Saturday, October 11, 2008

Who are you Wearing

Trussard, Bally, Casharel, MaxMara, Puma, Lotto or Nafnaf - these are the brands Georgians have been dressing up in locally for the last two years. However in order to enjoy that luxury a decent job and high salary is essential.

The clothes of Trussard, Bally, Casharel and MaxMara are mostly for business people of average and high incomes. In Georgia menswear in particular is most in demand.

Georgian Trade Corporation is the official representative of Trussard, Bally, Casharel and MaxMara brands in Georgia, and the shop ‘Outlet’. Today these shops in Tbilisi are considered the most expensive shops, providing good quality, very modern outfits.

“Trussard, Bally and Casharel were opened in Tbilisi approximately 2 years ago. All these brands have separate head offices and accordingly all of them have different requirements, which we have fully met,”

As Iashvili said sales boost during new collections and sales more than at any other time. Daily sales of Georgian Trade Corporation shops amount to around GEL 15-20 thousand. According to this data annual income of the Georgian Trade Corporation is approximately GEL 7 million.

Trussard is the best sold and most demanded brand in the network where clothes, shoes and accessories are offered. Their clothes are both casual and classic, but mostly classic. Daily sales of Trussard are GEL 5-6 thousand, so too are Bally’s. The annual income of both Bally and Trussard is approximately GEL 4 million.

Concerning Cacharel, their daily sales are around GEL 2-3 thousand, and their annual income will be about GEL 2 million. These brands are also for people wearing classic clothes, although one can buy casual and everyday clothes here too.

As Iashvili said they do nothing without the approval from the head offices in Italy, including PR strategy and the shops’ interior design or staff uniform.
“They also send us materials for advertisement free of charge. We only pay for transport and custom clearance charges,” Iashvili said.
According to Iashvili, the design of Trussard, Bally and Casharel shops have not been changed in the two years since their opening, the only changes made concerned shop windows and interior decoration for each new collection’s arrival.
The main attributes in the design of Bally are carpets, white armchairs and lamps. For MaxMara the representatives requested carpets, tables and flowers for decoration. They have already ordered all the details for the decoration and design of the MaxMara shop in Italy. As soon as the decorations arrive, the representatives will provide trainings to the consultants and so will open a MaxMara shop by the end of October.
“We will open MaxMara at the end of October. MaxMara is quite a varied and colourful brand. There will be a big choice of accessories. Daily sales of this brand should reach GEL 5-6 thousand, but this amount may increase considerably,” noted Iashvili.
MaxMara, also titled The House of MaxMara, is an upscale, luxury Italian women’s fashion house most famous for their dresses and haute couture clothing. MaxMara today is one of the largest and most popular Italian fashion brands. It has spread over 20 labels under its name, however MaxMara’s luxury women’s wear remains the most widespread and profitable while its trendy, youth division Max&Co. is starting to gain international popularity as well.
The Georgian Trade Corporation owns all its shops, around 120-130 square meters each.
“We consider all shops which work in our segment as our competitors,” said Iashvili.
Outlet was opened on June 1. All collections of previous collections from all shops of the trade network are moved to this shop where they are sold at sale prices of up to 75%.
The other foreign brand representative in Georgia - Georgian Investment Group Ltd. was founded in 2006. There are three brands in the holding: Nafnaf, Minelli and Kookai. The company owns franchises of these three brands.

Nafnaf was opened on October 1, 2006. There are three Nafnaf shops in Georgia, two in Tbilisi and one in Batumi.

“The Nafnaf head office in France requires us to make the project, design and renovations of the shops according to their standards. Our brand is for people of average level incomes, with a minimum salary of GEL 600,” Mariam Jvarisheishvili, Financial Manager of Georgian Investment Group, told The FINANCIAL.

“We satisfy all requirements as we have everyday and classic clothes and accessories for businesswomen. According to our research, sales are increasing. We can therefore conclude that we satisfy the requirements of the Georgian people,” said Jvarisheishvili.

According to Jvarisheishvili, the basic advantage of the brand is in its quality and exclusion. The decoration of the shop is identical to all other shops of Nafnaf in the world. Their main competitors are Mango and Mexx.

Sales of Nafnaf per day are GEL 1,500 on average, monthly sales - around GEL 45 thousand, and annual sales - GEL 540 thousand.

Renowned French fashion label Nafnaf designs for active women in the 20-35 age range.

