The FINANCIAL — Company Novo Group incorporating famous clothing brands: Mexx, Sisley, Mango and United Colors of Benetton, says that during 2009 their sales dropped by 18%. However the company plans to enlarge its branch network and sales figures this year.
“The global recession affected most business sectors. The clothes sector was no exception. A prolonged slump in consumer spending affected the volume of realization. Compared with previous years our realization dropped by 18% last year. However we still managed to keep our position on the market,” Maiko Burduli, Head of the Marketing Department of Novo Group, told The FINANCIAL.
Burduli says that since starting operation on the Georgian market, the most profitable period in terms of sales was till 2008.
“In 2010 we plan to broaden our chain and add new brands too,” Burduli said.
Novo Group was established in 2001 with Azeri and Georgian investments. At first it incorporated United Colors of Benetton, kids Benetton 012 and Sisley. In 2003 the company started importing Chicco products, in 2005 – Mexx, in 2006 – Lacoste, and in 2008 – Mango.
Currently Novo Group includes four international brands and six brand shops.
Burduli notes that out of the clothing brands incorporated in Novo Group the bestselling clothing brand is Mango.
“The main advantages of Mango compared with its competitors are that it is an international brand, with high awareness, accessible prices and is characterized with a variety of collections,” she says.
“Mango is a Spanish brand and we are importing products from Spain. Mexx is a Dutch brand, we are supplied by Hungary. Benetton and Sisley clothes are imported from Italy,” Burduli states.
The brands incorporated in Novo Group offer seasonal discounts to their customers. Sales are diversified. Winter discounts start from the middle of December. Summer discounts start from June, the second stage starts in July and the third – in August.
“At Mango we offer new collections to our customers almost every week. At Mexx and Benetton, every month. We start offering spring and summer collections from February. As for autumn and winter collections we start offering them from September,” Burduli says.
Spring sales usually peak in March and April and September and October in autumn.
Clothes brands Novo Group launched special discount cards Mybrand’s from November 1. Presently the number of Mybrand’s discount card owners is 1,500.
The annual advertising capital of Novo Group is approximately USD 90,000.
“The main messages we deliver through our advertising campaigns are information about new collections, discounts and special promo campaigns. We are mostly using radio, outdoor and online means of advertising,” Burduli says.
Novo Group is optimistic about 2010. “We hope that the total economic environment will be improved and subsequently that demand for our products will rise. Our prognoses are based on the current and forecasted economic and political stability,” Burduli told The FINANCIAL.
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