* Small firms struggle to get global reach

Fri Jun 22, 2012 11:05am EDT

(Corrects spelling of name throughout to de Royere, not de
Royer)

* Small firms struggle to get global reach

* Chinese customers attracted to big brand names

By Nina Sovich

PARIS, June 22 (Reuters) – Poupie Cadolle’s family has been
making handmade lingerie in a workshop on Rue Saint Honore for
five generations, with Qatari royals, American actresses and
Swiss bankers’ wives all crossing her doorstep in search of the
perfect bra or corset.

Now, with times tough and sales to French and American women
sluggish, Cadolle, like many small French luxury firms, finds
itself struggling to tap into a $191 billion global boom driven
by customers from emerging markets.

“The last four months have been difficult,” said Poupie
Cadolle, a small woman with a warm smile who spends her days
fitting 5,000 euro ($6,300) bustiers and 600 euro bras.

“We thought hard about how to get clients, beyond word of
mouth. It is not easy. We decided on going into Brazil, not
China.”

Unable to wield the financial firepower of conglomerates
such as LVMH, Richemont, or PPR, small
family-owned enterprises are finding modest and innovative ways
to attract new customers.

Some, like Cadolle, are choosing one country over another
and relying on invitation-only trunk shows and other private
events.

Others are opening stores in Hong Kong but not Shanghai,
while for a few the focus is on still rich markets in Japan and
the United States.

All are choosing carefully. The internet is not seen as a
route to market – few small luxury companies feel comfortable
selling goods online given the luxury experience is one where
items need to be handled to judge the quality and design.

“China is definitely the big prize and, by and large, the
customer there only wants big, recognizable brands,” said Pierre
Mallevays, a managing partner at Savigny Partners, a corporate
finance boutique specialising in luxury and retail.

“You cannot have a China-only market. For your brand to be
credible, the travelling Chinese will expect to see your stores
in Paris, Milan or New York.”

That kind of reach is difficult for smaller brands unable to
afford a presence in several European cities and major Chinese
cities where real estate prices are high, salespeople
increasingly scarce and the best distributors already engaged.

LVMH and other luxury giants, meanwhile, are tapping into
the Chinese market by scaling back in department stores and,
instead, opening giant flagship stores in large and mid-size
cities across the country.

Smaller European brands hope Chinese customers, as well as
the newly rich from Russia and central Asia, see the appeal of a
tasteful shop in Paris with an elite clientele in the French
tradition of discretion and craftsmanship.

Many are bringing design inhouse, eliminating suppliers and
ensuring clients know everything is handmade by French artisans.

“BIG, BIG, BIG”

This type of branding is vital to the appeal of French
luxury, yet it is not always easy to convince emerging market
clients that handmade is better. Many live in countries where
goods are only made in small shops out of necessity.

Corthay is a bespoke men’s shoe shop in the 2nd
arrondissement where Pierre Corthay works in the front room
making crocodile and elephant skin shoes that take six months to
complete and cost upwards of 3,000 euros.

It recently teamed up with Groupe Edmond de Rothschild to
sponsor a road trip for select clients through the Alps in
high-end sports cars. Chief executive Xavier de Royere said the
event was expensive for Corthay but worth it because it created
a sense of glamour around the brand.

“The Chinese do not always understand our store,” said
Royere, who joined from Louis Vuitton. “Small is not good there.
They want a big shop. Lots of options. Big prices. Big, big,
big.”

Royere, planning to open shops in Dubai and Hong Kong in
coming months, said he was in less of a hurry to go to China and
will not open there until 2013 at the earliest.

In the United States, the brand is confining itself to
department stores in New York, San Francisco and Beverly Hills
for the moment.

“We counsel companies to go to Hong Kong first. Learn about
the customer. Then go to mainland China,” said Ponsolle des
Portes, head of Comite Colbert, a luxury industry lobbying
group.

Chinese customers need to become acquainted with the notion
of truly high-end luxury, and smaller brands can still make a
lot of money from established markets, she said.

“It is hard to convince some Chinese women that she should
have wonderful undergarments,” said Poupie Cadolle. “This is not
a culture that even has nightgowns.”

Asia makes up 19 percent of the luxury market but is growing
faster than any other region, Bain research showed. By 2014, it
will be on a par with the Americas in size.

PRESENT BUT PRUDENT

Yet it will still lag Europe, the largest luxury market. And
while many customers in European shops may be tourists, small
companies still see money in established markets.

Luxury brand Camille Fournet began with watch straps and has
recently broadened out into handbags, wallets and pouches.

CEO Jean-Luc Dechery said opening a big store on stylish
Avenue Montaigne in Paris would lend the brand instant
credibility, but the cost was prohibitive.

