Streetwear brand Desigual, famous for its patchwork designs, intense prints, innovative graffiti art and flamboyant splashes of colour, has taken the high street by storm since its creation 26 years ago. With a wide range of men’s, women’s and children’s wear, Desigual has become a must-have brand for the fashion conscious.
Ana Cabanas, Marketing Manager for Desigual, talks to RLI about the brand and its phenomenal success. “Desigual’s growth comes from three different sources: new geographical areas, new product categories and new channels of distribution - a multi-channel business model. We want every wardrobe to contain at least one Desigual garment and thus have opted for a business model which makes a maximum number of people aware of just what our difference is all about."
“Rather than competing with each other, our sales channels – brand stores, multibrand stores, franchises and online stores - all work together in a process capable of detecting the garments our clients like best and boosting the supply of such items.”
Around 90 per cent of Desigual’s business is based in Europe, with Spain being the leading market with a 30 per cent share of total global business. At the close of 2010 the firm’s worldwide presence counted 200 brand stores, 7,000 multibrand stores and 1,700 concessions in department stores, working towards a goal of 8,000 points of sale worldwide by the end of the year.
In November 2010 Desigual opened its flagship store – the largest in the world – in Madrid, Spain. The building contains 2,000 sqm of retail space distributed over seven stories, showcasing all the brand’s collections. Cabanas said: “Desigual is currently present in 22 of the 100 best sites in the world. We have a dedicated team out hunting for available sites in all the best areas of each different country. Competition is always healthy and we have learned to live with it in our 26 year history. It is essential. It keeps us alert and undeniably helps us improve.” In the first six months of 2011, new Desigual stores opened in Barcelona, Paris, London and San Francisco, amongst others
During 2011, Desigual anticipates opening one new store per week, with a total investment of close to €100M - 50 per cent more than in prior years - and schedules closing 2011 with over 240 brand stores, 40 extra new stores, as compared to 200 last year - and
a total of 8,000 outlets in 80 different countries.
Desigual anticipates attaining a level of annual growth of between 30 and 40 per cent over the next few years and doubling its global turnover over the next three years, breaking the €1,000M barrier by 2014. Today Desigual stands as a global company, one which clearly opts for internationalisation and innovation as its main routes to growth. The brand’s expansion contemplates growth in central and northern European markets, with outstanding levels in Germany and France, as well as in Eastern Europe, where the company made its first incursions this year, specifically into Russia and Poland.
The second most important geographical area to the company is the United States, where the firm has seven stores and which, together with Canada, accounts for six per cent of global sales.
Cabanas said Desigual’s target customer is between 0 and 99 years of age and has a take on life which fits with its core corporate values: positivism, optimism and a taste for life.
“Desigual is characterised by its different, optimistic, colourful designs. It is a competitively priced designer brand which despite its growth has remained true to its founding principles.
“’Desigual is not the same’, our first slogan, is still the goal we set ourselves when we sit down to create each new collection for our customers.
For the full article please see the RLI October 2011 issue
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