Positive Course Correction

Positive Course Correction. Dings/Zurich

In Switzerland, one must use the term “course correction” with caution. After all, the actions of the Swiss National Bank at the beginning of the year are still on the minds of many. When HP Endras corrects his course, it normally has to do with crystal clear

calculation rather than money. Text: Dörte Welti. Photos: No way

“What used to be courageous, is now perceived as cocky”, HP Endras muses while swiftly sketching his corporate structure on a piece of paper. He places a large circle representing the inventory in the middle. The businessman has no less than 68 brands in his portfolio. Five arms representing his stores lead away from the centre circle. “Dings” was born on a whim in 1993 and was initially located in the fairly disreputable Cheib district, which is where the local drug scene spent their days and nights waking or sleeping. The base for the store was “No Way”, a skateboard shop that was way ahead of its time. HP Endras had founded it together with his skateboarding buddy Roland Brümmer. The No Way shop soon turned into a wholesale and import company. Gradually he opened a “Sterling” store in Biel and Chur, thereby adding women’s fashion to his repertoire. This step was followed up by a menswear store named “On y va” in Zurich and, finally, by “Monsieur Dubois”, a store focused solely on footwear. The individual store concepts were developed more or less by chance. Endras has a philosophy: “Determine what the customer wants and then develop a mid-term strategy accordingly.” The company is thriving and is in a perfect position to respond to customer needs swiftly. If a brand is no longer in stock in one location, it is quickly transferred from a location with less demand. That can happen really quickly, by the way. “I implement projects that are on my mind in a timely manner, be they new store ideas or reactions to customer wishes.”

Today’s Dynamic Customers

However, the times are changing and Endras has started pondering the future: “Today, we move too fast at times; waiting is a matter of experience.” In the case of the “Monsieur Dubois” shoe store he decided against waiting for the decreasing customer frequency in Zurich’s Niederdorf district to pick up or the too high rental fees to drop again. “You must have the courage to close shop. How long should I hold onto a concept when the shopping habits are changing?”, the entrepreneur asks himself and turns his focus to expanding the online segment of the business, which started in November 2013. The online operations are currently experiencing disproportional growth and Endras

Dings

Zollstrasse 12, 8005 Zurich/Switzerland www.onyva.ch/filialen/dings/ Opening: November 1993 Owner: HP Endras Employees: 2 Sales area: 80sqm Brands: Armor Lux, Baggy Port, Chloe Stora, Ganni, Gardenia, La Garconne, Leon & Harper, People Tree, Pertini, Second Female, Suncoo, and others No Way is the right way – HP Endras (left) and Roland Brümmer in their skater days.

believes that this can be partially attributed to mass suppliers such as Zalando: “They paved the way and opened all the doors”. The expectations are modest; HP Endras is currently focusing on preserving stock rather than growth. The shoe brands originally stocked by “Monsieur Dubois” will now be offered to regulars in the four clothing stores. “Dings” has now been in the same place for 23 years, especially as the former no-go area has developed into Zurich’s hippest district. Good things come to those who wait, at least in this case. However, one thing gives the owner a massive headache: “It has become impossible to know your customers. The customer of today works on different levels and is dynamic. The product range is actually based on a customer type that is completely wrong.” Endras will definitely find out what the correct customer type is and react accordingly. He is flexible, after all. The first step is the aforementioned course correction, which includes a more cost-conscious creative process and the avoidance of high rental fees. “We are more accountants than passionate buyers”, he says with a hint of sadness. Incidentally, Endras also openly expresses his admiration for Karl-Heinz Müller, the driving force behind “Bread & Butter”. “Actually, he has the right idea. We need highly personal trade shows that create highly personal contacts. It would be a stroke of genius to open the trade show to the public. Today’s customer is no longer the retailer, but the end customer.”

Hipster - Up-cycled furniture characterises the “On y va” menswear store in Zurich.

Stability - Dings has been in the same place since 1993, but the product range has always been adapted to the ever-changing customer base.

Simplicity - Sterling Biel’s store concept is all about the products, while the interior is purely practical.

Elegancy - The female customers of Sterling Chur are used to a hint of exclusivity.

Zalando and the Analogue World

The takeover of Bread & Butter by Zalando, the polarising online giant, came as a huge surprise for most people and raised a myriad of questions. For example, was KarlHeinz Müller right after all when he announced his intention to open the Bread & Butter trade show for consumers in 2013? I’d say the answer is both yes and no! Yes, because Müller recognised that the online world - social media platforms in particular – has completely changed the nature of communication. This development has obviously also affected the way that (fashion) brands communicate with their consumers. Today, everything is faster, more direct, and more interactive. These revolutionised communication channels obviously also require some form of physical manifestation. No, because the aforementioned cannot be combined with the mechanisms of a trade show. At the time, this combination would have led to immense logistical challenges and massive additional costs. His plan was to square the circle, which is a nut that many have failed to crack in the past. However, Zalando has no need whatsoever to deal with the demands of a fashion trade show. The online giant, that kick-started a subtle image turnaround with its exceptionally intelligent, international Topshop TV campaign, has no wish to stage a classic trade show anyway. The reasoning behind the takeover has recently been the topic of many heated debates and leaves a lot of room for exciting speculations. Bear with me, if you will.