Instead, he has invited well-heeled clients to a private
showing at the George V hotel at the end of June. Items sold
there, including a 34,000 euro alligator handbag, will not be
available in the store.

“We are hitting that good time during fashion week but
before Ramadan,” he said.

He remained mindful that half the brand’s clients in the
Paris store were French, and that a Chinese business will be
slow to start up. He is opening a store in Beijing this October.

“We want to be present,” said Dechery. “But also prudent.”

The advice is sound, say industry analysts, who note that
any change to the tax regime in China or Hong Kong could quickly
alter the dynamic and that the luxury market may be in a bubble
that could burst if the Asian market ever slowed down.

“Whenever companies tell me they are going abroad I ask one
question,” said Joelle de Montgolfier, a director in consultancy
Bain Co’s luxury practice. “Are you absolutely convinced that
French women have nothing more to spend?”
($1 = 0.7933 euro)

(Editing by Dan Lalor)

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Colin and Justin enjoy a little child’s play

Sifting, as we do each month, through the international mailbag sent via our U.K. and North American agents, we’re forever staggered by the mix of communiqués contained therein. Press events, product suggestions and invites are one thing (actually, make that three things), but it’s the design negative imagery we’re sent that really strikes a chord. As we mince and wince over snapshots of loathsome living rooms, bilious bathrooms and calamitous kitchens, we’re reminded that the world still has some way to go before design atonement is achieved.

And this month’s most frequently posted subject? Requests for advice on kids’ rooms and nurseries. Aye, it appears the stork has been extra busy of late and, consequently, making babies (babies’ rooms, that is) has become quite the CJ preoccupation.

Handily, we’ve first hand experience which makes it easy to talk about child-friendly environments. Indeed we once fitted out a fabulous nursery in our very own home. STOP. REWIND. Nursery? Well, we had to provide the perfect backdrop against which our baby could grow. Blimey, we can hear your minds working overtime as you absorb this statement. Yup, the aforementioned stork once flew over our Scottish pile to deliver Damien, our wonderful wee bundle of baby joy.

It all started after a gin-fuelled evening (doesn’t it always?) with American supermodel Caprice. Now we’ve got your attention! Supermodel? Believe us, there was absolutely NO biological element to this parenting situation. Caprice declared (while, ahem, chatting lingerie design, make-up tips and party frocks) that she’d never really considered motherhood, while we countered her pleadings, explaining how much we’d love the opportunity to become dads.

Hmm. What is it they say? “Be careful what you wish for.” Anyway, to cut a long story short, a TV production company at the time were scouting participants for a ground-breaking reality show and we were approached to take part in an experiment to “raise” an animatronics $150,000 baby over the course of a week-long observation. Several meetings later, Caprice was also on board and our — un-biological — gestation began.

Scared yet? Wondering how it all went? Well, over the course of a week Caprice managed to drop her baby on the floor (thereby dislocating one of his arms) and we almost poisoned ours by feeding him curdled milk. “But if he was a robot,” we hear you cry, “could he actually be poisoned?” Well, actually, yes. Notionally, at least; bear in mind we were under the watchful eye of a group of antenatal nurses and a child psychologist.

Our little lad could also pee and soil his diaper, these functions being controlled (to test us) by radio. Come to think of it, he did a mean line in projectile vomit and an even meaner line in ear splitting screams. Aye, he was a difficult mite to say the very least, but we shall never forget the time we cared for him. OK, so he wasn’t a real child. And OK, he was remotely controlled to drive us crazy. But, weird as it probably sounds, we bonded with little Damien. Or, rather, we bonded — and fell in love with — the notion of a blessing we shall probably never enjoy. But hey; that’s another story, for another time.

In the meantime, let’s get down to business. Kids’ rooms; we have experience. And, over the years, we’ve created many, using colour as our starting point. Shade selection is clearly personal and, while we appreciate the market is predisposed to pink and blue, white is our top tip as it makes a great back drop against which to add drama via subsequent, flexible layering.

But white? Well, if you’re worried about wee fingers leaving crayon or foodstuff smudges, try this; add a decorative border at waist height and use matt emulsion above, and gloss below. Et voilà — offending marks will vanish courtesy of a damp cloth. Another trick is to designate one area as a blackboard; simply paint with specialist product, allow it to dry, then give the little ’uns chalk and let them get stuck in. And when it’s time to clean up? Simply rub off the masterpiece and start again.

How about underfoot? In our Glasgow “nursery” we used floor paint on untreated boards and provided interest by blocking out slabs of brighter colour to delineate play areas and walk zones. If choosing carpet, select product that’s washable and stain repellent. Bright shades date, so make statements with decorative elements or rugs. It might even make sense to consider carpet tiles; these allow for damaged areas to be replaced should problems arise. Just remember to buy a few extra tiles and store them away carefully.

