We Want to Rekindle the Flame” We sat down for a chat

CPO Susanne Schwenger and CEO Dieter Holzer reflect on the roots of Marc O’Polo in order to move the brand forward.

MARC O’POLO “WE WANT TO REKINDLE THE FLAME”

Following major changes, Marc O’Polo is ready for the future. The ambitious goal is to regain the leading position in the premium casual market - in terms of product, marketing, and technology. CEO Dieter Holzer and CPO Susanne Schwenger explain the strategy in an interview with style in progress editor-in-chief Stephan Huber. Text: Nicoletta Schaper. Photos: Marc O’Polo

Let’s start with a look back at 2017, when Marc O’Polo celebrated its 50th anniversary and introduced far-reaching structural changes. Were the changes a way to prepare for the next 50 years?

Dieter Holzer: That was the idea, yes. It requires constant change if you want something to stay the way it is, to paraphrase Marc O’Polo owner Werner Böck.

The market has changed rapidly, as has the competitive environment. Marc O’Polo has moved into a different environment, consciously or unconsciously. What were the most important decisions in this first phase?

Dieter Holzer: The most important thing was to remember and focus on what the brand stands for in terms of product and quality. At the same time, we need to address new issues and push ahead with current topics such as digitisation. The challenge is to move forward in deliberate steps, without addressing everything at once. Our first focal points were product and marketing. Our product excellence has been dominant for many years, especially in terms of women’s premium casualwear. But it’s not enough to defend that position. We must extend the lead. We are very glad that we were able to win the vastly experienced Susanne Schwenger back.

Is it a homecoming?

Susanne Schwenger: Yes! And it’s a really interesting challenge. I have lived with and for this brand almost 20 years now. The last two and a half years away from Marc O’Polo have been a great experience and it has been highly interesting to follow the brand from a distance. Now I am happy to return. My heart lies in the premium segment and I feel like I have unfinished business here. I am eager to inject more value and modernity into the product. Product first! But there is no product without the brand. At Marc O’Polo, this goes hand in hand.

Had this unity been lost?

Susanne Schwenger: I would have done some of the steps that have been taken recently differently. The first measures have got us back on track and are already showing initial signs of success. Dieter Holzer: We asked ourselves where our opportunities in the market lie. We strive to inspire existing and new customers alike! The fact that we have already achieved this shows how strong and sought-after the brand is. If we meet the sympathies in the market with the right product, the result is exhilarating! The men’s collection

still has enormous potential. Since May, we sensationally jumped up between 10 and 25 percent in terms of sales floor performance. Since late September 2018, the women’s collection has grown significantly too. We want to lead the market again with our claim as a premium casual brand.

Does this decision ultimately lie with the consumer?

Dieter Holzer: We are keen to make the personal approach and appreciation of customers, which Marc O’Polo has always embodied, tangible again. Despite moving forward in many areas, we have reflected on our approach and shifted the focus back to the customer.

Especially as consumers no longer allow any conventions and trends to be forced upon them.

Susanne Schwenger: Our advantage is how appreciated we are in the market. We have fans who love the brand and have established a bond with it. This flame must be rekindled. One of our first initiatives with this in mind was the launch of the Black capsule as a counter-model to the Black Friday discount campaigns. Our capsule offers modernity and an excellent price-performance ratio. The launch was backed up with personal letters to our top customers and a digital campaign. The Black capsule went through the roof! We were almost sold out online on the very first day.

For me, this proves two things. Limitation is important. On the other hand, seasons are increasingly irrelevant for customers.

Dieter Holzer: That’s right! It also shows that we need to be braver in terms of “trial and error”. Not every innovation can be successful immediately. But the courage to innovate paves the way into the future.

How is this courage put into practice?

Susanne Schwenger: By living the brand’s values 100 percent again, because our motto “Back to the Future” means that we are moving forward and reflecting on our roots simultaneously. The key values of naturalness, simplicity, personality, quality, and innovation remain our most important guideline, which we now pursue with even more passion and consistency. We also want to highlight the Scandinavian spirit of the brand given that it was founded in Stockholm. It lends Marc O’Polo freshness and modernity. We don’t have to invent an exciting story, but we need to tell it more - in the collection, in the stores, in the communication measures. In addition, we rest our brand architecture on three pillars. Marc O’Polo Denim embodies our young contemporary casualwear with a high fashion level and denim competence. The Marc O’Polo Casual collection remains the most important pillar in the company with the highest level of competence in terms of quality and innovation. Last but not least, Marc O’Polo Pure reflects our core competence in jersey and knitwear. Our range is of the highest standard, manufactured exclusively in Europe. Dieter Holzer: We have also decided to switch all jersey and knitwear pieces from our core product range to organic cotton. This was an enormous challenge in terms of sourcing and also causes considerable costs. We will not pass on these costs to the consumer. We perceive this as an investment in the added value of the product and in the standing of the brand. Susanne Schwenger: In addition to the main line’s vertical capsules, we are also starting with a vertical collection ratio of 20 percent at Marc O’Polo Pure. We intend to continuously increase this ratio. We have shortened the lead time to four months.