What did Zalando actually buy? Zalando has acquired a globally protected and undeniably strong brand. The deal also includes the (long-term) lease for an equally unique event location, namely Tempelhof. In addition, Zalando has gained access to extensive know how in terms of the organisation and execution of major events.

But why did they seal the deal? Zalando does not believe that its future lies in being a mere online retailer. Market prowess, brand recognition, and financial firepower afford Zalando the possibility to pursue a completely different vision. The role model is Google. In retrospect, the positioning of the Californian giant as the most important search engine was merely the first rocket stage. Zalando has an unimaginable wealth of data and enormous expertise in terms of logistics. This allows for much more than simply sending shoes, dresses, and bags all over Europe and, potentially, all across the globe in the medium term. Zalando strives to become a kind of universal source for fashion and lifestyle. Can this be achieved with a fashion party at Tempelhof? It’s about something else entirely. It’s about becoming “tangible” in the literal sense of the word and leaving the systemic anonymity of the sole online presence behind. The online world needs the offline world, especially in terms of emotions, feel, and even distinction. Even the most sophisticated logarithm cannot replace the quality that communication from person to person provides and cannot make emotions truly perceptible. However, this is exactly what is crucial for establishing a longterm relationship with customers. A huge lifestyle festival at Tempelhof, which will undoubtedly be a pop culture spectacle and place the core topic fashion in exactly that context, does not only guarantee significant media attention, but is also a first step towards Zalando transforming itself into a real and ultimately tangible brand. It doesn’t want a platform for (countless) brands, but a brand in its own right. Zalando equals fashion. THAT is the ultimate goal!

So what will the future hold in store? Zalando is, without a doubt, intensively deliberating how it can systematically increase its physical presence and perceptibility as a brand. The boring variant would be own stationary sales floors. A company like Zalando would unquestionably implement such a strategy with the utmost professionalism. Such a move wouldn’t create much of a buzz. It would, however, be massively expensive, especially when the aim is to establish a comprehensive network. Perhaps there is a completely different, more modern solution. Would it be conceivable that Zalando could establish partnerships with excellent, regionally established stationary retailers? I mean real partnerships, not assimilating takeovers. This would be an opportunity to combine the best of both worlds. Logistics, inventory risks, backlogs, etcetera - Zalando could more than just support partner stores regarding all the aforementioned issues. Let’s not forget Zalando’s purchasing power and the online/offline switch… In return, Zalando would gain access to credible, local human-to-human competence, as well as “showrooms” and service centres in every major city. Furthermore, it would gain access to a model that can be implemented easily and quickly in other markets. It doesn’t really matter whether Cara Delevingne can pronounce the city names or not. Maybe such a move would even solve the systemic problem of the online (fashion) retail industry: the return rate. It would afford the possibility of returning unwanted goods directly at a partner on location. At the same time, one could finally start charging for returns by mail. Yours, Stephan Huber stephan.huber@ucm-verlag.at

Publisher, editorial office, advertising department and owner UCM-Verlag B2B Media GmbH & Co KG Salzweg 17, 5081 Salzburg-Anif Austria T 0043.6246.89 79 99 F 0043.6246.89 79 89 office@ucm-verlag.at www.ucm-verlag.at

Management Stephan Huber Nicolaus Zott

Editors-in-chief Stephan Huber stephan.huber@ucm-verlag.at Martina Müllner martina.muellner@ucm-verlag.at

Art direction/production Elisabeth Prock-Huber elisabeth@ucm-verlag.at

Contributing writers Isabel Faiss Silke Bender Petrina Engelke Thesy Kness-Bastaroli Ina Köhler Kay Alexander Plonka Oliver Rauh Nicoletta Schaper Quynh Tran Dörte Welti Katharina Wohlfahrt

Photographers Norbert Baeres Oliver Rauh Peter Rigaud

Illustrators Claudia Meitert

Image editor Anouk Schönemann anouk.schoenemann@ucm-verlag.at

Advertising director Stephan Huber stephan.huber@ucm-verlag.at

Publisher’s assistant, distribution Sigrid Staber sigrid.staber@ucm-verlag.at Christina Hörbiger christina.hoerbiger@ucm-verlag.at

English translations Manfred Thurner

Printing sandlerprint&packaging 3671 Marbach, Austria

Printing coordinator Manfred Reitenbach

Next issue October 2015

44649 DAVID-TC HOODED PARKA IN DAVID-TC. BEGINNING WITH A LIGHT STAR-SHAPED POLYESTER/POLYAMIDE SUBSTRATE, GARMENTS IN DAVID-TC ARE SEWN AND THEN SIMULTANEOUSLY GARMENT DYED AND TREATED WITH AN ANTI-DROP AGENT. DURING THE DYE PROCESS, UNDER PRESSURE AT 130°C, THE FABRIC UNDERGOES HEAT INDUCED COMPRESSION, RADICALLY TRANSFORMING ITS HAND AND BODY FOR A TRULY UNIQUE TACTILE EXPERIENCE. PADDED WITH THE FINEST DOWN. DETACHABLE SHEEPSKIN HOOD LINING. FRONT POCKETS WITH DIAGONAL BUTTON FLAP. DIAGONAL CHEST POCKETS WITH HIDDEN ZIP FASTENING. HIDDEN ZIP FASTENING AND BUTTONS.