Lighting, too, is important and should remain subdued. As well as visiting specialist outlets, raid the aisles of a big box store, which carry great ranges that work well in junior domains. The secret to making lighting work (in adult or juvenile contexts) is a simple dimmer; with the twist of a button, mood can be adjusted to suit circumstances. Night feeds, for example, are better given against ambient backlight so as not to wake baby too much.

We’re frequently asked about “future proof” furniture — beds in particular, can be problematic, but worry not; the clever chaps at Room To Grow have addressed this head on with a selection of cribs that extend and convert as your child makes the transition from baby to teenager.

In a nutshell, the secret to a successful project is a clean and comfortable backdrop, one that can be modified (without fuss or expense) as time and tastes fluctuate. Our watch word, therefore, is flexibility. Kids’ passions switch frequently and the last thing you want is to face a complete gut down six months after your child springboards from Batman to Spiderman, or from Barbie to My Little Pony.

Safety First — Our Guide

For the most part, adults assess risk and exist in such a way as to avoid incidents. Children, however, particularly young ones, need safety to be considered for them so they can get on with the serious business of having fun. This in mind, let’s have a look at health and safety:

 • Tiny fingers are easily trapped in door hinges, so install plastic safety mechanisms; these fit easily and can be found in DIY chains.

 • Ensure window cords and blind chains are tucked out of harm’s way. Each year, sadly, deaths occur when children become trapped in the workings of “innocent” window apparatus.

 • Avoid trailing electrical flexes and protect plugs with childproof fronts.

 • Fit windows with secure locks that allow for ventilation yet limit opening without supervision.

 • We never install open fires or gas fires in kids’ rooms. We don’t even need to explain why.

 • If you have exposed radiators, we’d counsel they’re kept on a separate thermostat to restrict heat. If this isn’t possible, position a decorative safety screen in front to protect delicate digits.

 • Rugs on hard floors should have anti-skid mats positioned below to protect against slipping.

 • Avoid low-level shelves. These might seem appropriate, but they can be hazardous upon collision with little heads.

Before and after

What? Hello? Is this the lair of a young Freddy Krueger, or the result of a misguided attempt at child-friendly decor? The red hand effect, we’re sure you’ll agree, was a nightmare and indeed the polar opposite of that which might energize a young mind. Remedy, fortunately, lay just around the corner, aided and abetted by some white latex and a roller.

Fabric inspiration

Our design inspiration stemmed from the fabric we chose for the blind and the cushions. To save money, we reused the existing bed but padded the wooden frame with foam and then reupholstered it with the same material. We colour matched the paint to the fabric, and then created the magic with masking tape and a great deal of patience. The results speak for themselves and cost little more than a litre of each colour. Ikea carry a range of jaunty textiles that are fun, colourful and well priced, so head over and get creative.

All white on the night

We went all-out white with milky emulsion on the walls and satin white on the timber floor. To properly paint lumber, first sand down the surface, remove loose nails and then fill problem holes and cracks. Next, vacuum, wash the floor with sugar soap solution and apply several light coats of paint using a medium sized roller; this practice avoids brush marks.

Roll out the rug

To soften proceedings, while adding a splash of colour at floor level, we opted for a huge tufted circular rug. Our specification is gentle underfoot and looks fabulous. Who says carpets should be rectangular? Karhani, our favourite Canadian rug supplier, carries a staggeringly good selection so hit them up for inspiration.

Stash in a dash

Don’t let your little ’uns become next generation clutterers. Choose trunk storage solutions and ottomans with concealed stash zones and lose old, broken toys to stop space becoming a dumping ground with no sense of order. Setting standards such as these from a young age will promote good habits later in life. Fact.

Colin McAllister and Justin Ryan are the hosts of HGTV’s Colin Justin’s Home Heist and the authors of Colin Justin’s Home Heist Style Guide, published by Penguin Group (Canada). Follow them on Twitter @colinjustin or on Facebook (ColinandJustin). Check out their new candle and room spray ranges at candjhome.co.uk. Contact them through their website colinandjustin.tv.

Resources

Blackboard paint: The Home Depot, www.homedepot.ca

Wall paints: Para Paints, www.parapaints.com

Floor paint: International Paints, www.international-paints.co.uk

Building supplies: Rona, www.rona.ca

Fabrics for blinds and cushions and bedside lamps.: Ikea, www.ikea.ca

Foam supplies to pad headboard: Foamite, www.foamite.com

For extendable flexible beds and cots: Rooms to Grow, www.roomstogrow.ca

For a great source of rugs: Korhani, www.korhani.com

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