal level. A professional level our main challenge is to maintain the pace of growth we had in the last ten years, around 40% per annum on average. This target does not respond to an economic ambition but to a motivation of our staff. The average age of the workforce over twenty years. They are very young to feel the spirit of the company and wants to participate in a winning organization. When they need extra effort everyone is ready for anything. There is a fantastic spirit and growth offers many advantages: better visibility, better costs, and more motivator for people because he sees that has development potential and realization. Our policy of internal promotion is very pronounced. Apprentice who enters can move up. Three years ago in central Manresa were 100 people and now we are more than 200. Companies do not make the gurus but hard worker everyday.
The personal challenge is to prepare timely and I left my wife and our daughters are involved in business management more professional as possible. The problem of family businesses is always the same: the transfer of powers. The whole process should plan it very well. However, in our case we have a advantage. My wife and I married very young and we had our four daughters very young, so all are working for the company between ten and fifteen years. The transition process is consolidated.
FA: What are the main threats that exist for the brand, its growth and implementation of strategic milestones?
ST: On the professional level, the main drawback would be that someone we believed us. That takes you to complacency. Occurs or not depends on us, so if you know what should not happen. In addition, there may be threats in the environment, but I am worried plus internal and external. When there is a cake everyone wants to eat but if you have seat, fork and table, you have easier. What we do is not to fit. On a personal level, the threats would come from any family disagreements that might arise. In this section we do not believe that no problem occurs.
FA: What is the type of clientele Tous? Can target by certain criteria? What are the differences between national and international client?
ST: We say we have a clientele of young spirit. We sell jewelry that does not coincide with the traditional doctrine Jewelry and also includes additions to our range can also be found in a normal jewelry, therefore, we need people with an open mind.
respect to age, the clientele is varied. There are many girls, ages 6 and 9, who ask their parents to buy some of Tous. Interestingly, those who have brought more customers to our stores are girls then when they get older still our client.
By market differences. Tous Latin America is positioned in a higher segment than in Spain. In Mexico, for example, our competitors are large signatures. In America we must be in the same segment as Spain. And in Japan, a very small market for us, we are positioned in a lower segment.
FA: The concept of "Fashion Jewelry" have diversified into other business areas to expand its range of products. Do they have designed new market niches in which to enter? ST
: All brand extensions must have a logic and rationale. When you diversify your business to other areas you can improve billing, but you lose identity and this must be looked after. We are now closing more business by opening lines. We want to focus heavily on our core business is jewelry, along with handbags, leather goods, perfumes and sunglasses then.
FA: How important is it for Tous marketing and communication and what strategies used when launching new collections or create new business areas so that the brand impact is high and lasts the memory on the client?
ST: In our case is very important. This is a continuing cause impacts. We spend a lot of money on media. We make one or two performances each year in Madrid and Barcelona to press. We work with a celebrity. We did not invent nothing. We do the most, but probably not many jewelry brands that have done so many things. Recently held a party in Mexico to celebrate five years in the country. 2,000 invitations were sent, were finally confirmed 900 and 1,300 people. He had a remarkable social impact. Every two years we do an event outside of Spain and each year one or two in Spain. If you do not move do not go in the photo.
FA: Any biography of success is littered with obstacles and difficult circumstances. What have been the most difficult moments in the history of Tous and how to manage that process?
ST: hindsight is always possible to make an accurate analysis of the trip and see what needed to be done. At that time toreamos the situation as we could. There are two particularly delicate moment in the history of Toussaint, one emotional and other emotional and economic. The first difficult moment was when we had three stores (Manresa, Lleida and Barcelona) and saw the possibility of many others. We are not managers but shopkeepers. If you take three stores and it seemed complicated, and still have over many other widely dispersed geographically. We said, "God let us go and hand out lucky."
Another moment
sensitivity was about ten years ago with international growth. We saw Spain in five years we decided to stay small and out to conquer the foreign market. We made a mistake in the book: go for the top three world markets: U.S., Germany and Japan. We went to these countries thinking that we would do any good. We crashed. It was a disaster. We caused major economic damage, but above all, moral and confidence. You start to ask questions and question many things. We closed the shop and kept the United States from Germany and Japan.
Then, with the perspective that gives the time, come back to pick up spirits. After the time we came to see a English based in Santo Domingo to consider the possibility of opening a store there. So we did and it was a success. From that experience we began to grow in South America and in every country that we have opened a store's success has been remarkable. After consolidating the market of Central and South America had yet. Five years ago re-opened but this time in Miami, where he has gone well.
FA: What are the factors behind the success across the Atlantic?
ST: brand awareness. In Santo Domingo the book's primary women's magazine "Hello." Throughout South America, except Brazil, reads a lot what comes from Spain. Is not the same to get to a place where everybody knows you than another where you're a stranger.
FA: What is the situation in the European market to open new stores?
S. T: Europe is saturated. We are now going to open a second store in Paris bigger but with the objective to serve as a showcase for position in Japan, our second pending. The Japanese who come to Europe goes to Paris, secure, in Milan, probably, to London, not so likely, and Madrid, where you have time. Paris is the European Centre for the Nipponese.
FA: What about Russia and China?
ST: There are two markets with a great future. Regarding China, we are in it. We have 3 stores in Hong Kong and 2 in Shanghai, although the dimensions of the Chinese market does not mean much. However, we want to grow slowly. Russia is another very interesting market, although we have not found any partner in the country that gives us credibility and reliability and must sell our products.
FA: Why are these markets attractive?
ST: With China and Russia happens same with South America. South American countries with a population of around 400 million inhabitants. For 300 million your problem is survival, there are 80 million who have extra money, and 20 million very rich. The business is in those 100 million people. In China and Russia is the same. There is an elite with money. Moreover, in both countries there is another attraction. Most brands work with licensees, which means that their presence is still limited. Are in short supply. In London or Paris is very difficult to compete. For every buyer there are seven deals in the luxury sector. However, the presence of big brands, such as in Brazil, is testimonial.
FA: What is the level of competition that has Tous and how they cope with this competition?
ST: The competition does not take away the dream. The sun shines for everyone. Everyone has to struggle and develop as you can. If you live too obsessed with competition, the final mimic their products and lose opportunities to do things themselves. Moreover, in many cases, when you are too conscious of competition, the first temptation is to try to fight and I think that price is not good.
FA: The trademark counterfeiting is one of the evils for the industry and creativity that is important for losses companies. How can you fight it and how you see the future?
ST: There are two readings. The first is that if you imitate not exist. The copy you is rewarding and opens a big market. The second is that we must fight with every weapon to end this scourge. Last year we allocate more than 600,000 euros to this topic. Fortunately, the laws in the EU, mainly due to pressure from big firms-has changed and today, more than 90% of cases, judgments are right on the mark imposed harsher penalties for offenders. Each day the fight against counterfeiting works best.
* Today's Blog Soccer Phenomenon Phenomena, the stunning new Adidas notice.
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