The U.S. group with a 2 bln dollars turnover, aspiring to reach 3 bln dollars within the next 3 years, bets on the renewed brand Marciano Los Angeles, that this year will launch a huge project of expansion in Europe with the opening of 50 shop-in-shops. To increase sales by 10% every year
New strategies at Guess, betting on the repositioning of its second brand Marciano Los Angeles. “The brand has been there for 10 years, but we wanted to change its name to pay homage to its native city, that represents a constant source of inspiration thanks to its large local community of designers, artists and innovators” explained to MFF Paul Marciano, number one of the U.S. group that during the last year has recorded 2.2. bln dollars in net revenues (about 2.07 bln euros at yesterday’ exchange rate) going down by 8.8% and an 81.8 bln dollars income (about 76.8 mln euros at yesterday’s exchange rate) decreasing by 13%. “Our intention is to start from Europe opening 50 shop-in-shops in the existing Guess stores to guarantee a 10% annual growth in the company’s turnover for the years to come”. The offer of the renewed Marciano Los Angeles starting fall-winter 2017 will include both an avant-garde, low-cost line and a higher level, premium line targeting 40 to 60 year-old customers.
As for the distribution, for the newborn project Marciano Los Angeles special attention will be paid to the web. “I am absolutely convinced that social networks are today’s most powerful communication channel, but you must be able to use them, never giving the impression that you want to sell something, and the same goes for e-commerce, that has a huge growth margin but must be developed properly; in fact, my group is working a lot on this aspect” added Paul Marciano, number one of the U.S. company. About Guess, the company’s main brand, Marciano looks cautious: “This is a complex historical moment, we suffered a lot, especially from the U.S. market recession, and many are the variables that markets must take into account, yet with optimism and without dropping our guard, we are adopting a defence policy, to protect Guess and what it represents” continued the number one “also considering that in many countries, like North America, there’s a total saturation of shopping malls that often remain empty, as no more customers are interested in shopping”. Marciano’s statements come after a decreasing year in terms of turnover and profits. Indeed, the last 12 years have recorded a drop in retail sales in America (-4.7) but a recovery of the business in Europe (+8.9) and Asia (+4.9). However, the management, guided by its CEO Victor Herrero, has one main goal: reach up to 3 bln dollars turnover (about bln euros at yesterday’s exchange rate) within the next 3 years, investing on the e-commerce and retail channels, that during the year 2017/18 will benefit from 60 new openings all over the world.
The occasion to meet Paul Marciano was yesterday’s launch in Rome of the Denim Day, a global event that will be held on May 27th and organised for the third consecutive year by Guess Foundation Europe to support the fight against violence on women. “Born 16 years ago by the association Peace over violence, the Denim Day is a reaction of protest against a decision of the Italian Supreme Court, that decided to revoke a sentence for rape because at the moment of the violation the victim was wearing a pair of tight jeans that, according to the magistrates, would have been impossible to take off without her consent and help. “As a protest against this sentence”, Marciano explained “the following day the Italian female members of parliament went to the Chamber wearing jeans. This garment has then become a symbol of the fight against sexual violence and the Denim Day has turned into a global campaign”. Like last year, when Guess Foundation Europe launched a fundraising campaign in favour of Di.Re., Donne in Rete contro la violenza, the national association of anti-violence centres managed by several women’s associations, raising 50,000 euros in 2016 (overall, 225,000 in three years), also in this edition the 120 Italian Guess retailers will take part in the initiative donating 10 euros to Di.Re. for every denim piece sold from 13th to 27th May. A party involving many celebrities organised with The circle Italia Onlus in the rooms of Palazzo Barberini will celebrate the initiative. Furthermore, the Denim Day takes places in U.S.A., Mexico, Spain, Canada and in 2018 will arrive in U.K. “In Spain we raised 175 thousand euros that were donated to the foundation Ana Bella, working to support women who are victims of violence, also helping them find a job to start again from scratch” concluded Marciano. “This is a project we particularly care about and strongly believe in”. (All rights reserved)
By Maria Elena Capitanio (Rome)