The DeFacto journey began 18 years ago with the launch of a single store and a goal of being a global brand that is there for all their customers whenever they need them. To learn more about this fast-growing business, we spend some time with Serdar Ersoy, Board Member to discuss how the company has evolved and grown.
Back in 2005, DeFacto started on its path to becoming a global fashion brand that also produces technology. Today they operate more than 500 stores on five continents and thanks to their strong infrastructure and technology, they can bring products to fashion lovers in 93 countries through its more than 15,000 employees.
“At DeFacto, our development team of more than 300 people work under the roof of DeFacto Technology, which we established ten years ago,” explains Serdar Ersoy, Board Member at DeFacto. “This provides us with a playground where we can realise our dreams by producing the infrastructures of our omni-channel technologies. We are proud that 80 per cent of the software developed at DeFacto Technology was developed by our team.”
For the last two years their new playground has been Europe and at the end of 2021 they launched a new generation store in Berlin which brings together the physical and digital worlds and combines fashion and technology under one roof.
Berlin, Germany
More than just a classic physical store, the site in Germany is a new generation fashion, technology and living centre that represents the future of retail. It is also a physical portrayal of a brand which has been strengthening in Europe through its e-commerce platform and online stores. The Berlin unit is equipped with RFID technology which utilises virtual reality, augmented reality and robotic technologies.
Thus, customers can see the product on themselves without wearing it in the smart mirror and they can decide what to buy without even visiting the store. Guests can get support from robot consultants on all their questions and how to benefit from the smart store. Thanks to the smart cabins, customers can request the product they want without leaving the cabin. Within 30 seconds, products in the desired size and colour are delivered to guests.
“They can get information about the products with virtual glasses in the store, they can shop without visiting the cash desk with autonomous payment facilities through kiosks and they can either buy the products immediately from the store or we deliver them to their addresses. With these powerful features, our Berlin store supports our brand both offline and online and is an important milestone in our global brand journey that began in Türkiye,” Ersoy explains.
In recent years the company has expanded into the UK and the US but predominantly they have focused on the European market and entered 12 European countries in just four months in co-operation with Zalando, the multinational e-commerce site of Europe. In this four-month period, they managed to increase their net revenues by 400 per cent through this partnership with Zalando.
Doha, Qatar
Away from Europe, last year DeFacto unveiled their first stores in Turkmenistan, Cameroon and Congo, whilst in 2023 they will open sites in Dubai, Saudi Arabia, Libya, Algeria, Angola, Rwanda and Mauritius as they plan to open 50 stores in total throughout the calendar year.
Since day one of operations, globalisation has been the goal for DeFacto and they continue to meet the expectations of their customers in all business processes, from collections to marketing activities by meeting local needs with global standards and because of this they are rapidly expanding around the world.
“With our ‘accessible fashion’ approach, we make style, high quality and comfortable clothing no longer a luxury in every country we operate in and we create special collections in each category according to the cultures of the countries, creating a close bond with our customers along the way,” says Ersoy.
As retail moves more than ever in the direction of brand experience, the company strives to engage with customers and provide the best service to them on every platform, regardless of the channel. They have once again demonstrated their determination and success in engaging with their consumers with DeFacto GIFT CLUB, one of the outputs of their digitisation and customer orientation vision which they launched in 2021. Through this gift club, which offers benefits to their customers via mobile application, they reached more than eight million members in less than a year.
Berlin, Germany
“Today’s consumers expect personalised content and visuals,” Ersoy explains as the topic of conversation turns towards social media and the role it plays in marketing. “We take this expectation of our customers into consideration and focus on producing content that makes a difference for each social platform in order to appeal to different lifestyles and of course to draw attention to our product portfolio.”
In terms of digital marketing, the group takes into account the platform usage habits of the regions in which they operate. For example, TikTok is very strong in some countries while influencer communication stands out more in other countries. Ersoy goes on to say that the marketing mix of each country can be different from each other. For example, CIS customers use Wecontact and Yandex so they need to prioritise work on these platforms for these areas. Essentially, he says you need to use the specific power you have in the right channel in the right way.
A company that has grown considerably in a rather short space of time, DeFacto’s founding philosophy and values remain key to its ethos as they continue to grow and this is a company that respects the ecosystem, protects the Earth and natural resources, adds value to people and has a sensitive and transparent stance towards social issues.
“Our organisation is undergoing a major cultural transformation based on ‘Lean Thinking’. With lean thinking, we focus on our products and resources that will affect the product instead of our organisation, technology and fixed assets,” answers Ersoy when we ask him what the greatest challenge is facing the business right now.
As they continue to move forward towards their goal of globalisation, the main priority for the brand is to maintain growth in a fast, profitable and reliable manner whilst offering their customers a service and product they can be proud of.
