Best in France Case Study January 2005 - March 2005 By: Caroline Limet, Myriam Rouis and Gillian Stevenson.

Best in France Case Study

January 2005 - March 2005

By: Caroline Limet, Myriam Rouis and Gillian Stevenson

Camper the Company

• “Cultural” company– The Fashion Footwear Industry

• Majorcan roots• Installation in France in 1992• Currently operates 3 Camper retail

outlets in Paris• “Shop-in-Shops” in other fashion

stores• Diversification reserved for Spain

only: hotel and restaurant in Barcelona (Foodball)

A Spanish Success Story

• One of the oldest existing shoe producing families– 1975: Franco’s death, Spain is a closed country;

almost underdeveloped, rural image

• 1976: first product line in Spain sold in traditional shoe shops – Spain opens, realises it has potential, Spanish culture

expands

• 1981: first privately-owned Camper shop in Barcelona

• 1980’s: 20 Camper stores throughout Spain

Camper Internationalisation

• 1992: Camper enters the main fashion capitals of Europe : Paris, London, Milan – Following similar expansion as

before– 1992: Olympic Games in Barcelona, World

Exhibition in Sevilla, Spain proves its dynamism, playing an important role in design and textiles: Agatha Ruiz de la Prada, Mango, Zara…

• 2000: Globalisation: Japan, Taiwan, US, South Africa…

Facts and Figures

• More than 3500 points of sale all over the world

• 60 Camper stores worldwide

• 2000: 3 million pairs of shoes sold

• 70 % sales outside Spain

• 250 shoes commercialised each year

• Camper part of Coflusa group: Camper, Viajes Iberia (travel agency) and Lottusse)

• 2001: Turnover: € 1.8 billion

• 8400 employees worldwide

Company’s Structure in France

• 3 Camper stores in Paris (10% sales)– Rue du Cherche-Midi – Rue du Faubourg St Honoré– Rue des Francs-Bourgeois

• « Shop in shops »: corners in fashionable department stores, such as Galeries Lafayette

• Multi-brand points of sale

Company’s Products

• Main success: first line in France: Pelotas

• Twins

• Casi Casi

• Wabi

• Collector

Company’s Products

• Product lines last for only one year• No specific product collection for

France• Continuity in collections and product

lines• Prices: from 40 € to 250 €, average:

110 €• Camper’s original soles

(many are registered as trademarks)

Product’s Image

• Casual unisex shoes

• Quality, fun• Rural for urbanites• Originality,

uniqueness (2001: elected “Fashion brand of the year”- Footwear news)

• Upscale locations yet less expensive than designer shoes

• Mediterranean nature, “globally chic”

• Comfort and creativity

• Neither luxury, nor sport

• Diversity• Business model:

Swatch

Production

• Proud roots:– 80% of the production on Majorca Island– 20 % in Mainland Spain (Alicante: leather

capital), Portugal and Morocco

• No production in France• Production is completely outsourced

Organisation of sales representatives

• 5 sales representatives– 2 responsible for Paris– 2 responsible for the South– 1 located in Nantes, responsible for the

West

• Mission:– Presentation of the display– Retailers’ collection– After-sales service

Salesforce in a shop

• One Manager• One Assistant Manager• A few Salespeople• Cosmopolitan and young

– A five-day sales-school in Majorca each year for the managers

• The managers give salesadvice to the salespeople in the shop

• Move frequently from a shop in Paris to another

• Can move abroad if they want to

Camper’s Clients

• 25- 35 years old « bobos » (failure in rue de Passy)

• Urban • Early adopters, trend followers• Those who dare to be original• Unisex shoes, but womanisation• 60% women• Women: Casi Casi• Men: pelotas

Reasons for expansion to France

• “The 1992 Olympic Games brought about a radical change in the perception that the world had of Spain and Spanish things”

• Paris - one of Europe’s and the World’s fashion capitals

• Expansion at this time also London and Milan

• FDI: Market Factors over search for efficiency and resources

Camper’s Values

Towards the costumers :• Take your time• Walk, don’t run• Mediterranean culture, « cultural brand »,

hispanic atmosphere (shoes, promotion, salespeople)

• Tradition of art de vivre, tourism, welcome• Geocentric approach• Shoes inspired by farmer footwear steeped

in island tradition

Camper’s Values

In the company :• Young people (about 30)• The atmosphere of a start-up• Very cosmopolitan• Relaxed• People wear Camper shoes• Everyone’s creativity is encouraged• Easy to move from a position to another• No public accountability

Promotion

• Advertisement only from 1998• Only 2% of the turnover dedicated to

promotion Models are everyday people• Global marketing campaign (in English and

Spanish) • Magazines and posters in-shop only• Word-of-mouth (chiropodists) • Web site• Distribution network allows promotion

(shop in shops and multibrand)

Adaptation to France

• No standardized recruitment model• Local recruitment of people with a spark

(high competition)• Internal growth through promotion• International transfer, no use of expatriates• Training and motivation : Yearly conferences

(“conventions”) in Majorca to instill the company’s values

• Advertisement in French fashion magazines (Elle)

• High share of best practices inter countries

Key benefit numbers

• Turnover: € 6,4 million in 2003 (vs. € 1 million in 1997)

• 62 employees (7 in 1997)• Globally, 3 000 000 pairs sold in 2000• Very small promotion costs (2% of

the budget)• France: first international market• Springboard for international

expansion

Key Constraint Costs

• Real estate costs (comparable to London, higher than Milan)

• Travel costs for training purposes• Distribution costs• Taxation system

– Corporate income tax: 35.4% (vs. 35% in Spain, 34% in Italy, 30% in UK)

– Personal income: 58% (vs. 45% in Spain, 45% in Italy, 40% in UK)

– Employer social security: 45% (vs. 30.6 % in Spain,35% in Italy, 12,8% in UK)

• Legal constraints (trademark)

Essential advice

• For the fashion industry, heavy investments in dynamic cities are necessary for successful implantation elsewhere

• Good internal communication leads to high employee satisfaction and commitment

• “It's better to build a brand around old-fashioned ideas than to try to be fashion-forward” Lorenzo Fluxa

• Camper's current success is the result of years of work, family tradition, a great group of people and a lot of imagination

• Dare to change customers’ habits• Walk, don’t run

We thank

• Philippe Salva Morer, Press and Public relations manager, 22 rue du Pont Neuf 75001 Paris, [email protected], 01.42.33.63.46

• Andrew Kiernan, Visual Merchandiser, 22 rue du Pont Neuf 75001 Paris, [email protected], 01.42.33.64.67

• Agnès, shop manager, 1 rue du Cherche Midi 75006 Paris

• Pedro Monge Alvarez, international communication manager, [email protected]

Bibliography

Camper, les pieds sur terre, Jean-François Arnaud, Le Figaro entreprises, 23.09.2002Nostalgie et sportswear en ville, Juliette Garnier, LSA, 16.05.2002Camper, chausseur rural pour pieds urbains, Gervasio Pérez, Courrier International, Camper à marche forcée, Caroline de Malet, Le Figaro, 23.04.2001Le “paysan” Camper séduit l’urbain, Marc Fernandez, Le nouvel économiste, 14.03.2003

Our team

Caroline Limet, HEC G9, 06 63 94 16 82Myriam Rouis, D49, 06 10 91 12 18Gillian Stevenson, 23 rue de la Sablière, 75014 Paris, 06 32 35 28 66