Jaume Miquel on Tendam’s growth strategy and market prospects

Jaume Miquel, CEO and president of Tendam, said the fashion conglomerate, which includes brands such as Cortefiel, Springfield, Pedro del Hierro, SlowLove and Otto, would consider debuting on the stock market if conditions were favorable. However, he emphasized that he has no concerns about taking the lead in the world. charging.

“We are not concerned about going public first. We will evaluate once the market reopens. The board is discussing strategic moves and a stock market debut may be feasible.” No,” Mikel said at the ESADE breakfast.

Mikel emphasized that the company is ready to re-enter the market, boasting a “tested” and “attractive, sustainable and profitable business model”. However, he said, “The market is currently closed.”

The company was listed on the stock exchange from July 14, 1994 until late March 2006. Almost a year after CVC, PAI and Permira reached an agreement that split his control of the company into three equal parts, he was split into two after Permira’s exit. In July 2017.

Mikel shared the company’s goals for the next few years. “Our goal is to achieve sustainable and profitable growth of 6% to 8% over the next few years and increase our market share from 6% in 2019 to the current 7%,” he said. I said no.

The company’s future roadmap includes transforming its physical stores into “more powerful sales engines” for third-party brands, expanding its membership base and accelerating the growth of new brands, potentially may establish a physical store similar to Hoth Intropia. He also emphasized that SlowLove, the brand acquired from Sara Carbonero and Isabel Jimenez, is doing “excellent” business.

International expansion

“We are looking at expansion, especially with Iberia but also in Mexico, and perhaps acquiring a franchise and integrating it into our model as we have done in the past,” he said. explained. The group, which operates in 80 countries through its unique franchise store model, counts Spain, Portugal and Mexico, which are “very strong”, as key managed markets. Its franchise model is “very strong” in Latin America, from Mexico to Chile.

“We will be absent in Argentina and Brazil as market trends and currency fluctuations do not justify it. China as a market for locals and luxury goods does not align with our position, so we would like to focus on other regions.” ” he elaborated.

Ecosystem for growth

The fashion group’s CEO said that Cortefiel was a “less attractive name and the only name not registered worldwide” with the aim of “aggressively gaining market share and driving growth”. He detailed the company’s transformation into Tendom. The company relies on its major asset, its brand, to acquire new customers.

The group has built an “ecosystem” that hosts more than 150 third-party brands, recognizing the style of Cortefiel’s customers and offering complementary brands. “We have 60% similar brands, 20% superior brands and a further 20% inferior brands to ensure full complementarity,” he elaborated.

Following this development, the CEO highlighted the creation of a new brand as the next step. “We created a niche brand to protect our bottom line, but we don’t cater to everyone. We also revamped our physical stores and turned them into digital hubs for sales and logistics,” he said. I have outlined it.

Regarding third-party business, Mikel acknowledged that the main risk was “cannibalization”, but there is no evidence that that has happened. “Conversion rates, average spend and time on page have increased online,” he said, noting that these brands are starting to sell in digital formats rather than in physical stores.

Another driver of growth was the creation of new brands, which significantly increased sales and store traffic.

“All of this transformation would not have been possible without a strong, traction-gaining brand and a strong loyalty club that is a reinvented key asset,” he stressed.

Creating regional value by utilizing physical stores

Jaume Miquel emphasized the value and stability that brick-and-mortar stores bring to the region.

“As retailers, we must serve our communities because brick-and-mortar stores create value, stability, and progress. It’s a shame that we don’t have a presence in some places,” he stressed, stressing that it covers 80% of the population and maintains a profitable network of 97%.

“Brick-and-mortar stores are socially important and promote community integration. Companies seeking positive impact must create value locally,” he emphasized.

Mikel stressed that the era of “barbaric capitalism” is over. “For the welfare state to survive, we need social capitalism in which businesses play an active role and lead by example,” he stressed.

Tendam’s CEO acknowledged that with the support of CVC and PAI funds, they are an “excellent” partner who strives to “create value” within the company and contributes significantly to strategic thinking.