Massimo Dutti, the formal fashion brand that looks for its site on the post covid-19 stage
Massimo Dutti forma parte de Inditex, pero siempre ha sido una marca con especial identidad propia. Esta se refleja en un claro enfoque hacia la moda masculina, en sus raíces catalanas y en unas colecciones alejadas del fast fashion.
For years, the brand was firm in its positioning and had constant growth.In 2019, before the pandemic broke out strongly and seriously impact economic activity, it touched the 2.3 billion dollars (MDD) of billing.
Massimo Dutti is also the chain in which the impact of the health crisis was greater.In 2020 he cut his income 37%, up to 1,387 MDD.The brand had the greatest percentage fall in the entire group.
Business Insider Spain continues with Massimo Dutti a serial in which he will review which are the brands that make up the Inditex Empire, its model, its edges and its main challenges.
Origin and why Massimo Dutti
Massimo Dutti was born in Barcelona in 1985.He was promoted by Armando Lasauca, who opened his first store in the city.
In the beginning, he only sold Knight shirts of two or three different models, although with variations of fabric and color.His garments even sold in El Corte Inglés.
When Inditex was acquired by the firm in 1991, it already had its own identity.His franchises were already in much of Spain and the Amancio Ortega group sought.
Massimo Dutti premiered his woman's line four years later, although his target audience remained the masculine.
Like other brands of the group-as Uterqüe, Stradivarius or Bershka-, Massimo Dutti's operational headquarters is in Tordera-Palafolls, in Catalonia.
How has its evolution been in recent years?
In its first results in Inditex as a quoted company, Massimo Dutti invoiced 333.1 MDD.This was in 20021 and it was the third chain for income, just behind Zara and Bershka.
After growing 13% in 2011, its business figure broke the 1,000 MDD barrier. A partir de 2015, siguió creciendo, pero de forma desigual y a menor ritmo que otras enseñas como Pull&Bear.
Until 2017, its sales grew at an annual rate of 8%.In 2018, the progress was just 2%.And the year before the pandemic, he managed to overcome up to 5.43%.
How was your worst year?
According to the company's public figures, Massimo Dutti is the teaching where the impact of the health crisis was greater.
The year of COVID-19, cut its 37%income, up to 1,387 MDD, the largest percentage fall in the entire group, followed by Uterqüe (-34.7%).You have to go back to 2012 to find a similar business figure (1,314 MDD).
74 less stores in one year: this is today your commercial network
Massimo Dutti's commercial network had 654 points of sale as of July 31, which is 74 points less than a year earlier.
The maximum threshold was achieved in 2017, with 780.Since then, its number was falling year after year until closing 2020 with 677 establishments;almost the same level of 2013 (665).
In June 2020, Inditex made an important operational decision: absorb 1,200 establishments, of which between 250 and 300 were in Spain.
How is your audience and what can you find in your stores?
The brand is addressed to a more adult audience than the rest of the teaching.His garments, both women and men, could be defined as the most classic and timeless of the entire Galician group.
For his campaigns and communication actions he resorts to the world of fashion as the British Top Model Poppy Delevingne.It is also usual to see Kate Middleton or Queen Letizia with brand garments.
Who carries the helm of the teaching?
Since 2000, the chain is directed by Jorge Pérez Marcote, brother of Flora López - Amancio Ortega - and Zara director's director - and Zara director.It is, according to internal sources of the group, one of the men of the maximum confidence of Ortega.
Last summer, its financial director, Ramón Rubio, left the group after more than 20 years in Inditex.«It was part of the landscape.It really was the one who carried the company, all the decisions went through it, ”they explain.
Homeeffice and ‘Casualization’ of male fashion
The focus towards male fashion was for decades its great competitive advantage, but today is the Achilles heel of Massimo Dutti.The Home Office as a new labor paradigm also directly affects its business.
Between 2019 and 2020, the male fashion business fell 42.3%, up to 3,889 MDD, according to data from the Burex sector.
«A progressive casualization of male fashion has made the most formal teaching clothes lose relevance.In addition their garments have a higher average price, ”according to sources close to the company.
Other sources agree: «It was hard to grow.Every year the entry into the balance - number of garments that arrive on sale - worsened and that affected the margin, being in addition to the brands that grew less, of the least profitable ».
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