“Women all over the world are attracted to Nafnaf’s very high quality clothing at affordable prices,” says Marta Gryglewska-Wiła, Nafnaf Managing Director for Poland. “The clothes are well cut, made from the best materials, are trendy, up-to-date and simply feminine,” she adds.

Nafnaf offers clothes for work, a date, an elegant evening out and for the weekend.

Nafnaf offers several clothing lines within each of its spring/summer and autumn/winter seasonal collections. To stay on top, the stores always include several trendy items and limited series of clothes straight from Paris.

The shop Lotto was opened on December 16, 2007. “Considering that the shop is newly opened, the results have been very satisfying. The interior cost USD 60,000,” said Leila Meskhi, Director of the Lotto shop.

“I am an official representative of the company and have liabilities towards the company. We agreed the design of the shop with the main office, which is an essential condition. Lotto’s image must be upheld,” she added.

As Meskhi noted, Lotto is becoming popular in Tbilisi , as the people who like sportwear are coming to buy this brand. Demand is mainly on darker colours. This brand is for people of all ages and sex who like sporty style clothing. The advantage of Lotto is its good quality, Italian design and available prices.

They sell clothes of approximately GEL 500-1,000 worth a day, approximately GEL 30,000 a month.

It was in June 1973 that Lotto made its debut among sports footwear manufacturers. Tennis shoes signalled the beginning of production, followed by models for basketball, volleyball, athletics and football. Sports clothing took the stage afterwards. In the first 10 years, Lotto focused on the Italian market, becoming a reference brand in the sports articles segment and a leading company in tennis.

Lotto today distributes its products in 80 different countries, through independent sports article stores, specialised chain-stores and large stores with specialised sports departments. Special emphasis is given to developing the retail area through mono-brand stores (flagship stores, street stores, factory outlets) and through corners and shop-in-shops, which are now as widespread in Italy as they are abroad.
Brands in the Regions

The population of Batumi are also active customers of popular brands. There are the following brands’ shops in Adjara: Puma, Sisley, Benetton, Nike and Giordano.

Fifteen years ago a small and non-licensed shop of United Colors of Benetton was opened in Batumi. Since it opened the citizens of Adjara became active users of the brand.

As one of the owners of Benetton and Sisley in Batumi Natela Tsulukidze noted that they did not have any competitors in Adjara and in her opinion Benetton is the most popular brand in Batumi.

Today Metekhi 2000 is the owner of Benetton for kids in Batumi on Zviad Gamsakhurdia Street 10, Benetton for youngsters on Zviad Gamsakhurdia 7, Sisley on Nodar Imnadze Street 3, and Benetton in Kutaisi. “From the very beginning we opened only one shop of Benetton in Batumi and today we possess two shops of Benetton and one shop of Sisley in Batumi and one shop of Benetton in Kutaisi,” Natela Tsulukidze, founder of Metekhi 2000, told The FINANCIAL.

“Since May 29 the citizens of Kutaisi have had the opportunity to become the customers of Benetton as we opened one shop there,” she added.

“When we opened the Benetton shop in Kutaisi, there were no other similar brands there. This is the first precedent in Kutaisi and we have given the residents there the opportunity to be the active customers of the popular brand. We are very satisfied with the working of the shop in Kutaisi as it has showed quite a big figure of sales,” noted Tsulukidze.

According to Tsulukidze, Sisley is for people who prefer a more classical style and Benetton for teenagers and those who like a sporty style.

Benetton is present in 120 countries around the world with a strong Italian character whose style, quality and passion are clearly seen in its brands: the casual United Colors of Benetton, the glamour oriented Sisley, Playlife American college style and Killer Loop streetwear.

The Group has a total yearly production of about 160 million garments and a distribution network of more than 5,500 contemporary stores, mainly managed by independent partners, generating a total turnover of over EUR 2 billion.

Established in 1965, Benetton is now controlled by Edizione Holding (a holding company wholly owned by the Benetton Family) with a 67% stake. It listed on the stock exchange in Milan in 1986.

“When we have a 50% sale in Benetton, we sell clothes amounting to between GEL 1,500 and 2,000 and in Sisley between GEL 2,000 and 2,500. And accordingly when there is no sale on daily sales are doubly increased,” said the founder of Metekhi 2000.

“I think that these two brands are very popular in Batumi and in fact we do not have any serious competitors despite the fact that many new brands have been opened in Batumi recently,” Tsulukidze told The FINANCIAL.

“We have offered sales to our customers in Benetton and Sisley at the same time twice a year in summer and winter. Sale prices start from 30% increasing to 40-50% and sometimes even 70%,” she added.