Where will the focus lie in the future: co-operation with retail partners or increased verticalization?

Dieter Holzer: We remain a strong partner for specialised retailers, as they are our most important sales channel. Given that we are in the middle of the omnichannel era, we are equally keen to connect our retail stores, franchise stores, and online shop with each other. The complexity of the task is a huge challenge. It means that we dissolve respective data silos in order to offer the customer an optimal service and perfect shopping experience, seamlessly across all channels.

Omnichannel is the buzzword of the hour. Can you expand on its implementation?

Dieter Holzer: Our aim is to transfer the strengths of the individual sales channels to the other channels as well. An example would be to transfer the non-binding nature of an online purchase to the stationary retail segment. Soon we will open our very first cashless store in Munich. Customers no longer need to make a final decision in the store, don’t need to visit the fitting rooms, and don’t have to pay. With the invoice, they receive a return slip for the event that they decide against keeping all the items. The final decision can be made in the comfort of their respective homes. By transferring online mechanisms to stationary points of sale, we simplify the product process across all channels and make it more transparent. As a result, the stationary retail trade can benefit from the knowledge acquired through online purchases and is all the more secure in its choice of goods to present to the customer. This is the modern version of the follow-up sale and enables an even more personal customer approach. The store also falls under “trial and error”. We’ll have to wait and see how the customers react, as we are breaking new ground. But that is a key requirement in all businesses. We will undoubtedly learn a lot for the future from this pilot project.

Does this path end in a tech company?

Dieter Holzer: I perceive it as a huge opportunity! Amazon has become the world’s largest retailer without even running a single retail store. Airbnb is the largest tourism company, despite not owning any hotels. Uber is the largest taxi company without taxis. That was two years ago. Today, Amazon is starting to run its own stores, Uber is investing in autonomous vehicles, and Airbnb is designing its first hotels.

Because all these companies lack the human touch…

Dieter Holzer: While this personal connection is one of Marc O’Polo’s strongest assets. As I said, it’s about bringing together the best of all these worlds.

Back to brand architecture… For a brand that has historically grown so strongly with its young target group, Marc O’Polo Denim is a very important topic for the future. How can one create a contact point for young consumers in this context?

Susanne Schwenger: By targeting retailers with a younger product range. Marc O’Polo Denim is not a hipster collection, but it has a certain coolness, with styles and fits that also appeal to younger consumers. A lot of inspiration comes from Scandinavia. The collection always remains Marc O’Polo, we don’t want to bend. Anyway, we can build on the great advantage that our name has a very positive connotation in the market. Dieter Holzer: With Marc O’Polo Denim we are deliberately addressing younger consumers in order to introduce them to the brand. We give space to the collection accordingly and also invest in design in order to further develop the style on an international level.

Will there be own Marc O’Polo Denim stores?

Dieter Holzer: Yes. The first store will open soon in Munich Riem, not far from our headquarters in Stephanskirchen. This allows us to try out many things. Marc O’Polo Denim will also be promoted via its own social media campaign. Nevertheless, the separation of the lines should not be dogmatic. A sweater, a key product of Marc O’Polo, is also available in the main line. It can be found at P&C in the premium department or as Marc O’Polo Denim sweater in the young section alongside other denim brands.

What exactly is on the agenda for 2019? What are the expectations for the year?

Dieter Holzer: 2019 will be the year in which our focus on product excellence begins to bear fruit. It’s going to be very exciting! Our efforts over the past 15 months have also created scope for continuous further development. The Futurestore is just one of these topics, the transfer of technology into the company another, without losing view of the product. We want to stay curious and try things out, but not do everything at once. That’s a lesson from the past. We prefer to take small steps so that we do not lose sight of our goal of leading the market as a premium casual brand.

Marc O’Polo strives to create desire in its collections with a clear identity and a commitment to brand values.