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“This [travel retail] sector performs exceptionally well for Bally, so we continue to invest in expansion and location improvements“ |
Berndt Hauptkorn, CEO, Bally |
SWITZERLAND. One evening during the TFWA World Exhibition in Cannes last month, Berndt Hauptkorn quietly took his seat on the top table at a gourmet dinner organised by Bally for key clients. His presence at travel retail’s premier event took place just before the Swiss luxury goods house announced that he would move from his position as CEO of LABELUX Group to become the CEO of Bally from 1 November, 2009.
Hauptkorn is part of the team that set up the LABELUX Group in 2007. As CEO, he helped build the group’s portfolio to include Bally, Solange Azagury-Partridge, Derek Lam and Zagliani. He is now steering the Bally brand to the next level, the company said in the announcement of his appointment, and he will focus on the product categories of shoes, bags and ready-to-wear.
Hauptkorn took time out of his hectic travel schedule in Asia – where the brand has just celebrated the opening of its third boutique in Singapore – to speak to The Moodie Report. In the interview below, he reveals how important the travel retail channel is to Bally, and how he sees the future.
How has Bally been affected by the recession?
Actually we are on par with our expectations and are currently trading flat versus previous year; we are notably performing above market in Japan, Asia and in the travel retail sector. Initial results on the Autumn/Winter 09 collection, particularly in the US, are very positive.
What is your strategy going forward?
The LABELUX Group acquired Bally last year. The strategy for all the brands is for long-term growth and stability. For Bally specifically we want to continue to ensure the focus is on the quality and craftsmanship of this long-standing Swiss luxury house.
Do you think the luxury consumer has changed since the Lehman Brothers collapse? If so, how?
I believe the collapse has made everyone a little more cautious; rather than seeing a serious drop in spending however, we notice that consumer taste has become more conservative, quite classic.
How will Bally target today’s luxury consumer?
It is important for Bally to stay true to its DNA and continue to offer the highest possible quality and craftsmanship; Bally’s clientele trust in the product reliability.
How important is the Chinese market? Do you plan to expand in China?
The Chinese market is very important to Bally: we have been present there since the 1980s and currently have 49 freestanding boutiques in China alone as well as 12 in Hong Kong. Rather than expansion we are really looking to improve the quality of the network, both in locations and store fittings.
How is the Asian market as a whole performing? What are the current hot spots?
As a whole, the Asian market, including southeast Asia and Australia, is our best performing region. We just celebrated the opening of our third boutique in Singapore at ION Orchard, and at over 6,000sq ft it is our largest Asian boutique to date.
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Leathergoods from the Autumn/Winter 09 collection | |
How are the European and American markets performing? Are you planning any expansion in these mature markets?
Bally’s home market of Switzerland has always performed exceptionally well. Europe and the US are currently performing flat versus the previous year; these mature markets have great growth potential, and we are taking a steady approach to building these regions up.
How important is the travel retail sector to the company?
Incredibly important! This sector performs exceptionally well for Bally, so we continue to invest in expansion and location improvements.
What are your plans for travel retail?
2009 has marked a year of continued growth for Bally in the travel retail sector, as witnessed by the
opening of new locations in New York Newark and Guangzhou Baiyun airports. Bally has always understood the importance of its airport locations; they truly act as international brand ambassadors, and therefore are well looked after.
2009 has seen the unveiling of newly refurbished stores in two of our longest running and most prestigious locations: London Heathrow Terminal 4 and Hong Kong International Airport. These two locations, open respectively for 20 and 10 years, have been pivotal in establishing Bally as one of the all-time best-selling travel retail luxury labels.
Currently there are plans to open additional locations in Germany, Egypt, North America, China and Indonesia in 2010.
LABELUX Group strategy
What is the strategy of the LABELUX Group as a whole?
The LABELUX Group goal has remained constant, to build a multi-brand group, where every brand is given strong foundations for solid growth. Our acquisition strategy targets companies with rich, long-standing heritage as well as up-and-coming brands led by superior design talent, looking for financial, strategic and operational guidance, in order to establish long-term profitable growth.
Do you plan to buy more brands?
The LABELUX Group is maintaining talks with potential candidates; however, there is no hurry. The group is under no pressure to make acquisitions.
MORE STORIES ON BALLY
Bally names Berndt Hauptkorn as new CEO – 30/10/09
Bally to debut exclusive products for DFS – 22/04/09
