German fashion brand Madeleine announces its expansion to Russia
Fluctuating exchange rates, unstable political situation and economic sanctions cannot hinder fashion brands with long-term global development strategies.
History of Madeleine Company, a member of TriStyle Group, dates back to 1977 when the first catalogue of luxury ladies' wear was published. Today the Company employs about 2,000 specialists all over the world. Annual turnover of the Company for 2014 amounts to €482.2 million.
Tristyle Group earned its reputation in Germany for distance (online and catalogue-based) trade of clothing, footwear and accessories. Apart from Madeleine the Group's portfolio incudes Peter Hahn trademark. The Group's head office is located in Munich.
Today Russia occupies the fifth place in global Madeleine sales rating. After opening of the mono-brand online shop top managers of the brand expect to see our country at 3rd position of the rating.
Russia is the largest and the fastest-growing web user market in Europe with 68.7 million individuals. By 2021 it will reach over 100 million users. Annual growth rate of Russian e-commerce market is more than 25%.
According to forecasts of KupiVIP E-Commerce Services' analysts the period between 2015 and 2017 will be the most advantageous for launching Western fashion brands on Russian offline and online markets in due to low competition and long-term development strategy.
Taking into account large contrast between financial, economic, mentality and geographic environments of German and Russian e-commerce markets Board of Directors of Tristyle Group made a decision to develop the project in post-Soviet countries through a local provider with adequate competence and experience.
In November 2014 top management team of Madeleine decided in favor of KupiVIP E-Commerce Services Company, being the leading Russian provider with the largest portfolio of projects realized in Russia.
Brand portfolio of the provider includes: Tom Tailor, Karen Millen, Oasis, ALBA, MEXX, Motivi, Carlo Pazolini, Snezhnaya Koroleva and Nintendo. In 2011-2013 the Company also developed online shops for Adidas and Trade House TSUM in Moscow.
Agreement between Madeleine and KupiVIP E-Commerce Services implies provision of a comprehensive service cycle for the German brand: development of the online shop, photo production, allocation of a warehouse, delivery services, Internet marketing, online advertising and in-process consultation. Madeleine will retain strategic management of the project.
Opening of the online shop is scheduled for spring of 2015. Financial specifics are not publicized by the parties. According of independent estimations launching of a comparable project in Russia will require average upfront investments of 4 to 7 million rubles.The KupiVIP team tasked with development of the Russian Madeleine online shop will include 15 specialists.
- Stephan Rönn, Vice President of the Holding Tristyle Group
"Madeleine is one of the most recognized and preferred women's brands in Germany. We are valued for the high quality and the wide range of clothing in luxury segment of fashion market.
Our expectations of cooperation with KupiVIP E-Commerce Services are quite high. Madeleine clothing is sought after both in Germany and in many other European countries. I see great potential for development of our brand in Russia."
- Miroslav Zubachevsky, Managing Director of KupiVIP E-Commerce Services
"Establishing Madeleine online shop in Russia on the basis of complete outsourcing is very favorable both for us and for our partners from Tristyle Group. This way helps us to fully control all operational processes, thus we will be able to minimize irregularities.
The website's design will be very similar to that of German online shop of the fashion brand. However unlike the German website we will make a point of introducing an option of payment in cash on delivery and will simplify iterations required to place an order to two steps.
In respect to marketing we will focus our launching efforts on aggressive online promotion, which should make the brand more recognizable by Russian online shoppers.
Madeleine offers its buyers high quality everyday clothing, footwear and accessories produced in compliance with German standards. I am positive that with our assistance the brand will earn deserved recognition in Russia."