Fashion at the sharp end

Nicolas Samuel, CEO of Hobbs Ltd, talks to RLI about the brand’s early first steps on the international expansion trail and the importance of a clear and focused approach, whilst explaining that the only way to successfully ride the rapids of economic downturn is to maintain high standards of quality and customer care
-----------------------------------------------------------------------------
Hobbs opened its first store in Hampstead in 1981 and is one of the most successful names on the high street, with 119 stores, concessions and outlets throughout the UK and Ireland. It’s most recent openings were in Exeter and at Meadowhall, Sheffield, and the retailer plans six new store openings in the UK over the course of 2008/09, comprising of two relocations and four new stores, in both high street and mall locations

Whilst Hobbs extends its network of new stores domestically, it is also looking beyond the continent with planned openings in the Middle East, Far East and America in the next few years.
Its interest in the Middle East is reactionary, following feedback from customers and franchise partners who say that they admire the brand, like what it is doing and would be interested in representing the brand in those markets.

But what of America, where Hobbs has no presence as yet? “As far as the US is concerned, we have a very strong belief that there is an audience for what we do and a market for the brand,” explains Hobbs CEO, Nicolas Samuel. “We have spent the past four months undertaking a very detailed and rigorous study of the American market and the result of that study was presented to the Board in January. This give us a clear picture of the opportunities, the risks, putting us in a position to make a decision over the next few months on whether or not we wish to open in America — and how that opening will take place, be it a store, a concession or under license.”

Hobbs opened three stores in the Middle East in 2007, in Dubai, Qatar and Bahrain, and is on the verge of opening a fourth, its second in Dubai. The company is also keen to look at future opportunities in Kuwait and Abu Dhabi, says Samuel, whilst in Hong Kong, it opened two shop-in-shops in the last few months. “Our plan now is to look closely at what we have achieved and what we aim to achieve, and then hopefully roll out the shop-in-shop concept to one or two locations in China and Japan later in the year,” he says.

And what about so-called emerging markets, such as those in South America and India?

“Who knows? South America is an enormous place that comprises a diverse range of markets, whilst the Indian market has been identified by a number of people as being of potential interest, particularly as it would appear to have a really strong emerging middle class, in terms of fashion buying,” says Samuel. “But it is very early days in our international expansion and we need to apply focus, we need to make the Middle East, the Far East and America work while developing our thoughts on other markets.”

Does Samuel view further international expansion as essential to the continued success of the Hobbs brand?
“I wouldn't say it was essential, but it is desirable and is a natural progression for us," he explains. “Without it, we are an extremely successful domestic brand, but there is absolutely no doubt from customer response and from interest from our franchise partners that there is an international market demand.”


For the full article please see the RLI February 08 issue